ROI CASE STUDY SALESFORCE DATA.COM KELLY SERVICES

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1 ROI CASE STUDY SALESFORCE DATA.COM KELLY SERVICES THE BOTTOM LINE Kelly Services deployed Salesforce Data.com to support a new telesales and direct marketing initiative targeting specific business segments and titles. Nucleus found the company was able to identify, qualify, and close new leads to drive net new profits of more than $4 million. ROI: 1347% Payback: 3 weeks Average annual benefit: $3,210,391 THE COMPANY Kelly Services is a leader in providing workforce solutions. Kelly offers a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire, and direct-hire basis. Founded in 1946 in Detroit, Kelly currently serves clients around the globe and provides employment to more than 560,000 employees annually. The company s revenue in 2012 was $5.5 billion. THE CHALLENGE Kelly is an existing Salesforce.com customer and uses many sources of data to support its sales and marketing efforts, including purchased lists, conference lists, and tools including InsideView and OneSource. The company used a number of different tools because there was no one tool or source with enough contacts to support its ongoing needs. In December 2011, the company planned a new campaign, which was a combination of phone, direct mail, and marketing initiatives targeting specific business segments including professional and technical staffing in 50 metropolitan markets. Kelly needed to source enough contact data to identify 250 targeted hiring managers in each market. The company wanted to do more than pull a list of names; it needed a tool that could be costeffectively adopted by a broad number of users. Nucleus Research Inc. 100 State Street Boston, MA Phone:

2 In our sales process, 75 percent of getting the order is showing up at the right time. Data.com enabled us to uncover opportunities that amounted to millions of dollars, and because it s in the application, we re able to easily integrate it into our lead generation process. - David McDermott, Kelly Services THE STRATEGY Kelly had been exposed to Data.com because of its existing relationship with Salesforce.com, and chose to pilot Data.com in its initial rollout of the campaign. The company s original plan was to roll out the campaign over the next 18 months. However, in the pilot Kelly found that the contacts provided in Data.com uncovered so many opportunities before the first direct mail piece even launched that it decided to accelerate the full deployment. Kelly purchased 400 licenses and pulled in more than 45,000 leads over the course of a year. It took a only few hours for the CRM team to configure Data.com to support the campaign and users received 15 minutes of online training. Cost : Benefit Ratio 1 : 14.3 KEY BENEFIT AREAS Standardizing on Data.com for its day-to-day lead generation and sales enablement enabled Kelly to more rapidly identify sales opportunities in key markets to drive additional business. Nucleus Research is the leading provider of value-focused technology research and advice. Page 2

3 Key benefits from the project include: Increased pipeline. Taking advantage of Data.com enabled Kelly Services to significantly expand its pipeline, increasing its ability to identify more line of business managers and potential sales contacts than previous campaigns had found in other data sources and lists. Last year, Kelly was able to tap 45,000 new leads from Data.com. Increased profits. The pipeline opportunities identified from Data.com directly contributed to approximately $7 million in gross profits. Improved data quality. Because Data.com s data stewards and crowdsourced model provide data validation and expansion on an ongoing basis, Kelly was able to increase outreach in areas such as because of more qualified contacts and accurate e- mail addresses. KEY COST AREAS Costs of the project included Data.com subscription licenses and minimal internal costs for implementation and training. BEST PRACTICES Kelly found that the crowdsourced nature of Data.com, as well as Salesforce.com s ongoing efforts to support data quality, enabled it to increase both the quality and quantity of leads for any target organization. The company has found that knowing how recently the data was verified helps it to determine the best channel for outreach. For example, if contact data has been refreshed more than a year ago, Kelly doesn t import the address, but instead does presales qualification by telephone. This enables Kelly to make the most efficient use of presales resources while delivering the volume of qualified leads sales needs. Nucleus Research is the leading provider of value-focused technology research and advice. Page 3

4 CALCULATING THE ROI Nucleus quantified the initial and ongoing costs of Data.com license subscription fees, and the internal personnel time devoted to configuring the application and training users to calculate Kelly Services s total investment in Data.com. Direct benefits quantified included the net profits directly driven by new opportunities qualified using Data.com. Projected profits in years two and three were based on a conservative estimate of the portion of contracts initially won as a result of Data.com that would be renewed given Kelly s normal renewal rates. Nucleus Research is the leading provider of value-focused technology research and advice. Page 4

5 FINANCIAL ANALYSIS Salesforce Data.com Annual ROI: 1347% Payback period: 0.1 years ANNUAL BENEFITS Pre-start Year 1 Year 2 Year 3 Direct 0 4,707,066 2,824,239 2,824,239 Indirect Total per period 0 4,707,066 2,824,239 2,824,239 CAPITALIZED ASSETS Pre-start Year 1 Year 2 Year 3 Software Hardware Project consulting and personnel Total per period DEPRECIATION SCHEDULE Pre-start Year 1 Year 2 Year 3 Software Hardware Project consulting and personnel Total per period EXPENSED COSTS Pre-start Year 1 Year 2 Year 3 Software 240, , ,000 0 Hardware Consulting Personnel Training 4, Other Total per period 244, , ,000 0 FINANCIAL ANALYSIS Results Year 1 Year 2 Year 3 Net cash flow before taxes (244,370) 4,467,066 2,584,239 2,824,239 Net cash flow after taxes (134,404) 2,456,886 1,421,332 1,553,332 Annual ROI - direct and indirect benefits 1828% 1443% 1347% Annual ROI - direct benefits only 1828% 1443% 1347% Net Present Value (NPV) (134,404) 2,161,752 3,403,198 4,671,179 Payback period 0.1 years Average Annual Cost of Ownership 244, , , ,457 3-Year IRR 1787% 1787% FINANCIAL ASSUMPTIONS All government taxes 45% Cost of capital 7.0% All calculations are based on Nucleus Research's independent analysis of the expected costs and benefits associated with the solution. Page 6

6 By the Numbers Kellly Services's Salesforce Data.com project Annual Return on Investment 3.0 Cost : Benefit Ratio weeks 1347% $3,210,391 Average annual benefit The total time to value, or payback period, for the project 1 : 14.3 THE PROJECT Kelly Services deployed Salesforce Data.com to support a new telesales and direct marketing initiative targeting specific business segments and titles. Nucleus found the company was able to identify, qualify, and close new leads to drive net new profits of more than $4 million. THE RESULTS Increased profits by $4.7 million Increased data quality Number of users: Weeks Total time for Kelly Services to deploy Data.com Data.com enabled us to uncover opportunities that amounted to millions of dollars, and because it s in the application, we re able to easily integrate it into our lead generation process. David McDermott, Kelly Services Copyright 2013 Nucleus Research Inc. Nucleus Research Report N69 Salesforce Data.com ROI case study Kelly Services