Data demonstrates 196 percent ROI over three years for consumers missed by other marketing channels for established brands
MOUNTAIN VIEW, CALIF. – February 21, 2013 – BloomReach, creators of leading big data marketing applications, today released the results of a BloomReach commissioned study conducted by Forrester Consulting, “The Total Economic Impact Of BloomSearch”. The Total Economic Impact (TM), a standard methodology developed by Forrester Research Inc., enhances a company’s technology decision-making process. The study concludes that a composite, established brand retail organization selling $3.5 billion annually from a portfolio of 25,000 products could experience a three-year return on investment (ROI) of 196 percent with a payback period of 2.2 days by using BloomReach’s first application, BloomSearch. In addition, the study found that organizations using BloomSearch experience a substantial increase in site traffic from unique visitors and reached 60 percent more customers that are not easily accessible through other marketing channels including paid search, display, or affiliate advertising. For established brands, BloomSearch doubled conversions compared to paid search.
The TEI found that for a composite, emerging brand organization (an online retailer making $250 million annually) more than $75 million in new sales over three years can be attributed to BloomSearch. These sales have a return on ad spend of $5.85 and a payback period of 1.2 months. BloomSearch also accounts for tripling conversions compared to the paid search efforts in which the emerging brands invest. The emerging brand companies interviewed in the study credit higher conversions rates than paid search, brand-building at a lower cost, and the ability to acquire new customers that are not being reached through other channels as the main drivers for the success of the program with BloomSearch.
“BloomSearch is designed to amplify online marketing channels and maximize the demand for existing products, services and content. The end result is increased revenue and market share for companies,” said Raj De Datta, CEO and co-founder of BloomReach. “We believe this new study demonstrates the value that BloomReach’s big data marketing applications can deliver to both consumers and businesses. We provide technology that delivers action and results, a better user experience and incremental revenues for our customers.”
Forrester interviewed four companies that have used BloomSearch for at least six months and up to three years and conducted subsequent analysis. In addition to the ROI and payback period findings, Forrester also identified several other measurable benefits to BloomSearch’s technology:
– For established brands, BloomSearch delivers conversion rates that are similar to internal lists, new customers that cannot be reached through other channels and the ability to more efficient remarket via multichannel marketing programs.
– Smaller emerging organizations that didn’t previously have a widely recognized brand or large volumes of traffic found BloomSearch to be more cost-effective and predictable than traditional advertising for brand-building and acquiring new customers, resulting in a 638 percent ROI based on the study’s results.
“Before partnering with BloomReach, we had a discovery problem,” Erik Small, Senior Manager, Online Advertising & eCommerce for Meijer explains. “We were constantly adding SKU’s but our products were not being discovered and user experience was suffering because the shopping experience was limited to Meijer’s internal search filtering, navigation, and our interpretation of search intent. Since integrating with BloomReach, Meijer has seen a 60% increase in non-branded traffic.”
To read the complete Forrester Total Economic Impact study, click here.
BloomReach, and guests from both Meijer and Forrester, will be discussing the Total Economic Impact of BloomSearch during an Internet Retailer webinar at 10 AM PST on March 6th. To register free of charge, please click here.
BloomReach’s big data marketing applications drive new revenue by consuming web wide and website data to interpret consumer demand and deliver more relevant user experiences on any marketing channel. BloomReach’s two unique big data marketing applications – BloomSearch for natural search customer acquisition and BloomLift to increase advertising ROI – are built on BloomReach’s signature technology, the Web Relevance Engine (WRE). The BloomReach WRE analyzes consumer interactions across billions of pages, leverages the web’s collective intelligence, and incorporates machine learning to predict demand and deliver relevant content such as enhanced landing pages, intuitive alternative navigation or social trends.
BloomReach is headquartered in Mountain View, CA and is backed by investment firms Bain Capital Ventures, NEA, and Lightspeed Ventures. For more information, please visit www.bloomreach.com.