Responsys forrester the-rise_of_the_customer

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Responsys forrester the-rise_of_the_customer

  1. 1. For: CMOs The Rise Of The Customer Life-Cycle Marketing Systems by Cory Munchbach, December 11, 2013 Key Takeaways Customer-Obsessed Enterprises Must Make Marketing Technology A Priority The number of touchpoints that require marketing finesse has exploded as social and mobile join the vast sea of websites. Marketers need tools to manage the variety, interconnectedness, and measurement of these diverse interaction points. The end goal? Optimize the marketing process to ensure better, more effective marketing. New Technology Platforms Aim To Deal With Growing Marketing Complexity Marketing technology vendors have amassed new capabilities to win the hearts -- and budgets -- of tech-savvy CMOs. These systems, when complete, will have to mirror the process of marketing, from analyzing actionable customer analytics, applying them to marketing output, and providing detailed reporting on business outcomes. CMOs Will Find The Whole Of A CLCMS To Be Greater Than The Sum Of Its Parts CMOs will need to press vendors to demonstrate the additional value a platform can provide versus the best-of-breed solutions that may already be in place. The onus will be on these vendors to show how their broad remit increases productivity and lessens the silos of pain, while delivering more visibility into which programs work and why. Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA Tel: +1 617.613.6000 | Fax: +1 617.613.5000 | www.forrester.com
  2. 2. For CMOs December 11, 2013 The Rise Of The Customer Life-Cycle Marketing Systems Tools And Technology: The Customer Life-Cycle Marketing Playbook by Cory Munchbach with David M. Cooperstein and Alexandra Hayes Why Read This Report Marketers need business technology that can help them create, manage, and measure increasingly complex marketing efforts. Major technology vendors have invested to help reduce this complexity for CMOs and their marketing teams, through a combination of acquisitions, development, and integration. Forrester calls this set of marketing technologies “customer life-cycle marketing systems” (CLCMS). These emerging platforms will integrate core marketing operations capability to manage marketing’s fragmented processes and help marketers deliver a coherent story to discrete groups of customers. In this report, we define and describe the CLCMS, lay out the landscape of vendors vying to deliver this vision, and offer key recommendations on how CMOs should act to prepare for and adopt these new, but necessary, tools. Table Of Contents Notes & Resources 2 Technology Must Now Underpin Marketing Execution Forrester interviewed 12 vendor and more than 20 user companies, including Adobe, Experian, IBM, Infosys, Microsoft, Responsys, salesforce.com/ExactTarget, SapientNitro, SAS, Silverpop, StrongView, and Teradata. Marketers Need To Deliver Customer-Obsessed Results 3 Marketers Need A Customer Life-Cycle Marketing System The CLCMS Will Help Break Down Silos And Drive Customer-Obsessed Marketing The CLCMS Will Integrate Five Core Functions The CLCMS Landscape Will Be Noisy For The Next Three Years Vendors Will Noticeably Progress Toward The Customer Life-Cycle Vision recommendations Related Research Documents Make Customer Obsession Pay Off With The Customer Life Cycle August 29, 2013 The CMO’s Role In Technology Purchasing June 20, 2013 Embed The Customer Life Cycle Across Marketing January 22, 2013 14 Marketers Must Align Strategy And Process Before Calling Vendors 14 Supplemental Material © 2013, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available 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 clientsupport@forrester.com. For additional information, go to www.forrester.com.
  3. 3. For CMOs 2 The Rise Of The Customer Life-Cycle Marketing Systems Technology Must Now underpin Marketing Execution The fragmentation of the customer journey due to the growth of digital channels, platforms, and content has placed enormous strain on marketing to be contextually and personally relevant and responsive.1 This is driven by: ■ Channel proliferation that won’t stop. Marketers have to juggle a growing portfolio of channels and touchpoints with relevant, targeted marketing content. However, only 38% of marketing leaders have a single view of customer interactions across touchpoints and interaction history. And only 42% think that their company can create actionable insights if they have that single view.2 Marketers need assistance in understanding how consumers use different tools, for what objectives, and at which point in their life cycle. They then need to react in context to optimize the experience. As one apparel retailer told us, “showing ROI from one channel silo doesn’t matter anymore. We have to think holistically.” ■ CMOs who take greater ownership for technology investments and decisions. Marketers told us that they allocate 16% of their budgets to technology, and 37% confirmed that their technology spending increased at least 5% over the past 12 months.3 With significant marketing budgets going to technology investments, senior marketers are watching where the dollars flow by getting more involved in the decision-making for these investments. ■ The marriage of art and science in marketing. CMOs have a dual responsibility to coordinate content and channels, while mastering the data to optimize those resources and improve marketing performance. To deliver on these yin-and-yang objectives requires more than Excel files and gut instinct — they need improvements in data, analytics, operations, and processes that marketing technology vendors are eager to deliver and support. Software that manages campaigns, delivers relevant content, and stores, retrieves, and analyzes customer data has exploded to help marketers keep up. Marketers Need To Deliver Customer-Obsessed Results Marketers have made the customer life cycle a strategic imperative; 73% have completely or partially mapped the decision and purchase journeys for key consumer segments.4 But 78% of marketers said that creating a marketing organization that is aligned around the customer presents a challenge to using the customer life cycle in practice.5 To get there, marketers need: ■ A primary source of truth about the customer. One insurance company told Forrester that “if you know the [customers], you can give them a unique . . . experience, [but] operationalizing this is the challenge.” Marketers need a mechanism to define the customer and her life cycle and seamlessly translate that knowledge into the appropriate marketing actions. ■ Improved collaboration across marketing. Right now, most companies have a siloed approach to technology adoption — teams purchase what they need to accomplish a tactical © 2013, Forrester Research, Inc. Reproduction Prohibited December 11, 2013
  4. 4. For CMOs 3 The Rise Of The Customer Life-Cycle Marketing Systems set of objectives. But as the vice president of eCommerce and marketing at a major clothing brand told us, “Without [broader] tools, we’re going to stay in silos. The technology is forcing processes and organizational changes.” ■ Performance measurement based on customer outcomes. CMOs need to move the marketing department away from channel-specific metrics and toward holistic customer-based measurement. An objective of one consumer electronics retailer, for instance, is to have the technology provide “at every touchpoint [online or offline], the benefit of your customer’s full experience historically . . . and then be able to offer up the right next thing” in his journey. Marketers Need A customer life-cycle Marketing SYSTEM To tackle these challenges, Forrester has called on CMOs to adopt the customer life cycle (CLC) as a guiding framework for the entire marketing effort (see Figure 1). The CLC represents the marketing actions taken from the point of view of customers as they move through the phases of discover, explore, buy, and engage. In order to execute across that whole life cycle, Forrester sees the need for marketers to deploy what we call the “customer life-cycle marketing system” (CLCMS), which Forrester defines as: A central technology hub that allows marketers to manage every interaction between the company and its customers as they progress along the customer life cycle. Figure 1 The Customer Life Cycle Guides Marketers With A Customer-Obsessed Approach pl or is Ex e D er ov c En ga ge 106361 © 2013, Forrester Research, Inc. Reproduction Prohibited Bu y Source: Forrester Research, Inc. December 11, 2013
  5. 5. For CMOs 4 The Rise Of The Customer Life-Cycle Marketing Systems The CLCMS Will Help Break Down Silos And Drive Customer-Obsessed Marketing The CLCMS will bring together the data, analytics, and actions required to win, serve, and retain customers and help marketers manage each phase of the CLC. Parts of the CLCMS already exist, but as fragmented point solutions. Forrester believes that the whole is greater than the sum of the existing parts for these tools. Bringing these pieces together makes the marketing process more integrated with support (see Figure 2): ■ The technical underpinnings of all customer touchpoints. The CLCMS will have to provide integrated functional support to customer-facing parts of the enterprise. It will be the platform for data sharing and next-best actions to take across outbound and inbound marketing, selfservice websites, interactive voice response, and apps, while feeding call center and sales force automation tools. ■ Consistent collaboration across organizational boundaries. Marketing complexity requires process change. CMOs seeking to streamline the organization around the customer will find a CLCMS to be a valuable asset in driving structural change by streamlining actions, workflows, and reporting between roles. ■ Real-time measurement, analysis, and response. The CLCMS will allow users to take action by combining analytics and performance data. Because it is within a unified system, the marketer can make adjustments that immediately improve results. © 2013, Forrester Research, Inc. Reproduction Prohibited December 11, 2013
  6. 6. For CMOs 5 The Rise Of The Customer Life-Cycle Marketing Systems Figure 2 The Five Core Components Of A Customer Life-Cycle Marketing System Customer knowledge hub Marketing operations management Interactions management capability Enterprise reporting dashboard Analytics and measurement 106361 Source: Forrester Research, Inc. The CLCMS Will Integrate Five Core Functions The CLCMS provides marketers with the tools to manage marketing throughout the customer life cycle. It integrates five key components (see Figure 3): ■ Analytics and measurement based on the CLC. Customer analytics will be at the forefront of business transformation, moving the organization from narrow campaign and sales measurement to insights that grow existing customer relationships and provide insight into future behavior. Forrester has called for analytics vendors to use a series of progressive analytics techniques to guide decisions across all four phases of the CLC to drive success — including segmentation, marketing mix modeling, next-best action models, and lifetime value models.6 For some vendors, this measurement legacy is core to the business already, while others may look to standalone measurement shops as acquisition targets to burnish their credentials. © 2013, Forrester Research, Inc. Reproduction Prohibited December 11, 2013
  7. 7. For CMOs 6 The Rise Of The Customer Life-Cycle Marketing Systems ■ 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. © 2013, Forrester Research, Inc. Reproduction Prohibited December 11, 2013
  8. 8. For CMOs 7 The Rise Of The Customer Life-Cycle Marketing Systems Figure 3 The Whole Of The CLCMS Is Greater Than The Sum Of Its Parts Analytics: Circulatory system Data: Brain and nervous system Customer life-cycle marketing system Operations: Skeletal system Engagement: Muscular system Reporting: Sensory system 106361 © 2013, Forrester Research, Inc. Reproduction Prohibited Source: Forrester Research, Inc. December 11, 2013
  9. 9. For CMOs 8 The Rise Of The Customer Life-Cycle Marketing Systems The CLCMS Landscape Will Be Noisy For The Next Three Years The CLCMS will provide the technology to drive a customer-obsessed marketing strategy — allowing marketing to respond based on customers’ observed needs and behaviors. There are several contenders to be CLCMS providers today, but most still rely on their historic strength to differentiate themselves in this immature market (see Figure 4). We spoke to 12 vendors that serve large enterprises. None yet qualifies as a CLCMS, but all have made strategic decisions that move them closer to becoming the platform we describe.10 The CLCMS will be a viable offering when today’s contenders: ■ Create a uniform language and process for marketers. Marketers who make use of tools from the CLCMS candidates do not rely on any one vendor to support all their marketing technology needs. This leads to complexity and inefficiency for marketers, as the diversity of systems don’t share data, measure things the same way, or coordinate marketing actions. As one marketer at an online professional services company put it, “I’m unsure of [our vendor’s] ability to keep up with channels,” so marketers look at other options instead, adding another piece to the snarl of technologies. Vendors need to double down on application programming interfaces (APIs) that enable seamless communication and exchange to minimize pieces and improve performance. ■ Lead with an integration story. Marketers with existing technology contracts and systems won’t move quickly to a single platform. Forrester believes that the vendors who successfully assemble a CLCMS will succeed first as masters of integration. They will deploy their legacy solutions as the core, building the APIs to third-party solutions where their platform is incomplete. The merger and acquisition efforts by IBM, salesforce.com, and Adobe do not equate to integration. In one instance, a vendor customer told us, “They aren’t wired to assimilate new things wickedly fast; it needs to be seamless, like turning on a switch. They struggle as much because of cultural as technological challenges.” Another customer noted, “Functionality is often lost when the buyer tries to integrate outside of the vendor’s platform.” ■ Resolve the complexity and cost of adopting a new platform. At large enterprises, marketing and IT departments are often committed to dozens of technologies, making the prospect of switching functionality over to a new partner daunting and potentially cost-prohibitive. CMOs will need to account for not only the cost of the new vendor but also the retraining expense for their marketers. Vendors that are committed to providing an integrated product will also need flexible progressive pricing structures that reflect the scope of the transition.11 © 2013, Forrester Research, Inc. Reproduction Prohibited December 11, 2013
  10. 10. For CMOs 9 The Rise Of The Customer Life-Cycle Marketing Systems Vendors Will Noticeably Progress Toward The Customer Life-Cycle Vision Key to success for vendors will be their ability to turn their approach from a funnel-based dynamic into a process that is managed as a CLC. We expect vendors to make progress toward the CLC approach by prioritizing three key dimensions: ■ Vision. Vendors with clear adherence to the CLC vision are more likely to provide the technology architecture CMOs need versus those that remain aligned to the marketing funnel. Firms like Adobe, Oracle, and salesforce.com have launched marketing clouds, signifying intent in that direction. ■ Progress. Some vendors are closer than others at achieving CLCMS status, due to a strong existing set of tools and a compelling and actionable vision for the system. Vendors will need to audit their strategy, technology, pricing, and marketing against the CLCMS vision to assess their current position and then create a development plan for the next 24 months. ■ Product strategy. Based on the research done for this report, we expect that a handful of vendors will make significant strides in the following two years to deliver a CLCMS. These vendors will use their product development and acquisition strategies to fill in their current gaps as a CLCMS and make integration a top priority for all new capabilities. © 2013, Forrester Research, Inc. Reproduction Prohibited December 11, 2013
  11. 11. For CMOs 10 The Rise Of The Customer Life-Cycle Marketing Systems Figure 4 The Customer Life-Cycle Marketing System: Vendor Profiles Vendor: Adobe Product/product suite considered: Adobe Marketing Cloud Number of employees: 2,200 Revenues: $1.058 billion Geographic scope: North America, EMEA, Asia Pacific, Japan, and Brazil Reference Lenovo, Redbox, SAP, Conde Nast, clients: and Scottrade Overview: Adobe has moved beyond its creative roots to offer a suite of tools for marketers across six product lines that align well with the CLCMS vision. Recent acquisitions are well integrated, pointing to the company’s ability to expand the Marketing Cloud as the market’s needs evolve. Its customer data sources lean heavily toward digital channels, limiting the full customer view. But the integration of Neolane broadens Adobe’s data aperture to offline insight. Primary Retail, media, financial services, industries: B2B high-tech, travel and hospitality Vendor: Experian Marketing Services Product/product suite considered: Cross-Channel Marketing Platform Number of employees: 5,000 Revenues: $1 billion to $1.25 billion Geographic scope: Global Reference clients: The Limited, Digitas, and Brown Shoe Overview: Experian has built upon its sophisticated data foundation to support a more diverse marketing technology provider. Though it has some catching up to do on campaign management and operations capabilities, Experian’s Marketing Sophistication Curve and internal performance metrics around customer utility reveal a clear vision and strong commitment toward data-driven, customer-first marketing in line with that of the CLCMS0. Primary Retail, travel, media, and financial industries: services Vendor: IBM Product/product suite considered: Enterprise Marketing Management (EMM) Number of employees: 434,246 Revenues: $104.5 billion Geographic scope: Americas, EMEA, Asia Pacific Reference Citrix, Land’s End, and Ufone clients: Overview: IBM’s EMM platform offers a wide array of marketing management capabilities that lead to a CLCMS future due to its many acquisitions. While its modular approach has appeal for marketers who need to mix and match capabilities, clients want to see IBM speed up the deeper integration of its products and acquisitions and demonstrate an ability to be more agile. Primary Retail, financial services, B2B industries: technology Note: Italic numbers reflect the entire company. 106361 © 2013, Forrester Research, Inc. Reproduction Prohibited Source: Forrester Research, Inc. December 11, 2013
  12. 12. For CMOs 11 The Rise Of The Customer Life-Cycle Marketing Systems Figure 4 The Customer Life-Cycle Marketing System: Vendor Profiles (Cont.) Vendor: Infosys Vendor: Adobe Product/product suite considered: The Edge series Number of employees: ~2,000 Revenues: $115 million+ Geographic scope: North America, EU, Latin America, Asia Pacific Reference Dentsu, Diageo, and GlaxoSmithKline clients: Overview: Infosys’ focus is on managing global marketing operations and data, directly and in conjunction with agencies. The company has embarked on a software strategy — unusual for an infrastructure outsourcer. To gain attention, it sells the Edge product suite with the option to have customers pay based on results. The highly customizable and technical nature of the platforms makes it a big task for a marketing department to take on without IT support, but its legacy of integration will be a differentiator in the CLCMS landscape. Primary CPG, pharmacy, marketing industries: agencies Vendor: Microsoft Product/product suite considered: MarketingPilot Number of employees: 26,000 are dedicated to sales and marketing Revenues: $77.8 billion Geographic scope: North America, EMEA, Asia Pacific, Latin America Reference clients: Pacific Life Insurance and Build-A-Bear Overview: Microsoft has added to its strong position in CRM by adding MRM and campaign management capabilities. The company’s unique flavor is that it is a lower-cost option for clients, but the pricing relates to the capabilities: The MarketingPilot product is limited by capabilities that will appeal to smaller businesses more than large enterprises, and it prioritizes native Microsoft channels such as Skype and Xbox. Primary Insurance, financial services, retail industries: Vendor: Oracle Product/product suite considered: Oracle Marketing Cloud and Oracle CX Porfolio Number of employees: 120,000 Revenues: $37.2 billion Geographic scope: North America, EMEA, Asia Pacific, Japan Reference McAfee, Southwest Airlines, Swiss Post clients: Solutions, and Thomson Reuters Overview: Oracle has many pieces of the marketing technology spectrum at its disposal as a result of Oracle’s traditional business assets and the acquisition of Eloqua to form the Oracle Marketing Cloud. However, it is unclear how much progress has been made toward integrating the pieces, and it needs that clarity to prove itself as a CLCMS contender. Primary High tech, manufacturing, financial industries: services, professional services Note: Italic numbers reflect the entire company. 106361 © 2013, Forrester Research, Inc. Reproduction Prohibited Source: Forrester Research, Inc. December 11, 2013
  13. 13. For CMOs 12 The Rise Of The Customer Life-Cycle Marketing Systems Figure 4 The Customer Life-Cycle Marketing System: Vendor Profiles (Cont.) Vendor: Responsys Product/product suite considered: Interact Marketing Cloud Number of employees: 1,000+ Revenues: $162.8 million Geographic scope: US, EMEA, Asia Pacific Reference Nordstrom, Orbitz, MetLife, and clients: LinkedIn Overview: Responsys has a compelling vision for where marketing — and the company — is headed: It calls it “marketing orchestration.” Clients hold the company in high regard as a partner and are enthusiastic about where the company is taking the platform. Responsys’ strength and growth in campaign management makes it stand out, but the offer lacks some important operational and data capabilities of the bigger CLCMS aspirers. Primary Retail, travel and hospitality, financial industries: services Vendor: salesforce.com Product/product suite considered: Salesforce ExactTarget Marketing Cloud Number of employees: 800 Revenues: $3.80 billion Geographic scope: North America, EMEA, Asia Pacific, Latin America Reference CareerBuilder, TripAdvisor, and Thirty-One clients: Gifts Overview: Salesforce.com’s acquisition of ExactTarget and announcement of Salesforce1 promise the ability to link salesforce.com’s sales and service clouds with the marketing cloud campaign functionality, which would bring together core elements of marketing technology functionality. However, the company is far from fully integrated on the technical functionality, the pricing, or the data sharing platform required to carry out its vision — or that of a CLCMS — today. Primary Retail, CPG, high-tech industries: Vendor: SAS Product/product suite considered: SAS Customer Intelligence Number of employees: 700+ Revenues: $350 million+ Geographic scope: North America, EMEA, Asia Pacific, Mexico, Russia Reference Haven Holidays, DeutschlandCard, and Permanent TSB clients: Overview: SAS can point to a substantial group of clients using nearly all of its extensive capabilities on an enterprise basis — a rare achievement among the vendors with which we spoke. The SAS marketing technology suite is very well developed for an aspiring CLCMS. Despite a strong arsenal of tools, it doesn’t headline the conversation in the marketing technology discussions, because it does not market itself as strongly. Primary Financial services, retail, commmunindustries: ications/content/entertainment Note: Italic numbers reflect the entire company. 106361 © 2013, Forrester Research, Inc. Reproduction Prohibited Source: Forrester Research, Inc. December 11, 2013
  14. 14. For CMOs 13 The Rise Of The Customer Life-Cycle Marketing Systems Figure 4 The Customer Life-Cycle Marketing System: Vendor Profiles (Cont.) Vendor: Silverpop Product/product suite considered: Engage Number of employees: 517 Revenues: Privately held company Geographic scope: Americas, Asia Pacific, Australia, Europe Reference evo, fabric.com, NetProspex, LifeShield, clients: and PaperStyle.com Overview: Silverpop primarily serves small and medium-size businesses with email services and marketing automation and offers a behavioral marketing capability. Silverpop relies on a vast network of partners, making integration an asset as a future CLCMS player. Primary Retail, agency, business, and industries: financial services Vendor: StrongView Product/product suite considered: StrongView Interactive Marketing Platform Number of employees: 175 Revenues: Undisclosed Geographic scope: North America, UK, Spain, Australia, India Reference The Motley Fool, McAfee, OTC Direct, clients: and Turner Broadcasting Overview: StrongMail became StrongView in summer 2013, cementing the company’s move from being an email services provider to a multichannel campaign manager. StrongView’s competence is in messaging across digital channels, and its focus on what it calls “present tense marketing” emphasizes the importance of messaging in context in different phases of the life cycle to be relevant to customers. Primary Retail, financial services, travel and industries: hospitality, media/entertainment/ publishing Vendor: Teradata Product/product suite considered: Customer Interaction Manager Number of employees: 10,200 Revenues: $2.665 billion Geographic scope: North America, EMEA, Asia Pacific, Latin America, Russia Overview: Teradata’s strength as a CLCMS derives from a history in data and analytics — a core function of a CLCMS. For example, the ability to link known and unknown customer profiles is a key step in connecting all the pieces of the life cycle. Teradata will need to continue to beef up operational capabilities, such as campaign management and eCommerce, to support clients’ ability to act on the data and insights they have at their disposal. Reference International Speedway Corporation (ISC), Primary Financial services, life sciences, clients: MGM Resorts International, and Gilt Groupe industries: retail Note: Italic numbers reflect the entire company. 106361 © 2013, Forrester Research, Inc. Reproduction Prohibited Source: Forrester Research, Inc. December 11, 2013
  15. 15. For CMOs 14 The Rise Of The Customer Life-Cycle Marketing Systems R e c o m m e n d at i o n s Marketers MUST Align Strategy ANd Process before Calling vendors Marketers on the path to building customer-obsessed enterprises need to evaluate their readiness before making a technology decision. The hard work ahead is to: ■ Embrace the process changes required to put these systems to good use. One marketer told us its marketing platform was akin to “having a Ferrari, yet not [knowing] how to drive.” While today’s vendors aren’t complete yet, firms like Adobe and salesforce.com have laid out visions for how marketers should behave as they evolve. Use their input as a guide to better align people and processes to break down your functional silos, and then work with the CLCMS provider that meets that structural need. ■ Press vendors to knit together the four phases of the CLC. Marketers need to be able to map marketing efforts to the CLC for both prospects and customers, to best use resources and touchpoints to grow the business. As due diligence, CMOs should provide vendors with several customer profiles and their hypothetical life cycle and go through the all the data, processes, and decision-making required to meet end customer’s needs along the way. This process will expose which vendors can handle anonymous and known customers, which are limited to digital-only channel management, and which are able to translate data into actionable insights in real time. ■ Request technical and business capabilities in the RFP for a CLCMS. While IT does its job to assess technical specs, CMOs must be held responsible for how the investment maps to the company’s key priorities. Senior marketers will have to participate in request-for-proposal (RFP) development and vendor pitches and watch for the essential items they will need to serve the enterprise. Vendors need to show technical and business acumen to prove that the investment is good for the business as well as the expected impact on the top and bottom line. Supplemental Material Companies Interviewed For This Report Forrester interviewed more than 20 users of the vendors’ products as well as: Adobe Microsoft Experian Responsys IBM salesforce.com/ExactTarget Infosys SapientNitro © 2013, Forrester Research, Inc. Reproduction Prohibited December 11, 2013
  16. 16. For CMOs 15 The Rise Of The Customer Life-Cycle Marketing Systems SAS StrongView Silverpop Teradata EndnoteS The traditional marketing funnel has been done in by consumer behaviors that are anything but linear. Instead, in each phase of Forrester’s customer life cycle — discover, explore, buy, and engage — consumers exhibit different motivations and engagement with channels, devices, and other touchpoints. This report will help business-to-consumer CMOs make sense of the fragmented landscape of consumer decisionmaking and buying behaviors to help form a better strategy for customer life-cycle marketing. See the March 20, 2013, “Fragmented Path-To-Purchase Demands Everywhere Marketing” report. 1 2 The base is 303 marketing and IT leaders. Source: Forrester/Forbes Insights Q2 2013 US Marketing And IT Alignment Online Survey. Source: Forrsights Business Decision-Makers Survey, Q4 2012. 3 Source: July 2013 North American Customer Life-Cycle Marketing Online Survey. 4 Source: July 2013 North American Customer Life-Cycle Marketing Online Survey. 5 With the growing importance of customer intelligence (CI) in organizations, the role of analytics to extract insight and embed it back into organizational processes is at the forefront of business transformation. However, marketers predominantly enable measurement and analytics infrastructure to serve the needs of customer acquisition, with a limited view toward the entire customer life cycle. Forrester recommends deploying various analytical techniques across the customer life cycle to grow existing customer relationships and provide insight into future behavior. See the November 19, 2012, “How Analytics Drives Customer Life-Cycle Management” report. 6 As organizations gain adaptive intelligence, not only will they outsmart their competitors, they’ll also begin to productize and gain direct financial benefit from the specialized data they generate. To achieve these goals, marketing leaders must work together with business technology leaders to optimize their organization’s data capture, storage, analysis, and sharing capabilities and make that data available to the global data economy. See the May 8, 2013, “Introducing Adaptive Intelligence” report. 7 In the age of the customer, during which knowledge of and engagement with customers is the source of sustainable competitive success, businesses must conceptually bring together the marketing methods that create crucial customer knowledge and the IT methods that model operational realities. This is especially true because customer engagement is not a linear, static process. Customers take many paths as they solve problems, activating business capabilities in unpredictable ways. See the October 21, 2013, “Linking Customer Engagement To Business Capabilities In The Age Of The Customer” report. 8 For more information about layer and customer decision management, see the May 9, 2013, “Move Beyond Campaigns To Tap Hidden Customer Potential” report. 9 © 2013, Forrester Research, Inc. Reproduction Prohibited December 11, 2013
  17. 17. For CMOs 16 The Rise Of The Customer Life-Cycle Marketing Systems The list of vendors we included here is not exhaustive, nor do they represent a single component of the marketing technology market. Indeed, the varied backgrounds of each of these vendors — and their professed commitment to becoming a marketing platform — reveal how far-reaching the desire for less complexity has gone, bringing together vendors that only a few years ago would have not been mentioned in the same sentence. 10 Adobe announced flat-rate, profile-based pricing for Adobe Campaign — its email and cross-channel campaign management product. This move dispenses with the volume-based model typical for email service providers, and it plants Adobe as a disruptive competitor in the email marketing space. See the November 15, 2013, “Quick Take: New Pricing From Adobe Campaign Will Disrupt Email Marketing” report. 11 © 2013, Forrester Research, Inc. Reproduction Prohibited December 11, 2013
  18. 18. About Forrester Global marketing and strategy leaders turn to Forrester to help them make the tough decisions necessary to capitalize on shifts in marketing, technology, and consumer behavior. We ensure your success by providing: Data-driven insight to understand the impact of changing consumer behavior. n Forward-looking research and analysis to guide your decisions. n Objective advice on tools and technologies to connect you with customers. n Best practices for marketing and cross-channel strategy. n for more information To find out how Forrester Research can help you be successful every day, please contact the office nearest you, or visit us at www.forrester.com. For a complete list of worldwide locations, visit www.forrester.com/about. Client support For information on hard-copy or electronic reprints, please contact Client Support at +1 866.367.7378, +1 617.613.5730, or clientsupport@forrester.com. We offer quantity discounts and special pricing for academic and nonprofit institutions. Forrester Focuses On CMOs As the top marketing executive for your company or division, you’re engaged in orchestrating and building a competitive brand while fueling business growth. You’re also responsible for ensuring consistency in digital and traditional marketing channels and empowering others across the organization to deliver a consistent brand experience. « Catherine Melissa Oliver, client persona representing CMOs 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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