Forrester Consulting ‘Total Economic Impact’ Study Finds Latinia Delivers 162% Return on Investment
Client-based case study shows quantified benefits of $10.8M in a five-year period in Customer Engagement Platforms for Financial Services
BARCELONA, Spain–(BUSINESS WIRE)–#digitalbanking—Latinia, the Real-time communication’s software vendor for the financial industry, today announces the results of its Forrester Consulting Total Economic Impact (TEI™) study, examining the potential return on investment (ROI) through investing in Latinia’s Real Time Decisions Engine. Based on interviews and results for a mid-tier Latin American bank with around 350,000 digital channel customers, the TEI™ found that the client was able to achieve a 162% ROI in 5 years, a payback below 6 months, and generate new business because of the monetization of the bank’s digital services worth at least $1.5 million per year, with a net present value (NPV) up to $6.66M, adding some other quantifiable benefits like cost-savings and shortening time-to-market (TTM), not to mention unquantified benefits like customer empowerment and a leading-edge innovative positioning in the region.
“Many banks are facing competition from challengers who are both internal and external to the financial industry, and oftentimes, the competitive differentiation comes down to having a better understanding of customer’s needs. To overcome this, banks need a better knowledge what their customers are doing in real-time to deliver relevant content to them in a consistent and useful way. Latinia’s Real Time Decisions Engine allows them to do this”, said Marc Alcón, CEO and co-founder of Latinia.
In terms of the quantified benefits from signing Latinia’s, the bank identified $7.6M over 5 years because of the incremental revenues from messaging subscriptions of its customer base, $1.3M in cost savings by replacing its legacy messaging infrastructure, and $1.8M in shortening its time-to-market (TTM), totaling benefits around $10.8M in a five-year period row.
Unquantified benefits include increasing the bank’s customer knowledge, easiness to create better service experiences because of the real-time analysis and content delivery, and customer empowerment because of the self-service customer subscription mode.
Forrester’s Total Economic Impact™ (TEI) consulting practice develops business value justification analysis to help organizations understand the financial impact of a technology investment. The TEI methodology has been used for over 20 years by technology organizations. It consists of four components to evaluate investment value: cost, benefits, flexibility, and risk.
To review the full Forrester Total Economic Impact study about Latinia’s Real Time Decisions Engine, please visit here.
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