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Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA Tel: +1 617.613.6000 | Fax: +1 617.613.5000 | www.forrester.com The Rise Of The Customer Life-Cycle Marketing Systems by Cory Munchbach, December 11, 2013 For: CMOs KEY TAKEAWAYS Customer-Obsessed Enterprises Must Make Marketing Technology A Priority e 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. e 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. ese 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. e 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.
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Page 1: Responsys forrester the-rise_of_the_customer

Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA

Tel: +1 617.613.6000 | Fax: +1 617.613.5000 | www.forrester.com

The Rise Of The Customer Life-Cycle Marketing Systemsby Cory Munchbach, December 11, 2013

For: CMOs

Key TaKeaways

Customer-Obsessed enterprises Must Make Marketing Technology a PriorityThe 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 ComplexityMarketing 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 PartsCMOs 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.

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© 2013, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please email [email protected]. For additional information, go to www.forrester.com.

For CMos

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

Technology Must Now Underpin Marketing execution

Marketers Need To Deliver Customer-obsessed results

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

Marketers Must align strategy and Process Before Calling Vendors

supplemental Material

Notes & resources

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.

related research Documents

Make Customer obsession Pay off With The Customer Life CycleAugust 29, 2013

The CMo’s role In Technology PurchasingJune 20, 2013

embed The Customer Life Cycle Across MarketingJanuary 22, 2013

The Rise Of The Customer Life-Cycle Marketing systemsTools And Technology: The Customer Life-Cycle Marketing Playbookby Cory Munchbachwith David M. Cooperstein and Alexandra Hayes

2

3

14

14

DeCeMBer 11, 2013

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© 2013, Forrester Research, Inc. Reproduction Prohibited December 11, 2013

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

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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

Source: Forrester Research, Inc.106361

Explore

Buy

Engage

Discove

r

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© 2013, Forrester Research, Inc. Reproduction Prohibited December 11, 2013

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, self-service 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.

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© 2013, Forrester Research, Inc. Reproduction Prohibited December 11, 2013

Figure 2 The Five Core Components Of A Customer Life-Cycle Marketing System

Source: Forrester Research, Inc.106361

Analytics and measurement

Customerknowledge

hub

Marketingoperations

management

Interactionsmanagement

capability

Enterprisereporting

dashboard

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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Figure 3 The Whole Of The CLCMS Is Greater Than The Sum Of Its Parts

Source: Forrester Research, Inc.106361

Operations: Skeletal system

Analytics: Circulatory system

Data: Brain and nervous system

Engagement: Muscular system

Reporting: Sensory system

Customer life-cyclemarketing system

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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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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.

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Figure 4 The Customer Life-Cycle Marketing System: Vendor Profiles

Source: Forrester Research, Inc.106361

Vendor: Adobe

Product/product suite considered:

Number of employees:

Revenues:

Geographic scope:

Overview:Adobe Marketing Cloud

2,200

$1.058 billion

North America, EMEA, Asia Paci�c, Japan, and Brazil

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 of�ine insight.

Referenceclients:

Primary industries:

Retail, media, �nancial services,B2B high-tech, travel and hospitality

Vendor: Experian Marketing Services

Product/product suite considered:

Number of employees:

Revenues:

Geographic scope:

Overview:Cross-Channel Marketing Platform

5,000

$1 billion to $1.25 billion

Global

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-�rst marketingin line with that of the CLCMS0.

Referenceclients:

Primary industries:

Retail, travel, media, and �nancialservices

Vendor: IBM

Product/product suite considered:

Number of employees:

Revenues:

Geographic scope:

Overview:Enterprise Marketing Management (EMM)

434,246

$104.5 billion

Americas, EMEA, Asia Paci�c

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.

Referenceclients:

Primary industries:

Retail, �nancial services, B2Btechnology

Lenovo, Redbox, SAP, Conde Nast,and Scottrade

The Limited, Digitas, and Brown Shoe

Citrix, Land’s End, and Ufone

Note: Italic numbers re�ect the entire company.

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Figure 4 The Customer Life-Cycle Marketing System: Vendor Profiles (Cont.)

Source: Forrester Research, Inc.106361

Vendor: Adobe

Vendor: Infosys

Product/product suite considered:

Number of employees:

Revenues:

Geographic scope:

Overview:The Edge series

~2,000

$115 million+

North America, EU, Latin America, Asia Paci�c

Infosys’ focus is on managing global marketing operations and data, directly and in conjunction with agencies. The company has embarked ona 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 differentiatorin the CLCMS landscape.

Referenceclients:

Primary industries:

CPG, pharmacy, marketingagencies

Vendor: Microsoft

Product/product suite considered:

Number of employees:

Revenues:

Geographic scope:

Overview:MarketingPilot

26,000 are dedicated to sales and marketing

$77.8 billion

North America, EMEA, Asia Paci�c, Latin America

Microsoft has added to its strong position in CRM by adding MRM and campaign management capabilities. The company’s unique �avor is that it is a lower-cost option forclients, but the pricing relates to thecapabilities: The MarketingPilot product is limited by capabilities that will appeal to smallerbusinesses more than large enterprises, and it prioritizes native Microsoft channelssuch as Skype and Xbox.

Referenceclients:

Primary industries:

Insurance, �nancial services, retail

Dentsu, Diageo, and GlaxoSmithKline

Paci�c Life Insurance and Build-A-Bear

Note: Italic numbers re�ect the entire company.

Vendor: Oracle

Product/product suite considered:

Number of employees:

Revenues:

Geographic scope:

Overview:Oracle Marketing Cloud and Oracle CX Porfolio

120,000

$37.2 billion

North America, EMEA, Asia Paci�c, Japan

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 clarityto prove itself as a CLCMS contender.

Referenceclients:

Primary industries:

High tech, manufacturing, �nancial services, professional services

McAfee, Southwest Airlines, Swiss Post Solutions, and Thomson Reuters

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Figure 4 The Customer Life-Cycle Marketing System: Vendor Profiles (Cont.)

Source: Forrester Research, Inc.106361

Vendor: Responsys

Product/product suite considered:

Number of employees:

Revenues:

Geographic scope:

Overview:Interact Marketing Cloud

1,000+

$162.8 million

US, EMEA, Asia Paci�c

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 andare 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.

Referenceclients:

Primary industries:

Retail, travel and hospitality, �nancialservices

Vendor: salesforce.com

Product/product suite considered:

Number of employees:

Revenues:

Geographic scope:

Overview:Salesforce ExactTarget Marketing Cloud

800

$3.80 billion

North America, EMEA, Asia Paci�c, Latin America

Salesforce.com’s acquisition of ExactTarget and announcement of Salesforce1 promise theability to link salesforce.com’s sales and service clouds with the marketing cloud campaign functionality, which would bring together core elements of marketing technologyfunctionality. 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.

Referenceclients:

Primary industries:

Retail, CPG, high-tech

Vendor: SAS

Product/product suite considered:

Number of employees:

Revenues:

Geographic scope:

Overview:SAS Customer Intelligence

700+

$350 million+

North America, EMEA, Asia Paci�c, Mexico, Russia

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.

Referenceclients:

Primary industries:

Financial services, retail, commmun-ications/content/entertainment

CareerBuilder, TripAdvisor, and Thirty-OneGifts

Haven Holidays, DeutschlandCard,and Permanent TSB

Nordstrom, Orbitz, MetLife, andLinkedIn

Note: Italic numbers re�ect the entire company.

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Figure 4 The Customer Life-Cycle Marketing System: Vendor Profiles (Cont.)

Source: Forrester Research, Inc.106361

Vendor: Silverpop

Product/product suite considered:

Number of employees:

Revenues:

Geographic scope:

Overview:Engage

517

Privately held company

Americas, Asia Paci�c, Australia, Europe

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.

Referenceclients:

Primary industries:

Retail, agency, business, and�nancial services

Vendor: StrongView

Product/product suite considered:

Number of employees:

Revenues:

Geographic scope:

Overview:StrongView Interactive Marketing Platform

175

Undisclosed

North America, UK, Spain, Australia, India

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.

Referenceclients:

Primary industries:

Retail, �nancial services, travel andhospitality, media/entertainment/publishing

Vendor: Teradata

Product/product suite considered:

Number of employees:

Revenues:

Geographic scope:

Overview:Customer Interaction Manager

10,200

$2.665 billion

North America, EMEA, Asia Paci�c, Latin America,Russia

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 pro�les 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.

Referenceclients:

Primary industries:

Financial services, life sciences,retail

The Motley Fool, McAfee, OTC Direct,and Turner Broadcasting

evo, fabric.com, NetProspex, LifeShield, and PaperStyle.com

International Speedway Corporation (ISC),MGM Resorts International, and Gilt Groupe

Note: Italic numbers re�ect the entire company.

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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

Experian

IBM

Infosys

Microsoft

Responsys

salesforce.com/ExactTarget

SapientNitro

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SAS

Silverpop

StrongView

Teradata

eNDNOTes1 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 decision-making 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.

2 The base is 303 marketing and IT leaders. Source: Forrester/Forbes Insights Q2 2013 US Marketing And IT Alignment Online Survey.

3 Source: Forrsights Business Decision-Makers Survey, Q4 2012.

4 Source: July 2013 North American Customer Life-Cycle Marketing Online Survey.

5 Source: July 2013 North American Customer Life-Cycle Marketing Online Survey.

6 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.

7 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.

8 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.

9 For more information about layer and customer decision management, see the May 9, 2013, “Move Beyond Campaigns To Tap Hidden Customer Potential” report.

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For CMos

The rise of The Customer Life-Cycle Marketing systems 16

© 2013, Forrester Research, Inc. Reproduction Prohibited December 11, 2013

10 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.

11 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.

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Forrester Research, Inc. (Nasdaq: FORR) is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. Forrester works with professionals in 13 key roles at major companies providing proprietary research, customer insight, consulting, events, and peer-to-peer executive programs. For more than 29 years, Forrester has been making IT, marketing, and technology industry leaders successful every day. For more information, visit www.forrester.com. 106361

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