Article summary: FullStory just released a commissioned Total Economic Impact™ (TEI) study conducted by Forrester Consulting, which shows that an enterprise organization that deploys its digital experience analytics platform can benefit from a three-year ROI of 411% and payback in under three months.
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How an ecommerce enterprise gained over $5.5M in benefits from FullStory
Ecommerce enterprises rely on positive digital customer experiences and strong customer relationships to drive their online sales presence. This is especially important during times of crisis, such as the COVID-19 pandemic.
FullStory offers organizations the ability to identify their customers’ digital points of friction and quickly fix them, thereby enhancing the customer journey, resulting in higher conversion rates, average order values (AOVs), and increased net sales—according to a Total Economic Impact study conducted by Forrester.
The study, titled The Total Economic Impact™ of FullStory's Digital Experience Analytics Platform, found that one large retail brand obtained $5.63 million in benefits over three years, made up of increased conversion rates, efficiencies gained in error resolution, and avoided cost to remediate online customer fraud (among other benefits).
FullStory is a digital experience analytics platform that provides complete digital interaction data, surfacing both quantitative and qualitative insights. The platform identifies, prioritizes, and helps address friction points within the digital experience, which can favorably impact an organization’s bottom line, as demonstrated by this study.
Forrester conducted in-depth interviews with stakeholders at an enterprise retailer with a large online presence and experience using FullStory. The insights from these interviews were used to quantify the benefits, costs, and risks associated with an investment in FullStory and project a three-year financial analysis.
Quantified and unquantified benefits of using FullStory
The quantified benefits of using FullStory for this organization, identified over a three year period include:
3% increase in cart conversion rates. Enhanced data from FullStory allows the organization to identify areas of friction and resolve these issues before losing potential customers. More visitors have a positive digital experience, which translates to lower cart abandonment, higher AOV, and an increase in sales. The annual cart conversion increase results in a three-year, risk-adjusted PV of $4.5 million.
$1 million per year in avoided fraud costs. When a fraudulent checkout transaction is detected, the FullStory platform allows this organization to capture a malicious user’s actions, enabling quick remediation by the development team. Forrester assumes that, with FullStory, the avoided customer fraud cost totals $1 million per year, resulting in a three-year, risk- adjusted PV benefit of $2.2 million.
20 hours saved per defect. With FullStory monitoring the organization’s customer sessions, internal teams can resolve issues more efficiently than in their previous environment. Specifically, the product management team saves 20 hours per defect, and it eliminates its reliance on other teams to address issues, saving 8 hours per defect. The three-year PV, adjusted for risk, is $261,000.
In addition, this organization identified the following unquantified benefits:
Increases visibility. Rather than relying primarily on individual customer feedback, which can be time-consuming to interpret and often requires staff from multiple teams, FullStory provides its users visibility to detect areas of friction on a large scale, prioritizing improvements with the most impact.
Encourages innovation. With up-to-date information regarding a customer’s journey, product developers, owners, and managers gain insight into the needs and desires of the organization’s consumer. These insights are valuable, as they can direct future site, banner, and product line enhancements.
Provides instrumentation-free analytics. The organization no longer needs to “tag” all possible customer behaviors. A tagging requirement can create gaps if the predicted behavior is incorrect. Instrumentation-free analytics allow the organization to automatically index every customer interaction, eliminating the need to predict behavior and providing the organization with real-time, accurate data.
Eliminates information silos. Users across the organization gain efficiencies, as they can now access the same accurate digital experience data, reducing time needed to share details when issue resolution is required.
Offers simple integration and a user-friendly interface. According to one interviewee, FullStory integrates well with other implemented, cloud-based solutions, enhancing the features already benefiting the organization. Additionally, the user-friendly interface enables new users to quickly adopt and realize the value of FullStory.
"Digital experience is today's most important competitive battleground—especially as the pandemic continues to accelerate a shift to digital for both companies and customers," said Scott Voigt, CEO, FullStory. "This study and Forrester's analysis show how FullStory's powerful and intuitive platform enables enterprise organizations to deliver significant ROI, fast, and continued financial gains in the long term."
Prior to using FullStory, the interviewed organization lacked access to the level of analytics it needed to make fully informed, real-time decisions. It relied on manual searches and customer feedback to find and fix issues in an effort to improve the customer experience and to enhance its checkout process.
Limitations in visibility prevented the organization from efficiently identifying and eliminating friction in the customer journey, and digital visibility is especially critical for pandemic preparedness and recovery. When uncertainty is rampant and customers are having to relearn how to interact with brands, now at home on digital channels, organizations need to make better, faster decisions to remain competitive.
After the investment in FullStory, the organization was able to extensively monitor site visits or sessions, as well as to see online consumer behavior in detail. With clear identification of pain points in its customer conversion funnel, it could now focus on quick and efficient remediation. FullStory provides a robust set of analytics that empowers employees to find and fix issues in a timelier manner, freeing up time for staff to perform more value-added work.
One stakeholder interviewed for this study put it succinctly: “FullStory allows us to see exactly where an experience breakdown is happening.” Another said, "[We're] more efficient now because we are avoiding all the back and forth between teams. Less communication is required between development, product, QA, and business teams to resolve an issue impacting the customer experience."