Businesses cite profit growth, improved customer retention, and cost and time savings as a result of using Amplitude
Amplitude, Inc. (Nasdaq: AMPL), a leading digital analytics platform, today announced the results of the Total Economic Impact™ of Amplitude study conducted by Forrester Consulting. The study found that a composite organization comprised of interviewees with experience using Amplitude saw a 217% return on investment (ROI) over a three-year period. Those customers also recouped their investment in Amplitude through additional revenue in less than six months.
Before moving to Amplitude, the businesses said they had no clear view of how their customers were using their digital products. The analytics tools they were using were disjointed, creating low confidence in data quality and, ultimately, a lack of understanding as to how product changes impacted revenue and business growth. With Amplitude, however, interviewees said, “their organizations’ product teams, data scientists, and engineers were able to realize significant time savings”1 in various analytics and experimentation activities. Amplitude also helped them identify new customers and discover expansion opportunities with existing accounts.
“With current market conditions, value creation and return on investment are top of mind for every business leader. New technology investments need to help customers drive top-line growth through acquisition and retention of customers, or they need to help manage costs on the bottom line,” said Nate Crook, chief revenue officer at Amplitude. “Amplitude impacts all of these value drivers for our customers and has quickly become a mission-critical platform for businesses across the globe. Our digital analytics platform helps organizations better understand customer behaviors and improve their digital product experiences. We believe the TEI study validates the importance of Amplitude in helping organizations acquire and retain customers, creating seamless paths to monetization, and driving growth.”
In the study, Forrester notes that companies who invest in customer analytics technologies improve the customer experience (CX) by identifying CX pain points, driving loyalty and retention, and increasing customer lifetime value.
By adopting Amplitude’s Digital Analytics Platform, customers realized important revenue and operational efficiency benefits:
- Incremental profit growth from user growth: Simplifying onboarding and improving product adoption to help users find value faster and accelerate growth.
- Incremental profit growth from better monetization of existing customer base: Identifying which customer journeys lead to revenue and optimizing the path to purchase.
- Revenue retention from preventing customer churn: Driving engagement and activation of repeat purchases through real-time personalization to improve retention rates and increase customer lifetime value.
- Cost savings from tech stack consolidation: Consolidating existing vendor spending and gaining a deeper view of the customer lifecycle with Amplitude’s unified platform, which includes Amplitude Analytics, Amplitude Experiment, and Amplitude CDP,
- Time savings related to product development and management: Answering questions about the customer journey quickly for non-technical users and allowing them to run their own experiment, saving analysts time to work on more complex problems.
“If we want to offer a product that stands out from the competition, we need immediate access to insights about how our products perform and how customers use them,” said Paul Chung, software engineer at Grindr. “Before we used Amplitude, a lot of behavioral analysis had to be done in ad hoc reports by data analysts and engineers. With Amplitude, we made 70 to 80 percent of those requests self-serve. This was a game-changer for our team. It freed up data analysts and data engineers to do more valuable work and enabled our product team to move a lot faster.”
These findings build on Amplitude being named a Strong Performer in the Forrester Wave™: Customer Analytics Technologies, Q2 2022, and a Strong Performer in the Forrester Wave™: Digital Intelligence Platforms, Q4 2022 last year.
1 The Total Economic Impact™ Of Amplitude, a July 2023 commissioned study conducted by Forrester Consulting on behalf of Amplitude.
Amplitude is a leading digital analytics platform that helps companies unlock the power of their products. More than 2,300 customers, including Atlassian, Jersey Mike’s, NBCUniversal, Shopify, and Under Armour, rely on Amplitude to gain self-service visibility into the entire customer journey. Amplitude guides companies every step of the way as they capture data they can trust, uncover clear insights about customer behavior, and take faster action. When teams understand how people are using their products, they can deliver better product experiences that drive growth. Amplitude is the best-in-class analytics solution for product, data, and marketing teams, ranked #1 in multiple categories in G2’s 2023 Summer Report. Learn how to optimize your digital products and business at amplitude.com.