It may be the question that IT leaders contend with more than any other before making any significant technology-related purchase: what is our expected return on investment? It’s a fair question. After all, careers (and sometimes businesses) are made and lost based on mission critical technology investment decisions.
That’s why we commissioned Forrester to conduct a study to ascertain the Total Economic Impact (TEI) of Salesforce Commerce Cloud. To determine TEI, Forrester interviewed Commerce Cloud customers based in multiple global locations and selling a variety of merchandise categories. Prior to using Salesforce Commerce Cloud, the interviewees used varying legacy ecommerce platforms, and were struggling with scalability issues, lack of growth, and limited teams.
After re-platforming with Salesforce Commerce Cloud, the customers reported the following quantified benefits:
Improved sales performance from out-of-the-box capabilities of Salesforce Commerce Cloud’s core functionality and toolkit. The composite organization, based on the companies interviewed, saw increased annual revenue growth of 35%. Organizations also reported a 5% lift in average order value (AOV) and a 28% lift in conversion rates with their Salesforce Commerce Cloud deployment.
Sales lift attributed to predictive intelligence and recommendations through Salesforce Einstein. Organizations reported a 20% lift in attributable revenue with their deployment of predictive intelligence and recommendations through Einstein. We have published case studies on Icebreaker and Skis.com, which have all seen significant revenue lift from their use of Einstein. (note: these companies did not participate in the Forrester TEI study)
IT cost savings from moving to a SaaS model. Organizations reported at least a 35% reduction in overall solution support and system administration costs by moving to Salesforce Commerce Cloud from their legacy platforms. Organizations also reported a 50% reduction in project costs to roll out new sites and implement major upgrades.
Increased agility, stability and operational efficiency for digital teams. Native capabilities and the advantages of a SaaS architecture enabled digital teams to be more agile, resulting in a 50% productivity increase for marketers, merchants, and IT resources supporting ecommerce.
Faster time-to-value with Salesforce’s SaaS model. Organizations could launch new ecommerce sites faster than in their previous platforms. Organizations reported a 33% reduction in time-to-market with Salesforce Commerce Cloud.
Value from Retail Practice and Customer Success service offerings. Organizations optimized their sites and saw improved performance from consulting and site optimization services with Salesforce.
On this topic, we recently published a blog post written by the CIO of lifestyle brand Kendra Scott, who said that our subject matter experts “not only did a site readiness assessment and checklist, they made sure we knew how to drive the car before they left us to our own devices with the launch. If that wasn’t enough, a mere six weeks after going live, the Retail Practice team was already helping us to optimize the site by implementing best practices on search, product detail pages and checkout. I didn’t have to ask for these services.”
For a much deeper dive into the TEI of Salesforce Commerce Cloud, including detailed analyses of investment costs and, the business value of the platform, download the full study.