A Forrester Consulting Study: The Total Economic Impact™ Of Listrak Email Marketing Solutions

Executive Summary

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 shown in Table 1.

Benefits. Based on the interviews with four customers, Forrester identified the following benefits for the composite organization:

• Incremental gross revenue from email marketing. By using Listrak’s Email Marketing Solutions, interviewed customers were able to create a series of email marketing campaigns. Deploying regular email campaigns helped the organizations build relationships with new and existing customers and sites. Interviewees noticed that interactions with email campaigns contributed to additional conversions over and above the regular threshold of site conversions.
• Shopping cart abandonment revenue recovery. Along with the focus on conversion rate and improvement in sales, our interviewees also aimed at reducing the cart abandonment rate of their Web site. By using Listrak’s shopping cart abandonment solution, these organizations were able to contact users with email addresses on file to encourage them to buy items they had abandoned in their shopping cart. Organizations using the shopping cart abandonment solution not only realized a greater number of conversions but also experienced higher order values as a result of the email campaign.
• Incremental sales leading from email confirmation. Several interviewees implemented Listrak’s email confirmation solution to provide receipt of purchase. In such emails, organizations can include targeted recommendations of products or services to upsell recipients. These emails also led to an increase in sales and improvement in customer retention.
• Incremental revenue from Purchase Cadence Optimization Solution: As interviewees expanded their use of Listrak’s email marketing solution to include Purchase Cadence Optimization, Listrak helped them identify additional ways to improve sales. This proactive purchase prompting email solution helped organizations that offered replenishment products create a consistent cash flow.
• Elimination of unnecessary resources. By using Listrak’s Email Marketing Solutions, our interviewees were able to eliminate the need to create a dedicated position to support email marketing efforts, allowing for reduction in overhead cost.

Costs. Our interviewees also experienced the following costs:

• Software license fees. Software license fees and usage fees make up approximately 43% of the investment in Listrak’s Email Marketing Solution.
• Professional fees. Our interviewees found that utilizing Listrak professional services — like back-end systems integration or strategy — improved their benefits.
• Planning, training, and ongoing management fees. These are internal costs involved in effectively communicating and identifying business objectives to the Listrak team, training internal resources, and offering any ongoing management necessary to ensure the success of the program.

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