Economic Validation Summary: Accelerate E-commerce With AI-powered SAP Commerce Cloud

ESG analyzed the economic benefits organizations realize when implementing SAP CX solutions integrated with SAP ERP systems. This summary illustrates the savings and benefits that organizations with an SAP ERP backend can expect when using it in conjunction with SAP Commerce Cloud rather than using several, disparate, non-SAP point solutions. Download the Document

This Enterprise Strategy Group Economic Summary was commissioned by SAP and is distributed under license from TechTarget, Inc.© 2024 TechTarget, Inc. All Rights Reserved.1AUGUST 2024Accelerate E-commerce With AI-powered SAP Commerce CloudAviv Kaufmann, Practice Director and Principal Validation AnalystAbstract: TechTarget’s Enterprise Strategy Group completed aqualitative and quantitative economic analysis based on interviews withSAP customers, extensive research, and the creation of a conservativeeconomic model. The results illustrated the savings and benefits thatorganizations with an SAP ERP backend can expect when using it inconjunction with SAP Commerce Cloud rather than using several,disparate, non-SAP point solutions.Challenges for EnterprisesTo reduce costs, improve operational efficiency, maximize revenue,mitigate micro- and macro-economic risks, and facilitate a seamlessexperience for customers, organizations need a cloud-based e-commerce solution that provides efficient and scalable integration anddata connectivity between customer-facing channels and back-endERP functions.SAP Commerce CloudSAP Commerce Cloud drives profitable growth with connected, insightful,and adaptable commerce. SAP Commerce Cloud enables brands to linksupply chain and demand signals with end-to-end processes for top-lineand bottom-line growth, leverage insights to stay on top of customerbehavior and commerce performance, and compose their owncommerce platform with extensibility to deliver innovative and optimizedcommerce experiencesall on a comprehensive, feature-rich, andscalable self-service platform that organizations can trust.Economic Validation HighlightsIn a recent report, Enterprise Strategy Group validated with customers that SAP CX solutions, including SAPCommerce Cloud, have helped organizations connect their customer and operational data, remove roadblocks andinefficiencies, leverage AI and automation to streamline tasks, free up resources, reduce risk, improve businessvisibility and insight, and provide self-service customer capabilities. This has resulted in substantial and measurableimprovements in the areas of customer growth, satisfaction, and retention. It has also led to fewer support issuesand faster support resolution, in addition to improving sales and revenue growth, productivity, and compliance,among many more benefits.“D2C teams now have theirown portal where they canmanage price andpromotions withoutinvolving technicalresources and openingtickets.”E C O N O M I C S U M M A R YRead the full report HERE.
2Economic Summary: Accelerate E-commerce With AI-powered SAP Commerce CloudLeveraging our five-year total cost of ownership model described in the report, we modified the assumptions toisolate the expected ranges of benefits reported by customers from leveraging SAP Commerce Cloud connectedwith an SAP ERP. The model predicted a 105% to 245% improvement in revenue based on increased customerregistrations, conversion rates, average basket size, and personalized promotions. It predicted up to a 90%improvement in productivity for digital marketing, online sales, and customer operations teams when using the SAPCommerce portal, as well as significant savings of up to 44% for sales and sales support teams, businessoperations, and customer support teams when handling activities related to online customers. The models alsopredicted up to 80% avoided cost for initial implementation and ongoing maintenance required when usingalternative point solutions. Taking all of these savings into consideration against the expected cost of SAPCommerce Cloud over five years, our models predicted a conservative 458% to 648% return on investment.Figure 1. Enterprise Strategy Group Modeled ROI and Validated Benefits of SAP Commerce CloudSource: Enterprise Strategy Group, a division of TechTarget, Inc.ConclusionEnterprise Strategy Group validated that SAP Commerce Cloud has helped organizations to quickly deploy andscale e-commerce self-service portals that enable customers and sales teams to digitally manage orders, quotes,invoices, payments, returns, claims, and other tasks that used to require manual effort. SAP Commerce Cloudhelps organizations to improve customer experiences and reduce operational complexity, while maximizing revenueand profits, resulting in significant ROI for the organization.©TechTarget, Inc. or its subsidiaries. All rights reserved. TechTarget, and the TechTarget logo, are trademarks or registered trademarks of TechTarget, Inc. and are registered injurisdictions worldwide. Other product and service names and logos, including for BrightTALK, Xtelligent, and the Enterprise Strategy Group might be trademarks of TechTarget or itssubsidiaries. All other trademarks, logos and brand names are the property of their respective owners.Information contained in this publication has been obtained by sources TechTarget considers to be reliable but is not warranted by TechTarget. This publication may contain opinions ofTechTarget, which are subject to change. This publication may include forecasts, projections, and other predictive statements that represent TechTarget’s assumptions and expectationsin light of currently available information. These forecasts are based on industry trends and involve variables and uncertainties. Consequently, TechTarget makes no warranty as to theaccuracy of specific forecasts, projections or predictive statements contained herein.Any reproduction or redistribution of this publication, in whole or in part, whether in hard-copy format, electronically, or otherwise to persons not authorized to receive it, without theexpress consent of TechTarget, is in violation of U.S. copyright law and will be subject to an action for civil damages and, if applicable, criminal prosecution. Should you have anyquestions, please contact Client Relations at cr@esg-global.com.About Enterprise Strategy GroupTechTarget’s Enterprise Strategy Group provides focused and actionable market intelligence, demand-side research, analyst advisory services,GTM strategy guidance, solution validations, and custom content supporting enterprise technology buying and selling. www.esg-global.comcontact@esg-global.comRead the full report HERE.