The Total Economic Impact™ Of Listrak Email Marketing Solutions:
In March 2010, Listrak commissioned Forrester Consulting to examine the total economic impact and potential return on investment (ROI) enterprises may realize by deploying its Email Marketing Solutions. The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Listrak’s Email Marketing Solution on their organizations.
Listrak’s Email Marketing Solution Generates Incremental Sales
Forrester’s interviews with four existing customers and subsequent financial analysis found that a composite
organization based on these companies experienced the risk-adjusted ROI, costs, and benefits.
TEI Approach
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
The TEI methodology consists of four components to evaluate investment value: benefits, costs, risks, and flexibility.
TEI Benefits
Benefits represent the value delivered to the user organization — IT and/or business units — by the proposed product or project. Often product or project justification exercises focus just on IT or marketing cost and cost reduction, leaving little room to analyze the effect of the technology on the entire organization. The TEI methodology and the resulting financial model place equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the technology on the entire organization. Calculation of benefit estimates involves a clear dialogue with the user organization to understand the specific value that is created. In addition, Forrester also requires that there be a clear line of accountability established between the measurement and justification of benefit estimates after the project has been completed. This ensures that benefit estimates tie back directly to the bottom line.
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