Thanks Tim, this sounds promising.
On Wed, Jun 7, 2023 at 3:27 PM Timothy Thomas <tt@thekey.com> wrote:
> FYI there appears to be a thoughtful plan in place to increase spend
> gradually over the coming months. Have a read through the thread below for
> more insight.
>
> ---------- Forwarded message ---------
> From: Alexa Graziani <agraziani@thekey.com>
> Date: Wed, Jun 7, 2023 at 3:57 PM
> Subject: Fwd: Canada Expansion
> To: Timothy Thomas <tt@thekey.com>
> Cc: Megan Heinen <mheinen@thekey.com>
>
>
> Hi Tim,
>
> Here is the main takeaway from our meeting with Chen. He said the
> following:
>
> "For rule of thumb purposes, I feel good spending up to 3% including all
> cost of customer acquisition, which is advertising, agency fee and cost of
> the Care Solutions Team (est. $400K annual USD). If we have good results
> then we can obviously begin to ratchet that up"
>
> "Canada Revenue currently is about $33-$34M CAD annual. Solutions is
> probably $400K CAD (Angie, confirm we are running 4?) and I estimated the
> agency fee is probably $100K CAD --- which leaves us about $550K CAD at
> current revenue run-rates. I may be over/under on some estimates, but
> either way a gradual ramp up first to $50K-$60K CAD monthly MAX makes sense"
>
> Angie confirmed the estimate for Solutions and that she was on board with
> the plan. Moving forward, we will always refer to $ in CAD. Given they want
> to gradually ramp up to $50k, we went from $43k to $45k in June while we
> focus on optimizing.
>
> You can read the rest of the thread for more info if you'd like.
>
> Sincerely,
> Alexa
>
> ---------- Forwarded message ---------
> From: Chen Xie <chen@thekey.com>
> Date: Thu, May 11, 2023 at 3:04 PM
> Subject: Re: Canada Expansion
> To: Alexa Graziani <agraziani@thekey.com>
> Cc: Angie Markwell <angie.markwell@thekey.com>, Megan Heinen <
> mheinen@thekey.com>
>
>
> Thanks. I think Canada Revenue currently is about $33-$34M CAD annual.
> Solutions is probably $400K CAD (Angie, confirm we are running 4?) and I
> estimated the agency fee is probably $100K CAD --- which leaves us about
> $550K CAD at current revenue run-rates. I may be over/under on some
> estimates, but either way a gradual ramp up first to $50K-$60K CAD monthly
> MAX makes sense, and given that your #2 and #3 are both subsets of Toronto,
> we are really talking 5 total metros so that should give us plenty of room
> provided we are smart.
>
> On Thu, May 11, 2023 at 12:12 PM Alexa Graziani <agraziani@thekey.com>
> wrote:
>
>> Thank you for your feedback, Chen, and glad we are aligned, Angie.
>>
>> For more context on the $80k, the original ask for developing this number
>> was what the maximum we could spend in the market and if we could double or
>> triple our spend. We agree that this would likely be too high to continue
>> to drive efficient results and that gradually increasing is best.
>>
>> This 3% of revenue rule is helpful grounding, and sharing numbers in CAD
>> makes sense as well. Can you clarify what the Canadian revenue and
>> estimated yearly Care Solutions costs are in CAD? (I could convert but want
>> to make sure I don't use a different number to do so).
>>
>> To recap what we are spending now in CAD:
>>
>> - around $44k CAD for actual media fees
>> - around $6k CAD for agency management fees (~15% of media)
>> - Totaling~ $50k CAD
>>
>>
>> As far as locations go, it will be helpful to know if the following
>> locations have extra capacity. They have performed the strongest since we
>> started to see attribution and are top contenders for locations to start
>> increasing spend in while we work on optimizing the performance of the
>> other locations' existing spend:
>>
>> 1. Vancouver
>> 2. Waterloo
>> 3. Oakville
>> 4. Calgary
>>
>>
>> Sincerely,
>>
>> On Wed, May 10, 2023 at 7:02 PM Angie Markwell <angie.markwell@thekey.com>
>> wrote:
>>
>>> I am aligned with the plan - one comment Tim emphasized was around the
>>> microsites and turning them back on - I can talk to him if need be for a
>>> few minutes as I know he would not want to wait for his return to start. I
>>> would really like to move this next week please.
>>>
>>> On Wed, May 10, 2023 at 7:43 PM Chen Xie <chen@thekey.com> wrote:
>>>
>>>> Bringing Angie into the loop since Tim is currently OOO. My comments
>>>> and questions in red:
>>>>
>>>> On Wed, May 10, 2023 at 6:47 PM Megan Heinen <mheinen@thekey.com>
>>>> wrote:
>>>>
>>>>> Hey Chen,
>>>>>
>>>>> Alexa and I aligned on a potential plan for Canada. Please take a look
>>>>> and let us know what you think. We are eager to get started.
>>>>>
>>>>> BUDGET:
>>>>>
>>>>> (This section is a budget recommendation Alexa sent to Matt to expand
>>>>> scope in Canada. We still agree with this proposal for the first phase of
>>>>> boosting Consumer in Canada.)
>>>>>
>>>>>
>>>>> We are currently spending around $33k USD per month across our
>>>>> Canadian PPC campaigns, which we can gradually increase by $45k to a ~$80k
>>>>> budget per month (rounded up) for an aggressive expansion plan if desired. Let's
>>>>> look at a gradual ramp up with proven ROI. Let's increase by MAX $10K next
>>>>> month (so we can ensure that the spend increase is well measured) and then
>>>>> the same max increase the month after, until we hit our natural comfortable
>>>>> ceiling. If these figures are USD, btw. we cannot go as high as $80K USD
>>>>> including Agency Fee, since that gets us to $1M and Canada combined revenue
>>>>> right now is around $26M USD. For rule of thumb purposes, I feel good
>>>>> spending up to 3% including all cost of customer acquisition, which is
>>>>> advertising, agency fee and cost of the Care Solutions Team (est. $400K
>>>>> annual USD). If we have good results then we can obviously begin to ratchet
>>>>> that up, but $80K USD is likely too high a target absent proven success.
>>>>> BTW, let's begin to quote everything we do in Canada in CAD please, since
>>>>> our adveritsing is with google canada and the agencies we work with are
>>>>> canadian, and our revenue is canadian dollars
>>>>>
>>>>> This model is based on three factors:
>>>>>
>>>>>
>>>>> 1.
>>>>>
>>>>> Maximizing the impression share for our existing keywords. Right
>>>>> now, we are only showing up for about 37% of searches for our keywords. In
>>>>> order to maximize our search impression share, we will likely need an
>>>>> additional $25k. Assuing we like the keywords we have chosen,
>>>>> isn't this the natural starting point?
>>>>> 2.
>>>>>
>>>>> Expanding our keywords in some markets to widen the funnel. There
>>>>> are some keywords we could target more aggressively to open up the top of
>>>>> the funnel. These include the following and would likely need $10k
>>>>> additional budget, based on how much we spend on them on average in our US
>>>>> markets. Let's not do this until #1 is done
>>>>> 1.
>>>>>
>>>>> Casting a wider net for “home care”, “in home care”, “home care
>>>>> agencies near me” and other specific “near me” searches
>>>>> 3.
>>>>>
>>>>> Investing where we can see the most Client Lifetime Value. Phil
>>>>> completed an analysis of the average Lifetime value of a client in each
>>>>> market. Toronto and Vancouver were the winners, far and away, with Winnipeg
>>>>> and Oakville coming in after them. $10k of the new budget is earmarked to
>>>>> use between these markets to see if we can test additional ways to drive
>>>>> volume. Let's check in with operations (Angie) to see where that
>>>>> lines up with our available caregiver supply (e.g. we have plenty of runway
>>>>> available in Vancouver perhaps, but we are tight on caregivers in Winnipeg)
>>>>>
>>>>>
>>>>> STRATEGY:
>>>>>
>>>>>
>>>>> Phase 1
>>>>>
>>>>>
>>>>> Expanding the budget and scope initially in Canada will focus on
>>>>> maximizing opportunity for bottom of the funnel lead gen. We will still
>>>>> work with the same agencies, but flesh out opportunity based on what we
>>>>> know works in other campaigns. As mentioned with budget above, this
>>>>> involves:
>>>>>
>>>>>
>>>>>
>>>>> -
>>>>>
>>>>> Spending more to ensure that we show up for all searches.
>>>>> Currently we lose out because we’ve hit our daily budget limit and/or we
>>>>> lose out to rank. More budget means we won’t cap out and we invest enough
>>>>> to ensure we show up above the competition. This is the natural
>>>>> starting point right?
>>>>> -
>>>>>
>>>>> The Canada campaigns are structured differently than are US
>>>>> campaigns and we found gaps in keyword investment. With new budget, we will
>>>>> work with the agency to have these added to max out bottom of the funnel
>>>>> lead potential. Can we use a local (Canadian team member) subject
>>>>> matter expert to validate these keywords are relevant in Canada)
>>>>> -
>>>>>
>>>>> We will focus extra spend on the campaigns we know to be the most
>>>>> high value. We do this anyways by moving current budget between campaigns,
>>>>> but will do so more aggressively with this expansion. Yes
>>>>> -
>>>>>
>>>>> We will work directly with the local team to improve the intake
>>>>> process, focused on the operational process, the experience and tracking. I
>>>>> actually drafted a Guide to Growing Consumer Business here
>>>>> <https://docs.google.com/document/d/1KoDJZQ1iAEi2hLXEqEUAi2H-DC1OwBYTE3qFkagCblQ/edit>
>>>>> that I would love to refresh and leverage for Canada and any other future
>>>>> expansions.
>>>>> -
>>>>>
>>>>> We will work with the local teams to maximize consumer reviews on
>>>>> local GMB pages. Joey Taylor should be your sole POC here --- he
>>>>> supercedes