Businessmodel of Branch

Customer Segments

Branch Metrics has a niche market business model, with a specialized customer segment. The company targets its offering at developers of mid-tier and long-tail apps.

Value Proposition

Branch Metrics offers four primary value propositions: accessibility, performance, risk reduction, and brand/status.

The company creates accessibility by offering a wide variety of options. It bills its solution as the only deep linking platform that supports all current mobile app platforms and standards, including iOS, Android, Web App Banner, Cordova/Ionic, Unity, Titanium, Xamarin, AIR, and React Native. Its offering maintains all link creation/analytics functionalities, making it suitable for all use/edge cases.

The company has demonstrated strong performance through tangible results. Its solution matches at 100% accuracy if a user has clicked on a Branch link previously. It claims that its deep linking technology improves app performance, with 1.8x signups, 2.0x engagement, and 1.9x retention. High-profile examples of positive outcomes with its product include the following:

• Bento used Branch Metrics‘ solution to create deep linked emails that increased engagement with their app by 100%
• Gigtown used Branch Metrics‘ solution to provide its users with referral capabilities, resulting in a 6.5x increase in sharing and 41% increase in one-day retention
• HotelTonight used Branch Metrics’ solution to place Branch links in ads, resulting in a 16% decrease in cost-per-install and an 18% increase in install-to-booking rate
• Yummly used Branch Metrics’ solution to implement app-to-app sharing with Instacart, resulting in 28% more items added to shopping lists and 35% higher retention
• Vango used Branch Metrics’ solution to deploy deep linked content sharing, resulting in a 2.5x increase in conversions and a 2x increase in retention The company reduces risk through responsiveness. Its distributed, service-oriented architecture is monitored 24/7 by a group of people who can react to problems in seconds. It also offers enterprise-level service agreements to guarantee that customers‘ links will work when they need them most.

The company has established a strong brand as a result of its performance. It bills itself as the largest deep linking network,  serving over 1.7 billion users across thousands of mobile apps. These include prominent eCommerce apps such as Ticketmaster and Jet, digital content apps such as Buzzfeed, We Heart It, and Fox Sports, real estate apps and travel apps such as Home Away and Redfin, social apps such as Dubsmash, Pinterest, and Coffee Meets Bagel, and games by developers such as Zynga. Lastly, it has won a number of honors, including first place in the GSMA Mobile World Congress Startup Innovation Competition (2015) and a Strictly Mobile Innovation Award (2015).

Channels

Branch Metrics’ main channel is its website, through which customers sign up for a free account; that said, it also maintains a direct sales team.

The company promotes its offering through its social media pages; “Mobile Growth” Meetup group events where it invites marketers and app developers to share best practices and solutions; and the “Branch Ambassadors Program“, through which it invites mobile growth experts to promote the company and deep linking in general.

Customer Relationships

Branch Metrics’ customer relationship is primarily of a self-service, automated nature. Customers utilize the service through the main platform while having limited interaction with employees. The company’s website features a “Resources” section that includes numerous self-help tools, including case studies, eBooks, data sheets, infographics, webinars, and podcasts. The site also provides answers to frequently asked questions.

That said, there is a personal assistance component in the form of e-mail support, as well as live technical and non-technical workshops hosted by the firm that demonstate best practices. There is also a community element in the form of a peer forum.

Key Activities

Branch Metrics’ business model entails designing and developing software for its customers.

Key Partners

Branch Metrics maintains the following types of strategic partnerships:

• App Development & Marketing - Marketing and mobile development agencies that can assist apps in adding Branch to their growth stack, as well as build new product and marketing strategies around contextual deep linking. Specific partners are Somo Global, Prolific Interactive, Dom & Tom, Yeti CGI, Yodel Mobile, Carrot, FDV Solutions, PredictSpring, Mavin Digital, and Ladder Digital.
• Measurement Platforms - In-app analytics and attribution platforms that can integrate Branch’s deep link event data into apps‘ measurement initiatives. Specific partners are Apptimize, Localytics, Amplitude, Adjust, and Appboy.
• Growth Tools - App marketing platforms that leverage Branch’s contextual deep links for programs such as engagement campaigns, email campaigns, A/B testing, push messaging, and more. Specific partners include mParticle, Segment, Referral Saasquatch, LeanPlum, Apptimize, and Localytics. Partners receive education and tools for integrating contextual deep linking into their products.

In addition to these partnerships, Branch Metrics also maintains a referral program through which it invites third parties to refer developers to its offering. Once the new customers have integrated the Branch SDK, the company sends the referring party promotional gifts such as branded T-shirts.

Key Resources

Branch Metrics’ main resources are its human resources, who include the engineering employees that design and develop its software, the sales staff that promote it, and the customer service staff that provide support.

As a relatively new startup it has relied heavily on funding from outside parties, raising $53.1 million from 12 investors as of January 2015.

Cost Structure

Branch Metrics has a cost-driven structure, aiming to minimize expenses through significant automation.

Its biggest cost driver is likely product development, a fixed expense. Other major drivers are in the areas of product development and sales/marketing, both fixed costs.

Revenue Streams

Branch Metrics has two revenue streams:

Usage Fees – Fees the company charges for one-off uses of its software; they fall into the following categories:

• Data Integrations – Price per event is $.0025/per event forwarded
• Deep-Linked E-mail – Price per click is $.02/per click Subscription Fees – Fees the company charges for monthly access to its Journeys Web-to-App Tool, which enables app installs. They range in amount from $59 per month for 20,000 monthly mobile web visits to $6,999 per month for 20 million+ monthly mobile web visits.