The Total Economic Impact Of Twilio: Forrester’s Three-Year Study

Is it worth it to power your communications using Twilio? Forrester recently released a report on Twilio’s total economic impact. In short, it’s 277% worth it.

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The Total Economic Impact Of Twilio: Forrester’s Three-Year Study

Choosing a platform to power your communications is a big decision. Of course, you want to provide the right communications experiences your customers expect through a variety of channels, but you also rely on profit to achieve your company goals.

To help companies evaluate the potential financial impact of Twilio on their organizations, Forrester Consulting conducted a Total Economic Impact™ (TEI) study. The results of this study provide readers with a simple analysis of the benefits, costs, and risks associated with implementing Twilio APIs to add voice, video, and messaging capabilities to their applications and other business communications.


Total Economic Impact (TEI) is a methodology developed by Forrester Research. It was designed to enhance a company’s technology decision-making processes. At the same time, it assists vendors in communicating the value proposition of their products and services to clients.

The TEI methodology can be a helpful tool for individual decision-makers who have responsibility for recommending, purchasing or using IT. The TEI methodology consists of four components to evaluate investment value: benefits, costs, risks, and flexibility. These help IT decision-makers justify their initiatives to senior management and other key business stakeholders.

Findings: Twilio Helps Save Costs and Drive Sales

Forrester interviewed four enterprise companies from different industries in three different countries. Their financial impact of using Twilio was assessed over a three-year period.

Through customer interviews and data aggregation, Forrester concluded that the three-year financial impact of switching to Twilio brings the average customer multiple benefits, including significant costs savings, increased conversions, and improved developer and agent productivity. Here are some of the key findings:

  • Improved inbound and outbound conversion rates by 15%.
  • Reduced average cost per contact by 15%.
  • Improved IT developer productivity by 30%.
  • Cost savings from discontinuing legacy communications platform of $1.1M.
  • $12.6 million in benefits versus costs of $3.3 million, resulting in a net present value (NPV) of $9.2 million and an ROI of 277%.

All within a payback period of less than six months.

forrester tei

Forrester also identified substantial unquantified benefits, which aren’t explicitly tied to economic benchmarks. These include the freedom to innovate and add new channels, free from technology limitations, improved security leading to a reduction in fraud and its related costs, and higher customer satisfaction.

Still curious what the economic impact will be for your business? Download the report here.