Forrester Research, Inc. (FORR): Business Model Canvas [11-2024 Updated]
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Forrester Research, Inc. (FORR) Bundle
Forrester Research, Inc. (FORR) stands as a pivotal player in the realm of market research and consulting, leveraging a robust business model that combines key partnerships, value propositions, and a diverse revenue stream. By exploring their Business Model Canvas, we can uncover how Forrester effectively delivers high-quality insights and consulting services to a range of customer segments, from large enterprises to industry professionals. Dive deeper to understand the intricacies of their operations and how they maintain a competitive edge in the market.
Forrester Research, Inc. (FORR) - Business Model: Key Partnerships
Collaborations with technology vendors
Forrester Research, Inc. has established strategic partnerships with various technology vendors to enhance its research capabilities and provide comprehensive insights to its clients. These collaborations allow Forrester to access cutting-edge technologies and integrate them into its research methodologies.
Alliances with consulting firms
Forrester partners with prominent consulting firms to extend its reach in the consulting segment. These alliances facilitate joint research initiatives and expand the service offerings available to clients, particularly in advisory services.
Partnerships with academic institutions
Forrester maintains partnerships with academic institutions to leverage academic research and insights. These collaborations help enhance the credibility of Forrester's research and provide clients with access to the latest academic findings relevant to their industries.
| Partnership Type | Partner Examples | Benefits | Financial Impact |
|---|---|---|---|
| Technology Vendors | Microsoft, Salesforce | Access to advanced analytics tools, integration of AI in research | Enhanced research capabilities, potential revenue growth through improved service offerings |
| Consulting Firms | Deloitte, Accenture | Joint research initiatives, expanded advisory services | Increased client base, revenue sharing opportunities |
| Academic Institutions | Harvard, Stanford | Access to academic research, credibility enhancement | Improved content quality, potential for new research funding |
These partnerships are critical for Forrester to maintain its competitive edge in the market and to provide value-added services to its clients.
Forrester Research, Inc. (FORR) - Business Model: Key Activities
Conducting market research
Forrester Research, Inc. generates a significant portion of its revenue from market research activities. In the third quarter of 2024, research revenues amounted to $77.1 million, a decrease of 4% compared to $80.6 million in the same quarter of 2023. For the first nine months of 2024, total research revenues were $237.3 million, down 5% from $249.2 million in 2023. This decline is attributed to decreased demand for certain research products, including subscription services.
Delivering consulting services
Consulting services are another key activity for Forrester, contributing $23.4 million in revenue during the third quarter of 2024, representing a 17% decrease from $28.2 million in the prior year. For the nine months ended September 30, 2024, consulting revenues totaled $71.3 million, a 21% decline compared to $90 million in the same period of 2023. This drop is primarily due to reduced client bookings and a lower volume of consulting engagements.
Hosting industry events and webinars
The Events segment generated $2.1 million in revenue in the third quarter of 2024, down 54% from $4.6 million in 2023. For the nine-month period, event revenues were $15.8 million, marking a 33% decrease from $23.5 million the previous year. The decline in event revenue is attributed to reduced sponsorship and ticket sales, reflecting changing dynamics in industry gatherings.
| Key Activities | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|---|---|---|
| Market Research | $77.1 | $80.6 | -4% | $237.3 | $249.2 | -5% |
| Consulting Services | $23.4 | $28.2 | -17% | $71.3 | $90.0 | -21% |
| Events | $2.1 | $4.6 | -54% | $15.8 | $23.5 | -33% |
Forrester Research, Inc. (FORR) - Business Model: Key Resources
Proprietary research database
Forrester Research, Inc. maintains a proprietary research database that is central to its operations. This database provides access to a wide array of market research reports, data analyses, and customer insights. As of September 30, 2024, the total revenues from research services amounted to $237.3 million for the nine months ended, reflecting a decrease of 5% compared to $249.2 million in the same period of 2023. The decline in research revenue is attributed to decreased subscription product uptake and the impact of divested product lines.
Experienced research analysts
Forrester employs a team of experienced research analysts who are pivotal in generating insights and recommendations for clients. The company reported a decrease in service and fulfillment employees from 790 at the end of September 2023 to 690 in 2024, indicating a reduction of 100 employees or approximately 13%. The expertise of these analysts contributes significantly to the company's brand reputation and the value of its consulting services, which generated $71.3 million in revenue for the nine months ended September 30, 2024, down 21% from $90.0 million in the previous year.
Strong brand reputation in the industry
Forrester has established a strong brand reputation within the market research industry, which is critical for client retention and attracting new business. The company's client retention rate stood at 73% as of September 30, 2024, unchanged from the previous year. The number of clients decreased from 2,338 to 2,002, a decline of 336 clients or 14%. This decline has impacted overall revenues, which totaled $324.4 million for the nine months ended September 30, 2024, down 11% from $362.7 million in the same period of 2023.
| Key Resource | Details | Financial Impact (2024) |
|---|---|---|
| Proprietary Research Database | Access to extensive market research and data analysis | Research revenues: $237.3 million (down 5% YoY) |
| Experienced Research Analysts | Team of analysts providing insights and recommendations | Consulting revenues: $71.3 million (down 21% YoY) |
| Brand Reputation | Strong reputation aiding client retention | Client retention rate: 73% (unchanged); clients decreased to 2,002 |
Forrester Research, Inc. (FORR) - Business Model: Value Propositions
High-quality, actionable research insights
Forrester Research, Inc. provides high-quality research insights that are essential for businesses to make informed decisions. In the third quarter of 2024, the company's research revenues amounted to $77.1 million, a 4% decrease from $80.6 million in the same period of 2023. The total revenues for the nine months ending September 30, 2024, were $324.4 million, down from $362.7 million for the same period in 2023.
| Period | Research Revenues ($ millions) | Percentage Change |
|---|---|---|
| Q3 2024 | 77.1 | -4% |
| Q3 2023 | 80.6 | |
| 9M 2024 | 237.3 | -5% |
| 9M 2023 | 249.2 |
Tailored consulting solutions for businesses
Forrester offers tailored consulting solutions that cater to specific business needs. The consulting revenues for the third quarter of 2024 were $23.4 million, reflecting a 17% decrease from $28.2 million in the third quarter of 2023. Over the nine-month period ending September 30, 2024, consulting revenues totaled $71.3 million, down 21% from $90.0 million in the prior year.
| Period | Consulting Revenues ($ millions) | Percentage Change |
|---|---|---|
| Q3 2024 | 23.4 | -17% |
| Q3 2023 | 28.2 | |
| 9M 2024 | 71.3 | -21% |
| 9M 2023 | 90.0 |
Access to exclusive industry events
Forrester hosts exclusive industry events that provide valuable networking and learning opportunities for professionals. In Q3 2024, event revenues were $2.1 million, a significant 54% decline from $4.6 million in Q3 2023. For the nine-month period ending September 30, 2024, event revenues totaled $15.8 million, down 33% from $23.5 million in the previous year.
| Period | Event Revenues ($ millions) | Percentage Change |
|---|---|---|
| Q3 2024 | 2.1 | -54% |
| Q3 2023 | 4.6 | |
| 9M 2024 | 15.8 | -33% |
| 9M 2023 | 23.5 |
Forrester Research, Inc. (FORR) - Business Model: Customer Relationships
Subscription-based service model
Forrester Research, Inc. operates primarily on a subscription-based service model, which accounts for a significant portion of its revenue. For the nine months ended September 30, 2024, total revenues amounted to $324.4 million, with research revenues contributing $237.3 million, reflecting a decrease of 5% compared to the same period in 2023. The subscription model allows clients to access ongoing research and insights, with contracts generally structured over 12 to 24 months.
Dedicated account management for clients
Forrester provides dedicated account management for its clients, which enhances customer relationships and retention. As of September 30, 2024, the company reported a client retention rate of 73%. This dedicated support is crucial for maintaining high levels of service and ensuring that clients maximize the value of their subscriptions. The company had approximately 2,002 active clients, a decrease of 14% from the previous year.
Regular updates and insights through newsletters
Regular communication through newsletters and updates is a key aspect of Forrester's customer relationship strategy. The company utilizes newsletters to deliver insights and updates on market trends, research findings, and new services. This approach not only keeps clients informed but also reinforces the value of their subscription, helping to drive wallet retention, which stood at 89% as of September 30, 2024.
| Metrics | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Total Revenues (in millions) | $324.4 | $362.7 | -11% |
| Research Revenues (in millions) | $237.3 | $249.2 | -5% |
| Client Retention Rate (%) | 73% | 73% | 0% |
| Number of Clients | 2,002 | 2,338 | -14% |
| Wallet Retention Rate (%) | 89% | 89% | 0% |
Forrester Research, Inc. (FORR) - Business Model: Channels
Direct sales through in-house teams
Forrester Research employs an in-house sales team to engage directly with clients, primarily focusing on their research and consulting services. As of the third quarter of 2024, Forrester's total revenues amounted to $102.5 million, with research revenues contributing $77.1 million and consulting revenues making up $23.4 million. The consulting segment saw a significant decline, with revenues decreasing by 17% compared to the previous year. This decline indicates the challenges faced by the direct sales force in maintaining client engagements and bookings.
Online platform for research access
Forrester's online platform provides clients with access to a vast array of research materials, reports, and analytical tools. The subscription-based model for research services is pivotal, as it constituted approximately 73% of total revenues during the nine months ended September 30, 2024. The segment’s revenues saw a slight decrease of 5% year-over-year, which can be attributed to a decline in some subscription products. As of September 30, 2024, the contract value of Forrester's subscription services was reported at $315.2 million, reflecting a decrease of 5% from the prior year.
Industry events for networking and engagement
Forrester hosts various industry events aimed at networking and engagement with clients. However, the events segment has experienced a sharp decline, with revenues dropping by 54% in the third quarter of 2024 compared to the same period in 2023. Total revenues from events for the nine months ended September 30, 2024, were $15.8 million, down from $23.5 million in the previous year. The decrease in sponsorship and ticket revenue has significantly impacted this channel, indicating the need for Forrester to reassess its event strategies to enhance client engagement.
| Channel | Revenue (in millions) | Year-over-Year Change | Percentage of Total Revenue |
|---|---|---|---|
| Direct Sales (Consulting) | $23.4 | -17% | 22.8% |
| Online Research Access | $77.1 | -4% | 75.2% |
| Industry Events | $15.8 | -33% | 4.9% |
Forrester Research, Inc. (FORR) - Business Model: Customer Segments
Large enterprises seeking research data
Forrester Research primarily serves large enterprises that require extensive research data and insights to inform their strategic decisions. In 2024, the research segment generated revenues of $237.3 million, representing a 5% decline from $249.2 million in 2023. This segment accounts for a significant portion of Forrester's total revenues, illustrating the high demand among large organizations for comprehensive data analysis and market research.
Mid-sized companies needing consulting services
Mid-sized companies represent another critical customer segment for Forrester, particularly in their consulting services. In the nine months ended September 30, 2024, consulting revenues were $71.3 million, down from $90.0 million in the same period of the previous year, marking a 21% decrease. This decline is attributed to reduced client bookings, indicating a shift in mid-sized firms' spending patterns on consulting services as they navigate economic uncertainties.
Industry professionals looking for networking opportunities
Forrester also targets industry professionals by providing networking opportunities through various events. However, event revenues saw a sharp decline, dropping to $15.8 million in the first nine months of 2024 from $23.5 million in 2023, a decrease of 33%. This decline reflects broader challenges in event attendance and sponsorship, suggesting that industry professionals are increasingly selective about their participation in such networking events.
| Customer Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|---|
| Large Enterprises (Research) | $237.3 | $249.2 | -5% |
| Mid-sized Companies (Consulting) | $71.3 | $90.0 | -21% |
| Industry Professionals (Events) | $15.8 | $23.5 | -33% |
Forrester Research, Inc. (FORR) - Business Model: Cost Structure
Employee salaries and benefits
As of September 30, 2024, Forrester Research reported a total compensation and benefits cost decrease of approximately $4.5 million compared to the previous year, primarily due to a reduction in headcount. The number of service and fulfillment employees at the end of the third quarter of 2024 was 690, down from 790 in the prior year, reflecting a 13% decrease.
Research and development expenses
For the nine months ended September 30, 2024, Forrester's research segment expenses totaled $90.1 million, a decrease from $94.5 million in the same period of 2023. This represents a 4.5% decrease year-over-year.
Marketing and sales expenditures
Forrester's selling and marketing expenses for the three months ended September 30, 2024, were reported at $38.3 million, down from $40.0 million in the same period of 2023, showing a 4% decrease. In the nine-month period, these expenses totaled $117.9 million, compared to $123.1 million in the prior year, marking another 4% decrease.
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Employee Salaries and Benefits | $4.5 million decrease | N/A | N/A |
| Research and Development Expenses | $90.1 million | $94.5 million | -4.5% |
| Marketing and Sales Expenditures | $38.3 million | $40.0 million | -4% |
Forrester Research, Inc. (FORR) - Business Model: Revenue Streams
Subscription fees for research services
Forrester Research generates a significant portion of its revenue from subscription fees for research services. During the three months ended September 30, 2024, research revenues amounted to $77.1 million, which reflects a decrease of 4% compared to $80.6 million in the same period of 2023. For the nine months ended September 30, 2024, research revenues totaled $237.3 million, down from $249.2 million in 2023, representing a 5% decline.
| Period | Research Revenues ($ millions) | Year-over-Year Change (%) |
|---|---|---|
| Q3 2024 | 77.1 | -4% |
| Q3 2023 | 80.6 | |
| 9M 2024 | 237.3 | -5% |
| 9M 2023 | 249.2 |
Consulting project fees
Consulting services represent another key revenue stream for Forrester. For the three months ended September 30, 2024, consulting revenues were $23.4 million, marking a 17% decrease from $28.2 million in the same period of the previous year. In the nine months ended September 30, 2024, consulting revenues amounted to $71.3 million, down from $90.0 million in 2023, reflecting a decline of 21%.
| Period | Consulting Revenues ($ millions) | Year-over-Year Change (%) |
|---|---|---|
| Q3 2024 | 23.4 | -17% |
| Q3 2023 | 28.2 | |
| 9M 2024 | 71.3 | -21% |
| 9M 2023 | 90.0 |
Revenue from event sponsorships and ticket sales
Event-related revenues have also contributed to Forrester's financials. In Q3 2024, revenues from events were $2.1 million, a significant decline of 54% compared to $4.6 million in Q3 2023. For the nine months ended September 30, 2024, event revenues totaled $15.8 million, down from $23.5 million in the prior year, reflecting a decrease of 33%.
| Period | Event Revenues ($ millions) | Year-over-Year Change (%) |
|---|---|---|
| Q3 2024 | 2.1 | -54% |
| Q3 2023 | 4.6 | |
| 9M 2024 | 15.8 | -33% |
| 9M 2023 | 23.5 |
Updated on 16 Nov 2024
Resources:
- Forrester Research, Inc. (FORR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Forrester Research, Inc. (FORR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Forrester Research, Inc. (FORR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.