Forrester Does The Math On Kbot: Three-Year 701% ROI
Contextual guidance can be a highly effective way to help customers make a more successful and satisfying digital journey. Companies use this approach to anticipate potential customer uncertainty or other issues, and offer proactive help to ease the path to purchase. It’s easy to understand how that can benefit both the customer and the business—but what does it mean in dollars in cents? That’s the question Forrester Consulting took on in a recent commissioned Total Economic Impact™ (TEI) study.
Based on interviews with customers who have years of experience with Moxie’s Kbot® contextual guidance application, the Forrester TEI study is designed to help organizations evaluate the solution for their own needs by understanding the ROI they can hope to achieve. The value of the investment is also assessed by Forrester in terms of benefits, costs, risks, and flexibility. In other words: would Kbot pay off for your business?
What Kbot Replaces, and Why
Before adopting Kbot, most of the customers in the Forrester study relied on in-house development to enhance the digital customer experience. This wasn’t very effective; these companies found the approach costly and ineffective with limited impact on key metrics like conversions, contact volume, abandonment, and return and cancellation costs.
With Kbot, nontechnical team members from digital product, marketing, or contact center groups took the lead on optimizing the digital customer experience without help from IT. They also got it done a lot faster, accelerating development from 3 – 4 weeks to around two days. Once implemented, customers found that they could engage a higher percentage of site traffic, boost conversions, reduce customer contact volume, and lower return and cancellation rates. The solution was easy to implement while reducing the need to rely on remarketing solution. Both customers and employees experienced increased satisfaction.
But enough narrative—what about the numbers? The quantified benefits uncovered in the TEI study show a dramatic impact on a company’s business performance and financials. The results are for a composite organization based on the interviewed customers.
What Went Up
- Average conversion rates increased by 6 percentage points
- Each consumer engagement with Kbot led to an additional $0.54 in profit
- Profit growth from increased conversion rate attributed to Kbot valued at $4M
- Profit growth related to the lifetime value of newly acquired customers valued at $1.7M
What Went Down
- Cost savings from reduced returns worth $2.6M
- Efficiency gains due to decreased customer contact volume yielded $647,643 in savings
- Reduced internal development time meant avoiding $422,885 in costs
Add it all up, and the bottom-line impact for a typical Kbot customer amounts to $8,144,868 over three years. That’s an ROI of over 700% over three years—a number that speaks for itself.
Want to know more about the potential economic impact of Kbot for your business? Read the whole Forrester TEI study here.