A commissioned Total Economic Impact™ (TEI) study conducted by Forrester Consulting on behalf of NICE in December 2020 found that an organization that deploys the NICE Enlighten, Nexidia Analytics and Quality Central solutions can benefit from a 268% ROI and a Net Present Value of $18.58 million.
In conducting the analysis, Forrester Consulting interviewed four customers with experience using NICE solutions, aggregated the experiences of the interviewed customers and combined the results into a single composite organization. Before using the NICE solutions, the organizations evaluated the performance of call center agents by randomly selecting a few calls each month to listen to and preparing feedback and coaching for each individual agent. They were challenged to provide quality, actionable coaching to agents in a timely manner. In addition, when product issues or other events arose, it could take weeks or months before those issues or trends were noticed and acted upon.
After deploying the NICE Enlighten, Nexidia Analytics and Quality Central solutions, the organizations were able to automate the evaluation of all customer interactions and provide real-time guidance for call center agents.
“Organizations deploying these NICE Nexidia solutions realized call center productivity gains as well as improved business outcomes, such as increased sales, reduced churn and avoided fraudulent activity,” Forrester Consulting concluded in the study.
The financial analysis presented in the Total Economic Impact study was based on conservative estimates using a composite organization comprised of 5,500 call center agents handling 50,000 interactions a day, 200 agent managers and a 10-person analytics team that provides analytical support for call center operations. Quantified benefits included:
- An $11.6 million increase in sales of high-margin add-ons due to targeted coaching.
- A 90% reduction in manual call evaluations.
- A reduction of agent attrition from more than 50% to 25%, for a savings of nearly $3.3 million.
- A 14% reduction in customer churn, valued at more than $5 million.
- Increased revenue from improved fraud detection (an estimated $423,000).
- Improved productivity of call agents (4,000 hours per year, for an estimated $93,000 in savings).
Forrester Consulting also identified a wide range of unquantified benefits, including improved customer satisfaction metrics and guidance and assistance in implementing programs.
In total, the customer interviews and financial analysis showed that a composite organization investing $6.94 million in the NICE solutions experiences benefits of $25.52 million over three years, for a net present value of $18.58 million and an ROI of 268%.
TEI Framework and Methodology
Forrester Consulting’s TEI methodology helps companies demonstrate, justify and realize the tangible value of IT initiatives to senior management and other key business stakeholders. The objective of the framework is to identify the cost, benefit, flexibility and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that NICE Enlighten, Nexidia Analytics and Quality Central can have on an organization:
- Due diligence: Interviewed NICE Nexidia stakeholders and Forrester analysts to gather data relative to the NICE Enlighten, Nexidia Analytics and Quality Central solutions.
- Customer interviews: Interviewed four decision-makers at organizations using NICE solutions to obtain data with respect to costs, benefits and risks.
- Composite organization: Designed a composite organization based on characteristics of the interviewed organizations.
- Financial model framework: Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewed organizations.
- Case study: Employed four fundamental elements of TEI in modeling the investment impact -- benefits, costs, flexibility and risks.
Read the full report here.