A FORRESTER TOTAL ECONOMIC IMPACT STUDY The Total Economic ImpactTM Of Google Pixel For Business For Carriers Cost Savings And Business Benefits Enabled By Pixel B2B Sales For Carriers JUNE 2023
“Our agility [with Google] has impressed prospective customers. Acting quickly means a lot to them. We are also more productive and able to move on to other deals faster, which leads to more activations.” —B2B sales leader #2 “Google is listening. We are partnering on how to target the enterprise segment. They are going beyond funding marketing campaigns — they are providing valuable resources and expertise.” —B2B corporate leader #3
4 Methodology Customer Interviewees 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 interviewees’ organizations. COMPOSITE ORGANIZATIONS Designed a composite organization based on characteristics of the interviewees’ organizations. INTERVIEWS Interviewed six decision-makers at business sales, marketing, and strategy organizations at US carriers to obtain data with respect to benefits of including Google Pixel smartphones in business deals. Industry Role Count Carrier organization serving businesses Sales leadership 3 Carrier organization serving businesses Corporate leadership: marketing or strategy 3 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Google Pixel B2B sales for carrier organizations. This presentation is an abridged overview of a TEI case study. For more details please refer to the full case study (The Total Economic Impact of Google Pixel For Business For Carriers, June 2023)
5 Key Findings B2B revenue grew due to focused sales partnership with a profit margin increase of $9.9 million over three years. The composite organization benefits from a major focus by Google to partner with the carriers’ B2B sales organizations, leading to an increase in the inclusion of Pixel devices and accessories in business data and voice deals. Google also provides training to salespeople on Pixel use with a focus on business use cases, directly supporting sales opportunities, and providing more seed devices per opportunity than has historically been the norm. B2B revenue grew due to additional marketing partnership, with a profit margin increase of $9.8 million over three years. The composite organization has an expanded partnership with Google Pixel’s marketing organization and increases its use of partner marketing funds and promotional funding, which extends awareness, improves messaging, and leads to additional Pixel device and accessory sales by the carriers. B2B revenue grew due to Pixel product improvements, with a profit margin increase of $9.8 million over three years. Recent generations of the Google Pixel smartphones have been recognized for effectively meeting business user requirements. Security built into the Titan M2 security chip, long battery life, durability, central administration, and translation capabilities are features that help drive Pixel devices to be included more in business phone packages. Highlight: B2B Pixel sales volume grew 100% in year 1 and 75% in year 2 and year 3.
6 Financial Summary The financial results calculated in the Benefits section can be used to determine the benefits for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis. These risk-adjusted benefits values are determined by applying riskadjustment factors to the unadjusted results in each Benefit section.
Interviewees shared that Pixel devices are business-ready and that numerous features stand out for meeting business customers’ needs while aligning with their organizations’ B2B sales strategies. The Pixel device series met a need to provide a range of price points while still providing required business capabilities such as strong security, long battery life, minimal administration requirements, and high quality. The A-series met their organizations’ needs for a low-price model, while the Pixel premium series met highend needs. Interviewees shared that the Pixel devices are being recognized by business customers as meeting their smartphone requirements. All current Pixel devices include the Titan M2 security chip and the Google Tensor G2 processor, with a built-in security core. Interviewees shared that the battery life meets or exceeds that of competitors’ devices. They also spoke of their confidence in the durability and quality of the Pixel devices, the quality of the Android administrative features, and capabilities unique to Pixel. Some interviewees spoke of real-time integration with Google Workspace applications, while others noted the benefits of Google’s Live Translate.* B2B revenue grew due to Pixel product improvements. “Device security is a big one, especially for larger customers. The Pixel battery life is substantial, lasting over a day. This is a huge differentiator compared to other OEMs’ devices offering a 12-hour or a 15-hour battery life.” —B2B sales leader #2 *Google disclaimer: Not available in all languages or countries. Not available on all media or apps. Translation may not be instantaneous. Internet connection required during setup only.
8 Pixel Enterprise TEI Highlights Source: “The Total Economic Impact Of Google Pixel For Business,” a commissioned study conducted by Forrester Consulting on behalf of Google, December 2022. In 2022, Google commissioned Forrester to conduct a TEI study of Google Pixel for Business, with interviewees from eight large enterprises sharing Pixel benefits. Lowered hardware cost: Interviewees shared that the Pixel list price was lower for comparable devices, and Pixels had a longer lifecycle, extending the devices’ useful life. Enhanced device performance: Interviewees agreed that end-user experience was better, especially when Google Workspace is used. Security and IT team benefits: Breach reduction was a common driver for Pixel selection. IT teams saved time with deployment and handling of bloatware.
B2B revenue grew due to additional marketing partnership. Marketing activities play a significant role in smartphone device selection. Google assists carriers by collaborating on marketing strategy and providing partner marketing funds and promotional funding. Interviewees shared that Google is listening to them and aligning with their organization’s marketing strategy while also providing insights to enhance their strategy with new approaches. Interviewees described Google as supplying ample funding. “They are placing more focus on business sales and are showing more initiative. Instead of just pushing us to include the Pixels in deals, they are being creative. We have discussions on selling better within our channels, segments, verticals — on where and how the Pixel fits in.” —B2B sales leader #1
Interviewees spoke of the value Google’s marketing team provides. “Google marketing is maturing from a business perspective. They are providing more unique marketing positioning specifically for businesses.” —B2B sales leader #2 “Google is the most collaborative partner, willing to try new and innovative things. We are learning together. We love working with them.” —B2B sales leader #2 “I see a lot more momentum from the Pixel marketing team now that they’re approaching me and the teams to say how can we target the enterprise segment. We are willing to go to market and co-fund these initiatives. We are doing some cool marketing efforts.” —B2B sales leader #2 “At one time if you asked me what was going on with Google, I just would have said that I don’t know. Now I would say that they have a great team, and we’re doing so much more with them then we did in the past.” —B2B sales leader #2 Marketing Partnership Highlights
Google has significantly ramped up its sales partnership organization, which delivers Pixel training, provides leads, and supports opportunities via direct sales support and by providing loaner devices. Interviewees have shared that engaging the Google Pixel sales team on opportunities provides additional education on and engagement toward Pixel for future opportunities. Interviewees shared that the Google Pixel sales partnership members team up with them on closing deals. Google provided devices, education, and advice to B2B salespeople on Pixel use and Pixel differentiators. Interviewees are convinced that the sales support that they have gotten will continue. B2B revenue grew due to focused sales partnership. “About 40% of customers have a business need, or problem, that they want addressed. In addition to giving them reasons to move forward, Google allows us additional devices to try to help us close the deal.” —B2B sales leader #2
Interviewees spoke of the value Google’s sales partnership as a major asset. They said: “There is an increased opportunity to switch customers due to Google’s comprehensive demo plan. We have a prospect who has been with the same carrier for 20 years. We quickly gave them 15 Pixel demo devices — that makes a big difference toward closing the deal.” —B2B sales leader #1 “Google continues to expand their B2B sales [partnership] team, which gives me confidence that they are going to continue to get even better. Their engagement with our sales teams, providing support and partnership, has been great.” — B2B sales leader #1 “Pixel successes are building upon themselves. You can go and replicate a successful business solution 10 times over; approaching a specific business customer and mentioning a business solution that you solved for a similar business or a similar industry is huge.” —B2B sales leader #2 Sales Partnership Highlights
13 Additional Benefits Cost savings due to Google providing marketing funds. Google provides the interviewees’ B2B organizations with partner marketing funds (PMFs) to support Pixel sales. Interviewees were pleased with this financial support to drive B2B revenue. Carriers’ salespeople time savings. Google provides more seed devices than is typical, as well as solution consulting and technical validation. Both actions reduce the amount of time that carriers’ salespeople need to spend toward closing a deal. Improved training and more seed Pixel devices for carriers’ salespeople. Google provides more effective Pixel device training and more Pixel devices to the carriers’ sales organizations, so they have hands-on experience. Shortened sales cycle due to seed device availability. Interviewees spoke of closing deals sooner due to Google providing prospective customers seed devices sooner or in greater quantity than other original equipment manufacturers (OEMs). Seed devices can be shared by multiple departments or locations over a much shorter time period. Pixel devices available to fill orders. Supply chain issues have affected smartphone availability across the market. Per interviewees, Google has been effective at ensuring product availability. Expanded Pixel partnership within corporate and sales leadership. Interviewees shared an initial concern that an increasing interest in expanding Pixel sales would be slowed by past tendencies toward other OEMs’ devices within their own organizations, but they found that resistance or habits are not interfering. Pixel business differentiators and sales regions’ best practice sharing driving Pixel sales. Interviewees noted that Pixel enthusiasm is spreading and that sales organizations are sharing best practices with one another on how to sell Pixel devices to drive more sales.
14 The value of flexibility is unique to each carrier. There are multiple scenarios in which a carrier might realize additional uses and business opportunities due to the current Google Pixel and Google’s Pixel for Business team, including: Google is attentive, creative, and collaborating with carriers to identify new approaches and opportunities. B2B corporate leader #1 has been so impressed with Google’s focus and creativity that they have “shifted an eager member of my team to focus on the Pixel to not lose the momentum that we have.” Google is listening and adjusting to carriers’ needs. The B2B corporate leader #3 described training as being “shorter, more interactive, and more interesting. … Our sales reps are equipped with the right amount of information and differentiation from a training standpoint that is easy to absorb and interesting enough.” Google’s other products and services provide bundling opportunities. The B2B corporate leader #2 shared: “At one point, we entered a new space by offering the Pixel 6 models with [a Google product]. We now see an expansion opportunity in that space by drawing in the carriers’ 5G technology.” “We have a new down-market pilot going on that’s huge. Our sales teams are co-selling to sell in or win back from our competitors. Google has found a crack once again. Customers appreciate the love.” —B2B corporate leader #1 Flexibility
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.” ! 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%. The initial investment column contains costs incurred at “time 0” or at the beginning of month 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the eighteen-month period. 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. 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.
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