the total economic impact™ of genesys purecloud

A Forrester Total Economic Impact™

Study Commissioned By Genesys

December 2017

The Total Economic Impact™ Of Genesys PureCloud

Cost Savings And Business Benefits Enabled By PureCloud, A Cloud-Based Omnichannel Contact Center Solution

Table Of Contents Executive Summary 1

Key Findings 1

TEI Framework And Methodology 3

The PureCloud Customer Journey 4

Interviewed Organizations 4

Key Challenges 4

Key Results 5

Composite Organization 5

Financial Analysis 6

Benefit 1: Baseline Cost Avoidance Of Previous Solution 6

Benefit 2: Cost Avoidance Due To PureCloud Scalability 7

Benefit 3: Value Of Improved Productivity 9

Benefit 4: Improved Employee Retention 10

Benefit 5: Increased Revenue 12

Benefit 6: Reduced Downtime 13

Unquantified Benefits 14

Flexibility 15

Cost 1: Subscription Costs 16

Cost 2: IT Labor And Support Costs 17

Cost 3: Implementation Costs 17

Financial Summary 19

Genesys PureCloud: Overview 20

Appendix A: Total Economic Impact 21

Project Director:

Steve Odell

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1 | The Total Economic Impact™ Of Genesys PureCloud

Executive Summary Genesys commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) companies may realize by deploying the Genesys® PureCloud™ solution. The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of the PureCloud solution on their organizations.

The PureCloud platform is a cloud-based omnichannel contact center solution. To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed six customers with years of experience using PureCloud products.

Prior to using PureCloud products, the customers had either on-premise or limited-capability cloud platforms deployed. However, they were looking to upgrade their contact center solution for several reasons. Among these, the previous solution was not easily scalable, lacked central visibility, and consisted of multiple platforms in order to cover the capabilities and channels demanded by the contact center (e.g., workforce management [WFM] and quality management [QM]).

Forrester developed a composite organization based on data gathered from the customer interviews to reflect the total economic impact that the PureCloud solution could have on an organization. The composite organization is representative of the organizations that Forrester interviewed and is used to present the aggregate financial analysis in this study. All values are reported in risk-adjusted three-year present value (PV) unless otherwise indicated.

Key Findings

Quantified benefits. The following benefits reflect the financial analysis associated with the composite organization.

› Avoided previous solution costs of $1.2 million. This includes upfront hardware and software costs for on-premise solutions (or limited-capability cloud platforms) for voice, email, and web chat, ongoing maintenance costs, and significant labor and support from information technology (IT) professionals.

› Avoided costs due to PureCloud scalability of $807,000. Interviewed organizations noted that scaling up their previous environment would be more expensive than what they’re paying for the PureCloud solution. Additionally, organizations noted that accounting for seasonal agents was expensive since the environment needed to be scaled to peak capacity upfront.

› Improved productivity by $2.6 million. Several aspects of the PureCloud platform deployment led to a 25% productivity improvement for the composite organization’s 160 annual agents and 105 seasonal agents. This benefit could potentially be higher for organizations where contact center agents are responsible for sales or revenue, as opposed to just serving as a cost center for customer support.

› Improved employee retention resulting in a benefit of $255,000. Ease of use and improved visibility resulted in employee turnover reducing from 30% to 15%.

Benefits And Costs

Avoided previous solution and scalability costs:

$2.0 million

Improved productivity:

$2.6 million

Decrease in employee turnover:

30% to 15%


› Increased income by $124,000. Overall improvement in customer satisfaction resulted in an observed increase in income. This benefit could potentially be higher for organizations where contact center agents are responsible for sales or revenue, as opposed to just serving as a cost center for customer support.

› Reduced platform downtime resulting in avoidance of $120,000 in productivity loss. Coming from a platform with 20 hours per year of unplanned outages, customers experienced reduced annual downtime by 90% to just 2 hours per year after switching to the PureCloud platform. The business impact of this benefit could potentially be more significant if an organization has service-level agreements (SLAs) or other guarantees in place with their customers. Additionally, lost sales could be expected for organizations where contact center agents are responsible for sales or revenue, as opposed to just serving as a cost center for customer support.

Costs. The following costs reflect the financial analysis associated with the composite organization.

› Subscription costs of $590,000. This is calculated based on the PureCloud 2 concurrent seat pricing model for annual and seasonal agents (120 and 80 seats, respectively — see the Costs section for more detail). Note that there are many pricing options available, including both less and more expensive options.

› IT labor and support costs totaling $98,000. While there was an overall reduction in required IT labor and support with PureCloud compared to their previous solutions, interviewed organizations noted that IT was still required on some level.

› Implementation costs totaling $73,000. This includes a one-month deployment timeframe, PureCloud Edge devices, and implementation professional services. Note that much of this cost is associated with the Edge devices; these are currently not required for deployments within North America, and will no longer be required for deployments outside North America in 2018.

Forrester’s interviews with six existing customers and subsequent financial analysis found that a composite organization based on these interviewed organizations experienced benefits of $5.1 million over three years versus costs of $761,000, adding up to a net present value (NPV) of over $4.3 million and an ROI of 571%.

$1.2M$806.7K

$2.6M

$255.2K $123.7K $120.1K

Baseline costavoidance of

previoussolution

Costavoidance

due toPureCloudscalability

Value ofimproved

productivity

Improvedemployeeretention

Increasedincome

Reduceddowntime

Benefits (Three-Year)

ROI 571%

Benefits PV $5.1 million

NPV $4.3 million

Payback < 3 months

“It's a great product. Every time

somebody asks me about

PureCloud, I always say ‘just

do it’ because it's stable, easy

to use, and flexible. If you

calculate through all the

benefits, the return on your

investment is quick.”

Product manager telephony,

eCommerce, Europe


TEI Framework And Methodology

From the information provided in the interviews, Forrester has constructed a Total Economic Impact™ (TEI) framework for those organizations considering implementing the Genesys PureCloud solution.

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 Genesys PureCloud products can have on an organization:

DUE DILIGENCE Interviewed Genesys stakeholders and Forrester analysts to gather data relative to the PureCloud suite of products.

CUSTOMER INTERVIEWS Interviewed six organizations using PureCloud to obtain data with respect to costs, benefits, and risks.

COMPOSITE ORGANIZATION Designed a composite organization based on characteristics of the interviewed organizations.

FINANCIAL MODEL FRAMEWORK Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewed organizations.

CASE STUDY Employed four fundamental elements of TEI in modeling impact of the Genesys PureCloud solution: benefits, costs, flexibility, and risks. Given the increasing sophistication that companies have regarding ROI analyses related to IT investments, Forrester’s TEI methodology serves to provide a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.

The TEI methodology

helps companies

demonstrate, justify,

and realize the

tangible value of IT

initiatives to both

senior management

and other key

business

stakeholders.

DISCLOSURES

Readers should be aware of the following:

This study is commissioned by Genesys 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 report to determine the

appropriateness of an investment in Genesys PureCloud.

Genesys 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.

Genesys provided the customer names for the interviews but did not participate

in the interviews.


The PureCloud Customer Journey BEFORE AND AFTER THE PURECLOUD INVESTMENT

Interviewed Organizations

For this study, Forrester conducted six interviews with Genesys PureCloud customers. Interviewed customers include the following:

Key Challenges

The interviewed organizations highlighted the following challenges prior to investing in the Genesys PureCloud solution:

› The previous solution was not easily scalable. This was especially true for previous on-premise solutions, where the environment had to be sized upfront for expected peak capacity (e.g., for seasonal employees). Interviewees also noted that scaling their previous solution to match their organization’s growth would have been a significant expense and potential barrier.

› The previous solution lacked central visibility. There was very little visibility into contact center metrics and actions taken by agents. As such, it was difficult to identify key areas that could drive improvements and growth. This challenge is especially critical as organizations increased their number of contact centers and lacked that central visibility.

› Interviewed organizations were utilizing too many platforms. This presented challenges with providing a cohesive customer experience, and complicated training for agents.

After a competitive analysis and business case process evaluating multiple vendors, interviewed organizations chose the PureCloud platform and began deployment.

INDUSTRY REGION INTERVIEWEE NUMBER OF AGENTS

Consumer products Headquartered in North America

Senior director of engagement

Three contact centers and 110 agents

eCommerce Headquartered in Europe Product manager telephony Three contact centers and 140 agents

Education Headquartered in Asia Pacific Chief digital officer Eight contact centers and 130 agents

Engineering services Headquartered in Europe Customer strategy director Ten contact centers and 300 agents

Enterprise services Headquartered in North America

Information technology (IT) team lead

Two contact centers and 30 agents

Human resources and staffing

Headquartered in Asia Pacific Information and communications technology (ICT) coordinator

Two contact centers and 300 agents

“An agent would use three,

four, or five platforms to be in

contact with a customer with

our previous solution. That

was unacceptable.”


eCommerce, Europe

“We were able to grow 40%

after migrating to PureCloud.”

ICT coordinator, human resources

and staffing, Asia Pacific


Key Results

The interviews revealed that key results from the PureCloud investment include:

› Cost avoidance of the previous solution.

› Improved productivity.

› Improved employee retention.

› Increased revenue.

› Reduced downtime.

These quantifiable benefits are discussed in more detail in the Financial Analysis section. The interviews also revealed unquantified benefits and potential future use cases, which are detailed in the Unquantified Benefits and Flexibility sections.

Composite Organization

Based on the interviews, Forrester constructed a TEI framework, a composite company, and an associated ROI analysis that illustrates the areas financially affected. The composite organization is representative of the six companies that Forrester interviewed and is used to present the aggregate financial analysis in the next section. The composite organization that Forrester synthesized from the customer interviews has the following characteristics:

Description of composite. The composite is an international organization averaging $100 million in annual revenue, and has three contact centers deployed to cover multiple time zones and geographies. The composite employs 160 agents annually (120 concurrent seats) with an additional 105 seasonal agents (80 concurrent seats) hired for four months out of the year, and the agents primarily resolve inbound customer service requests; they are not responsible for any sales or revenue streams.

Prior to deploying PureCloud, the composite organization used multiple on-premise solutions to cover voice, email, web chat services.

Deployment characteristics. The composite organization deployed PureCloud 2, which covers voice, email, web chat, QM, and some WFM services, for all three contact centers over a period of one month. After deploying the PureCloud solution, the composite began to handle on average 3.1 million calls per year, 580,000 emails per year, and 190,000 web chats per year, with an average handle time of 3.5 minutes per interaction.

Note that while the financial analysis is based on the composite organization, the interviewed organizations represented a range of industries and attributes. Readers are encouraged to analyze the impact of the modeled use case as it pertains to the specifics of their organizations. For example, benefits may vary for organizations coming from an existing cloud solution, and significant additional benefits would be expected for organizations planning on a greenfield deployment for PureCloud (i.e., no functionally equivalent solution currently in place).

Key assumptions

3 call centers

265 total agents

200 concurrent seats

Voice, email, web chat

Primarily inbound

“Usability for the agent is great

with PureCloud. For example,

there's an option to develop

canned responses, and the

agent can insert the text or

read it as needed. This helps a

lot with multiple channels; it's

all on one screen. If you know

how to answer an inbound

call, you know how to answer

an email, you know how to

answer a web chat, it's all the

same. Every button is the

same, every text is the same,

every functionality is the

same.”


eCommerce, Europe


The table above shows the total of all benefits across the areas listed below, as well as present values (PVs) discounted at 10%. Over three years, the composite organization expects risk-adjusted total benefits to have a PV of over $5.1 million.

Impact risk is the risk that the business or technology needs of the organization may not be met by the investment, resulting in lower overall total benefits. The greater the uncertainty, the wider the potential range of outcomes for benefit estimates.

Baseline cost avoidance of previous solution: 24% of total benefits

three-year benefit PV

$1.2 million

Financial Analysis QUANTIFIED BENEFIT AND COST DATA AS APPLIED TO THE COMPOSITE

Benefit 1: Baseline Cost Avoidance Of Previous

Solution

Interviewed organizations described the following benefits related to cost avoidance of previous solutions:

› Consolidating multiple platforms into a single contact center platform resulted in overall savings.

› The PureCloud solution’s ease of use meant that IT labor and support was needed much less frequently. Many of the tasks requiring IT support in the past could now be offloaded to business users.

Based on the customer interviews, Forrester estimates for the composite organization:

› The composite employs 160 agents annually (120 concurrent seats) with an additional 105 seasonal agents (80 concurrent seats) hired for four months out of the year. This benefit calculates the cost avoidance associated with the annual agents; sizing the environment for peak capacity to include seasonal agents is calculated in Benefit 2.

› An investment of over $874,000 would be required in Year 1 to cover the upfront hardware and software costs for voice, email, and web chat platforms for the previous solution for 120 concurrent seats.

• Note a hardware refresh, new software agreements, and installation / deployment would likely be required in either Year 4 or Year 5 for the previous on-premise solution. These costs have not been included in this study as a conservative measure.

› A maintenance contract for the previous solution is required, with an annual cost equivalent to approximately 15% of the initial hardware and software costs.

› The previous solution required 1.2 full-time equivalents (FTEs) of IT labor and support.

Total Benefits

REF. BENEFIT YEAR 1 YEAR 2 YEAR 3 TOTAL PRESENT VALUE

Atr Baseline cost avoidance of previous solution

$985,673 $199,001 $199,001 $1,383,674 $1,210,042

Btr Cost avoidance of previous solution due to scalability

$657,115 $132,667 $132,667 $922,450 $806,695

Ctr Value of improved productivity $1,042,031 $1,042,031 $1,042,031 $3,126,094 $2,591,377

Dtr Improved employee retention $102,600 $102,600 $102,600 $307,800 $255,151

Etr Increased income $47,500 $49,875 $52,369 $149,744 $123,746

Ftr Reduced downtime $48,288 $48,288 $48,288 $144,865 $120,086

Total benefits (risk-adjusted) $2,883,208 $1,574,463 $1,576,956 $6,034,627 $5,107,097


Cost avoidance due to PureCloud scalability: 16% of total benefits


$806,695

Cost avoidance of the previous solution can vary due to uncertainty related to:

› The upfront hardware and license costs of the previous solution.

› Negotiated rates with the maintenance contract.

› Required IT labor and support FTEs and associated salaries.

To account for these risks, Forrester adjusted this benefit downward by 10%. This yields a benefit of nearly $986,000 in Year 1, about $199,000 in both Years 2 and 3, and a three-year risk-adjusted total PV of over $1.2 million.

Benefit 2: Cost Avoidance Due To PureCloud

Scalability

Interviewed organizations described the following benefits related to cost avoidance of previous solutions due to the PureCloud solution’s scalability:

› Scaling the previous solution up to their current environment, as they are growing significantly year-over-year, would be significantly more expensive than what they’re paying for the PureCloud solution.

› Accounting for seasonal employees with the previous solution was expensive, since the environment needed to be scaled to peak capacity upfront. This meant that for significant portions of the year, the additional available capacity sat idle and unutilized. The PureCloud solution allows them to scale up and scale back down on a monthly basis.


Benefit 1: Basline Cost Avoidance Of Previous Solution Calculation Table

REF. METRIC CALC. YEAR 1 YEAR 2 YEAR 3

A1 Previous solution upfront hardware and software costs for voice

Composite organization

$730,080

A2 Cost of additional platforms (email, chat) Composite organization

$144,000

A3 Maintenance contract for previous solution (A1+A2)Year 1*15% $131,112 $131,112 $131,112

A4 IT labor and support FTEs Composite organization

1.2 1.2 1.2

A5 IT fully burdened annual salary Composite organization

$75,000 $75,000 $75,000

At Baseline cost avoidance of previous solution A1+A2+A3+A4*A5 $1,095,192 $221,112 $221,112

Risk adjustment ↓10%

Atr Baseline cost avoidance of previous solution (risk-adjusted)

$985,673 $199,001 $199,001

“This was a top benefit, the

ease of use of the system that

allows nontechnical people the

ability to do anything they

would need to do outside of

very complex routing and

integration.”

Senior director of engagement,

consumer products, North

America


› 105 seasonal agents (80 concurrent seats) are hired for four months out of the year.

› In addition to the upfront investment identified in Benefit 1, an investment of nearly $583,000 would be required in Year 1 to cover the upfront hardware and software costs for voice, email, and web chat platforms for the previous solution to account for peak seasonal capacity.

• Note a hardware refresh, new software agreements, and installation / deployment would likely be required in either Year 4 or Year 5 for the previous on-premise solution. These costs have not been included in this study as a conservative measure.

› A maintenance contract for the previous solution is required, with an annual cost equivalent to approximately 15% of the initial hardware and software costs.

› The previous solution required 0.8 FTEs of IT labor and support to account for the peak capacity environment.

Cost avoidance due to PureCloud scalability can vary due to uncertainty related to:

› The upfront hardware and license costs of the previous solution for peak capacity.

› Negotiated rates with the maintenance contract.

› Required IT labor and support FTEs and associated salaries.

To account for these risks, Forrester adjusted this benefit downward by 10%. This yields a benefit of over $657,000 in Year 1, nearly $133,000 in both Years 2 and 3, and a three-year risk-adjusted total PV of nearly $807,000.

Benefit 2: Cost Avoidance Due To PureCloud Scalability Calculation Table


B1 Previous solution upfront hardware and software costs for voice to account for peak capacity


$486,720

B2 Cost of additional platforms (email, chat) to account for peak capacity


$96,000

B3 Maintenance contract for previous solution for additional peak capacity

(B1+B2)Year 1*15% $87,408 $87,408 $87,408

B4 IT labor and support FTEs for additional peak capacity


0.8 0.8 0.8

B5 IT fully burdened annual salary Composite organization

$75,000 $75,000 $75,000

Bt Cost avoidance of previous solution due to PureCloud scalability

B1+B2+B3+B4*B5 $730,128 $147,408 $147,408


Btr Cost avoidance of previous solution due to PureCloud scalability (risk-adjusted)

$657,115 $132,667 $132,667

“Our headcount can easily

double depending on what

season it is. This represented

a significant cost with our

previous solution, since we

were still paying for those

seasonal agents after they

were gone.”

Customer strategy director,

engineering services, Europe


Improved productivity: 51% of total benefits


$2.6 million

Benefit 3: Value Of Improved Productivity

Interviewed organizations described the following benefits related to improved productivity:

› Handle time reduction enabled by the PureCloud solution resulted in overall improved productivity (e.g., ability to take more calls during a shift, or a reduction in seasonal headcount). Handle time reduction was due to various reasons, including scripting, consolidation of the number of platforms agents had to use, and ease of use of the PureCloud platform for agents. Also noted was that the PureCloud platform was very fast with little to no noticeable latency.

› The improved visibility (e.g., real-time dashboards and call monitoring) provided by the PureCloud solution enabled supervisors to identify sticking points for agents, providing opportunities for targeted training, and improving overall productivity. Additionally, workforce management was able to get accurate statistics related to historical and expected traffic.

› The improved visibility provided by the PureCloud solution effected a change in overall behavior for agents (improvements in handle time, resolution rates, calls taken, etc.), both because agents could see their performance and because supervisors had increased visibility into agents’ actions and work. This, combined with the ability to identify low performing agents (and either providing remediation or hiring more productive agents in their place) resulted in an overall increase in productivity.

› Increased collaboration capability provided by the PureCloud solution resulted in improved productivity. This includes video conferencing, agent-to-agent chat, field engineer / technician data availability, and readily available audit / quality assurance documentation.


› There are 265 total agents (annual and seasonal combined). The seasonal agents are hired for four months out of the year.

› Fully burdened pay for agents averages $45,000 per year.

• Note this value may be higher for organizations where agents are responsible for selling or the contact center otherwise provides a revenue stream for the organization.

› An overall 25% improvement in agent productivity due to reduced handle time, improved visibility, and improved internal collaboration capability. This increase is adjusted by a 50% productivity capture rate to provide a more conservative real productivity improvement impact, as not all time saved is typically invested directly back into work activities.

• Note that some organizations may inherently have a higher productivity capture rate than the value used here, depending on specific company policies and visibility into employee behavior.

“We have a very fast solution.

There is no latency, it's very,

very quick.”



“We use video conferencing

and agent-to-agent chat

heavily in our business. This is

especially helpful for internal

collaboration, as we have

employees spread across

multiple sites.”

ICT Coordinator, human

resources and staffing, Asia-

Pacific


Improved employee retention: 5% of total benefits


$255,151

Value of improved productivity can vary due to uncertainty related to:

› Number of agents and their associated salary.

› Length of time seasonal workers are hired for.

› Increase in productivity and productivity capture rate.

To account for these risks, Forrester adjusted this benefit downward by 5%, yielding an annual benefit of over $1.0 million and a three-year risk-adjusted total PV of nearly $2.6 million.

Benefit 4: Improved Employee Retention

Interviewed organizations described the following benefits related to improved employee retention:

› The ease of use for the PureCloud solution (user interface and consolidation of multiple platforms) led to increased employee satisfaction.

› As mentioned in Benefit 3, the improved visibility the PureCloud solution offers led to an overall increase in employee productivity. This increased visibility also had another benefit, in that it led to higher-quality agent hires to begin with. Prospective hires that were not comfortable with the level of visibility provided by the PureCloud solution (and thus not likely a good fit for the role) tended to self-select out during the recruiting process. This has a double benefit of improving average productivity and reducing employee turnover.

Benefit 3: Value Of Improved Productivity Calculation Table


C1 Number of annual agents Composite organization

160 160 160

C2 Number of additional seasonal agents Composite organization

105 105 105

C3 Number of months seasonal agents work out of the year


4 4 4

C4 Annual fully burdened pay for agents Composite organization

$45,000 $45,000 $45,000

C5 Improved productivity Composite organization

25% 25% 25%

C6 Productivity capture Forrester assumption 50% 50% 50%

Ct Value of improved productivity (C1 + C2*C3/12)*C4*C5*C6

$1,096,875 $1,096,875 $1,096,875


Ctr Value of improved productivity (risk-adjusted)

$1,042,031 $1,042,031 $1,042,031

“We're able to save all our field

engineers’ and managers’

contact information, so now

our agents have that

information at their fingertips

and they can conference them

in with customers. This is huge

for our business, and

something we've never been

able to do before.”





› There are 160 agents employed annually. Seasonal employees are conservatively not included in the retention benefit calculation.

• Another benefit related to employee retention that is not quantified is the value of agents staying and moving into higher value positions within the organization.

› Employee turnover reduced from 30% to 15% after implementing PureCloud.

› Fifty percent of the turnover reduction can be attributed directly to the PureCloud platform. Many items can impact turnover that are not related to the contact center platform / technology, including direct manager effectiveness and other local employers paying a higher salary.

› The cost to replace an agent can be approximated at 20% of an agent’s annual salary.

Improved employee retention can vary due to uncertainty related to:

› Number of employed agents.

› Employee turnover rate, and attribution to the PureCloud platform.

› Cost to replace an agent.

To account for these risks, Forrester adjusted this benefit downward by 5%, yielding an annual benefit of nearly $103,000 and a three-year risk-adjusted total PV of over $255,000.

Benefit 4: Improved Employee Retention Calculation Table


D1 Number of agents Composite organization

160 160 160

D2 Turnover with previous solution Composite organization

30% 30% 30%

D3 Turnover with PureCloud Composite organization

15% 15% 15%

D4 Turnover reduction attributable to PureCloud Forrester Assumption

50% 50% 50%

D5 Cost to replace an agent C4*20% $9,000 $9,000 $9,000

Dt Improved employee retention D1*(D2 - D3)*D4*D5

$108,000 $108,000 $108,000


Dtr Improved employee retention (risk-adjusted) $102,600 $102,600 $102,600

“We have agents sticking

around more, moving into

more senior positions in the

contact center because of their

interest in the technology and

the PureCloud platform. It’s

definitely changed the culture

here.”

IT team lead, enterprise services,

North America

“The increased visibility has

helped our hiring process.

When we show candidates the

level of visibility supervisors

have, if they’re not comfortable

with that it becomes clear they

are not a good fit. We end up

with the right employees from

the start, and this has helped

improve productivity and

reduce attrition rates.”

CDO, education, Asia Pacific


Increased income: 2% of total benefits


$123,746

Benefit 5: Increased Income

Interviewed organizations described the following benefits related to increased revenue:

› The ability to take credit card information over the phone with a payment card industry (PCI) compliant use case of the PureCloud solution opened up a new revenue stream with customers who preferred to call in an order as opposed to navigating and ordering online.

› Implementation of the PureCloud solution resulted in reduced answer time, reduced abandon rate, personalized / contextualized customer service, and ability to use callback features in lieu of voicemails / waiting in queue. This resulted in an overall increase in customer satisfaction and led to an observed increase in revenue, as a better customer experience helps organizations better win, serve, and retain customers. One interviewee noted a 50% improvement in customer satisfaction scores, and another noted that customer satisfaction scores were so high they needed to start looking elsewhere for meaningful improvements.


› An average annual revenue of $100 million, increasing at 5% annually.

› An observed increase in revenue of 1% after implementing the PureCloud solution, due to increased customer satisfaction leading to repeat purchases and reduced churn.

› Fifty percent of the observed increase in revenue can be attributable to the PureCloud solution.

› Income margin is equal to 10%.

Note that the contact center for the composite organization mainly handles inbound calls related to customer service and is not responsible for sales or revenue. For organizations utilizing call centers as a revenue stream, additional benefits could be expected related to the PureCloud solution’s impact on an organization’s overall revenue.

Increase in income can vary due to uncertainty related to:

› Average annual revenue.

› Increase in revenue due to increase in customer satisfaction.

› Increase in revenue attributable to implementing the PureCloud platform.

› Income margin for the overall organization.

To account for these risks, Forrester adjusted this benefit downward by 5%, yielding an annual benefit between $47,500 and $52,369, and a three-year risk-adjusted total PV of nearly $124,000.

“Our customer satisfaction

metrics are so good, we don't

really pay attention to them

anymore. We've had to start

looking at other ways to

identify customer pain points.

It's a good problem to have.”



America


Reduced downtime: 2% of total benefits


$120,086

Benefit 6: Reduced Downtime

Interviewed organizations described the following benefits related to reduced downtime:

› The PureCloud platform significantly reduced the number and severity of unplanned outages experienced compared to the previous platform, due to its robust architecture.

› Unplanned outages, when they did occur, were resolved very quickly with minimal impact to the business.


› The previous solution experienced 14 hours of unplanned downtime during the “low” season, and 6 hours of downtime during the “high” season.

› There are 120 agents on-shift during the low season and 200 agents on-shift during the high season.

› The PureCloud platform’s unplanned downtime totaled 2 hours annually, which represents a 90% reduction from their previous solution. For calculation simplicity, it’s assumed that all 2 hours of PureCloud platform downtime occur during the high season.

Note that this calculation only considers impact of lost productivity. If an organization has service-level agreements (SLAs) or other guarantees, the business impact of reduced downtime could be much more significant. Additionally, a larger impact could be expected if agents are responsible for sales or revenue, due to potential lost sales.

Reduction in downtime can vary due to uncertainty related to:

› Hours of downtime, with both the previous solution and with the PureCloud solution.

› Number of agents on shift during platform outages.

› Hourly cost of agents.

Benefit 5: Increased Income Calculation Table


E1 Annual revenue without PureCloud Composite organization

$100,000,000 $105,000,000 $110,250,000

E2 Increase in revenue Composite organization

1% 1% 1%

E3 Revenue attributable to PureCloud Composite organization

50% 50% 50%

E4 Income margin Composite organization

10% 10% 10%

Et Increased income E1*E2*E3*E4 $50,000 $52,500 $55,125


Etr Increased Income (risk-adjusted) $47,500 $49,875 $52,369

“Part of what drew us to

PureCloud was the

infrastructural design that

actually supported uptime of

the product.”




To account for these risks, Forrester adjusted this benefit downward by 10%, yielding an annual benefit of over $48,000 and a three-year risk-adjusted total PV of over $120,000.

Unquantified Benefits

While there were strong and quantifiable benefits the interviewed organizations observed using the Genesys PureCloud solution, interviewed organizations observed additional realized benefits that were not quantified for this study due to lack of available data and metrics.

› Reduced number of help desk tickets resulted in lower costs. The PureCloud platform was much easier to use and maintain compared to interviewed organizations’ previous solutions. This resulted in a lower rate of tickets opened with the IT help desk. This benefit can be quantified by evaluating the lower rate of tickets and the average cost to resolve tickets.

› Enabling the ability to utilize home workers. This has multiple impacts:

• Increases the applicant pool and allows for higher quality agents that would otherwise be locally unavailable.

• Reduces the occupancy requirements for physical call centers.

• Allows for “follow the sun” deployments and availability of agents.

• Additionally, centralized visibility allows for increased ability to monitor outsourced agents.

Reduced help desk tickets

Use of home workers

Benefit 6: Reduced Downtime Calculation Table


F1 Hours of downtime with previous solution during the low season


14 14 14

F2 Hours of downtime with previous solution during the high season


6 6 6

F3 Total hours of downtime with PureCloud (high season)


2 2 2

F4 Number of agents on shift during the low season


120 120 120

F5 Number of agents on shift during the high season


200 200 200

F6 Average fully burdened hourly cost of agents

C4 / 2080 $21.63 $21.63 $21.63

Ft Reduced downtime (F1*F4 + F2*F5 - F3*F5)*F6

$53,654 $53,654 $53,654


Ftr Reduced downtime (risk-adjusted) $48,288 $48,288 $48,288

“The PureCloud technology

itself is beautifully laid out and

looks very modern — a very

clean design.”




Flexibility, as defined by TEI, represents an investment in additional capacity or capability that could be turned into business benefit for a future additional investment. This provides an organization with the "right" or the ability to engage in future initiatives but not the obligation to do so.

Flexibility

The value of flexibility is clearly unique to each customer, and the measure of its value varies from organization to organization. There are multiple scenarios in which a customer might choose to implement the PureCloud platform and later realize additional uses and business opportunities, including:

› Taking advantage of the PureCloud open application programming interfaces (APIs) and integrations. Multiple interviewees noted the PureCloud open APIs as a benefit they plan on capitalizing on in the future.

› Ability to quickly scale and add more seats. Interviewees noted that the scalability of the PureCloud solution, in addition to reducing costs, allowed them to grow the business more quickly.

› Support for multiple languages. This is helpful for providing a regionalized customer experience.

› Omnichannel support. The Genesys PureCloud platform offers multiple channels, and this is an area interviewees were interested in expanding into more in the future. The ability to have an omnichannel experience for customers all hosted on a single platform is an attractive benefit.

Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).

“The PureCloud API offers a lot

of flexibility, limited to our

imagination. The sky's the

limit, and that's why we chose

PureCloud.”


eCommerce, Europe

“We were looking to integrate

our CRM solution with

PureCloud, and they already

had a plug-in / adapter

available. PureCloud being an

open technology provides a lot

of flexibility in terms of the

other solutions we can

connect to it.”




The table above shows the total of all costs across the areas listed below, as well as present values (PVs) discounted at 10%. Over three years, the composite organization expects risk-adjusted total costs to have a PV of nearly $761,000.

Cost 1: Subscription Costs

There are a number of subscription payment models available with the PureCloud solution, and these payment models provide a range of available prices (both lower and higher than the prices modeled here). Interviewed organizations commented that they appreciated the accuracy in being able to forecast monthly costs, and noted that there were very few hidden costs as maintenance and system upgrades are included within the subscription.

Forrester estimates for the composite organization:

› The subscription for 120 year-long concurrent seats for PureCloud 2 is prepaid annually at an approximate monthly rate of $130 per seat.

› The subscription for 80 additional concurrent seats for four months for PureCloud 2 is paid monthly at an approximate rate of $156 per seat.

This yields an annual cost of over $237,000 and a three-year risk-adjusted total PV of nearly $590,000.

Total Costs

REF. COST INITIAL YEAR 1 YEAR 2 YEAR 3 TOTAL PRESENT VALUE

Gtr Subscription costs $0 $237,120 $237,120 $237,120 $711,360 $589,682

Htr IT labor and support costs $0 $39,375 $39,375 $39,375 $118,125 $97,920

Itr Implementation costs $73,313 $0 $0 $0 $73,313 $73,313

Total costs (risk-adjusted)

$73,313 $276,495 $276,495 $276,495 $902,798 $760,915

Cost 1: Subscription Costs Calculation Table

REF. METRIC CALC. INITIAL YEAR 1 YEAR 2 YEAR 3

G1 Number of annual seats Composite organization

120 120 120

G2 Number of additional seasonal seats


80 80 80

G3 Number of months for seasonal seats


4 4 4

G4 Monthly cost per seat (prepaid annual concurrent subscription, PureCloud 2)


$130 $130 $130

G5 Monthly cost per seat (prepaid month-to-month concurrent subscription, PureCloud 2)


$156 $156 $156

Gt Subscription costs G1*G4*12 + G2*G3*G5

$237,120 $237,120 $237,120

Risk adjustment 0%

Gtr Subscription costs (risk-adjusted)

$237,120 $237,120 $237,120


Implementation risk is the risk that a proposed investment may deviate from the original or expected requirements, resulting in higher costs than anticipated. The greater the uncertainty, the wider the potential range of outcomes for cost estimates.

Cost 2: IT Labor And Support Costs

While there was an overall reduction in required IT labor and support with PureCloud compared to their previous solutions, interviewed organizations noted that IT was still required on some level (ensuring uptime of hosted service, configuring more complicated interactive voice response [IVR] and workflows, software user support, onboarding and permissions, customer reporting, custom integration development, etc.)

Based on the customer interviews, Forrester estimates for the composite organization that 0.5 IT FTEs is required for labor and support, and has an annual fully burdened salary of $75,000.

IT labor and support costs can vary due to uncertainty related to:

› Level of support required.

› Annual fully burdened salary for IT.

To account for these risks, Forrester adjusted this cost upward by 5%, yielding an annual cost of over $39,000 and a three-year risk-adjusted total PV of nearly $98,000.

Cost 3: Implementation Costs

Interviewed organizations described the following costs related to implementation:

› Implementation did not take much time.

› While not a requirement, some organizations elected to purchase professional services to assist in PureCloud implementation. PureCloud QuickStart is the most common deployment method, and provides the ability to self-start or expand into a more extensive service package.

Cost 2: IT Labor And Support Costs Calculation Table


H1 IT labor and support FTEs Composite organization

0.5 0.5 0.5

H2 IT fully burdened annual salary Composite organization

$75,000 $75,000 $75,000

Ht IT labor and support costs H1*H2 $37,500 $37,500 $37,500

Risk adjustment ↑5%

Htr IT labor and support costs (risk-adjusted)

$39,375 $39,375 $39,375

“Implementation was very

simple. If you have any

knowledge of IVR, queuing,

really the basics of contact

centers, implementation is

very simple and

straightforward.”


eCommerce, Europe

“Now we can identify specific

pockets of work and prioritize

a roadmap for IT, as opposed

to a generic ‘we need you

available’.”



America


› The four interviewed organizations outside of North America required PureCloud Edge devices to connect the PureCloud platform with their existing telephony services provider; at the time of this study, PureCloud Voice was available only within North America and the cloud bring your own carrier (BYOC) option to allow customers to supply the carrier was not available. However, it should be noted that Genesys has plans to deploy PureCloud Voice globally, and a cloud BYOC option, at which point the Edge devices would no longer be a requirement.


› One IT FTE deploys the PureCloud solution over one month.

› Required Edge devices total $50,000. Monthly data center costs are not included as these devices are deployed in an existing data center.

› Implementation services (PureCloud QuickStart) cost of $7,500.

Implementation costs can vary due to uncertainty related to:

› Implementation timeframe.

› Required edge devices.

› Professional services purchased.

To account for these risks, Forrester adjusted this cost upward by 15%, yielding a risk-adjusted total PV of over $73,000.

One month

Total implementation

and deployment time

Cost 3: Implementation Costs Calculation Table


I1 Implementation time in months Composite organization

1

I2 Implementation IT FTEs Composite organization

1

I3 IT fully burdened annual salary Composite organization

$75,000

I4 Edge devices Composite organization

$50,000

I5 Implementation professional services


$7,500

It Implementation costs (I1 / 12)*I2*I3 + I4 + I5

$63,750

Risk adjustment ↑15%

Itr Implementation costs (risk-adjusted)

$73,313


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.

Financial Summary CONSOLIDATED THREE-YEAR RISK-ADJUSTED METRICS

Cash Flow Chart (Risk-Adjusted)

-$1.0 M

$1.0 M

$2.0 M

$3.0 M

$4.0 M

$5.0 M

$6.0 M

Initial Year 1 Year 2 Year 3

Cashflows

Total costs

Total benefits

Cumulative net benefits

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.

Cash Flow Table (Risk-Adjusted)

INITIAL YEAR 1 YEAR 2 YEAR 3 TOTAL PRESENT VALUE

Total costs ($73,313) ($276,495) ($276,495) ($276,495) ($902,798) ($760,915)

Total benefits $0 $2,883,208 $1,574,463 $1,576,956 $6,034,627 $5,107,097

Net benefits ($73,313) $2,606,713 $1,297,968 $1,300,461 $5,131,829 $4,346,182

ROI 571%

Payback period < 3 months


Genesys PureCloud: Overview The following information is provided by Genesys. Forrester has not validated any claims and does not endorse Genesys or its offerings.

A contact center infrastructure market leader, Genesys has decades of experience building solutions that embed customer experience (CX) at their core. The Genesys PureCloud solution is an omnichannel contact center and unified communications solution that turns calls, emails, chats and social expressions into a single conversation and seamless customer dialogue. The solution provides quick time-to-value and scalability that deploys at lightning speed.

The PureCloud solution is built from the ground up on a microservices multi-tenant cloud architecture, allowing for not only rapid deployment options, but also continuous delivery of new functionality, and unsurpassed scalability and reliability. HIPAA- and PCI-compliant, the PureCoud platform ensures interactions seamlessly and securely support customer journeys for companies across the world with user interfaces in 15 languages (more than any other software as a service (SaaS) customer experience cloud provider on the market).

The PureCloud solution connects customers across phone, email, chat, web and social media. And it provides businesses with actionable real-time data that drives efficiency in the contact center, enables predictive analytics, and results in the delivery of a more personalized customer experience. Built-in workforce management capabilities, a robust speech-enabled IVR, inbound and outbound flows, out-of-the-box integrations with major CRM solutions, and open APIs offer powerful functionality that's packaged in an intuitive, simple user interface. A collaboration and unified communications suite that includes business telephony, a browser-based softphone, chat and video conferencing, optional VoIP telephony service, and flexibility to bring your own carrier (BYOC) rounds out an all-in-one platform for your business. Find your best fit with flexible subscription terms.


Appendix A: Total Economic Impact 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.

Total Economic Impact Approach

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 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.

PRESENT VALUE (PV)

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.

NET PRESENT VALUE (NPV)

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.

RETURN ON INVESTMENT (ROI)

A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs.

DISCOUNT RATE

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%.

PAYBACK PERIOD

The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost.

the total economic impact™ of genesys purecloud

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