The Total Economic Impact of Amazon Connect

July 26, 2020

In 2020 Amazon Web Services commissioned Forrester Research to conduct a Total Economic Impact (TEI) study of Amazon Connect and examine the potential return on investment (ROI) enterprises may realize by deploying Amazon Connect in their contact centers.

Through a series of customer interviews and data aggregation, Forrester concluded that the three-year financial impact of switching to Amazon Connect helps the average customer with significant costs savings, increased income, and improved agent productivity. Here are some of the key findings:

  • Reduction in cloud technology costs of $4.3 million
  • Subscription cost savings of 31%
  • Agent labor savings from reduced call volume of $4.6 million
  • Increased operating income by $2.6 million with enhanced customer experience
  • Return on investment (ROI) of 241%

To download and read the entire 31-page report, click here (registration required). Otherwise, if you’d like to get the highlights, keep reading.

Executive Summary

Forrester’s analysis of six current Amazon customers found that Amazon Connect reduced contact center costs, deflected and streamlined calls, improved visibility, simplified management, and boosted customer experience (CX) — while providing dependability and agility at scale. Ultimately, a composite organization modeled after the interviewed organizations with 6 million annual calls reduces costs by 31% and achieves a 241% ROI over three years by replacing its legacy cloud solution with Amazon Connect.

Rising customer expectations are pushing companies to deliver ever-improving customer experience (CX), yet, contact centers have complex suits of applications that can actually slow contact resolution and increase customer dissatisfaction.

Where did they get the data?

Forrester interviewed six AWS customers who use Amazon Connect in contact centers ranging from 300 to 20,000 agents. These companies previously struggled with excess costs; frequent outages; roadblocks to updates, scale, and enhancements; and limited capabilities.

“I look at our ROI from three perspectives: we reduced our per member, per month cost by 40%, we no longer pay for unused seats, and we reduced telecommunications costs by about 50% Our ROI is great. We made significant savings compared to renewing our existing contract.” – Senior director of cloud engineering, healthcare services

So, what are the unquantified benefits of Amazon Connect?

Benefits. Amazon Connect enhanced employee experience, aided decision making, improved cash flow, scaled costs directly with usage, accelerated contact flow updates, reduced risk of lost recordings, enhanced call quality, and strengthened contact center and customer interaction security.

Flexibility. Customers gained future opportunities to: deploy and integrate additional AWS services; quickly scale usage; quickly update flows and prompts; quickly launch or move contact center sites; and support work-from-home agents and supervisors. Amazon Connect can help ensure business continuity, as organizations used Amazon Connect during the COVID-19 pandemic to accommodate significant spikes in call volume, ensure reliability, and adapt to new customer needs with speed.

Costs. Forrester modeled $4.2 million in three-year costs for the composite organization. These are qualified by the following cost categories:

  • Consumption fees of $2.5 million for Amazon Connect usage plus third-party integration data accesses using AWS Lambda, call recording storage in Amazon S3, and an IVR with natural language processing powered by Amazon Lex.
  • Consumption fees of $953,000 for transcription and AI analysis of all voice calls using Contact Lens for Amazon Connect.
  • Internal labor worth $351,000 for implementation.
  • Internal labor worth $323,000 for management.
  • Internal labor worth $111,000 for training.

Risks. Forrester has integrated an evaluation of risks and variability into all calculations in this financial analysis. The organizational scale, variety and complexity of use cases, IT estate complexity, and region and broader market forces may either hamper the realization of benefits or cause price, labor, or timeline overages.

Synopsis. Forrester’s risk-adjusted financial analysis for the composite organization shows $14.4 million in benefits versus $4.2 million in costs over three years by switching from a legacy cloud solution to Amazon Connect, adding up to a net present value (NPV) of $10.2 million and an ROI of 241%. The composite organization reduces annual licensing and consumption costs by 31% from $2.1 million to $1.5 million for 950 users.

Total Economic Impact Findings

Quantified benefits. Forrester modeled $14.4 million in three-year benefits for the composite organization:

Avoided legacy cloud technology costs of $4.3 million. Amazon Connect replaced legacy solutions, reducing the total annual contact center subscription and usage costs by 31%.
Agent labor savings from reduced call volume of $4.6 million. Amazon Connect reduced call volume by 8% to 24% with better routing, interactive voice response (IVR) self-help, agile IVR updates, and digital improvements informed by AI analysis using Contact Lens.
Agent labor savings from faster call resolution of $1.7 million. Amazon Connect shortened AHT by up to 15% with improved contact flows, better IVR prompts and data capture, streamlined UX, and process improvements informed by Contact Lens.
Agent labor savings from accelerated agent training of $435,000. New contact center agents were trained one week faster thanks to Amazon Connect’s flow and UX improvements.
Supervisor labor savings from streamlined management of $533,000. Amazon Connect’s reporting and dashboards plus AI-informed insights from Contact Lens reduced time spent on service delivery and quality by up to 20%.
System administrator labor savings from reduced contact center management of $156,000. Admins spent 60% less time managing Amazon Connect than the legacy contact center.
Agent and IT labor savings from improved dependability of $82,000. Switching to Amazon Connect virtually eliminated user-impacting downtime that plagued legacy systems.
Increased operating income by $2.6 million with enhanced customer experience. Amazon Connect improved CX, boosting revenue by 2% and reducing refunds and replacements by 15%.

The entire report is an in-depth look at how Amazon Connect is re-shaping the CX industry and forcing companies to think differently about how they do business with their customers. It is highly recommended to read the entire report.

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