forrester tei webinar: driving 53% roi with marchex solutions
TRANSCRIPT
Forrester TEI Webinar: Driving 53% ROI with Marchex Solutions
Tuesday, August 25, 2015 1:00EST (10:00PT)
Speakers:John Busby, SVP Marketing & Consumer Insights, Marchex
Jennifer Wise, Senior Analyst, ForresterSarah Musto, TEI Consultant, Forrester
2
Turn Off Pop-Up BlockersTechnical difficulties?
Click on “Help?” linkUse Q+A box
Submitting questions to speakerQ+A session at end of webcastUse “Ask a Question” box to submit questions Send questions at any time#Marchex
Viewing Tips
3
John Busby, SVP Marketing & Consumer Insights, Marchex
Today’s Presenters
Jennifer Wise, Senior Analyst, Forrester
Sarah Musto, TEI Consultant, Forrester
Forrester TEI Webinar: Driving 53% ROI with Marchex Solutions
@marchex
In today’s always-connected world, why are we talking about phone calls???
6
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 2013
7
What may surprise you:Consumers will place 162 billion phone calls from all mobile channels.
8
What may surprise you:These calls convert into sales, appointments or reservations: Click-to-call commerce”
Marchex, 2015
9
What may surprise you:The average order size is very high for products purchased by phone.
10
What may surprise you:Click-to-Call commerce will reach $1 trillion in 2015 and double by 2019!
Marchex, 2015
11
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
Marchex: Connecting online behavior to real-world, offline actions.
The Total Economic Impact™ of Marchex Call Marketplace And
Call Analytics – Forrester
14
Table of contents
@marchex
• Introduction, market overview• What is TEI?• Executive summary• Analysis• Financial summary• Question and answer
© 2015 Forrester Research, Inc. Reproduction Prohibited 15
IntroductionMarket overview
Mobile.
Image source: Gizmag (www.gizmag.com)
© 2015 Forrester Research, Inc. Reproduction Prohibited 17
2billion
Sources: Forrester Research Mobile And Smartphone Forecast, 2014 To 2019 (US)
Image source: Gizmag (www.gizmag.com)
© 2015 Forrester Research, Inc. Reproduction Prohibited 18Sources: Forrester's US Consumer Technographics Behavioral Study, Q1 2015
53 hours
Image source: Gizmag (www.gizmag.com)
© 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
Source: Forrester's Q2 2014 Global Mobile Executive Online Survey; Forrester's US Consumer Technographics Behavioral Study, July 2014 To September 2014; Forrester's North American Consumer Technographics Online Benchmark Survey (Part 1), 2014.
Mobile usage is growing› Three out of four US mobile subscribers, or 66% of the population, have
a smartphone› The average smartphone owner spends 1 hour and 53 minutes
interacting with their phone each day.› Most marketing leaders in our recent US survey reported that between
25% and 50% of their site traffic comes from mobile› One-third of US online smartphone users research purchases on their
devices at least once a week.
© 2015 Forrester Research, Inc. Reproduction Prohibited 21
And search is a key mobile behavior
Source: North American Consumer Technographics Online Benchmark Survey (Part 1), 2015
Several times a day26%
At least daily21%At least weekly
22%
At least monthly10%
Less than monthly8%
Never13%
“How often do you do the following activities on a mobile phone?”Use search engines
Base: Online adults (online weekly or more) who use a smartphone
Marketer spend in mobile search is increasing
Image source: Z. Eren Kocyigit (http://erenkocyigit.com)
© 2015 Forrester Research, Inc. Reproduction Prohibited 23
And they must prove the impact
Source: 2014 ANA/Forrester: Media Buying’s Evolution Challenges Marketers Survey
© 2015 Forrester Research, Inc. Reproduction Prohibited 24
But, marketers still can’t connect-the-dots
Source: Forrester's Q2 2014 Global Mobile Executive Online Survey
© 2015 Forrester Research, Inc. Reproduction Prohibited 25
What is TEI?Background and methodology
© 2015 Forrester Research, Inc. Reproduction Prohibited 26
“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 27
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 28
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, May 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 names for the interviews were provided by Marchex.› Forrester does not endorse Marchex.
© 2015 Forrester Research, Inc. Reproduction Prohibited 29
Executive summaryHigh level findings
© 2015 Forrester Research, Inc. Reproduction Prohibited 30
Marchex delivers new customer calls that generate incremental revenue
Products: Call Marketplace And Call Analytics
Customer:Customer calls and the growth of mobile are key components to customer acquisition strategy
Benefits:• Incremental revenue• Time savings on mobile
advertising• Time savings - reporting
Based on an analysis of current Marchex customer 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:
53%
Net Present Value: $16.5 million
Payback Period: <1
month
© 2015 Forrester Research, Inc. Reproduction Prohibited 31
AnalysisInterview highlights and model
© 2015 Forrester Research, Inc. Reproduction Prohibited 32
Forrester interviewed one organization using Call Marketplace And Call Analytics
Demographics:• US-based provider of security
solutions for small businesses and residential properties
• Recent fiscal year revenue of over $3 billion
• Over 6 million customers
Challenges:• Due to complexity of
products/services, customers like to purchase via call center
• Limited mobile advertising strategy prior to Marchex
Objectives:• Sought mobile solution to drive
inbound calls, increase conversions
• Sought call tracking platform to understand and use data to optimize strategy
Results:• Chose Marchex for full-service• Call Marketplace drives calls,
improves conversion, uses budget efficiently
• Call Analytics provides optimization of spend
© 2015 Forrester Research, Inc. Reproduction Prohibited 33
The interviewed organization noted several key results from its investment
“We use Call Analytics reporting to provide data to our dealers and our call centers to track various programs. Visibility is crucial to us to manage the cause and effect of our digital programs.”
- Program manager
“Marchex Call Marketplace enables our organization to participate and bid on targeted media placements unavailable to traditional agencies.”
- Douglas Cohen, manager, digital marketing
“Marchex Call Marketplace produces leads 20% more efficiently than other paid media channels purchased on a performance model.”
- Douglas Cohen, manager, digital marketing
© 2015 Forrester Research, Inc. Reproduction Prohibited 34
The interviewed organization quantified key benefits resulting from its investment in
Marchex Call Marketplace And Call Analytics
INCREMENTAL REVENUE
From increased calls and conversion
TIME SAVINGSOn mobile
advertising and reporting activities
© 2015 Forrester Research, Inc. Reproduction Prohibited 35
Three-year risk-adjusted benefit: $57.8m
Metric Annually (not PV)
Incremental call volume 56,000-141,000
Average lead-to-sale conversion rate 15-30%
Average contract value $1,044
Risk adjustment 10%
Incremental revenue (risk-adjusted) $11.6m - $30.5m
Call Marketplace delivers incremental call volume and has doubled the average conversion rate
Marchex is designing and placing mobile display, paid search, voice search, directory listings, and mobile app integration advertisements. Insights from call data are applied back into campaign planning and execution on a weekly basis.
Propensity for customers to engage via phone will affect budget support for mobile advertising and performance
© 2015 Forrester Research, Inc. Reproduction Prohibited 36
Marchex staff conduct most day-to-day operations, freeing up internal resource time
The organization saw time savings from its use of Call Marketplace in three areas: reporting, mobile strategy, and designing creatives.
• The organization began using Call Marketplace early in its use of mobile advertising. Organizations that adopt Call Marketplace further along in the adoption curve could see additional time savings
• What can you do with additional time?
Three-year risk-adjusted benefit: $34,920
Metric Annually (not PV)
Time saved – data/strategy analysis (hours) 156
Time saved – creatives (hours) 52
Average fully loaded compensation $120,000
Risk adjustment 3%
Time savings (risk-adjusted) $11,640
© 2015 Forrester Research, Inc. Reproduction Prohibited 37
The organization can generate reports more quickly and gains visibility to help power strategy
Before using Call Analytics, there was no solution to oversee metrics across different campaigns, locations, sales centers, and dealers. With these reports, the organization can use that data to try to optimize the customer call experience and media spend to try to increase conversion rates.
• What can you do with Analytics?• What can you do with additional time?
Three-year risk-adjusted benefit: $10,913Metric Annually (not PV)
Time savings for report generation (hours) 195
Average fully loaded compensation $120,000
Risk adjustment 3%
Time savings(risk-adjusted) $10,913
© 2015 Forrester Research, Inc. Reproduction Prohibited 38
In order to achieve these benefits, the organization incurred costs in three categories
• For Call Marketplace, the organization pays for qualified calls delivered to its call center. The specific thresholds for a quality call, including call duration parameters, were set by the organization at the beginning of the campaign. Average cost-per-call is based on the media mix chosen.
• Call Analytics is also priced on a per-call basis. The organization set a call duration minimum of 2 minutes and pays a flat fee for each call analyzed.
• A majority of the upfront setup and ongoing management of the Call Marketplace campaign is run by Marchex.
• Training for both Call Marketplace and Call Analytics was minimal due to automated reporting built into each product as well as the support provided by the Marchex team.
Metric Risk Initial Year 1 Year 2 Year 3
Call Marketplace and Call Analytics spend 5% $0 $9,298,800 $19,394,550 $8,664,579
Resource time for planning/implementation and ongoing management
5% $606 $30,470 $30,470 $32,893
Training costs 3% $357 $357 $0 $475
Costs (risk-adjusted) $962 $9,329,627 $19,425,020 $8,697,948
© 2015 Forrester Research, Inc. Reproduction Prohibited 39
In addition to benefits and costs, TEI includes potential risks and future “flexibility” options
Flexibility, as defined by TEI, represents the opportunity to make an investment in additional capacity or capability that could be turned into future business benefit:› Much of the benefit derived from analytics solutions is in how the data is used
within the organization to promote efficiencies and new business.› Freeing up time for internal resources can yield valuable future results.
Implementation risk› Media mix and the size of the
monthly call budget affect cost› Resource costs and training costs
will vary
There are two types of Risk that TEI considers:Impact risk› Internal/external factors that can
affect realization of revenue› Time savings benefits depend on
many factors
© 2015 Forrester Research, Inc. Reproduction Prohibited 40
Financial summaryResults
© 2015 Forrester Research, Inc. Reproduction Prohibited 41
The three-year risk-adjusted cash flow shows a 53% ROI, a NPV of over $16.5m, and a payback period of <1 month
Initial Year 1 Year 2 Year 3 Total Present Value
Costs ($962) ($9,329,627) ($19,425,020) ($8,697,948) ($37,453,557) ($31,071,074)
Benefits $0 $11,568,720 $30,482,868 $15,807,833 $57,859,421 $47,586,130
Net benefits ($962) $2,239,093 $11,057,848 $7,109,885 $20,405,864 $16,515,056
ROI 53%
Payback period <1 month
($30,000,000)
($20,000,000)
($10,000,000)
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
Initial Year 1 Year 2 Year 3
Cas
h flo
ws
Financial Analysis (risk-adjusted)
Total costs Total benefits Cumulative total
Marchex Call AnalyticsThe analytics platform that measures sales, audiences and
consumer intent from click-to-call.
43
Marchex Call Analytics provides full transparency to marketers for advertising campaigns that result in phone calls.
Which ad generated the phone call?
What was the outcome of the
phone call?
How do I optimize my media to get
better ROI?
Mobile App Call Center Reporting Dashboard
44
Marchex Call Analytics delivers a 360-degree view of marketing effectiveness.
How should I allocate my 2016
budget?
Could operational changes improve
sales?
How do acquire more leads for less money on
Google?
Call Center
Head of Search
CMO
Head of Display
Do branding campaigns lead to
offline sales?
45
Which ad generated the phone call?Our dynamic tracking attributes 100% of calls to keywords, tactics or impressions.
46
What was the outcome of the call?Call DNA visually maps, scores and classifies every phone call, automatically.
Demographics35-45, $80K, Children
LocationSeattle, WA 98122
ProfileProfessional,
Business Travel
Caller HistoryPreviously called,didn’t purchase
“Wireless Camera” “Streaming Video”
PII automatically removed from recorded call.
Consumer Selects “1” In IVRHold time
“Confirmation Number”
47
How do I optimize my ad spend?Access our data & insights everywhere you make buying decisions.
call.searchDescriptionSearch all calls logged for an account. Use a struct to refine the search using the options defined below. While the key-value pairs are optional, a struct is required even if it is empty.Parametersaccid, struct → assto, call_boundary, callerid, cmpid, dispo, end, grpid, keyword, start, status, subacctResultarray → struct → acct, answer_offset, assigned_to, call_end, call_id, call_start, call_status, caller_name, caller_number, cmpid, disposition, forwardno, grpid, inbound_ext, inboundno, keyword, rating, recorded, revenue, ring_duration
ad.configureDescriptionCreate a new campaign with several settings configured or update an existing campaign by specifying a campaign id. During creation, any values not explicitly set are assigned defaults consistent with new campaign creation.Parametersaccount_id, struct → ask_extn, call_postback, campaign_id, campaign_name, enable_early_audio, forw_timeout, group_id, group_name, inboundno, precall_postback, record_calls, timezone, use_vmail, business_hrs → array → (day_start, day_end, override), forwards → array → (hrsmode, matchrule, number, step_order, weight), playfiles → (afterhourfile, aftrhr_exten_file, busnhr_exten_file, errorfile, playfile, rejectfile, vmailfile, whisperfile)Resultcampaign_id
User Interface API Integrations
Marchex Call MarketplaceThe mobile ad network that drives new customer phone calls
while lowering customer acquisition costs.
49Proprietary and Confidential
Marchex Call Marketplace delivers high-quality phone leads directly from mobile Web and in-app ads across hundreds of top publishers and apps.
Marchex Call Marketplace is single point of contact to access
200+ publishers
Marchex ad server reachesconsumers ready to call
You only pay forquality phone calls
50Proprietary and Confidential
“MCM” is an analytics-enabled network, meaning that advertisers only pay for phone calls qualified by the Marchex Call Analytics platform.
Meets minimum call duration
No repeat callers within 72 hour window
IVR qualifies consumer intent
Spam blockingtechnology
51Proprietary and Confidential
Marchex Call Marketplace helped this Fortune 500 marketer generate $93 million in new revenue.
“Our reliance on your call volume has really
increased …Thanks to Marchex’s help…we
have completely re-imagined our optimization
strategy…to directly weight calls against
online quotes.
We are changing from campaigns optimized
to a single conversion metric to a single
campaign strategy that weights and prioritizes
the best outcomes whether they are online or
offline.”
Fortune 500 Financial Services CompanyHead of Digital Marketing
134,360Quality Calls
46,316New Customers
$92,632,000Revenue
www.marchex.com
Questions & Answers