Eloqua earns the "Leader of the Leaders" spot in Gartner Magic Quadrant
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Eloqua earns the "Leader of the Leaders" spot in Gartner Magic Quadrant

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    Eloqua earns the "Leader of the Leaders" spot in Gartner Magic Quadrant Eloqua earns the "Leader of the Leaders" spot in Gartner Magic Quadrant Document Transcript

    • G00226897Magic Quadrant for CRM Lead ManagementPublished: 7 June 2012Analyst(s): Chris Fletcher CRM lead management investment increases as executives turn to marketing automation to fuel growth. Impact on revenue generation is high and satisfaction with vendors is generally strong, but organizational alignment issues continue to reduce potential impact. Market Definition/Description Lead management integrates business process and technology to close the loop between marketing and direct or indirect sales channels, and to drive higher-value opportunities through improved demand creation, execution and opportunity management. Lead management processes take in unqualified leads from a variety of lead generation sources, including Web registration pages and campaigns, direct mail campaigns, digital marketing channels and sources, email marketing, multichannel campaigns, database marketing and third-party leased lists, social CRM and social networking sites, and tradeshows and other events (such as webinars, or customer or prospect events). The outputs of lead management processes — qualified, scored, nurtured, augmented and prioritized selling opportunities — are handed off to direct sales and/or channel sales organizations. CRM lead management applications can be licensed; on-premises applications; or software as a service (SaaS), cloud-based application services. CRM lead management can be used in business- to-business (B2B), business-to-business-to-consumer (B2B2C) or business-to-consumer (B2C) CRM processes.
    • Magic Quadrant Figure 1. Magic Quadrant for CRM Lead Management Source: Gartner (June 2012) Vendor Strengths and Cautions Eloqua A Leader in this Magic Quadrant, Eloqua reported 2011 revenue of $71 million, showing growth of approximately 39% over 2010. Founded in 1999, Eloqua sells primarily to B2B and B2B2C industries, including high tech, professional services, financial services and manufacturing. Strengths ■ Strong product functionality: Scored high marks from surveyed customers for product functionality, customer support and overall satisfaction with the product. Users with experience across multiple vendors products noted Eloquas longer time to productivity and steeper learning curve, but also its ability to support complex multichannel lead management processes. Eloqua10, the vendors latest product, is based on HTML5 and provides a simpler and easier-to-use user interface (UI) than prior versions. The product also simplifies severalPage 2 of 23 Gartner, Inc. | G00226897
    • development and administrative tasks. Eloqua Social Suite and Eloqua Engage for iPad provide integration and support for major social sites and iPad tablets. ■ Strong financials: Strong financial position, including 39% growth from 2010 to 2011 and revenue of $71 million in 2011. Filed S-1 for initial public offering (IPO) in August 2011, although at the time of publication, Eloqua remained a private company. ■ User satisfaction: High satisfaction levels with the product and vendor reported by reference accounts indicate high probability of success for new Eloqua customers. ■ AppCloud: In 2011, Eloqua announced AppCloud, a marketplace for B2B marketing applications. AppCloud has more than 50 applications, and partners include Data.com and Radian6 (salesforce.com), ON24, and Citrix Systems. Cautions ■ Longer time to productivity: Steeper learning curve and higher licensing costs, compared with some other best-of-breed vendors, although Eloqua accelerates the learning curve with a service option, Eloqua SmartStart, designed to ramp up new users more quickly. Implementation times are also typically longer, although this is also a reflection of more- complex lead management applications Eloqua typically supports. ■ IPO: No external communication since August 2011 in regard to an IPO or other possible events, such as merger and acquisition (M&A) activity. Companies investing in Eloqua solutions should consider the potential impact of an IPO or M&A transaction. ■ Dependency on salesforce.com: A majority of Eloqua users are integrated with salesforce.com; evaluate integration requirements for non-salesforce.com implementations. IBM (Unica) IBM (Unica) is a Niche Player in CRM lead management, and is used most commonly in more- complex B2C implementations, or when a broader marketing automation capability is required. Companies in B2B or B2B2C industries, or companies with more-focused lead management requirements and limited resource availability, or those that have not already standardized on Unica for other parts of their organization, should evaluate Unicas capabilities against Leaders. Strengths ■ Viability and growth: IBM generated $106.9 billion in revenue in 2011, and has a well-known global presence and a broad range of technology assets to support marketing automation, digital marketing and e-commerce. IBM (Unica) reported 21% growth for its Enterprise Marketing Management group from 2010 to 2011. Consider Unicas Enterprise Marketing Suite when marketing resource management (MRM), integrated marketing management (IMM) or multichannel campaign management (MCCM) functionality is also key; when Unica is already a standard for marketing automation; or when complex, enterprise lead management is required.Gartner, Inc. | G00226897 Page 3 of 23
    • ■ Domain expertise: Unica claims 2,500 customers worldwide and implementations in financial services, telecommunications, life sciences and high-tech industries, and supports lead management and broader marketing management applications for enterprise-scale implementations. IBM (Unica) was a Leader in "Magic Quadrant for Marketing Resource Management," "Magic Quadrant for Integrated Marketing Management" and "Magic Quadrant for CRM Multichannel Campaign Management." ■ Breadth and scalability: Unicas Enterprise Marketing Management suite, based on Unica 8.6, provides a rich lead management platform, including Unica Campaign, Unica Leads, Unica Optimize, Unica eMessage, Unica PredictiveInsight, Unica Distributed Marketing and Unica NetInsight Enterprise, to deliver this functionality. Additional functionality that is new with the 8.6 release includes the ability to access Web behavior data from Coremetrics, social media support and integration with Facebook and Twitter, and response/attribution tracking across offline and online channels. Additional functionality that augments marketing applications includes IBM applications such as Cast Iron, Cognos, Coremetrics, InfoSphere, Sterling Commerce and WebSphere Commerce, as well as bidirectional synchronization with salesforce.com. Cautions ■ B2B support: Unicas expertise and implementations are predominantly in B2C applications or enterprise-scale lead management, while a majority of lead management requirements continue to occur in B2B and, increasingly, B2B2C applications. Although Unica has been used in several enterprise-scale B2B implementations, prospects and reference accounts have stated that the vendor does not display the depth of understanding of B2B lead management requirements that Leaders have exhibited. ■ SaaS: A majority of Unica customers have implemented on-premises versions of the product, while some components of the Enterprise Marketing Management suite, such as email creation, are available only as SaaS solutions, resulting in a hybrid deployment model. Customers should evaluate their deployment options and requirements when considering Unica against exclusively SaaS offerings provided by the Leaders. ■ Digital and social: Unicas recently released Enterprise Marketing Management update provides out-of-the-box integration with Coremetrics Web data and social sites, and attribution tracking across multiple channels. Because these are new capabilities, we encourage prospective buyers to compare this functionality with that of the Leaders in this segment. Unica will see increasing market pressure from nimble, SaaS-based competitors in lead management, especially in the B2B segment. Marketo Marketo, a Leader in the Magic Quadrant, is focused primarily on B2B lead management and marketing automation. The vendor generated approximately $30 million in revenue in 2011 (Gartner estimate), generated 130% growth over 2010 and secured $50 million in additional venture capital (VC) funding. Marketo provides SaaS-based lead management to companies in the high-tech, business services and healthcare industries.Page 4 of 23 Gartner, Inc. | G00226897
    • Strengths ■ Functionality and time to productivity: Reference accounts consistently praise Marketos ease of use, short time to productivity, and rich analytic and reporting capability. Analytics-based revenue performance management (RPM) provides revenue visibility for future quarters, based on lead volume/quality/scoring currently in the pipeline. Marketo recently acquired Crowd Factory to provide additional functionality that augments lead management processes. Marketo announced a native Force.com application, Sales Insight, which is embedded in salesforce.com to provide lead visibility to sales teams. ■ Viability: Solid financial resources, experienced and respected management, and a strong marketing voice and presence in the market. ■ Partnerships: Marketo is a salesforce.com/AppExchange partner, with a large majority of its customers using salesforce.com. Marketo recently announced a deeper partnership with Microsoft for integration with Dynamics CRM and Dynamics CRM Online. Marketo also has partnerships with Adobe, Cisco, and Citrix for the integration of online meeting services; with Dell Boomi for application integration; with ExactTarget for email marketing; and with ON24 for the integration of webcasts and virtual events. Marketo was selected as best marketing application in salesforce.coms AppExchange in 2011. Cautions ■ Salesforce.com-centric: Heavy focus on salesforce.com users. Marketo has recently deepened its integration with Microsoft Dynamics CRM, which should help Marketo to sell to a broader base of customers. ■ VC presence and profitability: Large VC presence indicates that the vendor may be positioning toward an IPO or M&A transaction, which could cause shorter-term disruption for current customers. Marketo is not yet profitable (Gartner estimate). ■ Moving to enterprise: A majority of Marketo customers are smaller, fast-growing companies, and the vendor needs to prove its ability to consistently compete and win in the enterprise sector. It lags in broader marketing automation functionality, although its technology road map highlights development in areas such as MRM. Marketo is also actively building out its technology and agency partnerships through its Marketo Alliance program. Microsoft Dynamics CRM Microsoft is a Niche Player among lead management vendors, with capabilities that are embedded in Dynamics CRM and Dynamics CRM Online. Dynamics CRM is only appropriate for companies that are currently using it for sales force automation (SFA) and CRM, and that have fairly basic lead management needs.Gartner, Inc. | G00226897 Page 5 of 23
    • Strengths ■ Relative simplicity: Microsoft Dynamics CRM integrated lead management capability eliminates the need for a second lead management vendor, and can reduce the complexity of integrating a lead management or marketing automation application into a current CRM or SFA environment. Microsoft Dynamics CRM is appropriate for companies that do not have complex lead management requirements; for companies that are at the early stages of developing and deploying lead management processes and prefer to use technology from a single vendor; and for companies that have already deployed Microsoft Dynamics CRM for SFA or customer support and that want to leverage current investments before investing in another product with broader capabilities. ■ Integration: All marketing and sales data is kept in a single Dynamics CRM application database, simplifying analytics and reporting. For example, information on when an opportunity closes is available immediately for closed-loop lead management reporting. The latest release, Dynamics CRM Q2 2012, includes some enhancements, such as the addition of custom workflow entities to the CRM Online version, enabling customers with complex lead management workflow requirements to use either Dynamics CRM or Dynamics CRM Online. The workflow capability is based on Windows Workflow Foundation; Microsoft also provides several prebuilt workflows for lead management and CRM processes. Microsoft Dynamics CRM supports conditional formatting for simpler, user-defined workflows. ■ Choice: Dynamics CRM is available as either an on-premises or SaaS application, making Dynamics CRM one of the few applications to provide both an integrated lead management capability and a choice of deployment options. Several lead management products, including those from Leaders in this Magic Quadrant, are currently integrated with Dynamics CRM, so that alternatives that include Microsoft Dynamics CRM and a best-of-breed set of capabilities are available. Cautions ■ Limited functionality: Dynamics CRM does not provide a best-of-breed lead management capability, and is appropriate for companies with basic lead management requirements. Dynamics CRMs lead management capabilities have not evolved significantly from a year ago (see "MarketScope for CRM Lead Management" [Note: This document has been archived; some of its content may not reflect current conditions.]). ■ Lack of focus: Dynamics CRM has been selected as a Leader in "Magic Quadrant for Sales Force Automation" and "Magic Quadrant for CRM Customer Service Contact Centers." However, Microsofts innovations in Dynamics CRMs lead management capabilities during the past year have been limited, at a time when competitive solutions are increasing their functionality. Neolane The only Visionary in this Magic Quadrant, Neolane saw 47% growth in 2011, generated revenue of approximately $44 million and secured VC funding of $27 million. The vendor has about 350 B2BPage 6 of 23 Gartner, Inc. | G00226897
    • and B2C customers in industries including media and entertainment, life sciences and financial services. Neolane was founded in France and approximately half of its revenue comes from the EMEA market (Gartner estimate). R&D is primarily located in France. Strengths ■ Functionality and partners: The Neolane platform supports lead and campaign management, enabling the company to be a Visionary in both this Magic Quadrant and in "Magic Quadrant for CRM Multichannel Campaign Management." It has successfully generated partnerships with and sold through agency and marketing service providers, including Epsilon, KBM Group, Targetbase, Acxiom and others. Neolanes API provides a service-oriented architecture (SOA)- compliant layer that enables integration to third-party applications. ■ Innovation: Neolane has been quick to adopt new functionality. Neolane Social Marketing is included in more than one-third of its deals; was one of the first products to offer Facebook customized pages and offers; and supports multiple email, Web, social, and webinar channels that play a role in lead management. ■ Flexibility: Neolane is adaptable enough as a platform to meet the needs of B2B, B2C, and B2B2C companies at a competitive cost. Its references gave high scores for categories like overall satisfaction, features and functions, ease of deployment, and integration with other applications. Deployment is either on-premises or SaaS. Cautions ■ Complexity: Reference customers commented on the complexity of building and maintaining lead process workflows, but also gave high marks to the flexibility of the Neolane platform. ■ Analytics and KPIs: References gave average scores to Neolanes packaged reporting and analytics. ■ Growth: Customers ranked Neolane positively for overall satisfaction, but also commented that organizational growth created some resource shortfalls. Support levels and escalation procedures should be evaluated as part of due diligence. Oracle (Siebel) Oracle is a Niche Player in CRM lead management. Oracle Siebel CRM Enterprise Marketing is a mature product that can provide broad functionality for B2C and B2B processes, integrates with other Siebel applications (such as Siebel Analytics and Siebel Sales), and provides end-to-end automation of lead processes. The product is dependent on Siebel CRM, and is appropriate only for companies that currently have, or plan to implement, Siebel CRM. Strengths ■ Breadth of functionality: Siebel provides core lead management functionality, enabling outbound phone and sales campaign execution and follow-up, inbound response handling,Gartner, Inc. | G00226897 Page 7 of 23
    • response and lead qualification and scoring, lead management, and lead-to-opportunity conversion. Siebel Lead Management can be used without other Siebel Marketing modules (such as Siebel Campaign Management) for multichannel lead generation, lead augmentation and lead-nurturing processes using email, Web, event, contact center, partner and mobile channels. Siebel Campaign Management integrates with Siebel Sales, and enables the handoff and tracking of qualified leads to direct and indirect sales channels. Siebel Email Marketing and Oracle Marketing Analytics provide additional functionality for email marketing and marketing/ sales analytics. Siebel CRM Enterprise Marketing, when implemented with adjacent Siebel applications, supports complex lead management processes, integrates with other Siebel applications (such as Siebel Sales, Siebel Analytics and Siebel Loyalty Management), and provides analytics and reporting insight throughout the marketing and selling cycle. ■ End-to-end automation: Reference customers cite end-to-end automation of the marketing and sales process, including campaigns, lead management and sales, as a top strength of the product. ■ Ecosystem: Siebel is a mature product with a wide range of system integration, implementation and technology partners that can add value to complex, enterprise-scale lead management. Cautions ■ Complex solutions: Complete lead management applications will require the implementation of several Siebel modules, such as Siebel CRM Enterprise Marketing, Siebel Lead Management, Siebel Sales and Siebel Analytics. Prospective customers should carefully evaluate and understand all application dependencies and investment requirements. Siebel Lead Management provides basic functionality, but most companies will require additional modules (such as Campaign Management or Marketing Analytics) to be on par with the functionality offered by best-of-breed alternatives. ■ Future direction: Because Siebel CRM Enterprise Marketing is a mature product, customers should anticipate limited functional enhancements, and should clearly understand Oracles long-term support policy in regard to Siebel. Prospective or current users should evaluate and understand Oracles product road map and Fusion migration support policies. Customers should also understand the financial implications and technical support available when evaluating a potential migration from Siebel to Fusion. ■ Best-of-breed alternatives: Customers using Siebel CRM will find Siebel CRM Enterprise Marketing an appropriate solution if they want to stay within the Oracle product portfolio, but they should also evaluate non-Oracle lead management products. salesforce.com Salesforce.com is a Niche Player in this Magic Quadrant. Its native lead management capability provides basic lead management, but does not represent a best-of-breed capability. Salesforce.com is a major vendor of CRM applications; has built up a strong ecosystem of system integrators, strategy and implementation firms; and provides a strong ecosystem (through its AppExchange partners) of best-of-breed lead management applications.Page 8 of 23 Gartner, Inc. | G00226897
    • Strengths ■ Viability: Salesforce.com is a well-known CRM vendor that generated approximately $1.6 billion in revenue in 2011 and supports 100,000 customers with its hosted CRM applications. Major verticals for salesforce.coms lead management capabilities include financial services and insurance, telecom, high tech, and professional services. The vendor has financial strength, global presence, and a very strong ecosystem of third-party lead management and marketing automation technologies that integrate with it. Customers frequently cited salesforce.coms stability and financial viability as a key consideration. ■ Basic, but cost-effective solution: An integrated CRM and lead management capability eliminates the need for a second vendor and a second license, and reduces the integration issues frequently encountered in multivendor implementations. Reference customers cited cost of ownership as an important part of their decision. Salesforce.com and Campaign Management support lead management applications across email, Web and social channels; lead scoring; lead routing; and reporting and analytics. Visual Workflow supports the graphical design of lead management applications, including the configuration of rules and triggers that enable email campaigns. A defined lead object is core to salesforce.com, enabling developers to build enhanced lead management capabilities and a sharing model that enables access to the lead on an individual or group level. Social CRM provided through Chatter and Radian6 enables internal collaboration around a lead and external social listening to generate new leads. Web-to-Lead and a robust set of APIs enable integration with other systems and devices, such as quick response (QR) code readers or scanners. Integration with Service Cloud 2 enables the generation of leads from customer support activities. Data.com provides support for cleaning and augmenting CRM data records that are part of lead management and SFA processes, as well as for targeted list building; Data.com also provides contact information for 4 million company records and 30 million contact records for enabling B2B campaigns. ■ Ecosystem and market presence: Salesforce.com, when used with Campaign Management and Data.com, provides basic lead management capabilities; for companies that require more advanced functionality, salesforce.com also offers a strong ecosystem of lead management vendors, system integration partners, strategy and implementation partners, and add-on technology options. System integration partners that provide services for lead management include Accenture, Capgemini and Deloitte. Salesforce.com provides lead management capabilities based on its Sales Cloud, Campaign Management and Data.com products. In addition, several vendors covered in this Magic Quadrant, including Eloqua, Marketo and Neolane, are salesforce.com AppExchange partners and provide best-of-breed lead management capabilities to salesforce.com applications. Cautions ■ Not best of breed: Salesforce.coms native lead management capability is not competitive with offerings from the Leaders in this Magic Quadrant. Companies with complex lead management application requirements may need to license a best-of-breed vendors technology, incurring additional costs and related issues with integration and implementation. Companies that have standardized on salesforce.com, Sales Cloud and Data.com should evaluate the integrated leadGartner, Inc. | G00226897 Page 9 of 23
    • management capability provided in these products against their business requirements. Companies that require more advanced lead management functionality can choose from several best-of-breed vendors that integrate with salesforce.com. ■ Workflow development: Lead management processes can be developed with a visual workflow, but often need to be augmented with workflow scripts within salesforce.com. ■ M&A: Given salesforce.coms basic lead management functionality, prospective customers should consider the impact on their organizations if salesforce.com were to acquire one of their AppExchange partners or one of the best-of-breed vendors that provide them with lead management. SAP (SAP CRM) SAP is a Niche Player in CRM lead management. SAPs lead management capabilities are integrated with SAP CRM and SAP CRM Marketing, and are suggested for companies that currently use, or intend to use, its products. Marketing departments in an SAP environment should evaluate SAP lead management to see whether it meets their requirements before seeking best-of-breed solutions. Strengths ■ Integrated solution: SAPs lead management functionality is an integral part of SAP CRM Marketing and SAP CRM. The strength of this approach is that lead management processes, data and customer information all integrate tightly to provide end-to-end, closed-loop lead management, but at the expense of providing best-of-breed capabilities. An SAP Rapid Deployment Solution (RDS), a combination of preconfigured applications and professional services, supports accelerated implementation/fixed-price lead management. Other marketing automation functionality includes campaign management planning and execution, MRM, collaborative lead management with channel partners and dealers (online and via PDF interactive form exchange), marketing development funds, and partner channel management. Advanced analysis includes real-time offer management in campaigns. The vendor reports that about 50% of its active CRM 7.0 customers use SAP CRM Marketing. ■ Big data progress: Notable changes in 2011 include the release of CRM 7.0 with an increased focus on B2C offerings, such as the Hana Accelerator, which has the ability to deal with very large sets of data, such as social media sources. In the B2B2C space, SAP introduced Collaborative Campaign Management to include partners in campaign planning and execution. SAP also has extended its loyalty management capability to include partnerships that have joint loyalty programs. ■ Ecosystem: SAP has developed an impressive set of customer councils (e.g., CMO Community) and technology or consulting partnerships (e.g., Accenture, Capgemini, Deloitte, ExactTarget and OpenText,) to broaden its vision and marketing ecosystem. ■ Road map: 2012 includes plans to release a Hana-based predictive segmentation solution called SAP Audience Discovery and Targeting, along with advanced segmentation and predictive propensity models. SAP plans to release a hosted model for loyalty. Social additionsPage 10 of 23 Gartner, Inc. | G00226897
    • will include tighter integration with NetBase for social monitoring and with StreamWork for social collaboration. Additional plans include enhanced lead view and scoring across social activities, buying history, and all customer and prospect data. Cautions ■ Lagging the Leaders: Customers note SAP CRM Marketings lack of newer features, such as the integration of social functions. While integration with SAP CRM and other SAP applications is a major driver for customers, some note that SAPs lead management functionality is not competitive with best-of-breed alternatives. Companies should consider alternatives if SAP is not part of their current or planned environments, or if their organizations require adoption of newer technologies as part of lead management initiatives. ■ SaaS: SAP CRM Marketing is available as a licensed, on-premises product, and it can also be hosted by SAP or a partner. A SaaS deployment option is planned, but not yet available. ■ Complexity and market lag: Customers comment on the complexity of the SAP environment, and the impact on the time required to design and deploy a lead management application. Teradata-Aprimo Teradata is a major supplier of data warehousing and analytics technology, and provides marketing automation and lead management under the Aprimo brand. Teradata is a Leader in "Magic Quadrant for Integrated Marketing Management" and "Magic Quadrant for CRM Multichannel Campaign Management," and is a Challenger in this Magic Quadrant. Strengths ■ Viability: 2011 revenue for Teradata was approximately $2.3 billion, a 22% increase from 2010. Major markets for Aprimo include high tech, business services and financial services. The vendor has a global presence and a broad set of partners, including Adobe, Accenture, Capgemini and salesforce.com. ■ Robust feature/functions: A robust, but also complex, marketing automation environment in which lead management is a feature set alongside IMM, analytics and campaign management; it is well-suited to the needs of the large enterprise. Aprimo Marketing Studio 8.7 and Marketing Studio On Demand provide lead management, online marketing, visitor monitoring, Web analytics (via integration with Omniture), and integration with salesforce.com, Oracle Siebel and Microsoft Dynamics CRM. Marketing Studio also provides contact record deduping; automated nurturing campaigns integrated with content delivery, lead scoring, and the ability to provide an optimal mix of content and channels; an integrated content library; and scoring rules that dynamically vary by product, region or value. Teradatas recent acquisition of eCircle will provide Aprimo with digital marketing and regulatory compliance capabilities, as well as additional lead generation services, including list rental brokering, list quality management, optimized lead collection microsites and proprietary vertical portals for lead management to address marketing acquisition efforts.Gartner, Inc. | G00226897 Page 11 of 23
    • ■ Deployment: Marketing Studio can be deployed on-premises, hosted or hybrid; Marketing Studio On Demand is SaaS-only. Reference customers gave good scores to Aprimo for their overall satisfaction with implementations, with 83% indicating they were satisfied or very satisfied. Cautions ■ Road map vision: References gave Teradata only average scores for its lead management vision and product road map strategies, indicating that better communication and a clearer technology direction (particularly in regard to integration of the two product lines) should be priorities. However, prospective Aprimo customers should take the time to understand the vendors vision for lead management, which includes real-time scoring and decisioning, as well as enhanced rule-based content and nurture marketing. ■ Lagging behind the Leaders: Teradata lags behind in some areas of innovation, particularly in integrating digital marketing areas (including email, social marketing and webinars). This was reflected in reference data that gave Teradata only average marks for satisfaction with feature/ function levels, and that lagged behind the higher scores that Leaders achieved. Consider Aprimo for lead management when MRM or MCCM functionality is also required, or when it is already implemented for data warehousing or analytics. ■ Operational overhead: High implementation, development and maintenance resource requirements. Reference customers also commented on challenges in integrating Aprimo with CRM and other customer applications already in place. Teradata received average scores on Aprimos ability to integrate with other applications, although this should be considered in the context of the larger and more-complex implementations that Aprimo supports. Companies with more-focused lead management requirements and limited resources, or companies that require integration and support of social channels as standard product functionality, should consider alternative vendors. Vendors Added or Dropped We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant or MarketScope may change over time. A vendor appearing in a Magic Quadrant or MarketScope one year and not the next does not necessarily indicate that we have changed our opinion of that vendor. This may be a reflection of a change in the market and, therefore, changed evaluation criteria, or a change of focus by a vendor. Added This is the first year that CRM lead management has been covered in a Magic Quadrant. In 2011, Gartner published "MarketScope for CRM Lead Management," which included 15 vendors in the segment. Due to strong client interest in this product sector, as well as continuing innovation in the integration of social, mobile and analytic capabilities into lead management processes, the MarketScope was upgraded to this years Magic Quadrant.Page 12 of 23 Gartner, Inc. | G00226897
    • Vendors or products that are in this years Magic Quadrant, but that did not appear in last years MarketScope include salesforce.com. Two Oracle products that support lead management — Oracle CRM On Demand Marketing and Oracle Fusion CRM Marketing — did not meet the inclusion criteria of 12 production implementations and a minimum of $20 million in revenue at the time of publication and are not included in this Magic Quadrant (see "Criteria for Magic Quadrant for CRM Lead Management"). Dropped Due to the raising of the inclusion criteria for this years Magic Quadrant — in particular, the raising of minimum vendor revenue to $20 million — vendors that appeared in last years MarketScope, but not in this years Magic Quadrant include Leads360, LoopFuse, Manticore Technology, Pardot and Silverpop. The decision to raise the minimum revenue level was based on the needs of the enterprise and midenterprise companies that require strong financial viability and extensive corporate resources, and is not a reflection on the potential value of these vendors products. Inclusion and Exclusion Criteria Technology All inclusion criteria functionality needs to be available as a standard or optional part of the application, as provided by the vendor. Inclusion criteria functionality cannot depend on applications or functionality provided by partners, or on custom development or services (for example, custom application development provided by the vendors professional services organization or a system integrator): ■ Multichannel lead management: The ability to provide lead management functionality, including lead collection, analytics, augmentation, scoring, process management and nurturing, across a minimum of three lead generation and lead management channels within a single campaign. Examples of lead generation channels include websites, e-commerce sites, customer service and support applications (such as call and contact centers), email marketing, text and mobile marketing, social networking or social CRM applications, events (in person and virtual), direct mail marketing, and third-party databases/lists. ■ Lead collection/lead database: The ability to collect, store, execute on, import/export, analyze and report on leads. Lead input capabilities need to support both online, real-time/near-real- time processes and offline, batch input of data. The vendor does not need to provide a database, but the data model and the ability to collect/source data that will be stored in the database are required. ■ Analytics, key performance indicators (KPIs) and business intelligence (BI): The ability to leverage integration tools (APIs, XML, etc.) to transfer data between applications, including source applications (e.g., third-party data providers, referral systems and websites) and execution applications (e.g., SFA, contact center and email), to use in closed-loop marketingGartner, Inc. | G00226897 Page 13 of 23
    • analysis. The ability to generate operational and strategic KPIs. The ability to provide a preconfigured set of reports, management dashboards, metrics and KPIs as an integral part of the packaged application. ■ Lead augmentation: The ability to append missing or additional information to the lead from external, third-party sources (such as missing email fields), and to integrate and store this information into the lead management database and associate it with the appropriate lead or customer information. The ability to eliminate incomplete, redundant or duplicate lead information based on criteria set by the end-user organization. The ability to augment or nurture a lead with additional collateral or value-added content, such as documents or PDFs, spreadsheets, videos, or Web-based content, to increase the lead score and the probability to close. ■ Lead scoring/qualification: The ability to create multiple lead qualification and scoring processes, based on criteria such as a campaign, product type, customer segment, estimated customer value, opportunity value or seasonal criteria; to execute multiple lead qualification and scoring processes simultaneously; and to dynamically route leads to the next-appropriate lead management process part of lead process management. ■ Lead process management: The ability to create lead management workflows or business process management rules, using a graphical workflow or business process tool, or a nongraphical scripting tool, to create a lead management application that dynamically routes leads through the lead scoring, qualification, augmentation and distribution processes based on execution criteria (such as geography, estimated value and status of prior process steps). The ability to dynamically pass leads to a sales execution system (such as SFA, partner relationship management [PRM], call/contact center application and e-commerce) on the basis of user- defined routing, scoring or qualification rules. ■ Lead nurturing: The ability to manage and control the lead life cycle from collection to conversion. ■ Integration and APIs: The ability to integrate with third-party applications (such as SFA, PRM, call/contact center applications and legacy applications) using a standard, published and supported set of APIs or integration interfaces. Market Presence and Company Viability ■ Vendor revenue: Vendor revenue (the combination of product or service licenses, annual maintenance, and professional services provided by the vendor) totals a minimum of $20 million during the past four quarters. If a company is privately held and chooses not to disclose revenue information, it can provide instead the total number of installed customers, growth rates in 2010 and 2011, total number of customers acquired in 2010 and 2011, and average deal size. (Note: Gartner may estimate revenue for vendors that choose not to submit financial and revenue information.) ■ Product functionality: The lead management product is delivered as a stand-alone lead management technology, or as lead management functionality integrated and sold as part of aPage 14 of 23 Gartner, Inc. | G00226897
    • CRM suite, SFA application or marketing automation application. Functionality can be provided through licensed software, or as a hosted or SaaS service. ■ Product availability: The lead management product has been available for license in the market for a minimum of one year, and is currently installed and providing lead management functionality (B2B, B2C or B2B2C) to enterprise and midenterprise customers (midenterprise is defined as an enterprise with a minimum revenue of more than $250 million per year). The vendor must also have a minimum of 20 production implementations worldwide, and these implementations must span a minimum of three industries (for example, high tech, financial services and manufacturing). ■ Market presence: The vendor has a direct sales and customer support presence in at least two of the following three regions: North America and Latin America; Europe, Africa, and Middle East (EMEA); and the Asia/Pacific region. In addition, the vendor has system integration, consulting, technology, or sales and support partnerships in at least two of those regions. Examples of these partnerships can include system integrators, service providers, third-party application developers, add-on applications or service providers, strategy or process consulting providers, or partners (value-added resellers [VARs], distributors, original equipment manufacturers [OEMs] and technology providers). ■ Customer implementations: The vendor has a minimum of 12 new customers that have implemented the vendors CRM lead management technology in the previous 12 months. The decision to include a vendor or a vendors product in this Magic Quadrant is based on the company and product meeting the inclusion criteria, and is made by Gartner. Vendors that choose not to submit the information described above, but that meet the inclusion criteria, appear in the Magic Quadrant on the basis of information gathered from other sources, in accordance with Gartner Magic Quadrant policies and methodologies. Microsoft and Oracle opted not to submit product information or customer references for this Magic Quadrant. Information that is presented on these vendors and their lead management capabilities is based on information gathered from other sources, including, but not limited to, vendor briefings that these companies have conducted with Gartner in the past; primary research conducted by Gartner; client interactions and inquiries; and other primary and secondary sources. Evaluation Criteria Ability to Execute ■ Product/Service: Core goods and services offered by the vendor that compete in/serve the defined market. This includes current product/service capabilities, quality, feature sets, skills, etc., whether offered natively or through OEM agreements/partnerships as defined in the market definition and detailed in the subcriteria. ■ Overall Viability (Business Unit, Financial, Strategy, Organization): Viability includes an assessment of the overall organizations financial health, the financial and practical success of the business unit, and the likelihood of the individual business unit to continue investing in theGartner, Inc. | G00226897 Page 15 of 23
    • product, to continue offering the product and to advance the state of the art within the organizations portfolio of products. ■ Sales Execution/Pricing: The vendors capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation, presales support and the overall effectiveness of the sales channel. ■ Market Responsiveness and Track Record: Ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the vendors history of responsiveness. ■ Customer Experience: Relationships, products and services/programs that enable clients to be successful with the products evaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, service-level agreements, etc. Table 1. Ability to Execute Evaluation Criteria Evaluation Criteria Weighting Product/Service High Overall Viability (Business Unit, Financial, Strategy, Organization) Standard Sales Execution/Pricing Standard Market Responsiveness and Track Record High Marketing Execution No Rating Customer Experience High Operations No Rating Source: Gartner (June 2012) Completeness of Vision ■ Market Understanding: Ability of the vendor to understand buyers wants and needs and to translate those into products and services. Vendors that show the highest degree of vision listen and understand buyers wants and needs, and can shape or enhance those with their added vision. ■ Sales Strategy: The strategy for selling a product that uses the appropriate network of direct and indirect sales, marketing, service and communication affiliates that extends the scope and depth of market reach, skills, expertise, technologies, services and the customer base.Page 16 of 23 Gartner, Inc. | G00226897
    • ■ Offering (Product) Strategy: The vendors approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature set as they map to current and future requirements. ■ Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes. Table 2. Completeness of Vision Evaluation Criteria Evaluation Criteria Weighting Market Understanding High Marketing Strategy No Rating Sales Strategy Standard Offering (Product) Strategy High Business Model No Rating Vertical/Industry Strategy No Rating Innovation Standard Geographic Strategy No Rating Source: Gartner (June 2012) Quadrant Descriptions Leaders Leaders in the CRM Lead Management market provide best-of-breed functionality that supports B2B, B2B2C and B2C lead management processes across multiple channels. The vendors demonstrate market awareness and nimbleness by their ability to develop and deploy support for new market and user requirements. The vendors have developed an ecosystem of technology and system integration partnerships, and have demonstrated their ability to sell and support customers globally. Leaders are able to show viability through revenue growth, organizational growth, and either profitability or the ability to attract outside investment. Leaders sell successfully in more than a single vertical industry, and customers show high levels of satisfaction and success with their implementations. Challengers Challengers in CRM lead management offer breadth of functionality either on an integrated marketing automation platform, or with a CRM suite. Lead management capability is typically notGartner, Inc. | G00226897 Page 17 of 23
    • best-of-breed, but Challengers provide market presence and adjacent technologies that are valuable to buyers that require a single vendor platform to fulfill multiple functional requirements. The focus is often on IT buyers that are looking for deep levels of integration with currently implemented technology or infrastructure. Challengers are often slower to react to changes in the market and lag behind the Leaders, and are often dependent on selling to existing clients. Visionaries Visionaries have a strong vision for a set of technologies that include lead management, but do not yet provide best-of-breed solutions or very broad marketing automation capability. Visionaries may be looking to capitalize on market momentum by emphasizing their role as part of the ecosystem as they invest in internal R&D or possible M&A activity to increase their market presence and potentially move to either a Challenger or Leader position. Visionaries are thought leaders and innovators that have not yet gained broad market penetration and adoption. Niche Players Niche Players provide a basic set of lead management features to a narrow segment of the potential market. Their markets are often defined by vertical industry expertise, or by selling into their installed base as an add-on technology. They meet Magic Quadrant criteria, but attempt to extend their functionality with professional service engagements. Niche Players may be limited in geographic reach, partner relationships or scalability of their solution. Niche Players are appealing to customers with limited budgets or constrained technology resources, and those that are willing to compromise on functionality. Niche Players often lack vision, or are unable to deliver on a vision they try to articulate. Context CRM lead management is predominantly implemented by B2B organizations, although B2B2C and B2C companies selling high-value, considered products or services are adopting B2B business models. Several lead management vendors provide narrowly focused products that concentrate on best-of-breed lead management and are able to react quickly to changes in the market, such as the requirement to incorporate social channels. CRM suite vendors have all integrated some level of lead management into their products, but these products generally do not represent the best-of-breed features and functionality provided by Leaders. Vendors that support lead management as part of an integrated marketing automation suite can also manage MCCM, MRM and IMM processes, but may be overly complex and expensive for companies that require focused lead management. Marketing and sales organizations looking to invest in lead management should understand their requirements in the context of features and functions, but also in terms of their propensity to invest, their available technical and marketing resources, and their desired time to productivity.Page 18 of 23 Gartner, Inc. | G00226897
    • Market Overview The CRM market as a whole continued to enjoy a strong rebound in 2011 with revenue reaching $11.9 billion in 2011, a 12.7% growth from 2010. Marketing automation software, a $2.8 billion market in 2011, is expected to have year-over-year double-digit growth for the next three years. It represents the largest growth area in CRM, compared with sales and customer service software revenue forecasts (see "Forecast: Enterprise Software Markets, Worldwide, 2008-2015, 4Q11 Update" [Note: This document has been archived; some of its content may not reflect current conditions.]). Key Findings The success and impact of lead management is increasing as lead management technologies mature and organizations gain expertise in managing multichannel lead processes. More than 67% of respondents identified lead management as having a critical or major impact on achieving sales and revenue objectives, and more than 69% were completely satisfied with their vendor and with application functionality. Companies deploying CRM lead management applications are realizing measurable impact on revenue, and marketing professionals are focusing analytics, dashboards and KPIs to monitor and measure the impact on revenue growth. However, many organizations still struggle with aggregating this data across multiple CRM and SFA applications, and rely on simple, operational KPIs to gauge impact. Organizational issues, rather than technical challenges, continue to be one of the biggest obstacles to success in lead management, with almost 40% of references identifying alignment of marketing, sales and other customer-facing departments as their greatest challenge. The success of lead management initiatives depends on shared objectives and vision across sales, channels, marketing, product management, IT and, ideally, senior management. However, in almost 70% of the companies surveyed, sponsorship and ownership for lead management initiatives continue to reside with marketing. Additional challenges identified were a lack of resources (including time) within the marketing organization; integration of lead management with other applications; and measuring business impact via analytics or KPIs. Lead management is no longer only for B2B organizations. Although a majority of lead management applications are implemented by B2B companies, B2C and B2B2C companies have implemented lead management in industries as diverse as insurance, automotive, financial services, consumer products and services, and have realized direct positive impact on revenue. The underlying consideration in all these applications is not whether the sale is made to a corporation or an individual, but whether the value of the sale is large enough (a "considered sale") to justify the investment in lead management technology. Analysis CRM lead management has matured significantly from when Gartner published "MarketScope for CRM Lead Management" in March 2011. Senior management is laser-focused on customerGartner, Inc. | G00226897 Page 19 of 23
    • acquisition and customer retention and marketing professionals are developing lead management processes and expertise that support these goals, but, almost as important, are also able to quantify the contribution that marketing is making to top-line revenue objectives. The combination of a focus on customer acquisition and revenue goals, and an overall maturing of technology platforms and expertise within the organization, is helping to drive lead management investment: Almost all vendors in this Magic Quadrant reported strong growth in revenue, expansion of partnerships with system integration and technology partners, and overall good levels of user satisfaction. The success and the impact of lead management is increasing as lead management technologies mature and organizations gain expertise in managing multichannel lead processes. More than 67% of respondents identified lead management as having a critical or major impact on achieving sales and revenue objectives, and more than 69% were completely satisfied with their vendor and with application functionality. Perceptions of the impact of lead management at senior levels in the organization continue to lag, however. When asked how CEOs or COOs would rate the impact, only 55% of respondents said senior executives would give lead management initiatives the same rating that they would, which has impact in terms of realizing organizational vision and gaining support for lead management initiatives. User organizations will grapple with vendor choice and implementation decisions at the start of a lead management project. All CRM applications (such as Microsoft Dynamics CRM, SAP CRM, Oracle Siebel Marketing and salesforce.com) provide some level of lead management, eliminate the need for a second vendor relationship and can reduce integration challenges; however, none of these vendors provides best-of-breed functionality and, as a result, are not Leaders in the category. Vendors that are Leaders provide robust capability, but require an additional investment and may introduce implementation and integration challenges. Vendors that provide broader marketing automation functionality, such as IBM (Unica) and Teradata-Aprimo, provide MCCM, marketing analytics or MRM that can extend the functionality of lead management, but also increase the deployment time and complexity of the solution. Recommended Reading Some documents may not be available as part of your current Gartner subscription. "Magic Quadrants and MarketScopes: How Gartner Evaluates Vendors Within a Market" "Toolkit: Use Gartners Lead Management Maturity Model to Assess Lead Management Capabilities" "Criteria for Magic Quadrant for CRM Lead Management" "Roundup of CRM Lead Management, Campaign Management, and Digital Marketing Research in 2011" "MarketScope for CRM Lead Management"Page 20 of 23 Gartner, Inc. | G00226897
    • "Leverage CRM Lead Management KPIs to Link Marketing Investment to Business ROI" Evaluation Criteria Definitions Ability to Execute Product/Service: Core goods and services offered by the vendor that compete in/ serve the defined market. This includes current product/service capabilities, quality, feature sets, skills and so on, whether offered natively or through OEM agreements/ partnerships as defined in the market definition and detailed in the subcriteria. Overall Viability (Business Unit, Financial, Strategy, Organization): Viability includes an assessment of the overall organizations financial health, the financial and practical success of the business unit, and the likelihood that the individual business unit will continue investing in the product, will continue offering the product and will advance the state of the art within the organizations portfolio of products. Sales Execution/Pricing: The vendors capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation, presales support, and the overall effectiveness of the sales channel. Market Responsiveness and Track Record: Ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the vendors history of responsiveness. Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organizations message to influence the market, promote the brand and business, increase awareness of the products, and establish a positive identification with the product/brand and organization in the minds of buyers. This "mind share" can be driven by a combination of publicity, promotional initiatives, thought leadership, word-of-mouth and sales activities. Customer Experience: Relationships, products and services/programs that enable clients to be successful with the products evaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, service-level agreements and so on. Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the organizational structure, including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis.Gartner, Inc. | G00226897 Page 21 of 23
    • Completeness of Vision Market Understanding: Ability of the vendor to understand buyers wants and needs and to translate those into products and services. Vendors that show the highest degree of vision listen and understand buyers wants and needs, and can shape or enhance those with their added vision. Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization and externalized through the website, advertising, customer programs and positioning statements. Sales Strategy: The strategy for selling products that uses the appropriate network of direct and indirect sales, marketing, service, and communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and the customer base. Offering (Product) Strategy: The vendors approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature sets as they map to current and future requirements. Business Model: The soundness and logic of the vendors underlying business proposition. Vertical/Industry Strategy: The vendors strategy to direct resources, skills and offerings to meet the specific needs of individual market segments, including vertical markets. Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes. Geographic Strategy: The vendors strategy to direct resources, skills and offerings to meet the specific needs of geographies outside the "home" or native geography, either directly or through partners, channels and subsidiaries as appropriate for that geography and market.Page 22 of 23 Gartner, Inc. | G00226897
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