February 17, 2022 | Authored by: Vindicia Team Blogs
Forrester Total Economic Impact™ Study: Vindicia can deliver customers up to 522% ROI over 3 years
We are pleased to announce the findings of a Forrester Consulting Total Economic Impact™ (TEI) study, which evaluated Vindicia on the quantity of business benefits and cost savings enabled by Vindicia’s customer retention solution, powered by machine-learning. Vindicia commissioned the study to gain insight into the potential return on investment we can deliver for customers and learn how we can serve them better.
Forrester researchers created a framework to identify the costs, benefits, flexibility, and risk factors that a subscription business could expect when investing in Vindicia Retain for their organizations. The Forrester multistep approach consisted of interviews with four current Vindicia customers to gather data relative to Retain. Based on the interviewed customers’ organizations, Forrester constructed a composite organization that could expect to experience benefits worth a total of $24.55 million and incur costs of $3.9M over a three-year period. Forrester reported a three-year net present value of $20.6 million and an ROI of 522%, with break-even in less than six months.
The Forrester study lists the following benefits, worth a total of $24.55 million over three years:
- Increased revenue of $16.6 million from successfully recovering payment transactions. Vindicia enabled customers to prevent passive churn and recover revenue they would otherwise have lost to false declines. Our solution’s ability to enable companies who bill subscribers on a monthly basis to recover revenue from legitimate, authorized transactions brought $16.6 million in revenue for a composite organization.
- Extended customer lifecycle value worth $7.6 million in revenue. Vindicia helped customers keep their subscriber bases connected to their services longer. For a composite organization, extending the customer lifecycle value by 5 months created $7.6 million in revenue.
- Cost savings from enhanced customer service and recovery payment team efficiencies worth $387K. Vindicia improved customers’ payment team efficiencies by replacing manual processes to recover lost payments. This translated to customer service and recovery payment team efficiencies of 15% and saved the composite organization $387K. Based on the customer interviews, Forrester found that the composite organization would take six weeks to plan and implement Vindicia while smaller organizations may not take as long. In as soon as six weeks, businesses can begin to reap benefits from Vindicia.
The Forrester study also reported interviewed customer benefits on top of those quantified above:
- Continuity of service. By resolving passive churn and failed payments, Vindicia provides a continuity of service to subscribers who would’ve otherwise lost access to their subscriptions. In turn, subscribers gain more value out of their subscriptions.
- Savings on customer acquisition costs which enables focus on net new growth. Vindicia saves businesses on CAC by keeping more of the existing subscriber base connected to the subscription platform. With more active users who stay subscribed month-to-month, the need to acquire new subscribers to replace lost subscriber diminishes.
- Improved cash flow efficiency. Vindicia helps businesses achieve net new growth at a faster rate using fast payment settlement speeds that increase time value of money.
- Recovering payments across multiple regions/geographies. Vindicia navigates the complexities of payment regulations and compliance standards specific to each region and geography in the world. It recovers payments across multiple regions that demand unique payment recovery strategies. Supporting necessary compliance at all levels and geographies, Vindicia helps subscription businesses expand globally as a result.
Overall, we are delighted to be able to prove that Vindicia has been delivering a meaningful impact in the areas our customers care about most. As we constantly strive to improve and enrich the lives of business leaders who use our product, we continue to do our own research and reviews by listening to customers’ feedback. Data and user sentiment about our product are top of mind, proving instrumental in helping us deliver greater revenue impact to users.
To access the full study, The Total Economic Impact™ of Vindicia Retain, click here.
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