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A Forrester Total Economic Impact Study Commissioned By AdobeJuly 2020The Total EconomicImpact Of MarketoEngageBusiness Benefits And Cost SavingsEnabled By Marketo Engage
Table Of ContentsExecutive SummaryKey Findings11TEI Framework And Methodology4The Marketo Engage Customer JourneyInterviewed Organizations55Key Challenges5Key Results6Composite Organization6Analysis Of BenefitsIncreased Customer Engagement77Improved Lead ConversionEnhanced Marketing Team Productivity10Avoided Marketing Support Costs12Unquantified Benefits13Flexibility13Analysis Of CostsMarketo Engage Installation And Subscription CostInternal Team To Support Marketo EngageFinancial SummaryAppendix A: Total Economic ImpactAppendix B: EndnotesProject Director:Jennifer AdamsAssociate Consultant:Caitlyn Hoeflin9151516171819ABOUT FORRESTER CONSULTINGForrester Consulting provides independent and objective research-basedconsulting to help leaders succeed in their organizations. Ranging in scope from ashort strategy session to custom projects, Forrester’s Consulting services connectyou directly with research analysts who apply expert insight to your specificbusiness challenges. For more information, visit forrester.com/consulting. 2020, Forrester Research, Inc. All rights reserved. Unauthorized reproductionis strictly prohibited. Information is based on best available resources.Opinions reflect judgment at the time and are subject to change. Forrester ,Technographics , Forrester Wave, RoleView, TechRadar, and Total EconomicImpact are trademarks of Forrester Research, Inc. All other trademarks are theproperty of their respective companies. For additional information, go toforrester.com.
Executive SummaryKey BenefitsIncrease customer engagement: 4.5 millionImprove lead conversion: 9.3 millionMarketers look to technology to collect data, generate insights, targetaudiences, and deliver relevant interactions to continuously improve andenhance customer engagement.1 More targeted and relevant contenthelps push leads over the hump into sales wins. Forrester has found thatB2B companies using marketing automation solutions grow revenue fasterthan their competitors do.2 Forrester is also seeing increased adoption ofthese solutions in B2C use cases, especially where high-considerationpurchase decisions (and the complexity they bring) require an approachmore akin to B2B marketing than traditional B2C marketing.Adobe’s Marketo Engage aligns marketing and sales throughout thecustomer journey. The platform offers lead nurturing, account-basedmarketing, personalization, cross-channel engagement, and marketingmeasurement to help companies create marketing that resonates withcustomers and enhances customer experiences. It is used across a rangeof industries including technology, financial services, healthcare, businessservices, manufacturing, and education. Forrester named the platform aleader in the most recent Forrester Wave : B2B Marketing AutomationPlatforms vendor evaluation.3Adobe commissioned Forrester Consulting to conduct a Total EconomicImpact (TEI) study and examine the potential return on investment (ROI)enterprises may realize by deploying Marketo Engage. The purpose of thisstudy is to provide readers with a framework to evaluate the potentialfinancial impact of the platform on their organizations.To better understand the benefits, costs, and risks associated with thisinvestment, Forrester interviewed several customers with years ofexperience using Marketo Engage. The platform helped the interviewedcompanies manage the B2B customer journey, which increased customerengagement and improved lead conversion to grow revenue.Enhance marketing teamproductivity:25%Prior to using Marketo Engage, the customers typically used legacymarketing automation solutions with limited flexibility. The marketing teamsdevoted significant time to manual work on email campaigns and contentlanding pages, and the companies had limited visibility into theircustomers’ buyer journeys.With Marketo Engage, the marketing teams could now redirect theirenergy toward higher-value work driving customer engagement. Withincreased visibility into the customer buyer journey, the marketersidentified content and messaging to resonate at each stage of the buyerjourney. Marketo Engage helped the sales teams identify the mostpromising leads and turn them into sales wins. The companies easilyintegrated Marketo Engage with their CRMs and other marketing tools.Key FindingsQuantified benefits. The following risk-adjusted present value (PV)quantified benefits are representative of those experienced by thecompanies interviewed:1 The Total Economic Impact Of Marketo Engage
ROI267%Benefits PV 15.7 millionNPV 11.4 millionPayback,postinstallation 3 months› Increased customer engagement, 4.5 million benefit. With MarketoEngage, the interviewed customers used audience segmentation andpersonalization tools to develop more-effective marketing campaignsand increase customer engagement. Marketo Engage leverages artificialintelligence (AI) to push the most relevant content to each customer. Foremail marketing campaigns, open rates improved 20% and click throughrates improved 15%. Customer attendance at events and webinarsincreased 33% and 50% respectively.› Improved lead conversion, 9.3 million benefit. Through revenueattribution and other means, Marketo Engage helped the companiesunderstand what content and channels to emphasize at each stage ofthe customer journey. This enabled the companies to increaseconversion of marketing qualified leads (MQLs) to sales qualified leads(SQLs) by 25%. The companies integrated Marketo Engage with theirCRMs, further helping the sales teams to focus their efforts effectively.› Enhanced marketing team productivity by 25%. With MarketoEngage, the marketing teams spent less time on manual tasks. Theyinstead focused on higher-value activities to help drive customerengagement and revenue. Marketing team productivity improved 25%.› Avoided marketing support costs, 1.2 million benefit. Theinterviewed companies were able to bring vendor services in house afterdeploying Marketo Engage, saving outsource fees.Unquantified benefits. The interviewed organizations experienced thefollowing benefits, which are not quantified for this study:› Quickly repivoted marketing campaigns. With Marketo Engage,marketers were able to quickly assess marketing campaigneffectiveness and repivot campaigns if needed. This allowed thecompanies to use their marketing dollars more effectively.› Enabled cross-channel coordination. Marketers used MarketoEngage to manage cross-channel marketing. The platform allowed theinterviewed companies to easily set up triggers or dynamic campaigns tolaunch additional content. For example, with Marketo Engage,customers who attended an event received relevant product follow-upinformation. Website visitors received emails with custom contentdepending on which parts of a website they visited or their search topics.› Supported secondary marketing use cases. Some interviewedcompanies used Marketo Engage for multiple use cases (i.e. B2B andB2C), but for purposes of this study, only the benefits of their primaryuse case are quantified.Costs. The interviewed organizations experienced the following riskadjusted PV of three years of costs:› Marketo Engage installation and subscription cost, 1.9 million.The interviewed companies used third-party professional services firmsto help set up Marketo Engage. They also paid ongoing annual fees forthe platform.› Internal team to support Marketo Engage, 2.4 million. A crossfunctional team of five demand-marketing and marketing operationsprofessionals was dedicated to support Marketo Engage.2 The Total Economic Impact Of Marketo Engage
Forrester’s interviews with six existing customers and subsequent financialanalysis found that an organization based on these interviewedorganizations would experience benefits of 15,686,458 over three yearsversus costs of 4,269,752, adding up to a net present value (NPV) of 11,416,230 and an ROI of 267%.Benefits (Three-Year)Financial Summary 9.3MPaybackperiod: 3 months 4.5MTotalbenefitsPV, 15.7M 744.2KTotalcosts PV, 4.3MInitialYear 1Year 23 The Total Economic Impact Of Marketo EngageYear 3Increasedcustomerengagement 1.2MImproved leadEnhancedAvoidedconversion marketing team marketingproductivitysupport costs
TEI Framework And MethodologyFrom the information provided in the interviews, Forrester has constructeda Total Economic Impact (TEI) framework for those organizationsconsidering implementing Marketo Engage.The objective of the framework is to identify the cost, benefit, flexibility, andrisk factors that affect the investment decision. Forrester took a multistepapproach to evaluate the impact that Marketo Engage can have on anorganization:DUE DILIGENCEInterviewed Marketo Engage stakeholders and Forrester analysts togather data relative to Marketo Engage.The TEI methodologyhelps companiesdemonstrate, justify,and realize thetangible value of ITinitiatives to bothsenior managementand other keybusinessstakeholders.CUSTOMER INTERVIEWSInterviewed six organizations using Marketo Engage to obtain data withrespect to costs, benefits, and risks.COMPOSITE ORGANIZATIONDesigned a composite organization based on characteristics of theinterviewed organizations.FINANCIAL MODEL FRAMEWORKConstructed a financial model representative of the interviews using theTEI methodology and risk-adjusted the financial model based on issuesand concerns of the interviewed organizations.CASE STUDYEmployed four fundamental elements of TEI in modeling MarketoEngage’s impact: benefits, costs, flexibility, and risks. Given the increasingsophistication that enterprises have regarding ROI analyses related to ITinvestments, Forrester’s TEI methodology serves to provide a completepicture of the total economic impact of purchase decisions. Please seeAppendix A for additional information on the TEI methodology.DISCLOSURESReaders should be aware of the following:This study is commissioned by Adobe and delivered by Forrester Consulting. Itis not meant to be used as a competitive analysis.Forrester makes no assumptions as to the potential ROI that otherorganizations will receive. Forrester strongly advises that readers use their ownestimates within the framework provided in the report to determine theappropriateness of an investment in Marketo Engage.Adobe reviewed and provided feedback to Forrester, but Forrester maintainseditorial control over the study and its findings and does not accept changes tothe study that contradict Forrester’s findings or obscure the meaning of thestudy.Adobe provided the customer names for the interviews but did not participate inthe interviews.4 The Total Economic Impact Of Marketo Engage
The Marketo Engage Customer JourneyBEFORE AND AFTER THE MARKETO ENGAGE INVESTMENTInterviewed OrganizationsFor this study, Forrester conducted six interviews with Marketo Engagecustomers. Interviewed customers include the following:› A US telecom services company with 24 billion of annual revenue and45,000 employees. Fifty employees use Marketo Engage to supportboth B2B and B2C marketing.› A global technology company with 54 billion of annual revenue and54,000 employees. Approximately 40 employees use Marketo Engageto support both B2B and B2C marketing.› A global cybersecurity company with 3 billion of annual revenue and7,000 employees. Seventy-five employees use Marketo Engage tosupport B2B marketing.› A software company operating in the US and Europe with 12,500,000of annual revenue and 1,100 employees. Twenty-five employees useMarketo Engage to support B2B marketing.› A US software company with 200 million of annual revenue and 800employees. Thirty employees use Marketo Engage to support B2Bmarketing.› An Asian health and lifestyle company with 10 million of annualrevenue. Fifteen employees use Marketo Engage to support B2Cmarketing.Key ChallengesPrior to their investments in Marketo Engage, the interviewed companieshad the following challenges:› The companies had limited visibility into their customers’ buyerjourneys. The companies did not have integrated views of thecustomer across their customer lifecycles. The legacy marketingplatforms did not easily support audience segmentation, lead scoring,lifecycle modeling, advanced prospect targeting, and marketingattribution.› Lead nurturing was limited. The companies did not fully understandwho was in their customer databases and how to classify them. Thismade it challenging to understand what content would resonate witheach customer and when to reach out. It often took several months tofollow up on the initial contact with a lead.› Content was not personalized. It was challenging to get personalizedand custom content to the right targets and customers at the right time.› The marketing teams spent a lot of time on back-office work.Before Marketo Engage, the marketing teams spent a lot of timecoding emails and developing landing pages.› The legacy platforms were difficult to use. The interviewedcompanies found their existing legacy marketing automation platformsto be difficult to use and inflexible.5 The Total Economic Impact Of Marketo Engage“Our prior platform was moredifficult to use. It required moresupport and morehandholding. It wasn’tintegrated with the rest of ourtools.”Director of demand center,technology
Key ResultsThe interviews revealed that key results from the Marketo Engageinvestment include:› Marketo Engage enhanced B2B customer engagement at multipletouchpoints. The companies used Marketo Engage across the B2Bmarketing and sales cycle to improve customer engagement andultimately drive increased conversion rates.› Marketo Engage improved audience segmentation, lead nurturingand lead management. The platform helped the companiesunderstand and effectively segment their customers. This helpedensure that they sent the right content to the right customers at theright stages. It was easier to ensure they customized content to driveengagement.› Sales team effectiveness improved. Marketo Engage activity datahelped the companies understand customer intent at each stage of thebuyer journey. The companies used account-based marketing to growoutreach to key target accounts. They also used Marketo Engage datato update lead scoring to identify the best leads. The sales teams couldnow focus on who to call, which helped their close rates.› Marketing teams spent more time on higher value-added work.The companies automated more marketing communications and themarketing teams spent less time building email campaigns and landingpages. They shifted their focus to tasks that could drive revenue, suchas reevaluating lead scoring and measuring marketing effectiveness.› Marketing teams could quickly pivot campaigns if necessary.Marketing teams could quickly identify the problem if a campaignwasn’t working and modify the content.› Marketo Engage easily integrated with CRMs and other marketingtools. The companies easily integrated Marketo Engage with theirCRM systems and marketing tools. The platform also complementsother Adobe Experience Cloud applications such as Adobe ExperienceManager and Adobe Analytics.“We do the majority of ourmarketing out of Marketo,whether it’s email campaigns,event campaigns, or webinarswith full integration with oursales and customer successteams.”Senior manager of marketingoperations, software“Marketo is the keystone to howwe work as a marketingorganization. We are so happywith the relationship. We lovethis vendor. Their support isactive, they are helpful.Sometimes we need very quicksupport if we do somethingfunky, and they’re responsive.This relationship is going to be along-term one for us.”Senior director of demandgeneration, cybersecurityComposite OrganizationBased on the interviews, Forrester constructed a TEI framework, acomposite company, and an associated ROI analysis that illustrates theareas financially affected. The composite organization is representativeof the six companies that Forrester interviewed and is used to presentthe aggregate financial analysis in the next section. The compositeorganization that Forrester synthesized from the customer interviewshas the following characteristics:Key assumptions 10 billion revenueDescription of composite. The composite organization is a globalB2B organization with 10 billion of annual revenue and 20,000employees. Its average customer order value is 50,000.B2B focusDeployment characteristics. The company uses Marketo Engage toautomate, manage, and track B2B customer and prospect interactionsacross a broad array of touchpoints, including marketing campaigns,webinars, and customer events. The company also uses MarketoEngage for its B2C marketing programs and integrates the platformwith its CRM. Forty employees use Marketo Engage, and 15 are powerusers.40 Marketo Engage users6 The Total Economic Impact Of Marketo Engage
Analysis Of BenefitsQUANTIFIED BENEFIT DATA AS APPLIED TO THE COMPOSITETotal BenefitsREF.BENEFITYEAR 1YEAR 2YEAR 3TOTALPRESENTVALUEAtrIncreased customer engagement 1,792,691 1,792,691 1,792,691 5,378,074 4,458,158BtrImproved lead conversion 3,750,000 3,750,000 3,750,000 11,250,000 9,325,695CtrEnhanced marketing teamproductivity 299,250 299,250 299,250 897,750 744,190DtrAvoided marketing support costs 285,000 570,000 570,000 1,425,000 1,158,415Total benefits (risk-adjusted) 6,126,941 6,411,941 6,411,941 18,950,824 15,686,458Increased Customer EngagementMarketers use Marketo Engage for lead nurturing, personalization, andaudience segmentation to better understand their customers and tocreate marketing messaging that resonates with customers andimproves customer engagement. The platform leverages AI to push themost relevant content to each customer. The composite organizationnow has a more engaged customer database. Email open rates andclick-through rates are higher, and email opt-out rates are lower. Formfills have improved.The table above shows the total of allbenefits across the areas listed below,as well as present values (PVs)discounted at 10%. Over three years,the composite organization expectsrisk-adjusted total benefits to be a PVof more than 15.7 million.› Lead nurturing: “Marketo is most valuable for lead nurturing andmanagement to make sure our leads are dripped through appropriatecampaigns with timing and content that makes sense.” – Seniordirector of demand generation, cybersecurity› Personalization: “We love the [Marketo] web personalization tools.They give us the ability to connect directly to our digital properties andcustomize different messages on different parts of our websites. Wecan show a piece of relevant content based on previous interactions.”– Senior manager of marketing operations, software› Audience segmentation: “Marketo’s audience segmentation is supervaluable. We have a portfolio of products, and it makes sure that weunderstand who’s who and what they are interested in.” – Seniordirector of demand generation, cybersecurityThe composite organization uses Marketo Engage to manage customerengagement across multiple touchpoints. Key touchpoints include but arenot limited to email marketing campaigns, events, and informationalwebinars. For the composite organization, Forrester assumes that:› The organization runs 500 email marketing campaigns per year. Eachcampaign reaches out to 50,000 customers on average. MarketoEngage’s AI helps put the most relevant content in front of customers.› Before using Marketo Engage, the composite organization’s emailopen rate was 12% and the click-through rate was 3.5%. Afterdeploying the platform, the organization saw a 20% improvement in itsemail open rate to 14.4%. The email click-through rate improved by15% to 4.0%. The organization gained an incremental 39,900 engagedcustomers per year due to the more targeted email campaigns.7 The Total Economic Impact Of Marketo Engage“We use Market
Improved Lead Conversion 9 Enhanced Marketing Team Productivity 10 Avoided Marketing Support Costs 12 Unquantified Benefits 13 Flexibility 13 Analysis Of Costs 15 Marketo Engage Installation And Subscription Cost 15 Internal Team To Support Marketo Engage 16 Financial Summary 17 Appendix A: Total Economic Impact 18
