Contenu connexe Similaire à Responsys forrester the-rise_of_the_customer Similaire à Responsys forrester the-rise_of_the_customer (20) Responsys forrester the-rise_of_the_customer1. For: CMOs
The Rise Of The Customer Life-Cycle
Marketing Systems
by Cory Munchbach, December 11, 2013
Key Takeaways
Customer-Obsessed Enterprises Must Make Marketing Technology A
Priority
The number of touchpoints that require marketing finesse has exploded as social
and mobile join the vast sea of websites. Marketers need tools to manage the variety,
interconnectedness, and measurement of these diverse interaction points. The end goal?
Optimize the marketing process to ensure better, more effective marketing.
New Technology Platforms Aim To Deal With Growing Marketing
Complexity
Marketing technology vendors have amassed new capabilities to win the hearts -- and
budgets -- of tech-savvy CMOs. These systems, when complete, will have to mirror the
process of marketing, from analyzing actionable customer analytics, applying them to
marketing output, and providing detailed reporting on business outcomes.
CMOs Will Find The Whole Of A CLCMS To Be Greater Than The Sum Of
Its Parts
CMOs will need to press vendors to demonstrate the additional value a platform can
provide versus the best-of-breed solutions that may already be in place. The onus will be
on these vendors to show how their broad remit increases productivity and lessens the
silos of pain, while delivering more visibility into which programs work and why.
Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA
Tel: +1 617.613.6000 | Fax: +1 617.613.5000 | www.forrester.com
2. For CMOs
December 11, 2013
The Rise Of The Customer Life-Cycle Marketing
Systems
Tools And Technology: The Customer Life-Cycle Marketing Playbook
by Cory Munchbach
with David M. Cooperstein and Alexandra Hayes
Why Read This Report
Marketers need business technology that can help them create, manage, and measure increasingly complex
marketing efforts. Major technology vendors have invested to help reduce this complexity for CMOs and
their marketing teams, through a combination of acquisitions, development, and integration. Forrester
calls this set of marketing technologies “customer life-cycle marketing systems” (CLCMS). These emerging
platforms will integrate core marketing operations capability to manage marketing’s fragmented processes
and help marketers deliver a coherent story to discrete groups of customers. In this report, we define
and describe the CLCMS, lay out the landscape of vendors vying to deliver this vision, and offer key
recommendations on how CMOs should act to prepare for and adopt these new, but necessary, tools.
Table Of Contents
Notes & Resources
2 Technology Must Now Underpin Marketing
Execution
Forrester interviewed 12 vendor and
more than 20 user companies, including
Adobe, Experian, IBM, Infosys, Microsoft,
Responsys, salesforce.com/ExactTarget,
SapientNitro, SAS, Silverpop, StrongView,
and Teradata.
Marketers Need To Deliver Customer-Obsessed
Results
3 Marketers Need A Customer Life-Cycle
Marketing System
The CLCMS Will Help Break Down Silos And
Drive Customer-Obsessed Marketing
The CLCMS Will Integrate Five Core Functions
The CLCMS Landscape Will Be Noisy For The
Next Three Years
Vendors Will Noticeably Progress Toward The
Customer Life-Cycle Vision
recommendations
Related Research Documents
Make Customer Obsession Pay Off With The
Customer Life Cycle
August 29, 2013
The CMO’s Role In Technology Purchasing
June 20, 2013
Embed The Customer Life Cycle Across
Marketing
January 22, 2013
14 Marketers Must Align Strategy And Process
Before Calling Vendors
14 Supplemental Material
© 2013, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available
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purchase reprints of this document, please email clientsupport@forrester.com. For additional information, go to www.forrester.com.
3. For CMOs
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The Rise Of The Customer Life-Cycle Marketing Systems
Technology Must Now underpin Marketing Execution
The fragmentation of the customer journey due to the growth of digital channels, platforms, and
content has placed enormous strain on marketing to be contextually and personally relevant and
responsive.1 This is driven by:
■ Channel proliferation that won’t stop. Marketers have to juggle a growing portfolio of
channels and touchpoints with relevant, targeted marketing content. However, only 38%
of marketing leaders have a single view of customer interactions across touchpoints and
interaction history. And only 42% think that their company can create actionable insights if
they have that single view.2 Marketers need assistance in understanding how consumers use
different tools, for what objectives, and at which point in their life cycle. They then need to react
in context to optimize the experience. As one apparel retailer told us, “showing ROI from one
channel silo doesn’t matter anymore. We have to think holistically.”
■ CMOs who take greater ownership for technology investments and decisions. Marketers
told us that they allocate 16% of their budgets to technology, and 37% confirmed that their
technology spending increased at least 5% over the past 12 months.3 With significant marketing
budgets going to technology investments, senior marketers are watching where the dollars flow
by getting more involved in the decision-making for these investments.
■ The marriage of art and science in marketing. CMOs have a dual responsibility to coordinate
content and channels, while mastering the data to optimize those resources and improve
marketing performance. To deliver on these yin-and-yang objectives requires more than Excel
files and gut instinct — they need improvements in data, analytics, operations, and processes
that marketing technology vendors are eager to deliver and support. Software that manages
campaigns, delivers relevant content, and stores, retrieves, and analyzes customer data has
exploded to help marketers keep up.
Marketers Need To Deliver Customer-Obsessed Results
Marketers have made the customer life cycle a strategic imperative; 73% have completely or partially
mapped the decision and purchase journeys for key consumer segments.4 But 78% of marketers said
that creating a marketing organization that is aligned around the customer presents a challenge to
using the customer life cycle in practice.5 To get there, marketers need:
■ A primary source of truth about the customer. One insurance company told Forrester that “if
you know the [customers], you can give them a unique . . . experience, [but] operationalizing
this is the challenge.” Marketers need a mechanism to define the customer and her life cycle and
seamlessly translate that knowledge into the appropriate marketing actions.
■ Improved collaboration across marketing. Right now, most companies have a siloed
approach to technology adoption — teams purchase what they need to accomplish a tactical
© 2013, Forrester Research, Inc. Reproduction Prohibited
December 11, 2013
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The Rise Of The Customer Life-Cycle Marketing Systems
set of objectives. But as the vice president of eCommerce and marketing at a major clothing
brand told us, “Without [broader] tools, we’re going to stay in silos. The technology is forcing
processes and organizational changes.”
■ Performance measurement based on customer outcomes. CMOs need to move the
marketing department away from channel-specific metrics and toward holistic customer-based
measurement. An objective of one consumer electronics retailer, for instance, is to have the
technology provide “at every touchpoint [online or offline], the benefit of your customer’s full
experience historically . . . and then be able to offer up the right next thing” in his journey.
Marketers Need A customer life-cycle Marketing SYSTEM
To tackle these challenges, Forrester has called on CMOs to adopt the customer life cycle (CLC) as a
guiding framework for the entire marketing effort (see Figure 1). The CLC represents the marketing
actions taken from the point of view of customers as they move through the phases of discover, explore,
buy, and engage. In order to execute across that whole life cycle, Forrester sees the need for marketers to
deploy what we call the “customer life-cycle marketing system” (CLCMS), which Forrester defines as:
A central technology hub that allows marketers to manage every interaction between the company
and its customers as they progress along the customer life cycle.
Figure 1 The Customer Life Cycle Guides Marketers With A Customer-Obsessed Approach
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Bu
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Source: Forrester Research, Inc.
December 11, 2013
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The Rise Of The Customer Life-Cycle Marketing Systems
The CLCMS Will Help Break Down Silos And Drive Customer-Obsessed Marketing
The CLCMS will bring together the data, analytics, and actions required to win, serve, and retain
customers and help marketers manage each phase of the CLC. Parts of the CLCMS already exist,
but as fragmented point solutions. Forrester believes that the whole is greater than the sum of the
existing parts for these tools. Bringing these pieces together makes the marketing process more
integrated with support (see Figure 2):
■ The technical underpinnings of all customer touchpoints. The CLCMS will have to provide
integrated functional support to customer-facing parts of the enterprise. It will be the platform
for data sharing and next-best actions to take across outbound and inbound marketing, selfservice websites, interactive voice response, and apps, while feeding call center and sales force
automation tools.
■ Consistent collaboration across organizational boundaries. Marketing complexity requires
process change. CMOs seeking to streamline the organization around the customer will find a
CLCMS to be a valuable asset in driving structural change by streamlining actions, workflows,
and reporting between roles.
■ Real-time measurement, analysis, and response. The CLCMS will allow users to take action by
combining analytics and performance data. Because it is within a unified system, the marketer
can make adjustments that immediately improve results.
© 2013, Forrester Research, Inc. Reproduction Prohibited
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The Rise Of The Customer Life-Cycle Marketing Systems
Figure 2 The Five Core Components Of A Customer Life-Cycle Marketing System
Customer
knowledge
hub
Marketing
operations
management
Interactions
management
capability
Enterprise
reporting
dashboard
Analytics and measurement
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Source: Forrester Research, Inc.
The CLCMS Will Integrate Five Core Functions
The CLCMS provides marketers with the tools to manage marketing throughout the customer life
cycle. It integrates five key components (see Figure 3):
■ Analytics and measurement based on the CLC. Customer analytics will be at the forefront
of business transformation, moving the organization from narrow campaign and sales
measurement to insights that grow existing customer relationships and provide insight into
future behavior. Forrester has called for analytics vendors to use a series of progressive analytics
techniques to guide decisions across all four phases of the CLC to drive success — including
segmentation, marketing mix modeling, next-best action models, and lifetime value models.6
For some vendors, this measurement legacy is core to the business already, while others may
look to standalone measurement shops as acquisition targets to burnish their credentials.
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■ A hub to manage diverse data inputs. Understanding the customers’ fragmented path-to-
purchase and engaging them along that journey in a relevant way requires a single robust view
of the customer. This part of the CLCMS houses customer and third-party data. This layer
provides marketers with a data architecture that can link a television impression that drives
discovery, a redeemed offer from the website at the point of sale, and a satisfied tweet from the
customer. Over the next few years, we will increasingly see data about customers coming from
new sources such as wearable fitness trackers and smart cars.7
■ Tools for managing marketing operations. In this layer of the CLCMS, marketers orchestrate
the marketing planning functions, including marketing automation and media planning and
buying. The operational management function of the CLCMS makes it possible for the marketer
to apply decisions about making sure the collateral customers use in the explore phase is
coordinated with the purchase experience in the buy phase.
■ Interaction management capability. Serving as the technology to support customer-facing
applications like commerce, promotions, campaign testing, and content, this component
delivers goods to the customer. This layer has extensive pieces to coordinate, tying campaigns
experiences in the discover and explore phases to merchandising and supply chain management
in the buy phase in order to match demand created in the earlier phases.8 Within this
environment, marketers track customers as they engage with different entry points to the
enterprise and respond according to the status of these interactions.9
■ Enterprise reporting dashboard. The final component of the CLCMS is its dashboard and
reporting tools. The CMO will be able to see reports that aggregate financial performance for
her to share with the chief financial officer and chief executive officer. Similarly, the customer
analytics team will be able to customize reports based on specific segment or campaign
behavior as measured by customer success moving from one phase to the next. Reporting
capabilities should be flexible enough to mature with the organization, offering channel-specific
information as well as complete customer lifetime value analysis.
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The Rise Of The Customer Life-Cycle Marketing Systems
Figure 3 The Whole Of The CLCMS Is Greater Than The Sum Of Its Parts
Analytics:
Circulatory system
Data:
Brain and nervous system
Customer life-cycle
marketing system
Operations:
Skeletal system
Engagement:
Muscular system
Reporting:
Sensory system
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December 11, 2013
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The Rise Of The Customer Life-Cycle Marketing Systems
The CLCMS Landscape Will Be Noisy For The Next Three Years
The CLCMS will provide the technology to drive a customer-obsessed marketing strategy —
allowing marketing to respond based on customers’ observed needs and behaviors. There are
several contenders to be CLCMS providers today, but most still rely on their historic strength to
differentiate themselves in this immature market (see Figure 4). We spoke to 12 vendors that serve
large enterprises. None yet qualifies as a CLCMS, but all have made strategic decisions that move
them closer to becoming the platform we describe.10 The CLCMS will be a viable offering when
today’s contenders:
■ Create a uniform language and process for marketers. Marketers who make use of tools from
the CLCMS candidates do not rely on any one vendor to support all their marketing
technology needs. This leads to complexity and inefficiency for marketers, as the diversity of
systems don’t share data, measure things the same way, or coordinate marketing actions. As
one marketer at an online professional services company put it, “I’m unsure of [our vendor’s]
ability to keep up with channels,” so marketers look at other options instead, adding another
piece to the snarl of technologies. Vendors need to double down on application programming
interfaces (APIs) that enable seamless communication and exchange to minimize pieces and
improve performance.
■ Lead with an integration story. Marketers with existing technology contracts and systems won’t
move quickly to a single platform. Forrester believes that the vendors who successfully assemble
a CLCMS will succeed first as masters of integration. They will deploy their legacy solutions
as the core, building the APIs to third-party solutions where their platform is incomplete. The
merger and acquisition efforts by IBM, salesforce.com, and Adobe do not equate to integration.
In one instance, a vendor customer told us, “They aren’t wired to assimilate new things wickedly
fast; it needs to be seamless, like turning on a switch. They struggle as much because of cultural
as technological challenges.” Another customer noted, “Functionality is often lost when the
buyer tries to integrate outside of the vendor’s platform.”
■ Resolve the complexity and cost of adopting a new platform. At large enterprises, marketing
and IT departments are often committed to dozens of technologies, making the prospect of
switching functionality over to a new partner daunting and potentially cost-prohibitive. CMOs
will need to account for not only the cost of the new vendor but also the retraining expense for
their marketers. Vendors that are committed to providing an integrated product will also need
flexible progressive pricing structures that reflect the scope of the transition.11
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The Rise Of The Customer Life-Cycle Marketing Systems
Vendors Will Noticeably Progress Toward The Customer Life-Cycle Vision
Key to success for vendors will be their ability to turn their approach from a funnel-based dynamic
into a process that is managed as a CLC. We expect vendors to make progress toward the CLC
approach by prioritizing three key dimensions:
■ Vision. Vendors with clear adherence to the CLC vision are more likely to provide the
technology architecture CMOs need versus those that remain aligned to the marketing funnel.
Firms like Adobe, Oracle, and salesforce.com have launched marketing clouds, signifying intent
in that direction.
■ Progress. Some vendors are closer than others at achieving CLCMS status, due to a strong
existing set of tools and a compelling and actionable vision for the system. Vendors will need to
audit their strategy, technology, pricing, and marketing against the CLCMS vision to assess their
current position and then create a development plan for the next 24 months.
■ Product strategy. Based on the research done for this report, we expect that a handful of
vendors will make significant strides in the following two years to deliver a CLCMS. These
vendors will use their product development and acquisition strategies to fill in their current gaps
as a CLCMS and make integration a top priority for all new capabilities.
© 2013, Forrester Research, Inc. Reproduction Prohibited
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The Rise Of The Customer Life-Cycle Marketing Systems
Figure 4 The Customer Life-Cycle Marketing System: Vendor Profiles
Vendor: Adobe
Product/product suite considered:
Adobe Marketing Cloud
Number of employees:
2,200
Revenues:
$1.058 billion
Geographic scope:
North America, EMEA, Asia Pacific, Japan, and Brazil
Reference Lenovo, Redbox, SAP, Conde Nast,
clients:
and Scottrade
Overview:
Adobe has moved beyond its creative roots to
offer a suite of tools for marketers across six
product lines that align well with the CLCMS
vision. Recent acquisitions are well integrated,
pointing to the company’s ability to expand the
Marketing Cloud as the market’s needs evolve.
Its customer data sources lean heavily toward
digital channels, limiting the full customer view.
But the integration of Neolane broadens
Adobe’s data aperture to offline insight.
Primary
Retail, media, financial services,
industries: B2B high-tech, travel and hospitality
Vendor: Experian
Marketing Services
Product/product suite considered:
Cross-Channel Marketing Platform
Number of employees:
5,000
Revenues:
$1 billion to $1.25 billion
Geographic scope:
Global
Reference
clients:
The Limited, Digitas, and Brown Shoe
Overview:
Experian has built upon its sophisticated data
foundation to support a more diverse marketing
technology provider. Though it has some
catching up to do on campaign management
and operations capabilities, Experian’s
Marketing Sophistication Curve and internal
performance metrics around customer utility
reveal a clear vision and strong commitment
toward data-driven, customer-first marketing
in line with that of the CLCMS0.
Primary
Retail, travel, media, and financial
industries: services
Vendor: IBM
Product/product suite considered:
Enterprise Marketing Management (EMM)
Number of employees:
434,246
Revenues:
$104.5 billion
Geographic scope:
Americas, EMEA, Asia Pacific
Reference Citrix, Land’s End, and Ufone
clients:
Overview:
IBM’s EMM platform offers a wide array of
marketing management capabilities that lead
to a CLCMS future due to its many
acquisitions. While its modular approach
has appeal for marketers who need to mix and
match capabilities, clients want to see IBM
speed up the deeper integration of its
products and acquisitions and demonstrate
an ability to be more agile.
Primary
Retail, financial services, B2B
industries: technology
Note: Italic numbers reflect the entire company.
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December 11, 2013
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The Rise Of The Customer Life-Cycle Marketing Systems
Figure 4 The Customer Life-Cycle Marketing System: Vendor Profiles (Cont.)
Vendor: Infosys
Vendor: Adobe
Product/product suite considered:
The Edge series
Number of employees:
~2,000
Revenues:
$115 million+
Geographic scope:
North America, EU, Latin America, Asia Pacific
Reference Dentsu, Diageo, and GlaxoSmithKline
clients:
Overview:
Infosys’ focus is on managing global marketing
operations and data, directly and in conjunction
with agencies. The company has embarked on
a software strategy — unusual for an
infrastructure outsourcer. To gain attention,
it sells the Edge product suite with the option
to have customers pay based on results. The
highly customizable and technical nature of the
platforms makes it a big task for a marketing
department to take on without IT support, but
its legacy of integration will be a differentiator
in the CLCMS landscape.
Primary
CPG, pharmacy, marketing
industries: agencies
Vendor: Microsoft
Product/product suite considered:
MarketingPilot
Number of employees:
26,000 are dedicated to
sales and marketing
Revenues:
$77.8 billion
Geographic scope:
North America, EMEA, Asia Pacific, Latin America
Reference
clients:
Pacific Life Insurance and Build-A-Bear
Overview:
Microsoft has added to its strong position in
CRM by adding MRM and campaign
management capabilities. The company’s
unique flavor is that it is a lower-cost option for
clients, but the pricing relates to the
capabilities: The MarketingPilot product is
limited by capabilities that will appeal to smaller
businesses more than large enterprises, and
it prioritizes native Microsoft channels
such as Skype and Xbox.
Primary
Insurance, financial services, retail
industries:
Vendor: Oracle
Product/product suite considered:
Oracle Marketing Cloud and Oracle CX Porfolio
Number of employees:
120,000
Revenues:
$37.2 billion
Geographic scope:
North America, EMEA, Asia Pacific, Japan
Reference McAfee, Southwest Airlines, Swiss Post
clients:
Solutions, and Thomson Reuters
Overview:
Oracle has many pieces of the marketing
technology spectrum at its disposal as a result
of Oracle’s traditional business assets and the
acquisition of Eloqua to form the Oracle
Marketing Cloud. However, it is unclear how
much progress has been made toward
integrating the pieces, and it needs that clarity
to prove itself as a CLCMS contender.
Primary
High tech, manufacturing, financial
industries: services, professional services
Note: Italic numbers reflect the entire company.
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December 11, 2013
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The Rise Of The Customer Life-Cycle Marketing Systems
Figure 4 The Customer Life-Cycle Marketing System: Vendor Profiles (Cont.)
Vendor: Responsys
Product/product suite considered:
Interact Marketing Cloud
Number of employees:
1,000+
Revenues:
$162.8 million
Geographic scope:
US, EMEA, Asia Pacific
Reference Nordstrom, Orbitz, MetLife, and
clients:
LinkedIn
Overview:
Responsys has a compelling vision for where
marketing — and the company — is headed: It
calls it “marketing orchestration.” Clients hold
the company in high regard as a partner and
are enthusiastic about where the company is
taking the platform. Responsys’ strength and
growth in campaign management makes it
stand out, but the offer lacks some important
operational and data capabilities of the bigger
CLCMS aspirers.
Primary
Retail, travel and hospitality, financial
industries: services
Vendor: salesforce.com
Product/product suite considered:
Salesforce ExactTarget Marketing Cloud
Number of employees:
800
Revenues:
$3.80 billion
Geographic scope:
North America, EMEA, Asia Pacific, Latin America
Reference CareerBuilder, TripAdvisor, and Thirty-One
clients:
Gifts
Overview:
Salesforce.com’s acquisition of ExactTarget
and announcement of Salesforce1 promise the
ability to link salesforce.com’s sales and
service clouds with the marketing cloud
campaign functionality, which would bring
together core elements of marketing technology
functionality. However, the company is far from
fully integrated on the technical functionality,
the pricing, or the data sharing platform
required to carry out its vision — or that of a
CLCMS — today.
Primary
Retail, CPG, high-tech
industries:
Vendor: SAS
Product/product suite considered:
SAS Customer Intelligence
Number of employees:
700+
Revenues:
$350 million+
Geographic scope:
North America, EMEA, Asia Pacific, Mexico, Russia
Reference Haven Holidays, DeutschlandCard,
and Permanent TSB
clients:
Overview:
SAS can point to a substantial group of clients
using nearly all of its extensive capabilities on
an enterprise basis — a rare achievement
among the vendors with which we spoke.
The SAS marketing technology suite is very
well developed for an aspiring CLCMS. Despite
a strong arsenal of tools, it doesn’t headline the
conversation in the marketing technology
discussions, because it does not market itself
as strongly.
Primary
Financial services, retail, commmunindustries: ications/content/entertainment
Note: Italic numbers reflect the entire company.
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The Rise Of The Customer Life-Cycle Marketing Systems
Figure 4 The Customer Life-Cycle Marketing System: Vendor Profiles (Cont.)
Vendor: Silverpop
Product/product suite considered:
Engage
Number of employees:
517
Revenues:
Privately held company
Geographic scope:
Americas, Asia Pacific, Australia, Europe
Reference evo, fabric.com, NetProspex, LifeShield,
clients:
and PaperStyle.com
Overview:
Silverpop primarily serves small and
medium-size businesses with email services
and marketing automation and offers a
behavioral marketing capability. Silverpop
relies on a vast network of partners, making
integration an asset as a future CLCMS player.
Primary
Retail, agency, business, and
industries: financial services
Vendor: StrongView
Product/product suite considered:
StrongView Interactive Marketing Platform
Number of employees:
175
Revenues:
Undisclosed
Geographic scope:
North America, UK, Spain, Australia, India
Reference The Motley Fool, McAfee, OTC Direct,
clients:
and Turner Broadcasting
Overview:
StrongMail became StrongView in summer
2013, cementing the company’s move from
being an email services provider to a
multichannel campaign manager. StrongView’s
competence is in messaging across digital
channels, and its focus on what it calls
“present tense marketing” emphasizes the
importance of messaging in context in different
phases of the life cycle to be relevant to
customers.
Primary
Retail, financial services, travel and
industries: hospitality, media/entertainment/
publishing
Vendor: Teradata
Product/product suite considered:
Customer Interaction Manager
Number of employees:
10,200
Revenues:
$2.665 billion
Geographic scope:
North America, EMEA, Asia Pacific, Latin America,
Russia
Overview:
Teradata’s strength as a CLCMS derives from
a history in data and analytics — a core
function of a CLCMS. For example, the ability
to link known and unknown customer profiles
is a key step in connecting all the pieces of the
life cycle. Teradata will need to continue to beef
up operational capabilities, such as campaign
management and eCommerce, to support
clients’ ability to act on the data and insights
they have at their disposal.
Reference International Speedway Corporation (ISC),
Primary
Financial services, life sciences,
clients:
MGM Resorts International, and Gilt Groupe industries: retail
Note: Italic numbers reflect the entire company.
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December 11, 2013
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R e c o m m e n d at i o n s
Marketers MUST Align Strategy ANd Process before Calling
vendors
Marketers on the path to building customer-obsessed enterprises need to evaluate their readiness
before making a technology decision. The hard work ahead is to:
■ Embrace the process changes required to put these systems to good use. One marketer
told us its marketing platform was akin to “having a Ferrari, yet not [knowing] how to drive.”
While today’s vendors aren’t complete yet, firms like Adobe and salesforce.com have laid out
visions for how marketers should behave as they evolve. Use their input as a guide to better
align people and processes to break down your functional silos, and then work with the
CLCMS provider that meets that structural need.
■ Press vendors to knit together the four phases of the CLC. Marketers need to be able to
map marketing efforts to the CLC for both prospects and customers, to best use resources
and touchpoints to grow the business. As due diligence, CMOs should provide vendors with
several customer profiles and their hypothetical life cycle and go through the all the data,
processes, and decision-making required to meet end customer’s needs along the way. This
process will expose which vendors can handle anonymous and known customers, which
are limited to digital-only channel management, and which are able to translate data into
actionable insights in real time.
■ Request technical and business capabilities in the RFP for a CLCMS. While IT does its job
to assess technical specs, CMOs must be held responsible for how the investment maps to the
company’s key priorities. Senior marketers will have to participate in request-for-proposal
(RFP) development and vendor pitches and watch for the essential items they will need to
serve the enterprise. Vendors need to show technical and business acumen to prove that the
investment is good for the business as well as the expected impact on the top and bottom line.
Supplemental Material
Companies Interviewed For This Report
Forrester interviewed more than 20 users of the vendors’ products as well as:
Adobe
Microsoft
Experian
Responsys
IBM
salesforce.com/ExactTarget
Infosys
SapientNitro
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SAS
StrongView
Silverpop
Teradata
EndnoteS
The traditional marketing funnel has been done in by consumer behaviors that are anything but linear.
Instead, in each phase of Forrester’s customer life cycle — discover, explore, buy, and engage — consumers
exhibit different motivations and engagement with channels, devices, and other touchpoints. This report
will help business-to-consumer CMOs make sense of the fragmented landscape of consumer decisionmaking and buying behaviors to help form a better strategy for customer life-cycle marketing. See the
March 20, 2013, “Fragmented Path-To-Purchase Demands Everywhere Marketing” report.
1
2
The base is 303 marketing and IT leaders. Source: Forrester/Forbes Insights Q2 2013 US Marketing And IT
Alignment Online Survey.
Source: Forrsights Business Decision-Makers Survey, Q4 2012.
3
Source: July 2013 North American Customer Life-Cycle Marketing Online Survey.
4
Source: July 2013 North American Customer Life-Cycle Marketing Online Survey.
5
With the growing importance of customer intelligence (CI) in organizations, the role of analytics to extract
insight and embed it back into organizational processes is at the forefront of business transformation.
However, marketers predominantly enable measurement and analytics infrastructure to serve the needs
of customer acquisition, with a limited view toward the entire customer life cycle. Forrester recommends
deploying various analytical techniques across the customer life cycle to grow existing customer
relationships and provide insight into future behavior. See the November 19, 2012, “How Analytics Drives
Customer Life-Cycle Management” report.
6
As organizations gain adaptive intelligence, not only will they outsmart their competitors, they’ll also
begin to productize and gain direct financial benefit from the specialized data they generate. To achieve
these goals, marketing leaders must work together with business technology leaders to optimize their
organization’s data capture, storage, analysis, and sharing capabilities and make that data available to the
global data economy. See the May 8, 2013, “Introducing Adaptive Intelligence” report.
7
In the age of the customer, during which knowledge of and engagement with customers is the source of
sustainable competitive success, businesses must conceptually bring together the marketing methods that
create crucial customer knowledge and the IT methods that model operational realities. This is especially
true because customer engagement is not a linear, static process. Customers take many paths as they
solve problems, activating business capabilities in unpredictable ways. See the October 21, 2013, “Linking
Customer Engagement To Business Capabilities In The Age Of The Customer” report.
8
For more information about layer and customer decision management, see the May 9, 2013, “Move Beyond
Campaigns To Tap Hidden Customer Potential” report.
9
© 2013, Forrester Research, Inc. Reproduction Prohibited
December 11, 2013
17. For CMOs
16
The Rise Of The Customer Life-Cycle Marketing Systems
The list of vendors we included here is not exhaustive, nor do they represent a single component of the
marketing technology market. Indeed, the varied backgrounds of each of these vendors — and their
professed commitment to becoming a marketing platform — reveal how far-reaching the desire for less
complexity has gone, bringing together vendors that only a few years ago would have not been mentioned
in the same sentence.
10
Adobe announced flat-rate, profile-based pricing for Adobe Campaign — its email and cross-channel
campaign management product. This move dispenses with the volume-based model typical for email
service providers, and it plants Adobe as a disruptive competitor in the email marketing space. See the
November 15, 2013, “Quick Take: New Pricing From Adobe Campaign Will Disrupt Email Marketing”
report.
11
© 2013, Forrester Research, Inc. Reproduction Prohibited
December 11, 2013
18. About Forrester
Global marketing and strategy leaders turn to Forrester to help
them make the tough decisions necessary to capitalize on shifts
in marketing, technology, and consumer behavior. We ensure your
success by providing:
Data-driven insight to understand the impact of changing
consumer behavior.
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