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WHITE PAPER

Web Content Management ROI Measurement


Table of Contents Introduction ....................................................................................................... 2 WCM Implementation Costs ............................................................................. 3 When to Calculate Web Content Management ROI Measurement................................ 4 ROI Measurement Criteria .............................................................................................. 4

Relative Advantage: Improved Efficiencies ..................................................... 5 Publishing Efficiencies .................................................................................................... 5 Improved Customer Service ........................................................................................... 6 Regulatory Penalty Avoidance........................................................................................ 6 Hardware Consolidation ................................................................................................. 6

Relative Advantage: New Revenue Streams ................................................... 8 Increased Engagement and Conversion ........................................................................ 8 Cross-Selling and Up-Selling Through Personalization ................................................. 8

Relative Advantage: Improved Online Branding ........................................... 11 Drive Brand Equity Through Consistency And Proactive Management ....................... 11 Brand Consistency Across Multi-Site And Multi-Lingual Deployments ........................ 12 Brand Consistency Across Multi-Channel Marketing ................................................... 12

Relative Advantage: Faster Time-To-Market ................................................. 14 Quicker Reaction To Competitors’ Initiatives ................................................................ 14 Business-To-Business-To-Consumer (B2b2c) Scenarios ............................................ 15

Conclusion ....................................................................................................... 16 Additional Resources ...................................................................................... 17 Webinars: ...................................................................................................................... 17 Tools: ............................................................................................................................ 17 Additional White Papers: .............................................................................................. 17

Appendix I – Hypothetical Company’s WCM Investment Calculator ........... 18

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Introduction Web content management systems (WCM) have the capacity to significantly improve customer engagement and satisfaction (both internal and external) and deliver substantial financial returns.

Companies in a variety of vertical industries are rapidly adopting WCM systems, and every vertical has its unique set of business drivers. Media and entertainment companies turn to WCM for content delivery and monetization (digital advertising, digital video, digital signage, in-game advertising, podcasts, etc.), while global brands are investing in WCM to extend their brands digitally both far and wide (i.e., cross-device/platform, social media, transactional marketing, etc.). Financial services, government, business-tobusiness (B2B), manufacturers, and healthcare/pharmaceutical companies are also investing heavily in the WCM category. While there’s still room for significant growth in the category, by all accounts, we’re entering the late-majority phase of WCM adoption. Businesses that fail to seriously consider how a WCM solution can drive business value will soon find themselves at a significant competitive disadvantage.

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WCM Implementation Costs Before entering a discussion of the ROI of WCM, it’s important to lay the foundation. Therefore, we’ll start with a high-level breakdown of WCM costs, to include software licensing, software maintenance, hardware, hosting & bandwidth, installation, implementation and ongoing development support. For more details on this topic, see, “How to Determine Total Cost of Ownership of WCM/CMS Projects,” December 2010, Siteworx, Inc. WCM implementation and annual maintenance costs can vary widely depending on a company’s size and needs. For a small to mid-size company, license size might range from $100,000 - $150,000, with implementation costs of around three times that figure, for total implementation costs of approximately $500,000. Open source systems typically are licensefree, but require greater implementation costs.

Enterprise customers, such as Fortune 500 companies with multi-site deployment and additional complex needs, may need to budget up to $1,000,000 for a WCM license, with implementation costs of three times that amount or greater. Support and maintenance fees from the software provider can be expected to run twenty percent of licensing costs in order to keep software up to date with patches, hotfixes and upgrades. Additional ongoing costs include developers and system administrators for ongoing customization and support, whether those services are provided in-house or by a services partner.

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WHEN TO CALCULATE WEB CONTENT MANAGEMENT ROI MEASUREMENT WCM represents a significant investment, which is why a comprehensive understanding of return on investment (ROI) measurement is vital. Ideally, companies will conduct an initial ROI calculation prior to their first implementation. This calculation can be difficult given the significant unknowns associated with re-engineering business processes and understanding target audience needs. However, an attempt should be made to create a baseline from which to assess future scope and enhancement decisions.

There are two other scenarios under which an ROI assessment might prove beneficial: If a WCM has already been implemented in specific business areas within the organization and additional business areas are considering adoption, or when a business is considering integration of new digital capabilities (email, mobile, social media, etc.) into an existing WCM. ROI MEASUREMENT CRITERIA When calculating ROI for WCM, Siteworx recommends examining four key areas of relative advantage: 

Improved efficiencies resulting from publishing efficiencies, reduced customer service expenditures, regulatory penalty avoidance and hardware consolidation

Increased revenue generated by improving engagement metrics on landing pages, conversion rates in sales funnel, presentation sophistication in new marketing channels and cross- and up-sell percentages after initial sale

Improved online branding through reduced concurrent redesign costs, streamlined multi-site management and multi-channel campaign management support, such as social media and email

Faster time-to-market, including first mover advantage, enhanced competitive reaction time and benefits in B2B2C scenarios.

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Relative Advantage: Improved Efficiencies Improved efficiencies, including publishing efficiencies, reduced customer service expenditures, regulatory penalty avoidance and hardware consolidation, are the primary driver for the majority of WCM implementations.

PUBLISHING EFFICIENCIES When considering how to measure publishing efficiencies, it’s important to ask the question, ―How much time does it take to publish a new piece of digital content within my organization?‖ With minimal analysis, you may be surprised to learn that incremental costs of publishing can be excessive. It’s not unusual to find that large organizations require as much as 80 hours per piece of content without the aid of a WCM system. If 80 hours per piece of content sounds like a high estimate, consider how many organizational layers each piece of content must travel: a writer, editor, manager (which may include different managers from multiple levels of management in varying departments), and legal. For multi-language sites, add translation times. All this effort takes place, of course, before the project even reaches a designer. Next, a designer will create the front-end look and feel of the content, and a developer or multiple developers will need to create front-end HTML and CSS and back-end database integrations as necessary. Then, the content will be published to Web and database servers.

A ―best in class‖ WCM tool which effectively enables every individual to complete their required tasks efficiently and with minimal friction, can help companies reduce this time to as little as 20 hours per piece of content. A well-managed financial services company that rigorously analyzed its publishing process discovered that it was spending 320 hours (or 2

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months of labor) on every piece of content generated. Capturing this wasted time can translate into phenomenal financial savings on a monthly basis.

IMPROVED CUSTOMER SERVICE Reduced customer service costs can also serve as a source of ROI for WCM investments. For example, visit Bank of America’s help page. The first item listed on the site concerns how to find a routing number. This is a very simple question to answer, and by making the solution easily findable for users on the website, Bank of America reduces a large number of unnecessary calls to its customer service department. Companies with call centers can reduce their top-ten most frequent call center questions by placing the answers to those questions in Frequently Asked Questions pages or help updates on their website. While these savings are not as significant as those resulting from reduced publishing efficiencies, they can be extremely relevant in industries such as telecommunications, where call center support is a significant cost driver. REGULATORY PENALTY AVOIDANCE A company’s inability to change or remove content from its website within a short amount of time can have substantial financial repercussions. One financial services company approached Siteworx for WCM implementation after being repeatedly penalized for content it was unable to change at the request of regulators. The client was routinely audited by all 50 states on insurance content on its websites and was facing regulatory penalties to the tune of $50,000 - $100,000 each month due to its slow response to auditor requests to remove or modify site content. A WCM implementation that allows rapid and efficient updates to web content can immediately save costs for companies that are suffering similar unnecessary regulatory penalties. HARDWARE CONSOLIDATION WCM implementation has noteworthy IT cost benefits with regard to potential hardware consolidation via the cloud. Enterprise-class WCM products’ sophisticated out-of-the-box clustering capabilities make quickly scaling capacity much easier than for organizations relying on out-dated WCM solutions or even web servers serving static HTML content.

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To understand how a cloud deployment model can translate to significant financial savings, consider sites that experience seasonal variation in their levels of Web traffic. Tax companies, for example, have more traffic between January and April than between May and December, and media sites will experience peaks in Web traffic based on current events. Using an on-premise only model, companies are forced to manage the hardware, infrastructure and bandwidth associated with supporting peak volume during non-peak periods. With a cloud deployment, companies can throttle these variables up or down based on their actual month-by-month usage. This flexible deployment model enables companies to ramp up server capacity during periods of increased traffic, without having to pay for peak charges during off-peak times.

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Relative Advantage: New Revenue Streams Additional revenue, including increased engagement from reduced bounce rates and increased conversion rates, cross-selling and up-selling through personalization and revenue from expansion across additional devices is the second-most driver of WCM implementations. In the current economic environment, who isn’t looking for new revenue streams?

INCREASED ENGAGEMENT AND CONVERSION WCMs can help an organization tailor its website content towards users arriving at the site through targeted landing pages. This tactic results in increased time on site and reduced bounce rates. In addition to the direct benefits of improved user engagement, low bounce rates can boost the site in Google’s organic rankings, which can ultimately improve organic site traffic. WCMs can also enable easier online site testing and more effective improvements to the site. Online testing, such as A/B testing or multivariate testing, can help identify untapped opportunities for conversions. In Siteworx’ experience, companies can gain increases in conversion as much as 67 percent in direct conversions, and 33 percent in cross-selling and up-selling through personalization.

CROSS-SELLING AND UP-SELLING THROUGH PERSONALIZATION The ability to cross-sell and up-sell on Web and mobile properties in a largely automated manner can be a critical revenue driver for organizations. The American Diabetes Association (ADA) provides a great example of cross-selling and up-selling in the way it has chosen to present additional advertising content through its WCM. The ADA website features multiple promotions throughout its site that are initially set to a baseline of standard promotions. However, as the WCM ―learns‖ more about each individual user and the user’s behaviors and preferences, it tailors the promotions to match the user’s interests. For example, after buying a healthy eating cookbook from the site, the user would likely be presented with two promotions relating to cookbooks, rather than a more generic or unrelated promotion. Such promotions present engaging opportunities which promote user

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engagement and conversion. Cross-selling and up-selling work in effectively the same way from a Web perspective – and they both can take your brand from cookbooks to cash in the coffers.

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MULTI-CHANNEL/MULTI-MODE: ADDITIONAL DEVICES (PHONE, TABLET, TV) WCM implementations can also drive increased revenue by opening up new engagement channels, such as mobile phone and tablet devices. Companies that don’t optimize for mobile access can typically expect to see their mobile phone and tablet traffic to account for only single-digit percentages of total site traffic. Sophisticated WCMs can deliver mobileoptimized user interfaces that are tailored to each individual device. With a better user interface, users stay engaged longer, and become more likely to convert. It is not unusual to see conversion rates from mobile devices double or even triple within a few months following a WCM implementation. A Pew Internet American Life Study found that the fastest age range of smartphone adoption is occurring among 45- to 65-year olds whose primary adoption driver is usability: mature users want to perform tasks faster and make their day-to-day lives easier. Siteworx worked collaboratively with Mandarin Oriental Hotel Group to build a mobile experience around the process of finding and booking a hotel room, making the process far easier for its luxuryseeking, jet-setting clientele. The implementation was so successful that it was cited as a best practice case study of brand-appropriate mobile experiences by independent research firm, Forrester Research, Inc.1 When Mandarin Oriental implemented their mobile site, mobile site traffic increased from 4% to 12% of overall traffic. The luxury hotel brand achieved breakeven and started to earn additional top-line revenue within just six weeks through the additional bookings secured through the mobile site.

―Case Study: Mandarin Oriental Creates a Brand-Appropriate Mobile Experience,‖ June 10, 2010, Forrester Research, Inc. 1

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Relative Advantage: Improved Online Branding Improved online branding through concurrent redesign, effective multi-site management and multi-channel campaign management also serves as an important motivation for WCM investment. The utilization of email campaign management through WCM, in particular, can lead to significant savings.

DRIVE BRAND EQUITY THROUGH CONSISTENCY AND PROACTIVE MANAGEMENT A user’s overall experience with and impression of a brand in the digital space, while difficult to quantify, affects that brand’s bottom line in ways the brand might not even recognize. When a top-five global management consulting firm engaged Siteworx for website redesign, its perception was that potential clients were not utilizing the site to evaluate or purchase their services. Rather, the company believed that referrals were coming from contacts within its business network and from colleagues of clients. When Siteworx spoke with contacts at the Fortune 100 companies who composed the consultancy’s client base, however, a different portrait emerged. While initial referrals mattered, 80 percent of prospective clients were relying on the corporate website to identify the firm’s primary lines of business, expertise and examples of thought leadership, such as white papers. Through this analysis, the firm recognized that an unpolished brand experience online, even though the site itself was not necessarily generating conversions, could be a ―disqualifier‖ for their highly-selective business buyers. Leading brands should recognize that for many buyers—both business and consumer—their website is the modern-day equivalent of a well-designed business card in the hands of their PAGE 11


sales team. Your buyers will most likely seek you out online and will develop perceptions about the quality of your products and services based on what they find–WCM implementations enable brands to control their brand presence, regardless of the number of sites or sub-brands within their brand family. BRAND CONSISTENCY ACROSS MULTI-SITE AND MULTI-LINGUAL DEPLOYMENTS WCM implementations can help to ensure brand consistency across multi-site deployments. A Siteworx non-profit client provides an example: the organization’s Web presence featured a home site belonging to the organization. This umbrella site for the organization served as the focal point for the nonprofit’s online brand. However, websites for state-based affiliates displayed a unique, variable web presence without a consistent brand influence. WCM enabled the creation of content in a brand template, which was consistent from the national organization down to the state-level sites. State affiliates could create highly specialized content while maintaining visual consistency with the national organization, and could even present the national organization’s content if the affiliates did not have the resources to manage their own local content. WCM implementations can also aid in maintaining brand-consistency across multi-lingual deployments that necessitate management of the brand across time zone, linguistic and national borders. At the enterprise level, WCMs can create numerous sites that can be managed from a single template in multiple languages. To give an idea of the complexity involved, the rule of thumb in English-Spanish translation is that 33% more content space is required to communicate the same information in Spanish than in English. Using WCM, templates can be automatically resized and rebuilt, with the Spanish content ported into the template. Users of the Spanish site encounter additional space on the site for a brandconsistent experience across the Americas. BRAND CONSISTENCY ACROSS MULTI-CHANNEL MARKETING In the ―Multi-Channel/Multi-Mode‖ section above, this paper analyzed the relative benefit of WCMs on increased revenue from additional device platforms, such as mobile phones and tablet. Here, we’ll assess the benefit of WCMs upon brand consistency across diverse marketing communication channels such as social media or email.

Amazon.com Homepage

Distributing highly sharable content is extremely important – and a significant time investment without WCM. With WCM, a

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company can create content once and publish it everywhere. Fresh content can be pushed to social media outlets, such as Facebook and Twitter and YouTube, as part of the publishing model. This results in the presentation of a consistent brand experience across diverse channels. The picture becomes even rosier when email campaign management comes into play. Email campaign management is often handled by a separate program or department, or even outsourced to an entirely different group. Today, companies can design email processes that leverage their WCM and the assets within the WCM to develop, store and manage email campaigns. And what about those brand-consistent mobile phones and tablet devices? Many WCMs enable the automated publishing of content through these channels, and some even go a step further to manage print collateral and content. For example, a Siteworx client in the insurance vertical utilizes a WCM system to manage their print assets. When copy and graphics are entered in the system, they are stored and managed in standard and native formats Amazon.com iPad App and then assembled outside of the WCM system as camera-ready art. Thus, any print assets created once as content elements within the WCM can be transformed seamlessly to deliver a consistent brand experience across platforms, including the Web, social media, email and print. This translates to considerable savings, as well as the maintenance of a consistent brand experience.

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Relative Advantage: Faster Time-To-Market Faster time-to-market, including first mover advantage, competitive reaction time and benefits in B2B2C scenarios, frequently serves as a secondary driver for WCM implementation. The overall ROI for WCM implementations is not dependent upon timeto-market, but it does act as a nice complementary benefit.

FIRST-MOVER ADVANTAGE The business landscape is ripe with examples of first-mover advantage. Ten years after it launched, Blogger remains the industry leader ahead of Wordpress and Moveable Type, largely due to its position as first-mover. When Henry Ford Hospital performed the first live surgery on Twitter, it more than doubled its Twitter following, which catapulted its number of followers to continued growth. Sherman Health, which performed the second surgery, increased its Twitter following by roughly a third. WCMs enable companies to launch new products and services before their competitors and to respond to market developments more nimbly because they help to significantly streamline publishing processes.

QUICKER REACTION TO COMPETITORS’ INITIATIVES It is worth noting that Sherman Health, while not experiencing as significant an impact as first-mover Henry Ford, still garnered many new followers. Replicating the actions of a competitor can still be advantageous, especially if competitive reaction time is minimized. The probability of gaining market share is higher for companies that are capable of emulating the competition quickly. This is especially important for those in competitive industries in which many other companies are innovating. If your organization can be rapid second-movers in a matter of days or weeks, as opposed to months, it can see improved market share results.

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BUSINESS-TO-BUSINESS-TO-CONSUMER (B2B2C) SCENARIOS Companies that sell Web products to other companies that utilize those sites to gain customers can achieve ROI for WCM implementations very quickly. For example, Siteworx worked with an insurance company selling portals to companies to help their employees manage health insurance. A WCM system allowed them to ramp up new websites more quickly, both cutting operational overhead and assisting in the sales process through faster delivery of product. Although this a scenario is fairly narrow, the general principals and financial drivers also apply to providers of shared internal services, such as IT resources which help marketing and other business units create websites.

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Conclusion WCMs can help fundamentally reshape a company’s online strategy and business process. They can streamline and supplement existing processes, while delivering substantial financial returns. While they represent a significant investment, WCM systems deliver value through a myriad of obvious and more nuanced means.

The foremost driver for many WCM implementations is improved efficiencies, including publishing efficiencies, reduced customer service expenditures, regulatory penalty avoidance and hardware consolidation. The second most common driver for WCM implementations is additional revenue, including increased engagement as a result of reduced bounce rates and improved conversion rates, cross-selling and up-selling through personalization and revenue expansion across additional devices.

Improved online branding can contribute significantly to ROI for WCM implementations, and includes improvements due to concurrent redesign, multi-site and multi-channel campaign management.

Faster time-to-market advantages, including first-mover advantage, competitive reaction time and B2B2C benefits provide additional complementary benefits from WCM implementations.

ABOUT SITEWORX Siteworx is an award-winning interactive agency specializing in WCM and CMS deployment, search and analytics. Web content management is at the core of Siteworx’ specialization. Siteworx encompasses both traditional creative agency and traditional systems integrator roles, which enables us to speak about ROI on WCM implementation from both a design and technology standpoint. Siteworx services primarily Fortune 1000 clients, and has a strong qualifying track record for financial, media and nonprofit verticals. Siteworx has extensive experience delivering open source, COTS and custom solutions, and is a Microsoft Gold Certified Partner.

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Additional Resources WEBINARS: To view the complete ―Web Content Management ROI Measurement‖ webinar, please visit: http://www.siteworx.com/Company/Thought-Leadership/Webinars/WebContent-Management-ROI-Measurement. All ―Web Content Management ROI Measurement‖ presentation slides are available on SlideRocket: http://portal.sliderocket.com/AHJRR/WebContent-Management-ROI-Measurement. To learn more about budgeting for WCM/CMS projects, view the Siteworx on-demand webinar webinar via https://www2.gotomeeting.com/register/469960626.

TOOLS: ROI for WCM Calculator: http://www.siteworx.com/~/media/White-papers/Siteworx-ROIfor-WCM-Calculator

ADDITIONAL WHITE PAPERS: For additional information on determining the total cost of ownership of WCM/CMS projects, please read Siteworx’ white paper on the subject: http://www.siteworx.com/~/media/White-Papers/How-To-DetermineTotal-Cost-of-Ownership-of-WCM-CMS-Projects.

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Appendix I – Hypothetical Company’s WCM Investment Calculator

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The above calculations represent those typical of a hypothetical financial services company considering WCM investment. The hypothetical company whose calculations are outlined above is a multinational conglomerate in the financial services industry offering insurance services and asset management, including life insurance, asset management and tax preparation. A business-to-business component of the company exists, as the life insurance division sells both directly to consumers and also to businesses seeking a portal through which to sell insurance to employees.

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