Total Economic Impact
Cost Savings And Business Benefits Enabled By Grammarly
A Forrester Total Economic Impact™ Study Commissioned By Grammarly, June 2024
Total Economic Impact
A Forrester Total Economic Impact™ Study Commissioned By Grammarly, June 2024
As an AI-powered writing assistant, Grammarly helps organizations and teams achieve business goals with better and faster communication. Whether communicating internally or with customers, Grammarly tailors communication to the audience while ensuring it is efficient, on-brand, and clear. Grammarly seamlessly inserts writing and corporate style suggestions directly into a wide range of applications and websites, providing a consistent communication layer across the workplace tech stack. This enables teams to save time by reducing context-switching, while improving writing quality and adhering to brand guidelines in any Grammarly-enabled tool where workers write.
Grammarly leverages AI, machine learning, generative AI, and linguistic expertise to enhance all stages of writing, from content creation and brainstorming to revision, while reducing the efficiencies lost from context switching between applications. Additionally, its style guide, brand tones, and knowledge-sharing capabilities help maintain consistent and professional communication across an organization. Grammarly reduces revision cycles and increases content output while also fostering employee collaboration by bridging language gaps and streamlining workflows.
Grammarly commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Grammarly. The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Grammarly on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed seven representatives and surveyed 493 respondents with experience using Grammarly for Enterprise. For the purposes of this study, Forrester aggregated the experiences of the interviewees and survey respondents and combined the results into a single composite organization that is a global technology solutions and services organization with 7,500 knowledge workers and revenue of $2 billion per year.
Interviewees said that prior to using Grammarly for Enterprise, their organizations lacked a unified and efficient writing solution that could enable customer-facing teams to consistently apply brand voice and corporate style guidelines, enhance inclusivity in written language, and improve communication quality and effectiveness across departments. The outdated and costly legacy solution implemented as a writing assistant and for enforcing style guides was difficult to use and maintain, resulting in teams not utilizing it. As a result, content creators and reviewers lacked a comprehensive solution for error detection and clarity suggestions, leading to inefficiencies in editing processes. Non-native English speakers struggled to convey their message effectively, and the absence of an easy-to-implement solution for creating, managing, and applying corporate style guidelines and brand tones resulted in inconsistencies in external communication, training materials, and overall writing coherence.
After adopting Grammarly, the interviewees reported that customer-facing teams in marketing, sales, and support saw significant improvements in writing quality and adherence to company style guides and brand voice guidelines. The interviewees’ companies also realized benefits from using Grammarly in a wide variety of other departments and cross-functionally within their organizations, as well as within the collaboration, productivity, and function-specific applications they already used. Grammarly helped users across all stages of the writing process. For example, content editors relied heavily on Grammarly for error detection and clarity suggestions. According to interviewees, the tool acted as a safety net that ensured mistake-free writing and told users whether they should use an acronym or spell out the full term for better clarity. Grammarly’s alternative phrasing suggestions and generative AI (genAI) capabilities helped overcome writer’s block. Interviewees also found that Grammarly caught typos and provided grammar guidance for writers, aiding non-native English speakers to improve communication quality, effectiveness, and overall efficiency. It helped the sales teams at interviewees’ organizations build rapport with customers and reduced the time talent acquisition teams spent revising job descriptions to align more closely to the corporate voice and use more inclusive language. Support teams benefited from consistent voice and improved grammar, while Grammarly’s tone analysis ensured professional and inclusive internal and external communications.
According to survey responses, Grammarly helped users move from being “Moderately effective” to “Very effective” or “Extremely effective” in their communications when writing in email, messaging, and other workplace applications.
Base: 341 Grammarly users who mentioned that Grammarly helps them communicate more effectively
Source: A commissioned study conducted by Forrester Consulting on behalf of Grammarly, January 2024
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
More efficient writing and communication processes across departments. Grammarly’s AI-powered writing capabilities integrate into a wide range of workplace applications and tools the composite organization uses, transforming the writing and communication process across numerous departments and enhancing the organization’s overall productivity. Grammarly users, on average, save 40 minutes per day in their writing process, and they can reclaim 50% of the time saved, allowing them to allocate their resources more effectively and increase productivity. These efficiencies are worth more than $20.3 million over three years for the composite organization.
Savings from decommissioning the legacy writing assistant. The composite organization’s legacy writing assistant was more expensive and difficult to use and thus was only used by 7% of knowledge workers. Grammarly provides a writing assistant that is accessible to all employees, making it the unified writing solution for the composite organization. By the end of Year 1, the composite organization concludes the process of migrating its style guides and writing rules into Grammarly and phases out its legacy writing assistant. This transition leads to cost savings of $683,000 by the end of Year 3.
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
More impactful sales communication and better adherence to brand voice. The composite organization uses Grammarly to enhance the quality of its external communication and improve adherence to its brand voice. Grammarly provides real-time guidance on the company’s brand voice and style guide rules and suggestions to improve their writing style and tone so that sales teams and other customer-facing teams communicate clearly and effectively.
Enhanced inclusivity and tone of internal communications. Grammarly enhances inclusivity and tone in the composite organization’s internal communications. Grammarly’s tone prompts in emails, memos, and text messages ensure users sound more professional, more inclusive, and overall, more positive in their internal interactions. This contributes to better company collaboration and improved employee morale.
Confidence in writing quality for non-native English speakers. Grammarly contributes to improving the writing quality for non-native English speakers at the composite organization. It helps them to maintain consistency in their writing, improve English language fluency and quality, and avoid potentially sensitive or insensitive phrases. With Grammarly, support resources teams who speak English as a second language can communicate in a consistent voice to customers and improve grammar. ESL employees report feeling more confident in their writing, which results in better performance and more efficient communication.
Survey respondents found that Grammarly had the biggest impact in revising their writing for correctness, helping with tone and clarity, and improving composition.
Base: 476 Grammarly users who commented on the value of Grammarly in achieving their writing goals at work
Source: A commissioned study conducted by Forrester Consulting on behalf of Grammarly, January 2024
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
Cost of the Grammarly subscription. The composite organization rolls out Grammarly to 1,500 users in Year 1 and adds 1,500 users in each consecutive year. At a subscription fee of $300 per user per year, the composite incurs costs of just under $2.3 million over three years.
Internal costs. The composite organization incurs various costs in implementing and managing Grammarly, including setting up a cross-divisional governance team, migrating style guides, coordinating rollout, allocating implementation resources, conducting user training, and ongoing management of customizations. Five personnel are initially involved, with one person spending 2 hours per month on ongoing maintenance. A cross-functional governance team of 10 employees supports the initial go-live of Grammarly, with customization and governance efforts decreasing in Years 2 and 3. Additionally, 1,500 new users spend 8 hours on training and familiarization each year. These costs add up to just over $1.3 million over three years for the composite organization.
The representative interviews and financial analysis found that a composite organization experiences benefits of $21.00 million over three years versus costs of $3.59 million, adding up to a net present value (NPV) of $17.41 million and an ROI of 484%.
Return on investment (ROI)
Benefits PV
Net present value (NPV)
Payback
Forrester interviewed seven representatives and surveyed 493 respondents with experience using Grammarly at their organizations. For more details on these individuals and the organizations they represent, see Appendix B.
According to the interviewees and survey respondents, the knowledge workers in their organizations spent a significant amount of time communicating in written form and creating or revising written content.
Base: 493 Grammarly users who use the solution at work
Source: A commissioned study conducted by Forrester Consulting on behalf of Grammarly, January 2024
During the interviews, representatives pointed out that their organizations faced challenges in improving the grammar, spelling, clarity, and inclusiveness of their teams’ written content. They struggled to maintain consistency in brand tone across external-facing content despite having previously implemented a writing assistant solution with style guide capabilities. The interviewees reported that their organizations’ existing tools were expensive, difficult to use, and difficult to maintain.
The interviewees noted how their organizations struggled with specific challenges, including:
Difficulty scaling their brand voice guidelines to a larger number of employees. This was due to an outdated writing assistant that could not correct brand voice, lacked customization options, and was difficult to scale as the company grew. Additionally, the tool was expensive and created too much overhead. The guidelines provided by the tool were not helpful, and it did not offer real-time suggestions. It also had a steep learning curve and lacked the features and flexibility necessary for technical writing needs.
Inconsistency in producing higher-quality customer-facing content across teams. Interviewees mentioned their organizations’ inability to offer seamless access to shared writing guidelines, promote a cohesive approach to communication, create a shared understanding of writing expectations, and maintain consistent spelling and usage of terms across teams. They could not ensure brand conformity and consistency or assist newcomers in quickly adapting to corporate writing styles and standards.
Inability to accelerate the writing process across applications and departments to create written content more efficiently. According to the interviewees, their organizations demanded high-quality written content and communications from their employees. However, many employees struggled to produce error-free and impactful content without sacrificing productivity. This challenge was amplified by the disruption of workflow employees experienced as they switched between different applications and tools to find information, terminology, and brand and style guidelines. Employees across various departments spent a significant amount of time searching for templates and reviewing their own communication for grammar and spelling errors. Content creators wasted time referring to style guides, researching best practices for technical terms or acronyms, and correcting brand voice, active voice, or punctuation.
Lack of tools available to support the writing quality of non-native English speakers and promote uniformity and inclusivity of written communication. Several interviewees worked for global organizations with a sizable percentage of employees who learned English as a second or third language. Interviewees mentioned that producing error-free and well-written English content across the organization proved to be difficult, hindering many employees’ ability to convey their message effectively. The interviewees’ organizations also struggled to promote language equity and improve communication with global constituents due to language barriers and cultural differences. Additionally, non-inclusive communication practices hindered the establishment of a cohesive and inclusive environment, making it challenging to improve company culture at these global organizations.
The interviewees reported their organizations searched for a solution that could replace their outdated writing assistants and style guide platforms with an affordable, scalable, and user-friendly solution. The solution had to offer suggestions for improving sentence structure, vocabulary, and clarity while also enforcing brand voice, ensuring accurate spelling, and providing grammar checks.
Their investment goals were focused on achieving the following outcomes:
Optimized writing processes. The interviewees’ organizations wanted efficiencies throughout their organization by streamlining the editing process and reducing time spent on manual proofreading and editing.
Improved quality of written content. Interviewees’ organizations also sought improved quality of customer-facing content by maintaining consistency in brand voice and enforcing the consistent use of style guides in all written communications.
More inclusive communication. Finally, they wanted a solution that enhanced inclusiveness and improved employee morale by ensuring that all written communication was effective, inclusive, and free from biased language.
During the interviews, participants also mentioned that the solution of choice needed to have robust security measures in place to protect their organizations’ sensitive information and ensure compliance with data protection regulations.
After confirming Grammarly’s usability via small-scale pilots with content creators and users with previous experience with the solution, the interviewees’ organizations chose Grammarly and began a phased rollout, prioritizing customer-facing teams and individuals with heavy writing workloads.
Interviewees highlighted the following implementation approaches:
Governance. Leading up to the pilot, some interviewees said their organizations established a cross-functional governance team that held regular meetings to review user feedback, implement necessary changes, and ensure that the tool was effective for all teams involved.
Migration. Two interviewees mentioned surveying users of their legacy tool during the Grammarly evaluation process to understand their department-specific requirements better. This information helped them align Grammarly with their department-specific style guides and corporate brand voices as they transferred style rules from the legacy platform.
Adoption. Most interviewees’ organizations initially rolled out Grammarly to customer-facing teams, such as marketing, business development, customer success, or customer support. However, all interviewees reported that within four to six weeks of the initial deployment, the use of Grammarly spread to additional departments, including legal, talent acquisition, finance, executive management, and more.
Based on the interviews and survey, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the seven interviewees and the 493 respondents, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Description of composite. The composite organization is a technology solutions and services vendor with a global presence and 7,500 knowledge workers, who provide customer support, sales, and service/warranty support for both business and consumer products in high volume. It has a strong brand and a powerful online presence, and while it is headquartered in North America, the composite organization operates contact centers and other customer-facing functions on several continents. The technical nature of its products and services, as well as its expansion into new global markets, demands its marketing and technical writing teams to produce a growing volume of customer-facing content.
Deployment characteristics. The composite organization prioritizes content creators and customer-facing teams in the initial rollout of Grammarly but finds itself offering Grammarly licenses to users in almost every department within the first year of deployment. At the end of Year 1, the organization replaces its legacy platform entirely with Grammarly. By Year 3, 4,500 employees use Grammarly for most of their writing tasks and throughout their office applications. They also use the solution within the composite’s internal collaboration platform, project management tools, customer relationship management system, and collaboration systems. Users leverage the generative AI features in Grammarly to enhance their content, create summaries, and generate ideas throughout the analysis period.
Survey responses represent a mix of marketing and advertising teams, customer support functions, and other internally and externally facing teams.
Base: 492 Grammarly users who use the solution at work
Source: A commissioned study conducted by Forrester Consulting on behalf of Grammarly, January 2024
$2 billion revenue
7,500 knowledge workers
7% have access to the legacy platform, which is decommissioned in Year 1
20% of workers receive Grammarly licenses in Year 1, 40% in Year 2, and 60% in Year 3
Grammarly’s Impact On Teams
56% of survey respondents believe that their team generates higher-quality content with Grammarly.
51% of Grammarly users believe that their team communicates in English more fluently because of using Grammarly at work.
41% of survey respondents suggest that they complete work faster using Grammarly.
Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|
Atr | Knowledge worker productivity impact | $4,218,750 | $8,437,500 | $12,656,250 | $25,312,500 | $20,317,196 |
Btr | Replacement of legacy writing assistant and style guide solution | $0 | $432,800 | $432,800 | $865,600 | $682,855 |
Total benefits (risk-adjusted) | $4,218,750 | $8,870,300 | $13,089,050 | $26,178,100 | $21,000,051 |
Evidence and data. According to the survey, 54% of respondents reported saving time while writing, and 81% stated that Grammarly saved them time when editing written content at work. In addition, 70% reported that they communicated more effectively with Grammarly.
Base: 493 Grammarly users who use the solution at work
Source: A commissioned study conducted by Forrester Consulting on behalf of Grammarly, January 2024
The principal writer at the software and services company discussed Grammarly’s role in creating clearly written content in less time and called Grammarly a safety net that ensured that employees’ writing was error free. The strategic advisor at the same company extended this notion, calling out how, in addition to providing suggestions for improving clarity in writing, Grammarly saved time by reducing unnecessary review cycles. This interviewee said, “I trust and have confidence that if there are no red underlines, my writing is error free, and with that, Grammarly has saved me time.”
Throughout the interviews, the representatives highlighted how Grammarly’s writing assistant, snippets, and AI-powered writing tools improved organizational efficiency during the writing and editing process. They also mentioned the benefits of brand tones, style guides, and corporate dictionaries. The interviewees expanded on these tools as follows:
Writing assistant. Interviewees relayed that Grammarly’s writing assistant made writing easier, more efficient, and more impactful, enabling employees to communicate their ideas more effectively and with higher confidence in less time. Leveraging Grammarly’s AI-infused tools, interviewees said users produced error-free writing, refined ideas, and expressed themselves more effectively without procrastinating over empty pages. The writing assistant also helped users create a more personalized and impactful writing style and more confidently choose the right language for specific contexts and audiences. As a result, users created enhanced sales communication, more targeted job descriptions, clearer technical instructions, higher-quality marketing and web content, and more impactful corporate communication in less time.
The business process consultant at the shared services company explained how Grammarly provided them with reassurance when communicating with leadership and creating documentation for management. They said: “I used to review my content multiple times to ensure they were well-written and made sense. Now, with Grammarly, I feel more confident knowing that it can catch any errors or suggest improvements. It saves me time during the review process.”
The principal writer at the software and services firm talked about appreciating Grammarly for catching typos and correcting punctuation issues, saying: “I often forget when to use a comma before ‘and,’ ‘or,’ and ‘but’ and when not to use one, so Grammarly helps me with that. Despite my title as a writer, I’m not as skilled with spelling and punctuation rules as one might expect, so Grammarly makes me look good.”
of respondents see Grammarly as “Valuable” or “Very valuable” in revising writing for correctness.
Style guides, brand tones, and corporate dictionary. Interviewees highlighted how easy it was to implement style guides, brand tones, and corporate dictionaries in Grammarly. Grammarly made style, brand, and term suggestions and guided users on when to use or spell out acronyms. These capabilities allowed users to quickly access and refer to shared writing guidelines, promoting a uniform corporate brand across the organization while maintaining consistent spelling and usage of terms across teams. These capabilities promoted the insertion of a corporate tone of voice and terminology into new content without the need to switch to external style guides and other corporate templates. This enabled content creators and writing teams to work more efficiently. By enabling users to catch inconsistencies during the writing process, these tools allowed the interviewees’ organizations to produce more mistake-free and well-written content without requiring lengthy review cycles. Interviewees mentioned that with these tools, newcomers found it easier to adapt to corporate writing styles and standards, reducing the time and effort required for onboarding. Additionally, by using these features in Grammarly, employees could communicate with global constituents and non-native English speakers more efficiently.
The business process consultant, who was responsible for the creation of internal training materials at the shared services firm, stated that Grammarly had improved their team’s communication, training materials, and overall efficiency. They clarified: “Grammarly prompts users to consider whether they should use an acronym or spell it out for better clarity. These features have been particularly helpful for not just non-native English speakers but also those who need to communicate with clarity.”
The business development manager at the computer software company discussed the value of Grammarly’s style guide capabilities in achieving consistent communication across geographies: “I found the style guide feature useful. I created custom recommendations for my global team, and I see them using those.”
Before Grammarly, only 22% of respondents reported that communicating in the right tone of voice was easy for them. With Grammarly, this percentage grew to 83%.
Base: 297 Grammarly users who mentioned Grammarly helps them communicate in the right tone and voice
Source: A commissioned study conducted by Forrester Consulting on behalf of Grammarly, January 2024
Snippets. Interviewees mentioned several examples of how their teams used snippets to create further efficiencies in the writing process. They said that snippets allowed users to insert predefined text blocks or commonly used phrases directly into the application where they are writing in. This helped maintain consistency in writing and promoted a unified and professional writing style, reducing the likelihood of errors or omissions in frequently used content and increased overall writing efficiency. Establishing department-specific content and communication patterns also reduced the need for customer-facing teams to find and use templates, thereby saving time and effort. Snippets also improved the accuracy and efficiency of customer support interactions, allowing support teams to serve more customers and reduce escalations due to fewer instances of miscommunication.
The business development manager at the computer software company mentioned how their team saved frequently used text snippets in Grammarly, saying, “Snippets are the biggest help, especially for my oversees employees whose writing has significantly improved with Grammarly.”
In another example, the senior developmental editor at the computer software company noted, “The team responsible for social media and community management utilizes snippets to efficiently respond to app store reviews and for their use in managing various social media accounts.”
Generative AI. Leveraging Grammarly’s generative AI capabilities, interviewees’ organizations created quality content in less time. Interviewees reported that Grammarly’s generative AI capabilities are available in any Grammarly-enabled application or website, enhancing the writing, revising, and summarizing processes. The generative AI capability also facilitated brainstorming and ideation, which reduced blank-page syndrome and ultimately saved time. Additionally, through Grammarly’s ability to autogenerate text, interviewees noticed that they could increase the speed and accuracy of communication by reducing the time it takes to respond to emails. Furthermore, Grammarly reduced revision cycle times and enabled editing teams to focus on enhancing the content of customer-facing blogs and manuals.
The content management capabilities owner at the technology manufacturing company said: “Our editors who proofread content for our marketing teams are heavy users, spending many hours a day using Grammarly. They leverage its ability to revise content for clarity quickly.”
The business process consultant at the shared services discussed how Grammarly’s suggestions for alternative phrasing have been helpful when they needed to generate ideas or overcome writer’s block: “Even if the suggestions need more editing, they provide a foundation to build upon. Also, I have seen how the generative AI feature can be beneficial in providing concise summaries or explanations.”
When asked to quantify time savings, survey respondents reported an average efficiency of 43% created by Grammarly during their communication workstreams.
Base: 239 Grammarly users who mentioned that Grammarly helps them work more efficiently
Source: A commissioned study conducted by Forrester Consulting on behalf of Grammarly, January 2024
In a task-based view, surveyed Grammarly users saved the most time writing to others, reviewing work, and proofreading (40%), followed by responding to communication (39%):
Base: 265 Grammarly users who mentioned that Grammarly helps them save time writing
Source: A commissioned study conducted by Forrester Consulting on behalf of Grammarly, January 2024
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
The composite organization employs 7,500 knowledge workers. In Year 1, 20% are active Grammarly users, while 40% adopt Grammarly in Year 2 and 60% become Grammarly users in Year 3.
On average, Grammarly users save 40 minutes per day thanks to the streamlined writing process enabled by the tool. Efficiency gains in Years 1 and 2 reflect the impact of Grammarly within a user base that proportionately includes more heavy writers than in consecutive years when Grammarly seats are extended more broadly across the organization. In Year 3, when the user base includes proportionately fewer heavy writers than in previous years, Grammarly’s additional efficiency-generating capabilities are factored into the calculation.
Forrester applies a productivity capture rate of 50% as not all reclaimed time equals productive time.
The average fully burdened annual salary for a knowledge worker is $75,000.
Risks. Operational differences that may affect the financial benefit of knowledge worker efficiencies when using Grammarly include:
The extent to which the organization’s knowledge workers rely on written communication.
The average amount of time users spend writing during the workday.
The degree to which an organization can encourage more widespread use of Grammarly across various applications and writing tasks.
The extent to which users are adopting Grammarly’s generative AI capabilities.
The prevailing compensation rates for office and knowledge workers in the local area.
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $20.3 million.
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|
A1 | Number of knowledge workers | Composite | 7,500 | 7,500 | 7,500 | |
A2 | Percentage of knowledge workers actively using Grammarly | Interviews | 20% | 40% | 60% | |
A3 | Time saved per knowledge worker daily with Grammarly (minutes) | Composite | 40 | 40 | 40 | |
A4 | Productivity realization factor | TEI standard | 50% | 50% | 50% | |
A5 | Fully burdened annual salary for a knowledge worker | TEI standard | $75,000 | $75,000 | $75,000 | |
At | Knowledge worker productivity impact | A1*A2*A3*A4/60* 260*A5/2,080 | $4,687,500 | $9,375,000 | $14,062,500 | |
Risk adjustment | ↓10% | |||||
Atr | Knowledge worker productivity impact (risk-adjusted) | $4,218,750 | $8,437,500 | $12,656,250 | ||
Three-year total: $25,312,500 | Three-year present value: $20,317,196 |
Evidence and data. Interviewees from two of the organizations noted their organizations had previously invested in solutions that were meant to provide content management, style guides, and writing assistant capabilities to groups of content editors and proofreaders in various departments. However, interviewees mentioned that it was difficult to gain widespread adoption and consistent usage.
The senior developmental editor at the computer software company stated that their company implemented the legacy solution for quality assurance efforts, but because of the complexity of the back end, it was a cumbersome process to keep the content up to date and, as a result, much of the writing guidelines were out of date and not very helpful. The interviewee added: “We tested Grammarly because we found that the legacy solution was too difficult to use and too difficult to maintain. We were not able to ever get the guidelines up to where we wanted them to be with the old platform.”
The content management capabilities owner at the technology manufacturing company mentioned that the legacy solution had a steep learning curve for users: “We overcomplicated the tool with thousands of configurations and rule sets, which made it also difficult to manage. Overall, the tool was deemed too expensive, difficult to use, and had too much overhead.”
Modeling and assumptions. Based on the interviews and survey, Forrester assumes the following about the composite organization:
The cost of the legacy solution is $1,000 per user per year.
541 employees, just over 7% of knowledge workers, are licensed to use the legacy solution.
The legacy solution is fully decommissioned by the end of Year 1 of the Grammarly deployment.
Risks. Operational differences that may impact the financial benefit associated with cost savings from retiring legacy solutions include:
The organization’s prior use of other content management, writing assistant, or style guide solutions.
The lifecycle costs associated with these solutions and equipment.
The rate at which the organization retires these solutions and equipment.
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $683,000.
Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|
B1 | Cost of the legacy solution per user | Interviews | $1,000 | $1,000 | $1,000 | |
B2 | Number of licensed users | Composite | 541 | 541 | 541 | |
B3 | Total annual cost of the legacy solution | B1*B2 | $541,000 | $541,000 | $541,000 | |
B4 | Percentage of legacy solution retired | Interviews | 0% | 100% | 100% | |
Bt | Replacement of legacy writing assistant and style guide solution | B3*B4 | $0 | $541,000 | $541,000 | |
Risk adjustment | ↓20% | |||||
Btr | Replacement of legacy writing assistant and style guide solution (risk-adjusted) | $0 | $432,800 | $432,800 | ||
Three-year total: $865,600 | Three-year present value: $682,855 |
Interviewees and survey respondents mentioned the following additional benefits that their organizations experienced but were not able to quantify:
More impactful sales communication and better adherence to brand voice. The principal writer at the software and services company explained that a key goal of the Grammarly rollout was to provide sales teams and other customer-facing teams with guidance on the company’s brand voice. The business development manager at the computer software company talked about the impact they saw on their own writing as well as on that of their team: “Grammarly provided suggestions and helped me make my text more concise and express myself better, and I became a better writer through using it. For some team members, it took some time to get on board, but eventually, I have received good feedback from my team, and I have seen an improvement in their writing, particularly in their emails.”
Enhanced inclusivity and tone of internal communications. The content management capabilities owner at the technology manufacturing firm explained, “While our main priority is supporting website marketing and customer-facing communications, we see value in Grammarly for other use cases across the company.” These use cases included internal communication, where several interviewees reported that Grammarly had improved the tone and inclusiveness of their emails and internal memos. The principal writer at the software and services company mentioned that they pay attention to Grammarly’s tone prompts in their emails and chat messages throughout the day. The interviewee said: “Grammarly analyzes my tone and indicates whether I sound casual or professional, defensive or not. I pay attention to that. If the icon tells me I sound forceful or defensive, I will rewrite the sentence. So, I really appreciate those signals and prompts.”
Confidence in writing quality for non-native English speakers. The senior developmental editor at the computer software company mentioned how Grammarly was particularly helpful for their team because their organization employs writers in different countries with different dialects. They explained: “Grammarly helps ensure that we are using the correct English style and language. I sometimes flag words or phrases that may be correct in certain dialects but not in our target style. It helps us maintain consistency in our writing.” The content management capabilities owner at the technology manufacturing company noted that before investing in Grammarly, their project governance team surveyed the user base and identified “Help with grammar and spelling,” especially for non-native English speakers, as one of the top use cases employees mentioned. The principal writer at the software and services firm noted, “Some users, especially non-native English speakers, have mentioned feeling more confident in their writing when using Grammarly.”
Survey respondents reported increased confidence in their writing quality with Grammarly. Before Grammarly, 51% percent of respondents felt confident or very confident communicating at work. With Grammarly, this number went up to 91%.
Base: 329 Grammarly users who mentioned that Grammarly helps them communicate more confidently
Source: A commissioned study conducted by Forrester Consulting on behalf of Grammarly, January 2024
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Grammarly and later realize additional uses and business opportunities, including:
Personalizing AI-generated text. Interviewees discussed the desire to explore a new capability where Grammarly automatically detects and creates a writing profile or voice for users based on previous writing. This feature would allow users to apply their unique communication style to AI-generated text with the goal of reducing revision time and ensuring that the output reflects the user’s style more accurately. With this capability, users will be able to leverage their company’s unique communication style in conjunction with their personal voice while taking advantage of the power of generative AI.
Leveraging Grammarly across more applications to further reduce context switching. According to the interviewees, their organizations have promoted the use of Grammarly across various applications, but there are still more opportunities to enable the writing assistant and generative AI capabilities across additional desktop and web applications. Interviewees expect that this will further reduce context switching for users and ensure consistent and clear communication and the opportunity to use generative AI across more applications and platforms.
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
---|---|---|---|---|---|---|---|
Ctr | Grammarly subscription | $0 | $472,500 | $945,000 | $1,417,500 | $2,835,000 | $2,275,526 |
Dtr | Internal costs | $52,524 | $515,665 | $505,159 | $505,159 | $1,578,507 | $1,318,331 |
Total costs (risk-adjusted) | $52,524 | $988,165 | $1,450,159 | $1,922,659 | $4,413,507 | $3,593,857 |
Evidence and data. Grammarly charged the interviewees’ organizations an annual subscription fee for the use of Grammarly.
Modeling and assumptions. Based on the interviews and survey responses, Forrester assumes the following about the composite organization:
The annual cost of a Grammarly enterprise license is $300 per user.
The composite organization rolls out Grammarly to 1,500 users in Year 1 and grows its Grammarly user base to 3,000 in Year 2 and 4,500 in Year 3.
Risks. The total annual subscription fees will vary with the number of users.
Results. To account for this variance, Forrester adjusted this cost upward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $2.3 million.
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|---|
C1 | Grammarly subscription cost | Grammarly | $300 | $300 | $300 | ||
C2 | Number of licensed users | A1*A2 | 1,500 | 3,000 | 4,500 | ||
Ct | Grammarly subscription | C1*C2 | $450,000 | $900,000 | $1,350,000 | ||
Risk adjustment | ↑5% | ||||||
Ctr | Grammarly subscription (risk-adjusted) | $472,500 | $945,000 | $1,417,500 | |||
Three-year total: $2,835,000 | Three-year present value: $2,275,526 |
Evidence and data. According to the interviewees, initial and ongoing costs included setting up a cross-divisional governance team, cleaning up and migrating style guides from the legacy system, coordinating rollout, allocating implementation resources, conducting user training, and ongoing management of the customizations.
The content management capabilities owner at the technology manufacturing company stated that they formed a governance team consisting of 10 members in preparation for the implementation of Grammarly. Each major business unit across the company, such as various product and software groups, had a representative on the team. The team also included people who were involved in the publishing process and from IT. The content management owner shared the following details about the initial rollout and the governance process: “It took us about three months to set everything up. We met on a regular basis during that time. This wasn’t just about setting up Grammarly but also about deciding who should have access to the enterprise backend and how to communicate the change. … Setting up Grammarly itself only took a day because of our single sign-on system. However, transferring the style rules from our old tool took some time as we had to scrub through the style rules and clean them up before migrating them over.”
This interviewee continued: “After the initial setup, we had ongoing calls for another three months, but they were less frequent. We eventually switched to monthly meetings to review feedback and make any necessary changes. The governance process is running smoothly, and we have a way for people to submit feedback.”
The principal writer at the software and services company noted that for user training, they pointed people toward the materials provided by Grammarly for getting started. They also created an internal page with information on the features of Grammarly that they thought would be useful. The interviewee said: “I did a charm offensive where I spoke to various teams about Grammarly, built awareness, and generated excitement. I made a business case for why they should adopt the tool and how it would make their lives easier by improving our brand voice.”
Commenting on the implementation and adoption process, the senior developmental editor at the computer software company said: “Grammarly is easy to use and has been well-received by the writers I work with. The interface is user-friendly, and it strikes a good balance between functionality and simplicity. Grammarly provided training materials for the initial go-live, while our ongoing governance process involves reviewing feedback, addressing user requests, and making adjustments to the style guidelines and configurations.”
The business process consultant at the shared services organization explained that training for Grammarly was relatively easy to create, as the tool is user-friendly and Grammarly provided helpful resources, such as videos and email templates. They further added that the communications team and IT department also played a vital role in implementing and supporting Grammarly. The interviewee concluded: “We have three admins who oversee Grammarly within our organization. Two of them are in the communications department, and one is in IT. The IT admin helped set up single sign-on, making it easier for new employees to access Grammarly. The communications team continues to promote and discuss Grammarly in our internal newsletter.”
Modeling and assumptions. Based on the interviews and survey responses, Forrester assumes the following about the composite organization:
Five personnel are involved in the initial implementation process, which requires 40 hours of their time leading up to the Grammarly rollout, after which one person spends on average 2 hours per month maintaining the Grammarly implementation.
A cross-functional governance team is made up of 10 employees who invest an average of 80 hours each leading up to the implementation of Grammarly. In Year 1, this governance team is composed of eight individuals who dedicate 40 hours to customization, change management, and ongoing governance efforts. In Years 2 and 3, these activities only require 20 hours of six team members’ time.
The average fully burdened annual salary for personnel involved in the implementation and governance process is $95,000.
Each year, 1,500 new Grammarly users are onboarded and spend, on average, 8 hours reviewing training content and familiarizing themselves with the Grammarly platform.
The average fully burdened annual salary for a knowledge worker is $75,000.
Risks. Initial and ongoing costs can vary with:
Familiarity with writing assistant and style guide solutions in general.
An organization’s legacy environment and migration requirements.
The average fully burdened cost of personnel, which depends on skill level and geographical location.
Results. To account for these risks, Forrester adjusted this cost upward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.3 million.
Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
---|---|---|---|---|---|---|---|
D1 | Number of personnel involved in planning, implementation, and training | Composite | 5 | 1 | 1 | 1 | |
D2 | Average effort per person (hours) | Interviews | 40 | 24 | 24 | 24 | |
D3 | Number of personnel involved in customization, change management, and ongoing governance | Composite | 10 | 8 | 6 | 6 | |
D4 | Average effort per person (hours) | Interviews | 80 | 40 | 20 | 20 | |
D5 | Fully burdened annual salary for personnel | TEI standard | $95,000 | $95,000 | $95,000 | $95,000 | |
D6 | Subtotal: Cost of planning, implementation, customization, and ongoing governance |
(D1*D2+D3*D4) *D5/2,080 |
$45,673 | $15,712 | $6,577 | $6,577 | |
D7 | New Grammarly users | Composite | 1,500 | 1,500 | 1,500 | ||
D8 | Grammarly training and familiarization hours per new user | Composite | 8 | 8 | 8 | ||
D9 | Fully burdened annual salary for a knowledge worker | TEI standard | $75,000 | $75,000 | $75,000 | ||
D10 | Subtotal: Grammarly training and familiarization costs for users | D7*D8*D9/2,080 | $432,692 | $432,692 | $432,692 | ||
Dt | Internal costs | D6+D10 | $45,673 | $448,404 | $439,269 | $439,269 | |
Risk adjustment | ↑15% | ||||||
Dtr | Internal costs (risk-adjusted) | $52,524 | $515,665 | $505,159 | $505,159 | ||
Three-year total: $1,578,507 | Three-year present value: $1,318,331 |
Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
---|---|---|---|---|---|---|
Total costs | ($52,524) | ($988,165) | ($1,450,159) | ($1,922,659) | ($4,413,507) | ($3,593,857) |
Total benefits | $0 | $4,218,750 | $8,870,300 | $13,089,050 | $26,178,100 | $21,000,051 |
Net benefits | ($52,524) | $3,230,585 | $7,420,141 | $11,166,391 | $21,764,593 | $17,406,194 |
ROI | 484% | |||||
Payback | <6 months |
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
From the information provided in the interviews and survey, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Grammarly.
The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that Grammarly can have on an organization.
Interviewed Grammarly stakeholders and Forrester analysts to gather data relative to Grammarly.
Interviewed seven representatives at five organizations and surveyed 493 respondents at organizations using Grammarly to obtain data about costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ and survey respondents’ organizations.
Constructed a financial model representative of the interviews and survey using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees and survey respondents.
Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Benefits represent the value delivered to the business by the product. The TEI methodology places equal weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the technology on the entire organization.
Costs consider all expenses necessary to deliver the proposed value, or benefits, of the product. The cost category within TEI captures incremental costs over the existing environment for ongoing costs associated with the solution.
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. Having the ability to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PV of costs and benefits feed into the total NPV of cash flows.
The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made unless other projects have higher NPVs.
A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs.
The interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%.
The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.
Total Economic Impact 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.
Role | Industry | Global Headquarters | Knowledge Workers |
---|---|---|---|
>Principal writer >Strategic advisor |
Software and services | APAC | 10,000 |
>Senior developmental editor >Business development manager |
Computer software | North America | 25,000 |
Talent acquisition coordinator | IT services | North America | 5,000 |
Content management capabilities owner | Technology manufacturing | North America | 100,000 |
Business process consultant | Shared services | North America | 1,000 |
Survey Demographics
“Using your best estimate, how many employees work for your firm/organization worldwide?” Base: 493 Grammarly users who use the solution at work |
|
---|---|
2 to 99 employees | 14% |
100 to 499 employees | 11% |
500 to 999 employees | 13% |
1,000 to 4,999 employees | 24% |
5,000 to 19,999 employees | 24% |
20,000 or more employees | 13% |
Don’t know | 2% |
“To the best of your knowledge, which of the following departments in your organization are using Grammarly?” Base: 493 Grammarly users who use the solution at work |
|
---|---|
Marketing and advertising | 37% |
Customer support | 32% |
Operations | 28% |
Sales and consulting | 27% |
Human resources and training | 26% |
Customer success | 25% |
Executive management | 22% |
IT | 22% |
Legal | 18% |
Research and engineering | 17% |
Finance | 17% |
None of the above | 1% |
Don’t know/does not apply | 23% |
“Thinking about your use of Grammarly at work, in which of the following applications and websites do you typically use Grammarly’s assistance?” Base: 493 Grammarly users who use the solution at work |
|
---|---|
90% | |
Productivity apps (such as Word, PowerPoint, Excel) | 75% |
Messaging channels (such as Slack, Teams, Hangouts) | 57% |
Project management software (such as JIRA, Asana, Wrike, etc.) | 24% |
Knowledge management systems/Wikis (such as Confluence, Notion, Slab, etc.) | 19% |
Sales management software (such as Salesforce, HubSpot, etc.) | 13% |
Apps specific to my role (please specify) | 13% |
Idea management and whiteboards (such as Figma, Miro, Microsoft whiteboard, Mural, etc.) | 9% |
Other (please specify) | 6% |
I do not use Grammarly for any of those |
Related Forrester Research
Generative AI: What It Means For Knowledge Management, Forrester Research, Inc., July 7, 2023
The AI/ML Platforms Landscape, Q1 2024, Forrester Research, Inc., February 28, 2024
The Forrester Artificial Intelligence Quotient (AIQ) Assessment, Forrester Research, Inc., March 27, 2024
Prepare Your Entire Workforce For AI Now, Forrester Research, Inc., March 27, 2024
1 Total Economic Impact 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.
Readers should be aware of the following:
This study is commissioned by Grammarly and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in Grammarly.
Grammarly reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
Grammarly provided the customer names for the interviews but did not participate in the interviews.
Forrester fielded the double-blind survey.
Anna Orban-Imreh
June 2024
https://mainstayadvisor.com/go/mainstay/gdpr/policy.html