Upload
marchex
View
375
Download
1
Embed Size (px)
Citation preview
© 2015 Marchex, Inc. All Rights Reserved.
Forrester TEI Webinar: Driving 48% ROI with the Marchex Platform
November 10th, 2015
2
CONNECT1. We will be using GoToWebinar.
2. Launch the GoToMeeting Application.
3. Join the Audio Conference.
4. Dial in using your telephone or select Mic & Speakers to use your Internet connection for audio.
5. For those who can’t attend our live session, we’ll provide a recording after.
SHARE6. Submitting your poll answer via the Poll box.
• We’ll review the results at the end.
7. Submit your question(s) via the Questions box.• Q&A session at end of webcast.
• Send questions at any time.
Viewing Tips
3
Today’s Panelists
CRISTINA DIACONUSr. Product Marketing [email protected]
COLLIN [email protected]
SARAH MUSTOTotal Economic Impact [email protected]
Agenda
• Intro• Mobile Trends: Shift to Click-to-Call Commerce• Mobile Market Overview• The Total Economic Impact™ of Marchex Platform• More About Marchex
POLL: Have you allocated any budget towards
click-to-call advertising in 2016?YES or NO
In today’s always-connected world, why are we talking about phone calls???
7
What may surprise you:The most common response to a location-based mobile search is a phone call.
The role of click to call in the path to purchase, Google 2014
8
What may surprise you:Consumers will place 162 billion phone calls from all mobile channels.
9
What may surprise you:These calls convert into sales, appointments or reservations: Click-to-call commerce
Marchex, 2015
10
What may surprise you:The average order size is very high for products purchased by phone.
11
What may surprise you:Click-to-Call commerce will reach $1 trillion in 2015 and double by 2019!
Marchex, 2015
12
Unfortunately for marketers, click-to-call remains a major blind spot…
Keyword:Hotel Suite
Keyword:Hotel Suite
DesktopAd
LandingPage
Thank YouWebsiteWebsiteWebsite
Keyword Attribution:Conversion
MobileAd
Keyword Attribution:Conversion
Connect online behavior to offline,real-world actions.
The Total Economic Impact™ of Marchex Call Marketplace And
Call Analytics – Forrester
© 2015 Forrester Research, Inc. Reproduction Prohibited 16
IntroductionMarket overview
© 2015 Forrester Research, Inc. Reproduction Prohibited 17
Market overview
› Customers are on the line, so pick up!
› Advertisers are desperate for lift› New ad formats make calling
seamless
© 2015 Forrester Research, Inc. Reproduction Prohibited 182 billion
© 2015 Forrester Research, Inc. Reproduction Prohibited 19
Welcome to the Mobile Mind Shift
The expectation that I can get what I want
in my immediate context
and moments of need.
© 2015 Forrester Research, Inc. Reproduction Prohibited 20
45% search on their mobile device at least daily or several times
a day
30 billion calls in 2013, 73 billion calls
by 2018
© 2015 Forrester Research, Inc. Reproduction Prohibited 21
Market overview
› Customers are on the line, so pick up!
› Advertisers are desperate for lift› New ad formats make calling
seamless
© 2015 Forrester Research, Inc. Reproduction Prohibited 22
Digital spend will top $100 billion by 2019
© 2015 Forrester Research, Inc. Reproduction Prohibited 23
Search spend will make up about half of the budget
Marketer spend in mobile search is increasing
Image source: Z. Eren Kocyigit (http://erenkocyigit.com)
© 2015 Forrester Research, Inc. Reproduction Prohibited 25
And they must prove the impact
Source: 2014 ANA/Forrester: Media Buying’s Evolution Challenges Marketers Survey
© 2015 Forrester Research, Inc. Reproduction Prohibited 26
Market overview
› Customers are on the line, so pick up!
› Advertisers are desperate for lift› New ad formats make calling
seamless
© 2015 Forrester Research, Inc. Reproduction Prohibited 27
Google makes calling easier
© 2015 Forrester Research, Inc. Reproduction Prohibited 28
Twitter and Facebook are testing too
© 2015 Forrester Research, Inc. Reproduction Prohibited 29
But, marketers aren’t connecting the dots
Source: Forrester's Q2 2014 Global Mobile Executive Online Survey
POLL RESULTS: Have you allocated any budget towards
click-to-call advertising in 2016?YES or NO
© 2015 Forrester Research, Inc. Reproduction Prohibited 31
What is TEI?Background and methodology
© 2015 Forrester Research, Inc. Reproduction Prohibited 32
“Next level” business case justifications are increasingly vital for critical investments
Somewhat important
33%
Somewhat unimportant
4%Not at all important
3%
Very impor-
tant60%
TCO ROI TEI
IT ImpactIT costs
IT cost savings
Business ImpactUser efficiency
Business effectiveness
Risk/ uncertainty Risk mitigation
Risk versus reward
Strategic Impact Scalability
Flexibility Base: 825 IT decision-makers at North American enterprises
Do I need a business case? What is an effective business case?• Over 90% of IT decision-makers find
value in a business case• TEI adjusts for risks and factors the flexibility of a
product into the case study
© 2015 Forrester Research, Inc. Reproduction Prohibited 33
The TEI approach and framework
Benefits
Costs
Flexibility
Total Economic ImpactTM
(TEI)
Risk
The TEI Framework
TEI Approach and MethodologyPerform due
diligenceConduct customer
interviewConstruct
financial modelWrite case
studyWebinar
© 2015 Forrester Research, Inc. Reproduction Prohibited 34
DisclosuresThe audience should be aware of the following:
› This document is an abridged webinar version of a full case study (Forrester Total Economic Impact of Marchex Call Marketplace And Call Analytics, September 2015).
› The study is commissioned by Marchex and delivered by the Forrester Consulting group.
› Forrester makes no assumptions as to the potential return on investment that other organizations will receive. Forrester strongly advises that readers should use their own estimates within the framework provided in the report to determine the appropriateness of an investment in Marchex.
› Marchex 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.
› The customer name for the interview was provided by Marchex.
› Forrester does not endorse Marchex.
© 2015 Forrester Research, Inc. Reproduction Prohibited 35
Executive summaryHigh level findings
© 2015 Forrester Research, Inc. Reproduction Prohibited 36
Marchex delivers new call volume, boosting customer acquisition and retention
Products: Call Marketplace And Call Analytics
Client:Client needed a solution to enhance and prove the competitiveness of its pay-per-call program
Benefits:• Revenue• Customer acquisition and
retention• Cost savings
Based on an analysis of current Marchex client feedback and quantified benefits, costs, risks, and flexibility, Forrester has determined Call Marketplace And Call Analytics has the
following three-year risk-adjusted financial impact:
Return on Investment:
48%
Net Present Value: $3.7 million
Payback Period: <1
month
© 2015 Forrester Research, Inc. Reproduction Prohibited 37
AnalysisInterview highlights and model
© 2015 Forrester Research, Inc. Reproduction Prohibited 38
Forrester interviewed one organization using Call Marketplace And Call Analytics
Demographics:• Global provider of print and
digital advertising services to SMB customers
• 5,000 employees• Using Call Marketplace and Call
Analytics for more than 6 years
Challenges:• Growing competition in the pay-
per-call space• Expensive call tracking numbers
Objectives:• Boost customer acquisition and
retention• Needed cost-effective way to
track effectiveness of its pay-per-call program and prove value to customers
Results:• Call Marketplace reliably delivers
new call volume to customers• Call Analytics provides insight
into pay-per-call program’s success
© 2015 Forrester Research, Inc. Reproduction Prohibited 39
The interviewed organization noted several key results from its investment
“I don’t think we’d have a pay-per-call product today if we didn’t have the boost in call volume that Marchex provides.”
- Director of Marketing
“Call Analytics data is one of the primary tools that we’re using in conversations with prospective customers.”
- Director of Marketing
“Call Marketplace is able to fill the gap between the call volume we provide and the call volume customers want. Marchex will go out and aggressively get calls for those customers.”
- Director of Marketing
© 2015 Forrester Research, Inc. Reproduction Prohibited 40
The interviewed organization quantified key benefits resulting from its investment
INCREMENTAL REVENUE
From Marchex call volume
SAVED REVENUE
Viability of pay-per-call program
CUSTOMER RETENTION
Due to Call Analytics data
CUSTOMER ACQUISITION
Due to Call Analytics data
COST SAVINGSFrom consolidating
vendors
© 2015 Forrester Research, Inc. Reproduction Prohibited 41
Three-year risk-adjusted benefit: $5.1M
Metric Annually (not PV)
Total number of calls delivered in pay-per-call program 270,000
Percent of calls delivered by Marchex 40%
Average revenue per call $20
Risk adjustment 5%
Incremental revenue (risk-adjusted) $2,052,000
Call Marketplace delivers incremental call volume that boosts pay-per-call program revenue
The client uses its internal sources as well as Call Marketplace to deliver as many calls as possible under the billing cap. The client estimates that approximately 40% of the billable calls delivered to customers in the program are from Call Marketplace, and on average the revenue the client receives is $20 per call.
© 2015 Forrester Research, Inc. Reproduction Prohibited 42
Incremental call volume provided by Marchex is crucial for viability of pay-per-call program
The incremental call volume provided through Marchex increases the value provided to customers, boosting retention, and also keeps the total revenue of the pay-per-call program at a size that ensures internal viability.
• For other organizations, a percentage of a certain program’s success may be attributable to Marchex call volume or call data.
Three-year risk-adjusted benefit: $5.8M
Metric Annually (not PV)
Total calls delivered in pay-per-call program 270,000
Percent of call s at risk without Marchex 60%
Average net revenue per call delivered internally $17
Risk adjustment 15%
Preserved revenue (risk-adjusted) $2,340,900
© 2015 Forrester Research, Inc. Reproduction Prohibited 43
A 3% increase in the customer retention rate is attributable to the use of call data
The call data provided through the Call Analytics solution is an important tool to help boost customer renewals. The client can use the call data to troubleshoot issues in the program’s effectiveness early, prepare sales staff for renewals conversations, and prove the value of the program to customers
Three-year risk-adjusted benefit: $15,947Metric Annually (not PV)
Total number of customers who use call tracking numbers 225
Average customer spend $2,000
Percent of customers who renew due to call tracking data 3%
Percent of call tracking data attributable to Marchex 50%
Risk adjustment 5%
Incremental customer retention (risk-adjusted) $6,413
© 2015 Forrester Research, Inc. Reproduction Prohibited 44
The organization uses call data to prove the effectiveness of the program to boost acquisition
The client uses call data from across the pay-per-call program to prove the effectiveness of the program as a whole and the effectiveness of particular forms of media for advertising. The client uses print directories along with other digital advertising methods and Call Marketplace.
Three-year risk-adjusted benefit: $177,188Metric Annually (not PV)
Average number of new customers per year 75
Average customer spend $2,000
Percent attributable to Marchex 50%
Risk adjustment 5%
Incremental customer acquisition (risk-adjusted) $71,250
© 2015 Forrester Research, Inc. Reproduction Prohibited 45
The organization generates cost savings from consolidating vendors used prior to Marchex
Prior to using the Marchex solutions, the client was using other vendors to provide similar services to its pay-per-call customers. With the Marchex investment, the client is able to reduce or eliminate its use of these vendors.
Three-year risk-adjusted benefit: $354,376
Metric Annually (not PV)
Average cost savings $150,000
Risk adjustment 5%
Cost savings (risk-adjusted) $142,500
© 2015 Forrester Research, Inc. Reproduction Prohibited 46
In order to achieve these benefits, the organization incurred costs in three categories
• For Call Marketplace, the client pays for qualified calls delivered to its customers in the pay-per-call program. The per-call prices charged by Marchex are calculated as a fixed percentage of the billable per-call cost charged to the client’s customers.
• Call Analytics is also priced on a per-call basis. This price includes the call tracking numbers as well as call data for each qualifying call.
• The client has a team of three staff who manage information and processes related to the pay-per-call program.
• The client built an internal site primarily to access call data from its two call analytics vendors. The site can be accessed by both sales staff and customers and is used to view call records and associated data.
Metric Risk Initial Year 1 Year 2 Year 3
Call Marketplace and Call Analytics spend 5% $0 $2,940,000 $2,940,000 $2,940,000
Resource time for ongoing management 5% $0 $157,500 $157,500 $157,500
Costs for data portal 5% $42,000 $524 $524 $524
Costs (risk-adjusted) $42,000 $3,098,024 $3,098,024 $3,098,024
© 2015 Forrester Research, Inc. Reproduction Prohibited 47
Financial summaryResults
© 2015 Forrester Research, Inc. Reproduction Prohibited 48
The three-year risk-adjusted cash flow shows a 48% ROI, a NPV of over $3.7m, and a payback period of <1 month
Initial Year 1 Year 2 Year 3 Total Present Value
Costs ($42,000) ($3,098,024) ($3,098,024) ($3,098,024) ($9,336,072) ($7,746,328)Benefits $0 $4,613,063 $4,613,063 $4,613,063 $13,839,188 $11,472,004 Net benefits ($42,000) $1,515,038 $1,515,038 $1,515,038 $4,503,115 $3,725,676 ROI 48%Payback period 0.3 months
51
QUESTIONS&
ANSWERS