The Total Economic Impact of Salesforce Marketing Cloud

oud” The Total Economic Impact™ Of Salesforce Marketing Cloud Cost Savings And Business Benefits Enabled By Marketing Cloud JANUARY 2023 A FORRESTER TOTAL ECONOMIC IMPACT™ STUDY COMMISSIONED BY SALESFORCE

Table Of Contents Consulting Team: Courtenay O’Connor Executive Summary ................................................. 1 Veronica Iles Nahida Nisa The Salesforce Marketing Cloud Customer Journey ..................................................................... 6 Key Challenges ...................................................... 6 Why Salesforce? .................................................... 8 Composite Organization ......................................... 9 Analysis Of Benefits .............................................. 10 Incremental Profit From Improved Customer Engagement ......................................................... 10 Incremental Profit From Improved Email Journeys ............................................................... 13 Incremental Profit From Improved Website Engagement ......................................................... 16 Marketing Spend Efficiency From Business Process Automation And Optimization ................. 18 Efficiencies In Email Marketing Campaigns ......... 20 Unquantified Benefits ........................................... 23 Unquantified Benefits For A B2B Organization .... 25 Flexibility ............................................................... 27 Analysis Of Costs .................................................. 28 Salesforce Subscription, Fees, And Consulting ... 28 Deployment And Change Management ............... 30 Ongoing Administration ........................................ 32 Financial Summary ................................................ 33 Appendix A: Total Economic Impact ................... 34 Appendix B: Endnotes .......................................... 35 ABOUT FORRESTER CONSULTING Forrester provides independent and objective research-based consulting to help leaders deliver key transformation outcomes. Fueled by our customer-obsessed research, Forrester’s seasoned consultants partner with leaders to execute on their priorities using a unique engagement model that tailors to diverse needs and ensures lasting impact. For more information, visit forrester.com/consulting. © Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. For additional information, go to forrester.com. THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD

Executive Summary Today's customers look for and buy experiences, not simply products. Digital technology like Salesforce Marketing Cloud offers marketers a toolkit to engage customers with new and enhanced experiences and helps marketing and sales organizations improve alignment to acquire and engage loyal customers, build seamless digital experiences, and transform the customer journey. Salesforce Marketing Cloud offers a set of marketing tools to enhance customer experience at scale. KEY STATISTICS Marketing Cloud consists of a suite of unified applications that meet business needs towards designing, delivering, and optimizing customer journeys and campaigns, including: • Customer Data Platform. Return on investment (ROI) Net present value (NPV) • Personalization. 299% $8.08M • Engagement. • Account Engagement. Cloud. For the purposes of this study, Forrester • Intelligence. aggregated the interviewees’ experiences and • Loyalty Management. combined the results into a single composite organization, a global organization with $500 million By conferring operational efficiencies and boosting in annual revenues and $20 million in digital marketing effectiveness, the marketing platform can marketing spend. help business- and consumer-facing organizations Prior to using Marketing Cloud, these interviewees efficiently grow revenues, reduce costs, and drive noted how their organizations’ marketing and customer value. sales/commerce functions and technology solutions Salesforce commissioned Forrester Consulting to were both siloed and highly distributed. This led to conduct a Total Economic Impact™ (TEI) study and tensions with disparate marketing teams delivering examine the potential return on investment (ROI) inconsistent customer experiences and duplicating enterprises may realize by deploying Marketing rote processes. Legacy environment pain points 1 Cloud. The purpose of this study is to provide included operational inefficiencies and limited insights readers with a framework to evaluate the potential into campaign results, which contributed to wasted financial impact of Salesforce Marketing Cloud on media spend. These limitations constrained their organizations. interviewees’ organizations’ ability to enter new To better understand the benefits, costs, and risks markets and effectively deliver a consistent and associated with this investment, Forrester interviewed engaging customer experience. five representatives with experience using Marketing THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 1

EXECUTIVE SUMMARY After the investment in Marketing Cloud, the value of the engagement. By leveraging email interviewees gained the ability to capture, analyze, marketing more effectively, the composite drives and act on higher quality insights more quickly. This an additional $1.7 million in profit from improved improved the efficiency and effectiveness of email communications. marketing campaigns and enabled marketers to • Better digital experiences leading to a 60% create more targeted digital experiences for engaged increase in incremental website visitors customers. Interviewees further reported converting to a purchase and 35% increase in consolidated and automated efforts to design, launch, average order value. Compared to the prior and report on digital marketing campaigns. Marketing environment, Marketing Cloud components on Cloud also helped interviewees’ organizations the composite organization’s website enhanced enhance their abilities to segment and activate site engagement and conversion, resulting in customer data. Additional key results from the business growth of $2.1 million from improved investment include improved alignment with website engagement. marketing and sales/commerce, increased incremental revenues from improved customer • A 10% reduction in media waste data prep journeys, and a better brand experience. automation with ad performance optimization. KEY FINDINGS Marketing Cloud helps drive significant marketing spend efficiencies by increasing the operational Quantified benefits. Three-year, risk-adjusted efficiency and cost effectiveness of digital ad present value (PV) quantified benefits for the spend. Fueled by growth in incremental composite organization include: revenues, the composite organization grows ad • A 50% increase in engaged customers from spend by $90 million over the three-year period, improved relevancy of marketing efforts. The with savings totaling $5.1 million. investment in Marketing Cloud provides a single • A 60% percent time savings on building and view of the customer, delivers faster time to value running marketing campaigns and 90%-time than prior marketing tools, and enables the savings on marketers’ campaign reporting composite to tap into new markets. By the end of efforts. Marketing Cloud helped streamline the the three-year period, the composite organization process to launch and evaluate successful gains a more comprehensive view of the marketing campaigns, from parsing and customer, grows its base of loyal and engaged segmenting quality customer lists to reporting on customers, and better targets its marketing campaign success. At the end of the three-year efforts, which increases incremental profit by $1.5 period, this results in $410,000 of avoided labor. million. Unquantified benefits. Benefits that provide value • Improved email personalization resulting in a for the composite organization but are not quantified 250% increase in email subscribers, 60% lift in this study include: in email conversion rate, and 35% growth in average order value. Marketing Cloud-powered • Positive impacts on employee experience. email personalization helps the composite • Improved growth mindset and focus on organization communicate at the right frequency innovation. with personalized elements that boost brand • Enablement support from Salesforce and partner consistency and better tools. This facilitates ecosystem. upselling, cross selling, and growing the overall THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 2

EXECUTIVE SUMMARY Costs. Three-year, risk-adjusted PV costs for the Results. The representative interviews and financial composite organization include: analysis found that a composite organization • Salesforce subscription, fees, and consulting experiences benefits of $10.78M over three years totaling $2.3 million over three years. Fees versus costs of $2.70M, adding up to a net present paid to Salesforce include the Marketing Cloud value (NPV) of $8.08M and an ROI of 299%. subscription, add-on product licenses, and professional services. • Deployment and change management totaling $185,000 over three years. Internal labor to implement Salesforce include efforts from both business and technical resources. Other cost components include training and change management efforts. • Ongoing administration totaling $246,000 over three years. One Salesforce administrator manages the product internally. THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 3

EXECUTIVE SUMMARY ROI BENEFITS PV NPV PAYBACK 299% $10.78M $8.08M

EXECUTIVE SUMMARY TEI FRAMEWORK AND METHODOLOGY From the information provided in the interviews, DUE DILIGENCE Forrester constructed a Total Economic Impact™ Interviewed Salesforce stakeholders and framework for those organizations considering an Forrester analysts to gather data relative to investment in Marketing Cloud. Marketing Cloud. The objective of the framework is to identify the cost, INTERVIEWS benefit, flexibility, and risk factors that affect the Interviewed five representatives at organizations investment decision. Forrester took a multistep using Marketing Cloud to obtain data with approach to evaluate the impact that Marketing Cloud respect to costs, benefits, and risks. can have on an organization. COMPOSITE ORGANIZATION Designed a composite organization based on characteristics of the interviewees’ organizations. FINANCIAL MODEL FRAMEWORK Constructed a financial model representative of DISCLOSURES the interviews using the TEI methodology and Readers should be aware of the following: risk-adjusted the financial model based on This study is commissioned by Salesforce and delivered issues and concerns of the interviewees. by Forrester Consulting. It is not meant to be used as a competitive analysis. Forrester makes no assumptions as to the potential ROI CASE STUDY that other organizations will receive. Forrester strongly Employed four fundamental elements of TEI in advises that readers use their own estimates within the modeling the investment impact: benefits, costs, framework provided in the study to determine the flexibility, and risks. Given the increasing appropriateness of an investment in Marketing Cloud. sophistication of ROI analyses related to IT Salesforce reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study investments, Forrester’s TEI methodology and its findings and does not accept changes to the study provides a complete picture of the total that contradict Forrester’s findings or obscure the economic impact of purchase decisions. Please meaning of the study. see Appendix A for additional information on the Salesforce provided the customer names for the TEI methodology. interviews but did not participate in the interviews. THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 5

The Salesforce Marketing Cloud Customer Journey Drivers leading to the Marketing Cloud investment Interviews Role Industry Region Annual Revenue Director of marketing operations Digital marketing provider United States headquarters, $142 million national reach Vice president of digital Retail (convenience store) United States headquarters, $10 billion experiences national reach Director of product marketing Finance United States headquarters, $24.5 billion global reach Chief marketing officer Healthcare and Life Sciences United States headquarters, $350 million (HLS) national reach Marketing manager Retail United States headquarters, $260 million North America reach KEY CHALLENGES proved to be problematic because they caused Before Marketing Cloud, interviewees described duplicate records.” multiple siloed marketing technology environments • Marketers could not create insights from mired with inefficient processes and expenses, which scattered customer data. The marketing hindered revenue opportunities from marketing manager in the retail industry shared their activities. The interviewees consistently noted how frustrations with the inability to capitalize on the their organizations struggled with marketing customer data their organization had gathered in challenges: a siloed capacity. They said: “For years and Limited understanding of the customer in their years and years, all of our data would sit in each prior marketing technology environments. individual store on a computer. To be able to gather that data and learn from it was very • Data silos created multiple, incomplete views challenging.” of the customer. Efforts to better understand • Challenges persisted in properly parsing, customers through a single view were blocked validating, and segmenting customer data, due to departmental silos. The chief marketing particularly in marketing organizations with officer and their team at the HLS organization multiple geographies, business units, or noted the incumbent technology was not products. Legacy tools did not provide the compliant with their organization’s patient system analytical capabilities needed to make use of of record, which made it impossible to effectively customer data. The marketing manager in the use patient information to segment marketing retail industry shared: “We did not have any type experiences. They further explained: “We grew of tool or solution prior to Marketing Cloud. by acquisition and inherited a lot of different Before, it was on our franchisees to slice and platforms. The practices that we acquired were dice their own data and then create an email and siloed into their own different populations, which send it out.” THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 6

THE SALESFORCE MARKETING CLOUD CUSTOMER JOURNEY The chief marketing officer and their team at the The director of product marketing at the finance HLS company shared the difficulties the company shared: “A lot of the heavy lifting was organization had updating patient lists and on our team to understand the different metrics keeping them separate by location. This posed — they needed someone in an SME [subject several issues, such as patient records often matter expert] capacity to build the definitions being siloed across locations, preventing patients and build out the reports.” The organization from being able to manage or globally opt out of looked to Marketing Cloud to automate this. communications, and deliverability metrics issues • Legacy marketing tools lacked needed that stemmed from the opt-out issues. integrations. The chief marketing officer and Inefficient marketing processes and insufficient their team at the HLS organization shared: “[The technologies. legacy tool] didn’t have the technology readily • Legacy tools fell short of marketing available for us to connect to all our electronic automation goals. The director of marketing medical records.” operations at the digital marketing provider • Misalignment existed between marketing and shared one of their organization’s biggest hurdles sales/revenue functions. Two major to growth, saying: “Marketing automation is there departments for business success struggled with to help speed, to lead, and to nurture folks from holistic measurement and intercommunication. showing interest to an opportunity as fast as The director of marketing operations at the digital possible. [Our legacy tool] wasn’t able to achieve marketing provider shared: “The connection any of that.” between what was happening on the marketing • Manual efforts drove up total cost of side and on the revenue side weren’t really being ownership for legacy technology stack. The tied together or even being measured prior to director of product marketing at the finance Marketing Cloud.” company described their organization’s prior environment’s total cost of ownership for building a robust customer data model, saying, “The tools were good at providing the library of APIs to “Our legacy systems weren’t set ingest the data, but the level of resource up for email automation or commitment that was required after purchasing journey building. There was no was significantly higher in the prior environment way that we would ever have than in Marketing Cloud.” been able to automate any of our • Opaque results from marketing efforts emails with our [legacy] resulted in media waste. Of their organization’s technology set up.” prior marketing technology environment, the Chief marketing officer, HLS director of product marketing at the finance company shared: “The marketing happened in regions, so each region had their own dashboard. It was very hard to get a global view of marketing campaigns.” THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 7

THE SALESFORCE MARKETING CLOUD CUSTOMER JOURNEY WHY SALESFORCE? Additional features and functionalities of Marketing Decision-making committees at the interviewees’ Cloud that were considered in the decision-making organizations evaluated marketing solutions and process included: selected Marketing Cloud for the following reasons: • The ability to effectively unify customer data and • Ease of integration and compatibility with break down data silos across the organization. broader Salesforce platform. Many of the • The ability to easily parse, segment, and validate organizations already had pieces of, or were in customer data. the process of implementing, the Salesforce platform for use cases like sales, commerce, • The ease of integration within the mar tech stack. and/or service across the organization, which • The automation of criteria-based user journeys. helped narrow down the choices for a marketing • The brand reputation of Salesforce and existing solution. The chief marketing officer at the HLS investment/relationships. company described their organization’s catalyst for selecting Marketing Cloud: “In a large part it was an organizational shift towards digital transformation. We were onboarding Salesforce and the legacy marketing platform was just not compatible. As we integrate new technology, we “What seemed cheap did not are leaning more heavily into Salesforce turn out to be cheap at all. Our applications.” prior solution required a larger of • Robust and evolving compliance capabilities. commitment of resources to Salesforce’s continuous improvements and provide the same functionality as enhancements to the platform were especially Marketing Cloud.” important for highly-regulated industries that Director of product marketing, needed to keep up with changing compliance finance mandates. The chief marketing officer at the HLS company cited the need for an email marketing solution that was HIPAA compliant and interoperable with Salesforce. Marketing Cloud also was important to help organizations adhere to GDPR requirements. THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 8

THE SALESFORCE MARKETING CLOUD CUSTOMER JOURNEY COMPOSITE ORGANIZATION Based on the interviews, Forrester constructed a TEI Key Assumptions framework, a composite company, and an ROI • $500 million annual revenues analysis that illustrates the areas financially affected. The composite organization is representative of the • 1,250 employees five interviewees, and it is used to present the • 150 Salesforce Marketing aggregate financial analysis in the next section. The Cloud users composite organization has the following • 8 marketing business units characteristics: Description of composite. The North America- based enterprise generates annual revenues of $500 million and has 1,250 employees (FTEs). The composite organization has a strong brand, global reach, and a large customer base. It has digital marketing organizations across eight business units. The organization has a previous investment in Salesforce CRM. In the prior environment, the composite organization dedicated 4% of annual revenues, or $20 million, to digital marketing spend. Before Marketing Cloud, it generated monthly marketing campaigns that required duplicative efforts across digital marketing business units. These marketing efforts reached 500,000 customers annually. The composite organization also received 10 million unique site visitors annually. The average order value (AOV) of a purchase is $50. The organization has a 10% operating margin. Deployment characteristics. The composite organization uses a system integrator to deploy the full Marketing Cloud Platform. It phases the deployment across product marketing business units. As part of this phased deployment, it ramps usage to all 150 users by Year 2. THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 9

Analysis Of Benefits Quantified benefit data as applied to the composite Total Benefits Ref. Benefit Year 1 Year 2 Year 3 Total Present Value Incremental profit from Atr improved customer $398,438 $637,500 $796,875 $1,832,813 $1,487,779 engagement Btr Incremental profit from $179,297 $669,375 $1,255,079 $2,103,751 $1,659,159 improved email journeys Incremental profit from Ctr improved website $232,422 $1,095,704 $1,333,438 $2,661,563 $2,118,664 engagement Marketing spend efficiency Dtr from business process $1,209,375 $2,055,375 $3,072,657 $6,337,407 $5,106,621 automation and optimization Etr Efficiencies in email $164,851 $164,851 $164,851 $494,554 $409,961 marketing campaigns Total benefits (risk-adjusted) $2,184,383 $4,622,805 $6,622,899 $13,430,087 $10,782,184 INCREMENTAL PROFIT FROM IMPROVED we have over 11 million records in our database. CUSTOMER ENGAGEMENT As we grew and matured, we needed to unify the Evidence and data. Leveraging enterprise and customer data. We began tracking behavior from consumer data can deliver more compelling customer in-store to online and responses to social cases engagement. Serving as a waypoint for data, a and tied all of that data into one customer ID.” customer data platform centralizes customer The single view of the customer across touch information from multiple sources and makes it points was vital for the organization to take 2 advantage of the data. They continued: “We built available to systems of insight and engagement. and then enriched first-party data, which allows After adopting Marketing Cloud, interviewees retailers like us to build one-on-one relationships reported higher levels of engagement from new and with our customers. Our communications are existing customers while growing their operations into relevant and contextual and, therefore, new markets. Interviewees shared the following [customers] engage more with us.” stories of success related to customer engagement: • A single view of the customer enabled more • Unifying more customer data points enabled personalization and the creation of a loyalty better targeting, segmenting, and program. The president of digital experiences in contextualization. The president of digital the retail industry shared how leveraging experiences in the retail industry shared: “[Before Marketing Cloud boosted monthly active users, Salesforce] we had little customer data, only which represented 50% of all monthly engaged about 300,000 records in our database. Today customers. Their organization built a single view of the customer, and from that was able to gain THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 10

ANALYSIS OF BENEFITS insights to further develop customer-centric • Actual consumer behaviors and trends around projects like a loyalty program. Within two years purchasing frequency, basket size, and customer of the investment, the interviewee shared that the lifetime value. program had surpassed 5 million members, Results. To account for these risks, Forrester representing 35% of all customers. adjusted this benefit downward by 15%, yielding a Modeling and assumptions. Based on the three-year, risk-adjusted total PV (discounted at 10%) interviewees’ experiences, Forrester assumes the of $1.5 million. following about the composite organization: • The composite engaged 500,000 customers annually via email campaigns in its prior environment. “With really good technology, • After the Marketing Cloud investment, the we’re making magic happen. composite organization measures an increase in We are able to move much faster. number of engaged customers by 25%, 40%, and In the last 12 months, we moved 50% in Years 1, 2, and 3, respectively, compared to the prior environment. with scale into four new markets and added 225 stores. • In the prior environment, the average order value AOV was $50. A customer engaged via email Having these technology campaigns conducted 1.5 annual purchases on capabilities allows us to average, resulting in a $75 value per customer understand very quickly who our engaged via email campaigns. guests are and interact with • The composite organization’s operating margin is them.” 10%. President of digital experiences, • Forrester considers 50% of the value of this retail benefit a direct result of the Salesforce investment. This estimate accounts for other changes that take place during the three years under analysis, including macroeconomic factors and other investments in technology, people, and process. Risks. Forrester recognizes that these results may not be representative of all experiences. The following factors may impact this benefit: • The number of engaged customers in the legacy environment, if any, and the frequency and purchasing value of a customer engaged via email before and after the investment in Marketing Cloud. THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 11

ANALYSIS OF BENEFITS Incremental Profit From Improved Customer Engagement Ref. Metric Source Year 1 Year 2 Year 3 A1 Number of customers engaged via email Composite 500,000 500,000 500,000 campaigns in prior environment A2 Growth in customer engagement with Interviews 25% 40% 50% Marketing Cloud A3 Incremental customers engaged with A1*A2 125,000 200,000 250,000 Marketing Cloud A4 Average order value in prior environment Composite $50 $50 $50 A5 Number of annual purchases by a Composite 1.5 1.5 1.5 customer engaged via email campaigns A6 Value of a customer engaged via email A4*A5 $75 $75 $75 campaigns in prior environment A7 Increased incremental revenue with A3*A6 $9,375,000 $15,000,000 $18,750,000 Marketing Cloud A8 Operating margin Composite 10% 10% 10% A9 Attribution to Marketing Cloud Forrester 50% 50% 50% Assumption At Incremental profit from improved A7*A8*A9 $468,750 $750,000 $937,500 customer engagement Risk adjustment ↓15% Atr Incremental profit from improved $398,438 $637,500 $796,875 customer engagement (risk-adjusted) Three-year total: $1,832,813 Three-year present value: $1,487,779 THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 12

ANALYSIS OF BENEFITS INCREMENTAL PROFIT FROM IMPROVED EMAIL Marketing Cloud enhanced the chief marketing JOURNEYS officer’s organization’s ability to communicate Evidence and data. Email persists as one of the with established patients effectively. They said: most important communication channels for “Because we’ve been able to streamline our marketing. Personalized customer engagement that emails, have increased the frequency of effectively engage customers build more value with messages. We’re now doing biweekly brands. Forrester defines personalization as an educational emails to stay in front of these experience that uses customer data and patients. Then, from a data standpoint with understanding to frame, guide, extend, and enhance Marketing Cloud, we are connecting with analytics so we can measure the return on the interactions based on that person’s history, 3 emails financially.” preferences, context, and intent. As interviewees expanded their customer • Automations that provided greater engagement efforts with new customers and consistency and content quality, improved expanded loyalty programs and communication email experiences, and delivered better next- across new channels as described in Benefit A, best actions. The marketing manager in the Marketing Cloud helped them build more relevant retail industry described helpful ways in which and engaging email experiences. Examples shared Marketing Cloud helped marketers segment and by interviewees included: automate criteria-based journeys. The • Increased personalization of communication, automations, combined with quality content, driving value from advanced segmentation. helped their franchise organization execute more The president of digital experiences in the retail consistent and effective email experiences. They industry described how Marketing Cloud enabled described the process and impacts: “That was a marketers to strategically improve email journeys big game changer from franchisees just trying to for customers. They explained: “In the past, we send email campaigns on their own [to] having us would have sent an email promotion to our entire send them on their behalf so they can spend time database. Now, we’ve segmented customers into focusing on other things.” many iterations by leveraging the unified data of The marketing manager in the retail industry customers, so [emails are] very relevant for each continued to report significant revenue impacts interaction. We’re stretching their behavior just a from near real-time product recommendations tad bit, driving higher average order value by and messages like automated abandoned cart upselling very relevant uses.” emails. They stated: “If someone clicks on an • Streamlined processes that increased abandoned cart email, their order value has frequency of specific campaigns and always been higher than just someone who’s impacted retention. The chief marketing officer shopping directly on the site without at the HLS company described the importance of personalization.” Specifically, they shared that regular, relevant communication for their patient personalized emails as part of journeys saw a 9% retention goals. Staying top-of-mind with patients conversion rate on emails with near real-time was paramount, especially because up to 80% of product recommendations, compared to up to 5% revenue came from existing patients and the cost for traditional emails outside of a personalized to acquire a new patient was eight-fold greater journey, and a $123 to $136 AOV, depending on than that to retain an established patient. the journey, up from the $100 e-commerce average.” THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 13

ANALYSIS OF BENEFITS Modeling and assumptions. Based on the Results. To account for these risks, Forrester interviewees’ experiences, Forrester assumes the adjusted this benefit downward by 15%, yielding a following about the composite organization: three-year, risk-adjusted total PV of $1.7 million. • In the prior environment, the composite organization’s annual email campaign revenue was $37.5 million. “Each of the personalized • With Marketing Cloud-powered personalization, the composite organization: campaigns has definitely been driving sales. We’ve not only ▪ Increases the number of email seen higher average order value subscribers by 150%, 200%, and 250% in Years 1, 2, and 3, respectively. with Engagement, but the click- through rate of some e-mails is ▪ Increases the email conversion rate with 18%, which is really high for an Marketing Cloud-powered email personalization by 30%, 50%, and 60% in e-mail. They also came in with a Years 1, 2, and 3, respectively. higher AOV than with the e- commerce site.” ▪ Increases the average order value for Marketing manager, retail personalized emails by 20%, 30%, and 35% in Years 1, 2, and 3, respectively. • The composite organization’s operating margin is 10%. • Forrester considers 50% of the value of this benefit a direct result of the Salesforce investment. This estimate accounts for other changes that take place during the three years under analysis, including macroeconomic factors and other investments in technology, people, and process. Risks. Forrester recognizes that these results may not be representative of all experiences. The following factors may impact this benefit: • The size of the legacy environment email campaign revenue, state of legacy communications, and the value of a customer journeys after the investment in Marketing Cloud. • Actual consumer behaviors and trends around purchasing frequency, basket size, and customer lifetime value. THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 14

ANALYSIS OF BENEFITS Incremental Profit From Improved Email Journeys Ref. Metric Source Year 1 Year 2 Year 3 B1 Email campaign revenue in prior A1*A6 $37,500,000 $37,500,000 $37,500,000 environment B2 Increased incremental revenue from new A7 $9,375,000 $15,000,000 $18,750,000 subscribers with Marketing Cloud Increase in subscriber emails with B3 Marketing Cloud- powered Interviews 150% 200% 250% personalization Increase in email conversion rate with B4 Marketing Cloud-powered email Interviews 30% 50% 60% personalization B5 Increase in average order value for Interviews 20% 30% 35% personalized emails B6 Incremental email campaign revenue (B1+B2) $4,218,750 $15,750,000 $29,531,250 with Marketing Cloud *B3*B4*B5 B7 Operating margin Composite 10% 10% 10% B8 Attribution to Marketing Cloud Forrester 50% 50% 50% Assumption Bt Incremental profit from improved email B6*B7*B8 $210,938 $787,500 $1,476,563 journeys Risk adjustment ↓15% Btr Incremental profit from improved email $179,297 $669,375 $1,255,079 journeys (risk-adjusted) Three-year total: $2,103,751 Three-year present value: $1,659,159 THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 15

ANALYSIS OF BENEFITS INCREMENTAL PROFIT FROM IMPROVED Modeling and assumptions. Based on the WEBSITE ENGAGEMENT interviewees’ experiences, Forrester assumes the Evidence and data. Website visits serve as an following about the composite organization: inflection point on the customer journey. Unique visits • In the prior environment, the composite serve as a strong indicator of effective customer organization averaged 10 million unique site engagement at points throughout the customer visitors annually, converted 2.5% of all website journey as noted in Benefits A and B. Successful visitors to make a purchase, and had an AOV of marketing efforts across channels brought customers $50. to websites. Marketing Cloud significantly enhanced customer behavior at the point of transition from • After deploying Marketing Cloud, the composite interested to engaged. Interviewees shared the organization: following examples of Marketing Cloud’s impact on ▪ Increased the site conversion rate by website engagement: 25%, 45%, and 60% in Years 1, 2, and 3, • Increase in website conversions. The chief respectively. marketing officer at the HLS company shared ▪ Increased average order value for website their goals to convert website visits to online visitors by 15%, 25%, and 35% in Years appointment requests. In the prior environment, 1, 2, and 3, respectively. the team averaged 290 goal conversions monthly. With Marketing Cloud, the monthly goal • The composite organization’s operating margin is conversions rose to an average of 1,500, 10%. reaching as many as 2,100 leads in some • Forrester considers 50% of the value of this months. In addition, estimated revenue from goal benefit a direct result of the Salesforce conversions also grew significantly. They investment. This estimate accounts for other reported: “Marketing Cloud increased our changes that take place during the three years capability to reach out to our patients and engage under analysis, including macroeconomic factors with them. It definitely helped increase our and other investments in technology, people, and requested appointment value.” process. • Personalized recommendations improved website experience, which increased conversion value and decreased abandonment. According to the marketing manager in the retail industry, “We have seen a per-user Marketing Cloud facilitated higher quality revenue increase in the last customer engagement and built stronger couple of months of about 40% customer value than what was possible with the for some experiences. Cart prior environment. For example, they shared how abandonment experiences have their organization launched personalized cart a conversion rate of 60% while recommendations with Marketing Cloud. They the exit intent pop-up journey stated: “Those who clicked into the experience has a 24% conversion rate.” have a 30% higher average order value than those who don’t.” Marketing manager, retail THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 16

ANALYSIS OF BENEFITS Risks. Forrester recognizes that these results may Results. To account for these risks, Forrester not be representative of all experiences. The adjusted this benefit downward by 15%, yielding a following factors may impact this benefit: three-year, risk-adjusted total PV of $2.1 million. • The number and value of unique website visitors after the investment in Marketing Cloud. • Actual consumer behaviors and trends around purchasing frequency, basket size, and customer lifetime value. Incremental Profit From Improved Website Engagement Ref. Metric Source Year 1 Year 2 Year 3 C1 Average number of unique site visitors in Composite 10,000,000 10,000,000 10,000,000 prior environment C2 Website conversion rate in prior Composite 2.5% 2.5% 2.5% environment C3 Increase in site conversion rate with Interviews 25% 45% 60% Marketing Cloud Incremental number of website visitors C4 converting to purchase with Marketing C1*C2*C3 62,500 362,500 400,000 Cloud C5 Average order value in the prior Composite $50 $50 $50 environment C6 Increase in average order value with Interviews 15% 25% 35% Marketing Cloud for website visitors C7 Incremental revenue with Marketing C1*C2*C5*C6+C $5,468,750 $25,781,250 $31,375,000 Cloud 4*C5* (1+C6) C8 Operating margin Composite 10% 10% 10% C9 Attribution to Marketing Cloud Composite 50% 50% 50% Ct Incremental profit from improved website C7*C8*C9 $273,438 $1,289,063 $1,568,750 engagement Risk adjustment ↓15% Ctr Incremental profit from improved website $232,422 $1,095,704 $1,333,438 engagement (risk-adjusted) Three-year total: $2,661,563 Three-year present value: $2,118,664 THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 17

ANALYSIS OF BENEFITS MARKETING SPEND EFFICIENCY FROM of administration involved in media buying while BUSINESS PROCESS AUTOMATION AND improving insights into performance. They said: OPTIMIZATION “[Marketing Cloud] has a data model all ready for Evidence and data. Budget waste occurs when digital media buying, which I find easy. That organizations lack the necessary transparency and means less importance is placed on us knowing speed to measure and optimize the true cost and all the data elements from more than one business impact of their advertising and marketing hundred APIs.” efforts. Marketers waste time, effort, and money and Modeling and assumptions. Based on the reap suboptimal marketing ROI by investing in interviewees’ experiences, Forrester assumes the campaigns and journeys without accurate following about the composite organization: measurement. On the other hand, marketing intelligence capabilities that automate data • The composite devotes four percent of its annual integration, reporting, insights, and analytics help revenues to digital marketing spend. In the prior marketing teams cut wasteful spending and allocate environment, this averaged around $20 million budget to the campaigns, platforms, channels, annually. However, with the increased content, and segments that most efficiently drive incremental revenue impact noted in Benefits A, business outcomes, such as leads, sales, B, and C, the composite grows this spend to $34 transactions, and sign-ups. million, $51 million, and $68 million in Years 1, 2, and 3, respectively. Interviewees using Marketing Cloud reported significant process efficiencies and insight-driven • With Marketing Cloud, the composite reductions in media waste. Marketing Cloud helped organization decreases media waste by 8%, 9%, interviewees’ organizations achieve significant and 10% in Years 1, 2, and 3, respectively, marketing spend efficiencies by driving the compared to the prior environment. effectiveness of their digital ad spend, increasing • Forrester considers 50% of this benefit a direct marketing ROI, and earning a larger share of future result of the Salesforce investment. This estimate budgets based on the optimized performance. accounts for other changes that take place during Interviewees shared the following examples: the three years under analysis, including • Measurement capabilities helped marketers macroeconomic factors and other investments in decrease media waste. The director of technology, people, and process. marketing operations at the digital marketing organization explained how automations enabled by Marketing Cloud empowered the team. They said: “Marketing Cloud has been a real game “With Marketing Cloud, we can changer for us on the analytics side. We have the see what is happening in almost ability to paint a better picture of our marketing real time. That prevents us from performance and we’re getting better at predicting future performance using their tools.” making knee-jerk decisions with our ad spend.” • Better insights enabled a focus on strategy over administrative tasks. The director of Director of marketing operations, product marketing at the finance company digital marketing explained how Marketing Cloud reduced the level THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 18

ANALYSIS OF BENEFITS Risks. Forrester recognizes that these results may • Additional impacts may include an organization’s not be representative of all experiences. The amount of excess marketing spend and any other following factors may impact this benefit: concurrent efforts to drive marketing spend • The marketing channels an organization invests efficiency. in. Drivers of value include how easy a channel is Results. To account for these risks, Forrester to measure and attribute to marketing and unit adjusted this benefit downward by 10%, yielding a costs related to media, data, and other digital three-year, risk-adjusted total PV of $5.1 million advertising unit costs. Marketers should consider added costs in a way that will optimize conversion revenue for their organization. • The amount of additional incremental revenue “With Marketing Cloud, we can gained with the Marketing Cloud investment will see what is happening in almost “Marketing Cloud has improved have a direct impact on marketing spend and real time. That prevents us from the time it takes to bring our related savings growth. making knee-jerk decisions with insights to market. We are able our ad spend.” to better attribute our spend and have delivered $50 million in ad Director of marketing operations, spend efficiencies. The adoption digital marketing has been significant.” Up to 10% Director of product marketing, finance Reduction in media waste over three years Marketing Spend Efficiency From Business Process Automation And Optimization Ref. Metric Source Year 1 Year 2 Year 3 D1 Annual digital marketing spend Composite $33,593,750 $50,750,000 $68,281,250 D2 Percent decrease in media waste with Interviews 8% 9% 10% Marketing Cloud D3 Attribution to Marketing Cloud Composite 50% 50% 50% Dt Marketing spend efficiency from business D1*D2*D3 $1,343,750 $2,283,750 $3,414,063 process automation and optimization Risk adjustment ↓10% Marketing spend efficiency from business Dtr process automation and optimization $1,209,375 $2,055,375 $3,072,657 (risk-adjusted) Three-year total: $6,337,407 Three-year present value: $5,106,621 THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 19

ANALYSIS OF BENEFITS EFFICIENCIES IN EMAIL MARKETING segment them out by location, and then create CAMPAIGNS only one email versus a hundred. That freed up Evidence and data. Before Marketing Cloud, someone else’s time to do other things or we can interviewees described marketing functions that were do more campaigns.” separate across regions, franchises, and markets. • With Marketing Cloud, interviewees expanded Lacking a single view of the customer, they relied on into new channels to augment the reach of poor-quality customer lists that required too much their marketing programs and better align time for marketers to parse, clean, and segment. with customer preferences. In their prior Processes to build out assets and activate environments, most interviewees reported that campaigns also led to inefficiencies and inaccuracies, email was the only channel leveraged for as marketers relied on individuals in each market to customer outreach. With Marketing Cloud, customize campaign templates. however, their organizations were able to expand As a result, marketing efforts were often limited to into new channels, which enriched campaign email because teams lacked the resources to quality while mitigating the additional efforts to effectively support additional channels. Furthermore, take on the new channels. The marketing a lack of coordination in organizations’ prior manager in the retail industry shared: “We did a marketing environments contributed to excessive and two-month campaign with 21 different assets, often duplicative ad hoc requests for individualized seven emails, seven social posts, and website campaign evaluations. posts for each of our more than 200 franchisee individual websites. Because each of the stores Marketing Cloud helped interviewees streamline the is independently owned and operated, these process to launch and evaluate successful marketing campaigns are creating additional incremental campaigns. Compared to their prior environments, sales without them having to do anything interviewees reported saving time parsing and laborious. We’re just putting these things in place segmenting quality customer lists. Interviewees for them.” shared the following examples: • Marketing Cloud democratized post-campaign • Marketing Cloud automated key aspects of insights with a global console for the campaign build and activation phases. stakeholders across organizations. The The chief marketing officer at the HLS company director of product marketing at the finance noted how their team was mired by inefficient company described difficulties when pulling processes while executing marketing campaigns. information from multiple data sources before Because the organization had grown by a series Marketing Cloud. This hindered top-line visibility of acquisitions, some patients ended up on across different markets. Data democratization multiple lists for different locations without an with Marketing Cloud mitigated the number of ad automated way to deduplicate them. The hoc requests made for various report iterations. distributed organizational structure further led to Improvements in the user interface helped the inefficiencies when building out campaigns. They director of product marketing’s finance company shared: “Instead of creating one email, we’d have achieve time savings of 75% while building to create a hundred of the same email that varied campaign performance analyses. They by location. The transition to Marketing Cloud experienced further time savings by reducing the really benefited us. We were able to create and number of ad hoc reporting requests their team consolidate all of our patients onto one list, fielded compared to the prior marketing THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 20

ANALYSIS OF BENEFITS environment. They said: “With Marketing Cloud, Risks Forrester recognizes that these results may the taxonomy is in place, and we have visibility not be representative of all experiences. The into all accounts where the media is running. We following factors may impact this benefit: are able to visualize and share the data much • The level of inefficiency in the prior environment. faster. Another thing that really helped was having a regional workspace and a global • The number of markets, channels, and the workspace. We can monitor activity in a particular frequency of communication campaigns. region, but we can also see how a particular • Organizational readiness and how quickly an campaign fares at a global level.” organization can progress through Marketing Modeling and assumptions. Based on the Cloud’s learning and adoption curves. interviewees’ experiences, Forrester assumes the Results. To account for these risks, Forrester following about the composite organization: adjusted this benefit downward by 10%, yielding a • The composite organization has product three-year, risk-adjusted total PV of $410,000. marketing functions distributed across eight business units that each participate in the monthly email campaigns. • In prior environment, each marketing campaign “Marketing Cloud really helps required 60 hours to build and run and 40 hours you pivot and do things more for post-campaign analysis and reporting. quickly. It is just a great overall • With Marketing Cloud, the composite tool to streamline the processes organization sees time savings of 60% when that we were struggling with.” building and running marketing campaigns and Chief marketing officer, HLS 90% on post-campaign reporting activities. • The fully burdened hourly rate of a marketer is $53. • Forrester assumes a productivity recapture for each end user of 50% as not all regained hours may be used productively. Hours saved on email marketing campaigns over three years 20,736 THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 21

ANALYSIS OF BENEFITS Efficiencies In Email Marketing Campaigns Ref. Metric Source Year 1 Year 2 Year 3 E1 Number of markets/business units in Composite 8 8 8 marketing organization E2 Number of campaigns before Marketing Composite 12 12 12 cloud E3 Hours to build and run marketing Composite 60 60 60 campaigns in prior environment E4 Hours for post campaign reporting in Composite 40 40 40 prior environment Percent time saved to build and run E5 marketing campaigns with Marketing Interviews 60% 60% 60% Cloud E6 Percent time saved on post campaign Interviews 90% 90% 90% reporting with Marketing Cloud E7 Number of hours saved with Marketing (E1*E2*E3*E5)+ 6,912 6,912 6,912 Cloud (E1*E2*E4*E6) E8 Fully burdened hourly rate of a marketer Composite $53 $53 $53 E9 Productivity recapture rate Forrester 50% 50% 50% Assumption Et Efficiencies in email marketing E7*E8*E9 $183,168 $183,168 $183,168 campaigns Risk adjustment ↓10% Etr Efficiencies in email marketing $164,851 $164,851 $164,851 campaigns (risk-adjusted) Three-year total: $494,554 Three-year present value: $409,961 THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 22

ANALYSIS OF BENEFITS UNQUANTIFIED BENEFITS Interviewees mentioned the following additional Leveraging The Intelligence Of benefits that their organizations experienced but were Einstein not quantified for this study: • Positive impacts on employee experience. Brands that successfully harness the power of AI can not only create a unique customer Interviewees noted several ways in which experience (CX) in the moment but can also Marketing Cloud helped improve employee identify and be prepared to deliver the next best experience, including: action. ▪ Upskilling team members. Interviewees Three of the five interviewees specifically considered the Salesforce skillset and mentioned the value of having the Salesforce fluency a valuable strength for their solution’s artificial intelligence capability, marketers to develop. In particular, the Einstein, integrated throughout their marketing Trailblazer Community was mentioned as technology (martech) stack: an important resource in maximizing the investment in Marketing Cloud. The • The marketing manager in the retail marketing manager in the retail industry industry shared: “Through Einstein shared, “The Trailblazer Community Analytics, we found that subscribers support system has really been a great became saturated with the sends at the benefit for me.” end of the journey. We have decreased the number of sends by two for a key ▪ Collaborative digital work journey campaign.” environment: The chief marketing officer • The director of marketing operations at and their team at the HLS company the digital marketing provider reported: welcomed the increased ability to “We onboarded Einstein Behavior Score collaborate with Marketing Cloud. They for scoring and grading. It’s helpful shared, “It’s nice that everything is digital because you’re not guessing at a and online, which is beneficial because behavior score with the methodology, we have implemented a hybrid work it’s using AI to come up with a 0 to 100 model.” score. The score is recalculated as time goes on, and we’re able to service that ▪ Ease of use: The marketing manager in to our reps. We also make marketing the retail industry came from a franchised decisions based on the score.” organization in which the individual store • The president of digital experiences in resources have little to no marketing the retail industry noted: “We’re leaning capacity. They shared: “One of the into Salesforce to get more out of our biggest benefits of using Marketing Cloud martech stack. We’re leveraging is that it is pretty user friendly for a Einstein AI to do better work within the nontechnical person to be able to follow platform. Then we further integrate the instructions.” Marketing Cloud into other solutions.” THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 23

ANALYSIS OF BENEFITS • Improved growth mindset and focus on innovation. Marketing Cloud’s comprehensive, agile toolkit lifted constraints that hampered “The biggest benefit in my innovation in the interviewees’ organizations’ position has been the Trailblazer prior environment. The marketing manager in the Community. Being a part of retail industry described the new mindset that these amazing user groups, Marketing Cloud inspired and said: “Being a bouncing ideas off people who customer of Marketing Cloud has allowed us to think about everything from a different are in the same place as you, in perspective, one of higher scalability. No longer the same industry as you, is just limited by software tools that we used in the past, super awesome.” these products will allow us to move on to that Marketing manager, retail next level of scalability within our marketing. You can feel very comfortable achieving that when you’re using Salesforce.” • Enablement support from Salesforce and partner ecosystem. Several interviewees described robust discovery sessions led by Salesforce implementation partners. The director of product marketing at the finance company found these to be a helpful investment in customer success from Salesforce. They also appreciated the high level of support the customer success manager and Salesforce architect offered. THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 24

ANALYSIS OF BENEFITS UNQUANTIFIED BENEFITS FOR A B2B Customer Journey: ORGANIZATION Interviewees from organizations that operate in a Director of marketing business-to-business (B2B) model mentioned operations, digital marketing additional B2B benefits that their organizations experienced but were not quantified for the B2C B2B marketers depend on technology to collect composite organization. data, generate insights, target audiences, and The director of marketing operations at the digital deliver relevant interactions. According to marketing provider reported significant B2B benefits Forrester’s 2021 report “Research Overview: with Marketing Cloud. While describing their Mastering B2B Marketing Technology,” as digital organization’s use of Marketing Cloud for account- marketing becomes more complex, B2B based marketing, they shared: “Marketing Cloud is organizations turning to automation are creating dynamic, customer-driven systems of insight the central nervous system of everything that we’re doing. We set up automations based on a defined list and engagement that help buyers achieve their of key accounts and have nurture programs set up for business goals. specific companies as well as dynamic content that The director of marketing operations at the delivers personalized experiences to those folks digital marketing provider described how their when they’re hitting a landing page or when an organization harnessed B2B benefits with engaged template is sent out to them. The strategy is Marketing Cloud Account Engagement. Key to define key accounts with sales, develop plans of automations included: action to generate leads, and [determine] where we’re going to find those folks. Then we bring them • Lead assignments. into the system to deliver really personalized one-to- • Customer communications by lifecycle. one experiences.” • Sales communications, alerts, and tasks. Results from the Marketing Cloud investment for B2B • Reporting processes. organizations included: • Improved connection with sales. The director of With Salesforce Account Engagement, the ease marketing operations stated, “The visibility that of automation meant that the director of we get from these platforms helps me have a marketing operations at the digital marketing better conversation with sales.” provider reported faster time to value. • A 125% growth in leads compared to a year prior. They shared: • A 15% to 40% increase in revenue from “Of all the automation systems out there, marketing sourced leads. Salesforce is hands down the fastest in terms of getting rules and automations set • A 20% overall revenue growth. up and connecting to Salesforce. • A 105% growth in revenue from one product It really helps you connect with sales. through marketing influence. It helps to get better work, to make better campaigns, to make better iterations, and you’re able to do it pretty quickly. There’s really no better B2B marketing automation system.” THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 25

ANALYSIS OF BENEFITS Of this impact, the director of marketing operations at Please note, this benefit framework is for the digital marketing provider stated: “It is a informational purpose only; it does not testament to how we can grow our business using supersede any benefits quantified for the B2C- marketing. Each year, we’re having this stellar growth facing composite organization. curve on marketing-attributed revenue. That’s in large part due to how efficiently we are able to nurture our leads and develop our account-based marketing.” B2B Benefit Framework. A B2B organization with “We’re selling more and bringing an average deal size of $15,000 and 500,000 leads in higher quality leads. We can in a prior marketing environment could see up to $1.25 million in improved revenue from marketing drive a better revenue model qualified leads. with Marketing Cloud” This potential benefit depends on the total number of leads processed in the prior environment, the extent Director of marketing operations, of alignment with marketing and sales, and the digital marketing conversion rate of engaged leads to sales wins. B2B: Improved Revenue from MQL with Marketing Cloud Automations and Analytics* Ref. Metric Source Year 1 Year 2 Year 3 1 Marketing qualified leads (MQL) in prior Composite 500,000 500,000 500,000 environment 2 Increase in MQL with Marketing Cloud Interviews 10% 15% 30% 3 Conversion of MQL to SQL Composite 10% 10% 10% 4 Increased incremental MQL to SQL 1*2*3 5,000 7,500 15,000 conversion with Marketing Cloud 5 SQL conversion to sales wins Composite 15% 15% 15% 6 Average deal size Composite $30,000 $30,000 $30,000 7 Percent increase in average deal size Interviews 15% 25% 35% from MQL with Marketing Cloud 8 Increased incremental revenue from 4*5*6*7 $3,375,000 $8,437,500 $23,625,000 MQLs with Marketing Cloud 9 Operating margin Composite 10% 10% 10% 10 Attribution to Marketing Cloud Composite 50% 50% 50% Improved revenue from MQL with Total Marketing Cloud automations and 8*9*10 $168,750 $421,875 $1,181,250 analytics *NOT INCLUDED IN ROI CALCULATION THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 26

ANALYSIS OF BENEFITS FLEXIBILITY The value of flexibility is unique to each customer. • The marketing manager in the retail industry said There are multiple scenarios in which a customer “We really learn about the new [Salesforce] might implement Marketing Cloud and later realize products and tools. Within the last five years, we additional uses and business opportunities, including: have been moving into some of the newer • Further expansion into the Salesforce technologies like Engagement and ecosystem. The chief marketing officer at the Personalization. We’ll be excited to get the HLS company shared how expanding the Customer Data Platform, where we can pull all of Marketing Cloud toolkit will help decrease the this legacy data from the data warehouse and our organization’s reliance on its business insights e-commerce site and pull that all together with team to query all its emails. They stated: “We’re the POS data. Then we will really be able to start trying to move away from that and implement the targeting.” Flexibility would also be quantified when evaluated as Marketing Cloud Customer Data Platform. We’re also going to implement Marketing Cloud part of a specific project (described in more detail in Personalization and Advertising (within Appendix A). Engagement). We feel like those would be the missing pieces to fully take advantage of all the potential that Marketing Cloud could provide.” • Expansion of use cases. Interviewees discussed different use cases of Marketing Cloud “Marketing Cloud will allow us to into which they wished to expand. The chief deploy all of our marketing marketing officer at the HLS company discussed potentially using Marketing Cloud for internal activities at scale. My favorite corporate communications and to recruit HLS part is that there are really no providers to grow the practice. technology limitations when it • The director of marketing operations in the retail comes to Salesforce. It’s the industry shared: “There are some other areas most robust platform I’ve ever that we want to further integrate with Marketing used. The sky is the limit.” Cloud, such as our loyalty program and our website. We could take segments from Marketing Chief marketing officer, HLS Cloud and personalize on our web and mobile app. We want to get more out of artificial intelligence and machine learning, and then further integrate it to our other experiences.” THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 27

Analysis Of Costs Quantified cost data as applied to the composite Total Costs Ref. Cost Initial Year 1 Year 2 Year 3 Total Present Value Salesforce Ftr subscription, fees, and $99,000 $664,950 $994,950 $994,950 $2,753,850 $2,273,293 consulting Gtr Deployment and $128,547 $17,250 $25,875 $25,875 $197,547 $185,053 change management Htr Ongoing administration $0 $99,000 $99,000 $99,000 $297,000 $246,198 Total costs (risk- $227,547 $781,200 $1,119,825 $1,119,825 $3,248,397 $2,704,544 adjusted) SALESFORCE SUBSCRIPTION, FEES, AND Modeling and assumptions. Based on the CONSULTING interviewees’ experiences, Forrester assumes the Evidence and data. The organizations incurred following about the composite organization: external costs in the following categories as part of • The composite incurs subscription costs for the the Marketing Cloud investment: entire Marketing Cloud. These costs ramp with • Marketing Cloud subscription. Salesforce full implementation to all product marketing units subscriptions are tailored to each organization’s by Year 2. product consumption and, in most cases, are • The composite also purchases add-on products based on a combination of seats and through the AppExchange marketplace to consumption volume. support its Salesforce environment. • App Exchange add-on product licenses. The • The composite engages professional services cost items from Salesforce ISVs are purchased consulting to help guide Salesforce through the AppExchange marketplace. The implementation and architecture design. organizations utilized a mix of both free and paid • Pricing will vary. Contact Salesforce for additional applications to extend their Salesforce solutions. details. • Implementation/consulting fees. Professional Risks. Forrester recognizes that these results may services from system integration partners and not be representative of all experiences. The directly from Salesforce provided interviewees’ following factors may impact this cost: organizations with additional support. Interviewees cited varying levels of professional • Subscription costs will vary depending on several services costs around implementation factors, including volume of customer profiles and assistance. engagements, number of seats, existing Salesforce footprint, discounts negotiated, and terms of contract. THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 28

ANALYSIS OF COSTS • Add-on costs will vary depending on the needs of Results. To account for these risks, Forrester an organization and availability of AppExchange adjusted this cost upward by 10%, yielding a three- tools. year, risk-adjusted total PV (discounted at 10%) of • Professional services fees will vary widely $2.3 million. depending on the needs of an organization, existing internal skill sets, and the scope of consulting engagement. Some customers chose to engage a systems integrator (SI) for the initial implementation. Organizations with an existing relationship with a professional services firm may incorporate new consulting engagements into an existing consulting contract. Additionally, some companies may choose to self-implement. Salesforce Subscription, Fees, And Consulting Ref. Metric Source Initial Year 1 Year 2 Year 3 F1 Number of Marketing Cloud users Composite 0 100 150 150 F2 Marketing Cloud subscription Composite $0 $600,000 $900,000 $900,000 F3 App Exchange add-on product licenses Composite $4,500 $4,500 $4,500 F4 System integrator fees Composite $90,000 Ft Salesforce subscription, fees, and F2+F3+F4 $90,000 $604,500 $904,500 $904,500 consulting Risk adjustment ↑10% Ftr Salesforce subscription, fees, and $99,000 $664,950 $994,950 $994,950 consulting (risk-adjusted) Three-year total: $2,753,850 Three-year present value: $2,273,293 THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 29

ANALYSIS OF COSTS DEPLOYMENT AND CHANGE MANAGEMENT • The chief marketing officer at the HLS company Evidence and data. The organizations incurred described an initial push requiring over one internal costs related to deployment labor, training, hundred hours of technical implementation to set and change management costs as part of the up Marketing Cloud Journeys. Marketing Cloud investment. Interviewees described • The marketing manager in the retail industry their experiences as follows: described their organization’s positive experience • The director of product marketing at the finance using different partners for ongoing support, to company described their organization’s data help with automation, and to troubleshoot support issues. They shared: “As far as partnering with a model implementation period: “We did not do one big global deployment; we went region by region. company to do implementation, we’ve had really It required at least three 2-hour discovery good success with that, especially with sessions involving 10 to 12 resources from Personalization.” internal agencies and the regional marketers. Modeling and assumptions. Based on the Inputs were taken to build the data model and interviewees’ experiences, Forrester assumes the meet the reporting needs for that particular following about the composite organization: region. It was then built out and the data from the channel for the historical 24 months was loaded. • The initial deployment period is nine weeks. That was then followed by trainings and go-live.” During that period, internal labor costs related to deployment include: • While the director of marketing operations at the digital marketing provider managed the change ▪ Project oversight from a fully dedicated management efforts internally, their organization project manager that equals 360 hours. bought Salesforce professional services to The fully burdened hourly rate for a implement Marketing Cloud Intelligence. While project manager is $58. this also required a series of discovery sessions ▪ Migration effort from five marketers fully to collect stakeholder requirements, the time to dedicated to deployment for the nine- value was quick. They said: “We were able to get week period that totals 1,800 hours. The the feature enhancements deployed and start average fully burdened marketer hourly using them out of the box within just a couple of rate is $43. weeks, which is a big deal when you’re ▪ Business and IT effort that equals 270 onboarding any new piece of any system. It was hours, or 1.5 resources fully dedicated to pretty fast.” deployment during the initial period. The • The director of marketing operations at the digital average fully burdened hourly rate of marketing provider described adoption efforts at business and IT deployment resources is their organization. They said: “All the change $50. management was done by my team. But the • Once deployed, the composite organization information covering what needs to be built, phases its marketer training and change stakeholder requirements, etc., those were management efforts. These efforts total $150, collected by data in discovery sessions.” and the composite ramps them to all 150 users by Year 2. THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 30

ANALYSIS OF COSTS Risks. Forrester recognizes that these results may • Organizations deploying Salesforce across not be representative of all experiences. The impact multiple geographies will have a longer of this cost will vary depending on: implementation as global stakeholder alignment • The number of Salesforce products implemented, takes longer and there are different global buyer road map, and timing of implementations and journeys. deployment approach (e.g., agile vs. waterfall). Results. To account for these risks, Forrester • Small and medium-size businesses with simpler adjusted this cost upward by 15%, yielding a three- deployments can take significant advantage of year, risk-adjusted total PV of $185,000. Salesforce’s out-of-the-box presets, simplifying implementation requirements and shortening implementation timelines. Consider the consumption volume of unified customer profiles, engagements, users, and analytics data required to support your solution and consult with your Salesforce account team regarding selecting the right editions for your needs. Deployment And Change Management Ref. Metric Source Initial Year 1 Year 2 Year 3 G1 Number of project manager hours Interviews 360 dedicated to deployment G2 Fully burdened project manager hourly Composite $58 rate G3 Number of marketer hours dedicated to Interviews 1,800 deployment G4 Average fully burdened marketer hourly Composite $43 rate G5 Number of business and IT hours Interviews 270 dedicated to deployment G6 Average burdened hourly cost of Composite $50 business and IT deployment resources G7 Subtotal: deployment internal labor costs (G1*G2)+(G3*G $111,780 $0 $0 $0 4) +(G5*G6) G8 Training and change management costs $150 per user $0 $15,000 $22,500 $22,500 Gt Deployment and change management G7+G8 $111,780 $15,000 $22,500 $22,500 Risk adjustment ↑15% Gtr Deployment and change management $128,547 $17,250 $25,875 $25,875 (risk-adjusted) Three-year total: $197,547 Three-year present value: $185,053 THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 31

ANALYSIS OF COSTS ONGOING ADMINISTRATION Modeling and assumptions. The composite Evidence and data. The organizations incurred the organization fully dedicates one resource as following internal product administration costs as part Salesforce administrator for Marketing Cloud. The of the Marketing Cloud investment: fully burdened salary of the Salesforce administrator • The marketing manager in the retail industry is $90,000 dedicated one FTE as Salesforce administrator. Risks. Forrester recognizes that these results may • The chief marketing officer at the HLS company not be representative of all experiences. The impact estimated that Marketing Cloud required of this cost will vary depending on: approximately 10 hours a month of ongoing • The number of Salesforce products implemented, maintenance, plus another 6 hours a month road map, and timing of implementations and dedicated to cleaning up data. Their team also deployment approach (agile vs. waterfall). pointed to the quick time to value achieved with • Organizations deploying Salesforce across Marketing Cloud. They shared: “Once we got it multiple geographies will have a longer set up, the numbers speak for itself. It’s just on implementation as global stakeholder alignment an automated process now, so that’s one solution takes longer and there are different global buyer that we don’t really have to maintain other than journeys. just checking in on the data every so often, making sure it’s working efficiently.” Results. To account for these risks, Forrester adjusted this cost upward by 10%, yielding a three- year, risk-adjusted total PV of $246,000. Ongoing Administration Ref. Metric Source Initial Year 1 Year 2 Year 3 H1 Salesforce administrator FTE Composite 1 1 1 H2 Average burdened salary of resources Composite $90,000 $90,000 $90,000 Ht Ongoing administration H1*H2 $0 $90,000 $90,000 $90,000 Risk adjustment ↑10% Htr Ongoing administration (risk-adjusted) $0 $99,000 $99,000 $99,000 Three-year total: $297,000 Three-year present value: $246,198 THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 32

Financial Summary CONSOLIDATED THREE-YEAR RISK-ADJUSTED METRICS Cash Flow Chart (Risk-Adjusted) Total costs Total benefits Cumulative net benefits The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and h ws$12.0 M payback period for the composite aso C fl organization’s investment. Forrester $10.0 M assumes a yearly discount rate of 10% for this analysis. $8.0 M $6.0 M These risk-adjusted ROI, NPV, and payback period $4.0 M values are determined by applying risk-adjustment $2.0 M factors to the unadjusted results in each Benefit and Cost section. -$2.0 M Initial Year 1 Year 2 Year 3 Cash Flow Analysis (Risk-Adjusted Estimates) Initial Year 1 Year 2 Year 3 Total Present Value Total costs ($227,547) ($781,200) ($1,119,825) ($1,119,825) ($3,248,397) ($2,704,544) Total benefits $0 $2,184,383 $4,622,805 $6,622,899 $13,430,087 $10,782,184 Net benefits ($227,547) $1,403,183 $3,502,980 $5,503,074 $10,181,690 $8,077,640 ROI 299% Payback period

Appendix A: Total Economic Impact PRESENT VALUE (PV) Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s The present or current value of technology decision-making processes and assists (discounted) cost and benefit estimates vendors in communicating the value proposition of given at an interest rate (the discount their products and services to clients. The TEI rate). The PV of costs and benefits feed methodology helps companies demonstrate, justify, into the total NPV of cash flows. and realize the tangible value of IT initiatives to both senior management and other key business stakeholders. NET PRESENT VALUE (NPV) TOTAL ECONOMIC IMPACT APPROACH The present or current value of Benefits represent the value delivered to the (discounted) future net cash flows given business by the product. The TEI methodology an interest rate (the discount rate). A places equal weight on the measure of benefits and positive project NPV normally indicates that the investment should be made the measure of costs, allowing for a full examination of the effect of the technology on the entire unless other projects have higher NPVs. organization. Costs consider all expenses necessary to deliver the RETURN ON INVESTMENT (ROI) proposed value, or benefits, of the product. The cost category within TEI captures incremental costs over A project’s expected return in the existing environment for ongoing costs percentage terms. ROI is calculated by associated with the solution. dividing net benefits (benefits less costs) by costs. Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. DISCOUNT RATE Having the ability to capture that benefit has a PV that can be estimated. The interest rate used in cash flow analysis to take into account the Risks measure the uncertainty of benefit and cost time value of money. Organizations estimates given: 1) the likelihood that estimates will typically use discount rates between meet original projections and 2) the likelihood that 8% and 16%. estimates will be tracked over time. TEI risk factors are based on “triangular distribution.” PAYBACK PERIOD The initial investment column contains costs incurred at “time The breakeven point for an investment. 0” or at the beginning of Year 1 that are not discounted. All This is the point in time at which net other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total benefits (benefits minus costs) equal cost and benefit estimate. NPV calculations in the summary initial investment or cost. tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur. THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 34

Appendix B: Endnotes 1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders. 2 Source: “The Capabilities CDPs Need To Deliver Value For B2C Marketers,” Forrester Research, Inc., January 16, 2020. 3 Source: “Research Overview: Personalization,” Forrester Research, Inc., August 2, 2021. THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 35

THE TOTAL ECONOMIC IMPACT™ OF SALESFORCE MARKETING CLOUD 36