If you’ve ever wondered what the financial impact of Domo would be on your small- and medium-sized business (SMB), then have we got the perfect report for you.
Earlier this year, Domo commissioned Forrester Consulting to examine the potential return on investment such SMBs may realize by deploying Domo.
The result was The Total Economic Impact™ (TEI) of Domo for Small and Medium Businesses, a study based on interviews the firm conducted with four decision-makers from organizations with experience using Domo, and a piece of research that included the following key findings.
1 – There were significant quantified benefits over a 3-year period
A composite organization, representative of the four interviewees’ organizations, experienced a three-year present value increase of more than $1 million in revenue as well as over $1 million in labor savings. (The composite organization has $40 million in revenue per year and an employee base of approximately 300.)
What’s more, Domo provided technical labor savings of $246,198 (aggregate) and eliminated previous BI licenses/implementations, saving the organizations an additional $33,573.
“Customer reporting, now standardized and utilizing Domo security, previously had 15 people working four hours per week each to create reports,” said one of the interviewees, the manager of corporate analysis for a group purchasing organization. “That’s entirely eliminated.”
2 – There were a lot of unquantified benefits, as well
From improved data quality to increased customer satisfaction, there was no shortage of unquantified benefits for the Domo-using organizations that participated in the study.
Other unquantified benefits included: increased confidence and trust in data at the leadership level, increased employee satisfaction (due to the fact they can now focus on value-add work), reduced non-labor costs, enjoyed partnership with a company interested in their success, and a transformed culture.
Said another interviewee, an IT director at an insurance company: “We have gone from an organization believing that we can’t do a certain analysis to an organization that brainstorms how to use internally and publicly available data to get the insights we seek.”
3 – The ROI was 345%
The customer interviews and financial analysis found that a composite organization—like the one examined for the TEI study—experiences benefits of $2.51 million over three years versus costs of more than $563,000, adding up to a net present value (NPV) of $1.94 million and an ROI of 345%.
“Some time ago, we had a failed data warehouse implementation that cost us over $1 million,” said that same IT director referenced above. “Our Domo proof of concept not only alleviated the fears of another disaster, but we gained actionable insights as a plus.”
To download The Total Economic Impact™ (TEI) of Domo for Small and Medium Businesses, click here.