The Total Economic Impact of Twilio Messaging
Time to read: 2 minutes
August 07, 2023
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In a 2023 Twilio-commissioned Total Economic Impact™️ (TEI) study of Twilio Messaging, Forrester Consulting found a composite organization representative of interviewed customers achieved 132% ROI from Twilio Messaging with an NPV of $2.13M from $3.74M in total benefits over 3 years. Twilio Messaging provided a 3% increase in messages delivered, a 15% productivity improvement among development teams, a 30 to 40% opt-in rate for SMS marketing, and more!
What is the Forrester TEI of Twilio Messaging?
The Total Economic Impact™️ (TEI) is Forrester’s proven methodology to justify, quantify, and articulate the value of an investment. The purpose of this Twilio commissioned study is to provide readers with a framework to evaluate the potential financial impact of Twilio Messaging on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed five representatives of organizations with experience using Twilio Messaging and aggregated the interviewees’ experiences and combined the results into a single composite organization that is a B2C company with $2.5 billion in annual revenue and 15,000 total employees.
“[The primary benefit of Twilio Messaging] is [that] we’ve increased our deliverability. From doing exactly the same thing, we now reach more customers because of Twilio.”
- Head of customer messaging in the financial services industry
- Head of customer messaging in the financial services industry
What are the key findings from the study?
For the composite organization, Forrester found Twilio Messaging delivered three-year, risk-adjusted present value (PV) quantified benefits of:
- ROI of 132%
- 3% increase in message delivery verses previous provider that results in $1.4 million in net margin benefits from a total revenue of $14 million
- 40% drop in customer-care calls and a 15% increase in calls that can be deflected to text, which resulted in savings of $67,900
- 15% productivity improvement for IT developers, providing a financial impact of $156,800
- 30% to 40% additional opportunity from customers opting into Twilio SMS marketing messaging worth $328,000 in net margin from a total revenue of $3.2 million
According to the Forrester TEI study, Twilio Messaging benefited interviewed organizations as a way to:
- Enhance speed to implementation.
- Increase scalability to new regions or higher volumes
- Strengthen compliance
- Improve customer satisfaction with real-time updates and data-driven personalization
- Ensure messages are delivered quickly and on time
“[Twilio Messaging] is certainly a better product [than other solutions and] developers appreciate using [it]. They have been positive in any feedback that they’ve given around integration with Twilio [Messaging], using their console, [and] using their APIs.”
- VP of e-commerce in the food service industry
- VP of e-commerce in the food service industry
Twilio Messaging delivers significant and quantifiable ROI. Twilio Messaging can help organizations increase messaging delivery, improve productivity, enhance scalability, enrich employee engagement, improve customer satisfaction, and leverage data-driven personalization. To read more about this Forrester TEI study, click here.
Bill Higbee is a Sr. Product Marketing Manager, at Twilio. Bill has 20+ years experience in technical marketing roles spanning API, SaaS, Telecom, and more. When Bill isn’t helping businesses enhance their customer engagement, he’s most likely skiing, golfing, or finding some other way to have fun outdoors. Feel free to reach out to him at whigbee@twilio.com or linkedin.com/in/billhigbee
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