Multiple Changes in the Gartner Magic Quadrant for CRM Multichannel Campaign Management

Easy-to-use graphical interfaces, software-as-a-service (SaaS) delivery, social CRM, mobile, and a continued focus on inbound marketing and decision offer management dominate the themes in this year's Gartner Magic Quadrant for CRM Multichannel Campaign Management (MCM). "B2B capability (lead management) continues to be a hot area," writes Adam Sarner, a Gartner analyst and author of the report, "with nearly all vendors offering or contemplating options there." Despite the bad economy, more than 90 percent of the vendors included in the report were profitable, and Sarner predicts a market that will continue to grow.

In order to be included in the Magic Quadrant vendors must be among industry leaders in three categories: functionality, market presence and momentum, and vendor viability. The criterion, which may be adjusted from year to year as the market evolves, are weighted high, standard, or low. The most important factors this year were product/service, overall viability, market understanding, offering, and marketing execution. Operations, innovation and market responsiveness were weighted low. Customer experience, marketing strategy, sales strategy, business model, vertical strategy, geographic strategy, and sales execution were in the middle.

The 2010 report includes 16 vendors, each of which must have at least 20 customers using campaign management, at least 15 new customer wins during the past 12 months, substantial appearances on Gartner client shortlists for campaign management evaluations, and at least eight accessible client references.

Gartner defines MCM as "processes that enable companies to communicate offers to customer segments across a multichannel environment, such as direct mail, call centers, Web sites, email and communities. This can include integrating marketing offers/leads with sales for execution."

The vendors are split into four segments:

• Leaders: have high market visibility, high market penetration, strong market momentum and a strategic vision for growing the campaign management business;
• Challengers: view campaign management as an opportunity to increase revenue and retention in their installed bases;
• Visionaries: provide a strong vision for the campaign management market, or excel in advanced or emerging areas, such as inbound marketing and e-marketing; and
• Niche Players: provide specific needs in the campaign management space. They may be focused on a specific functionality, process (for example, lead management), geography and/or industry.

Here's the complete rundown on the 2010 Magic Quadrant for CRM MCCM:

Leaders:

• Unica — Unica remains a leader in MCCM due in large part to its core competency and top mind share. The company's strengths include basic and advanced functionality for campaign management, and advanced analytic capabilities. While Unica now owns itsown functionality in e-marketing — something its competitors are still largely in the planning stages, according to the report — the company will see increased pressure from the on-demand, midmarket players in campaign management.
• SAS
• Teradata
• Oracle (Siebel) — Oracle (Siebel) remains in the Leaders quadrant because of the overall its viability and clear marketing positioning within the Oracle environment. It should be noted, however, that the report indicates most references reported choosing Oracle (Siebel) because of existing relationships with the company, rather than product excellence. Sarner does say, however, that "one of the things that popped for Oracle this year is they tend to be selling the loyalty management piece pretty well."

Challengers:

• Aprimo — In the report, Sarner writes that Aprimo generated $68 million in revenue in 2009, with recurring revenue growing 29 percent and total revenue growing 15 percent compared with 2008. He credits the company's addition of MCCM deals and new customers to its installed base as the reason it is in the Challengers quadrant.
• SAP — SAP experienced significant changes in 2009 including the addition of real-time offer management built within the UI business framework designer with a dashboard, high-volume performance capabilities, segmentation and e-mail execution, writers Sarner. The major knock on the company was that references said that they needed to have expert capability and strong internal knowledge of the product in order to use it successfully.

 Visionaries:

• ATG — "ATG has the best vision around online marketing," says Sarner. "The campaign management market in general has been slow to figure out a great vision around online marketing. They've been making inroads the last couple of years but the best strategy came from a vendor like Omniture which isn't really in this market." In the report Sarner writes that vendors wanted ATG to provide more-robust content management capabilities that are easier to incorporate with their processes beyond commerce.

Niche Players:

• Eloqua
• Responsys
• Microsoft (Microsoft Dynamics CRM)
• Alterian
• Neolane
• RightNow Technologies
• smartFOCUS
• Marketo
• Portrait Software

"Microsoft Dynamics CRM and Portrait Software were added to this year's Magic Quadrant because of their analytical capability, their uplift technology, and because they've taken an interest in inbound technology," Sarner says.

Infor CRM Epiphany and Market2Lead were dropped from the report this year, as they did not meet minimum criteria to be included.

News relevant to the customer relationship management industry is posted several times a day on destinationCRM.com, in addition to the news section Insight that appears every month in the pages of CRM magazine.

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