PORTLAND, Ore.--(BUSINESS WIRE)--SheerID, the global leader in identity verification for commerce, today announced the findings of a research study it commissioned from Forrester Consulting. The Total Economic Impact™ (TEI) Study measured business benefits and cost-savings that marketers realized when using SheerID’s identity verification solution to create gated, personalized offers for communities like students, teachers and the military. SheerID customers who participated in the study received $16.1 million in additional revenue, $2.9 million in savings from fraud mitigation, and more than $700,000 in cost-savings from redeploying employees, for a Net Present Value of $15.15 million over a 3 year term. These results were combined to form a single composite organization.
With the ongoing challenge of driving revenue in a turbulent economy, brands view SheerID’s identity verification solution as a cost-effective way to drive customer demand and build brand loyalty. Customers who participated in the TEI Study commented that “SheerID over delivered,” “making my team feel exceptionally supported,” “was able to pull best practices in community marketing from a multi-national perspective that proved powerful to the implementation,” and noted that “the result was a significant increase in conversion.”
Organizations using SheerID’s Identity Verification Solution for commerce reported the following benefits:
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Increased Subscription Profit of $3.6 million
The study found that SheerID’s identity verification solution gives consumers a seamless in-brand verification experience that doesn’t require them to leave the brand’s website and create a separate account with a third party. Customers who participated in the study noted that the verification process is swift, removes friction, and reduces consumer abandonment during the sales process.
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Partnership Opportunities increase operating profit by $1.6 million
Companies reported using SheerID as a lever when recruiting partners to participate in customer offers. They noted that potential partners are aware of the positive reputation of SheerID’s identity verification solution and can benefit from SheerID’s service virtually risk-free before engaging on their own. This accelerates partnerships for organizations that work with SheerID and provides extra value to consumers through an enhanced product bundle that is custom-designed for the targeted segment and leads to a further improved conversion rate.
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Increased Retail Revenue of $10.9 million
The improved quality of the profiling data that companies acquire through SheerID’s identity verification solution allows organizations to better design and promote retail product offers under their own brand names. This allows them to collect higher-quality zero-party data that consumers willingly share with them because they understand the benefit of doing so.
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Fraud Mitigation savings of $2.9 million
Due to the accuracy of SheerID verification, customers report that SheerID does a more effective job of denying out-of-segment consumers than the customer’s previous manual verification process did. This benefit is quantified as the amount of revenue lost due to the previous error-prone manual verification process.
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Avoided Manual Verification Costs of $709 thousand
The research revealed that the internal verification solutions that SheerID replaced were manual and labor-intensive. Customers reported that switching to SheerID enabled their organization to either recharter headcount dedicated to this effort to other initiatives or avoid the underlying costs.
“Current global economic conditions have driven retailers to look more closely at how they’re engaging consumers, while the return on investment of those methods is under increased scrutiny,” stated Jake Weatherly, CEO of SheerID. “Providing brands with a tried and true method of attracting and retaining customers while decreasing fraud and significantly impacting their top and bottom line is the core of our business. This study shows the financial benefits of consistently engaging consumers with exclusive offers based on the group status they are proud of.”
Access the full study here.
About Forrester Total Economic Impact (TEI) Study
Total Economic Impact (TEI) is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
About SheerID
SheerID is the global leader in identity verification for commerce. With SheerID, brands identify and acquire customers from highly valued consumer communities — such as the military, students, teachers, first responders, and more — with personalized offers, gated by instant verification from the largest set of authoritative data worldwide. SheerID verifies over 2.5 billion people via more than 20,000 authoritative data sources; provides global insights from hundreds of the world’s leading brands, and never shares or sells customer data. As a result, the world’s biggest brands — including Amazon, Home Depot, Spotify, and T-Mobile — rely on SheerID as their identity marketing partner.
Founded in 2011, SheerID is backed by Fortson VC, Brighton Park Capital, Centana Growth Partners, Voyager Capital, and CVC Growth Partners. SheerID is ISO Certified and is a member of the MACH Alliance, the group of independent technology companies dedicated to advocating for open, best-of-breed technology ecosystems. In 2023, SheerID ranked among the highest-scoring businesses on Inc. Magazine’s Annual List of Best Workplaces. For more information, please visit SheerID or follow us on Twitter, LinkedIn, Facebook, and TikTok.
