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The time has come once again
The 2004 M
for CRM magazine to reward excellence and achievement among vendors in the CRM industry.
CRM vendors have individually and collectively worked to build confidence in the discipline, and
those efforts are paying off.
According to AMR Research, com-
panies are still making modest- Enterprise Suite CRM
but-measurable increases in their The Market
A
new competitive landscape emerged among the largest deploy-
spending on customer manage- ments of CRM this past year. Changes in users’ buying patterns
have the enterprise CRM vendors looking for new ways to
ment tools and strategies, to the maximize growth and profitability. One approach these vendors are
increasingly using is to take aim at each other in an attempt to win over
tune of an additional $600 million existing customers. The maturation of the enterprise CRM market,
says Chris Selland, vice president of sell-side research at Aberdeen
in spending expected for 2004.
Group, means “these days, the only deals you win are the ones you
Interest is strongest among mid- take away from other guys.”
Another paradigm shift over the past year is the growth of hosted
market and SMB firms, which we CRM technologies. Many of the market leaders have expanded or
improved their offerings in this area, often focusing on embedded ana-
classify as those companies under lytics, integration, and ease-of-use—the factors that large-scale CRM
users sought the most. “End-users are looking to consolidate and not
$1 billion and under $100 million in have one or two point solution vendors,” Selland says. “But they don’t
annual revenues, respectively. want to trade off and use a second-tier product just because it’s part of
their suite vendor.” This year’s market-leading vendors recognized
But there was plenty to stir things these developing trends and tried to capitalize on them.
up this year. Read on to see what The Leaders
Among the leading enterprise vendors, Amdocs is the one most heav-
companies prevailed from 2003, ily focused on primarily one key vertical: telecommunications. But the
and how others are leaving an company is relying on its ClarifyCRM division to extend its reach to
other appropriate verticals. This is one reason for its solid 15 percent
indelible mark on the industry. revenue growth in the CRM space, which helped turn a minor overall
B Y P H I L L I P B R I T T, J A S O N C O M P T O N , AND JOSHUA WEINBERGER
44 customer relationship management / september 2004
Market Leaders
✪Winner /
✔Leader
✪
✪
✔
✔
Company
Accenture
Acxiom
Amdocs
Aprimo
Category
CRM Consultancies
Data Quality
Enterprise Suite CRM
Marketing Performance Mgmt
Reputation for
Customer
Satisfaction
3.5
4
3.43
3.4
Reputation for
Depth of
Functionality
4.25
4.6
3
3.8
✔ Ascential Software Data Quality 3.2 3.6
✔ BearingPoint CRM Consultancies 4 3.75
✪ Best Software (ACT!) SFA 3.4 2.2
✪ Best Software (SalesLogix) SMB Suite CRM 3.6 3.4
✔ Business Objects CRM Analytics 3.8 3
✔ Capgemini CRM Consultancies 2.75 3.25
✔ Cognos CRM Analytics 3.8 3
✔ Deloitte CRM Consultancies 3.25 4
✔ E.piphany CRM Analytics 3.6 3.2
✔ E.piphany Marketing Performance Mgmt 3.2 3.6
✔ Firstlogic Data Quality 3.4 3
✔ FrontRange Solutions (GoldMine) SFA 2.8 3.4
✔ Group 1 Data Quality 3.6 3
✔ IBM Business Consulting Services CRM Consultancies 3.5 4
✔ Interface Software SFA 4.5 4
✔ Maximizer Software SFA 2.6 2.8
✔ Microsoft Midmarket Suite CRM 2.4 2.25
✔ Microsoft SMB Suite CRM 2.4 2
✔ NetSuite SMB Suite CRM 3.5 3.6
✔ Onyx Software SMB Suite CRM 3.6 3.8
✔ Oracle Enterprise Suite CRM 2.57 3.14
✔ PeopleSoft Enterprise Suite CRM 3.86 3.86
✔ PeopleSoft Midmarket Suite CRM 3.9 3.9
✔ Salesforce.com Midmarket Suite CRM 4.2 2.8
✔ Salesforce.com SMB Suite CRM 4.2 2.8
✔ Salesnet SFA 3.75 3.6
Customer satisfaction and depth of functionality
are based on a 5-point scale, with 5 being the
✔ SAP Enterprise Suite CRM 3.14 3.36
✔ SAP Midmarket Suite CRM 3.1 3.4
✪ SAS Institute CRM Analytics 4.2 4.8
✔ SAS Institute Marketing Performance Mgmt 3.6 3.8
✪ Siebel Systems Enterprise Suite CRM 3.29 4.86
✔ Siebel Systems Marketing Performance Mgmt 2.2 2.9
✪ Siebel Systems Midmarket Suite CRM 2.5 4.7
highest rating.
✔ Teradata CRM Analytics 4.8 4.8
✔ Trillium (Harte-Hanks) Software Data Quality 4 3
✪ Unica Marketing Performance Mgmt 3.8 4.4
REPUTATION FOR REPUTATION FOR
ENTERPRISE SUITE CRM CUSTOMER SATISFACTION DEPTH OF FUNCTIONALITY
Siebel Systems 3.29 4.86
Amdocs 3.43 3
Oracle 2.57 3.14
PeopleSoft 3.86 3.86
SAP 3.14 3.36
THE 2004 CRM LEADER AWARDS
2002 loss into a booming $168 million profit in 2003. Coupled executive, to head the CRM division underscores the company’s
with exceptionally strong customer satisfaction marks (which dedication to integration, a perennial enterprise concern.
explain a nearly 100 percent customer retention rate among While observers openly dispute the true nature of SAP’s
ClarifyCRM users), and the continued absorption of last year’s CRM growth, AMR Research says the German giant pulled
acquisition of Xchange, Amdocs’ big push in functionality and into a dead heat with Siebel Systems for the revenue-share lead
partnerships helped the company stay far ahead of the midmar- in the CRM market last year, at 13 percent each. SAP also
ket vendors striving to gain entrance to the enterprise market, reaped a massive paper windfall thanks to an exchange rate
and helped it keep pace with its enterprise-level peers. that puffed up its Euro-based results. Still, much of the credit
Although busy with its hostile takeover bid for PeopleSoft, for the company’s ever-expanding reach in the CRM space goes
Oracle managed to stay in step with its enterprise-level competi- to a 2003 mySAP 4.0 release that greatly improved on the pre-
tors. Ranked the lowest among the Market Leaders in terms of cus- vious (and much-maligned) user interface. The company
tomer satisfaction ratings, Oracle scored points in terms of made a major push into CRM through upgrade initiatives and
functionality—in part because the company addressed two of the added trade promotion management and analytics functional-
industry’s key concerns: data integration and hosted CRM. The ity, all the while blatantly capitalizing on the uncertainty sur-
company met the trend toward rounding Siebel and PeopleSoft’s future.
ENTERPRISE SUITE CRM
There’s nothing quite like data integration with its Cus-
pocketing about $100 million tomer Data Hub, uniting data The Winner
to get a little attention. from front- and back-office sys- Siebel Systems, while maintaining its position as
Salesforce.com’s initial pub-
tems to provide a single complete CRM’s 800-pound gorilla, weathered a steep 17
lic offering ended a year of
big moves and big suc- source of customer information. percent decline in revenue, according to AMR
cesses for the software-as-a- Oracle also repositioned and Research, as well as the ignominy of losing its clear
service firm. The company expanded its hosted offering, hold on the revenue-share lead in the space. Meanwhile, com-
broke into AMR Research’s giving customers the option of pany founder Tom Siebel surprised everyone by suddenly
top-20 list of vendors with
on-premises managed services. stepping down as CEO, handing the position to former IBM
the highest CRM revenue, and
released new versions of its flag- With 61 percent revenue executive J. Michael Lawrie. But the release of Siebel 7.7
ship product and of sforce, its growth, PeopleSoft seems at brought a renewed focus on sales, customer service, and mar-
platform for developers. Founder first glance to be the leader of keting activities, thanks in large part to the strength of recently
and CEO Marc Benioff suffered a the pack. But revenues hardly upgraded Siebel Analytics. Customers and analysts alike were
black eye at the hands of the
budged at all in the enterprise also impressed with the technological leaps forward brought
SEC, as the company’s IPO was
delayed three times. Even after arena, as most of the growth by acquisitions of Motiva (incentive management), Ineto Ser-
all that the company made a came from the midmarket vices (contact center management), and Eontec (retail bank-
notable splash in its debut, pric- through the acquisition of J.D. ing solutions), among others. The most notable purchase, the
ing above its target and experi- Edwards. What kept the com- acquisition of UpShot (and its integration into Siebel On-
encing one of the best first-day
pany a Market Leader this year Demand), seemed to embody a year of positive redirection.
performances of the year.
“Salesforce.com has grown were its development efforts and “Everything that Siebel did is pointing toward ambitions in
to be a very big influence in the its strong showing in CRM’s the on-demand space,” says Denis Pombriant, managing prin-
industry, but their footprint surveys of both functionality cipal at Beagle Research Group. —Joshua Weinberger
”
isn’t very big, Selland says. and customer satisfaction. The
“They’re still nowhere near the
company’s 8.9 release
functionality of SAP or Siebel,
ONE TO WATCH
but they’re getting there. Even
” kept expectations high all Midmarket Suite CRM
so, the company is helping to year—and PeopleSoft
make on-demand CRM palat- attracted attention by The Market
able to the enterprise space—
M
beating the drum for idmarket companies, generally cited as being
and is forcing its enterprise
lower total cost of owner- between $100 million and $1 billion in revenues,
rivals to reinvent their hosted
and on-demand offerings and ship and increased ease- have long been considered the ultimate opportunity
pricing—with such wins as of-integration. The selection of for CRM vendors. Midmarket companies have problems large
SunTrust Banks, ADP Corpo- , George Ahn, a former Tibco enough to require heavy-duty solutions, budgets big enough to
rate Express, and most
recently, Cisco Systems. —J.W.
46 customer relationship management / september 2004 www.destinationCRM.com
REPUTATION FOR REPUTATION FOR
MIDMARKET SUITE CRM CUSTOMER SATISFACTION DEPTH OF FUNCTIONALITY
Siebel 2.5 4.7
Microsoft 2.4 2.25
PeopleSoft 3.9 3.9
Salesforce.com 4.2 2.8
SAP 3.1 3.4
accommodate the projects, and growth opportunities significant significantly larger midmarket
MIDMARKET SUITE CRM
This year’s midmarket lead-
enough to warrant a major CRM investment. To capture this ers list is perhaps more presence than it had enjoyed
lucrative market vendors are pulling out the stops. Be it enter- remarkable for the names in past years. In fact, AMR
prise-grade functionality for pennies on the dollar or on- that are not on it than for Research ranks PeopleSoft as
demand solutions robust enough to run a nationwide company, those that are. Last year now having the highest over-
Onyx Software was CRM
midmarket CRM is where one can find the most innovation— all number of CRM users.
magazine’s midmarket
and the most unpredictable change. The war for the midmarket leader, with Pivotal placing “J.D. Edwards is essentially
is raging, and some of its brightest names are taking hits. fifth. This year neither one a high midmarket play
ONES TO WATCH
ranked in our top five. Both in both the front office
The Leaders companies were once virtually and back office,” says
synonymous with midmarket
Microsoft’s CRM radar blip turned into a legitimate market Joe Outlaw, president
CRM. But with downward pres-
force this year, once clients began signing on in droves. With at sure from enterprise CRM ven- of Outlaw Research.
least 1,000 customer installs, Microsoft’s CRM strategy cannot dors and crowding from “When J.D. Edwards
be seen as mere dabbling. The company cut through a crowded aggressive on-demand players, first bought YouCen-
world of Outlook-compatible products, leveraging an obvious both vendors have faced signif- tric...less than five
icant challenges. These two
advantage with its own code to leapfrog many Outlook-based percent of [J.D. Edwards] cus-
companies have undergone
CRM competitors. “There’s Outlook integration, and then reorganizations: Pivotal was tomers had any sort of CRM
there’s Outlook integration—most just have a batch process acquired by CDC Software, at all, and [J.D. Edwards was]
that runs in the background or every night,” says Laura Pres- which recently named Divesh hoping that it would have a
lan, CRM research director at AMR Research. Combined with Sisodraker the new president ready product to sell those
and CEO of the unit; Onyx
a highly motivated and aggressive reseller base, Microsoft has people. I wouldn’t doubt if
founder Brent Frei stepped
been able to take a great deal of midmarket revenue in a short down as CEO to make way for [PeopleSoft was] doing fairly
period of time, and not just among smaller clients. “We’re get- Lucent veteran Janice Ander- well with that built-in cus-
ting user inquiries for companies that are looking at MS CRM son. Although both have signif- tomer base.”
as an enterprisewide solution,” Preslan says. icant installed customer bases Although Salesforce.com
providing maintenance rev-
Not all is rosy from Redmond, however, and MS CRM Ver- currently has smaller annual
enues, “new license sales have
sion 2 is being closely watched on how it will address some of been dismal, Kinikin says.
” midmarket revenues than
the limitations in Version 1—which sold very well, but has not Kinikin also thinks that the some of its rivals, strong
earned universal applause. Our expert panel rated Microsoft rough waters have hurt the growth and high marks for
at the bottom of the barrel for reputation for customer satis- credibility of the fallen leaders. satisfaction edge the on-
“The midmarket wants a five-
faction and depth of functionality. “They shipped a low- demand specialist into the
year decision, and it’s awfully
function, low-flexibility product to a reseller base that wanted hard to look out five years and midmarket leader category
to customize and add value on top,” says Erin Kinikin, vice assume that Onyx is really this year. While average cus-
president at Forrester Research. Still, Microsoft makes the going to be around that long, ” tomer size is still well under
CRM magazine leaderboard on the strength of extremely high she says. So, our eyes are on 20 seats, like Microsoft the
both Onyx and Pivotal to
year-over-year revenue growth (nearly doubling its CRM company has secured some
regroup, perhaps to reinvent in
income, the best performance among major midmarket play- 2005, and to reclaim a slice of significant business from
ers) and a strong bottom line for its CRM business. the pie. —J.C. major players, and that in
PeopleSoft joins the midmarket leaders this year largely on the turn has boosted confidence
strength of its J.D. Edwards acquisition and higher-than-average from the midmarket. “Some of the largest companies in the
analyst ratings. Added to PeopleSoft’s own midmarket presence in world are running Salesforce: Honeywell, SunTrust...[these
selling joint CRM and ERP/HR solutions, J.D. Edwards (now are] huge clients with thousands of agents running the solu-
called PeopleSoft EnterpriseOne) provides the company with a tion,” Preslan says. The company’s sforce integration platform
{
CRM magazine has significantly performance management and data ite score of overall CRM revenues
CATEGORIES expanded the range of Market Lead-
ers categories from years past. Rec-
quality vendors are also included for
the first time. Recognition for contact
and year-over-year revenue growth,
while the remainder is derived from
AND ognizing the strong growth in
demand among smaller companies,
this year the Market Leaders micro-
center outsourcing excellence moves
to our Service Leader awards.
We’ve named one winner and
market share position and analyst
ratings of reputation for customer
satisfaction and depth of functional-
CRITERIA scope looks not only at enterprise
and midmarket CRM specialists, but
SMB players and sales force automa-
four leaders (listed alphabetically) in
each category using a proprietary
selection formula. Roughly one half
ity. We’ve also cited companies in
each category worth watching for
their potential to shake up their
tion providers as well. Marketing of the rating is based on a compos- respective market next year.
REPUTATION FOR REPUTATION FOR
SMB SUITE CRM CUSTOMER SATISFACTION DEPTH OF FUNCTIONALITY
Best Software (SalesLogix) 3.6 3.4
Microsoft 2.4 2
NetSuite 3.5 3.6
Onyx 3.6 3.8
Salesforce.com 4.2 2.8
THE 2004 CRM LEADER AWARDS
is getting enterprise attention, but Preslan believes the new ware giant’s own Outlook-driven CRM package.“All the resellers
Studio capability, making it easier for companies to customize started drinking the Microsoft Kool-Aid,” says Jim Dickie, a
the look, feel, and functionality of their Salesforce.com deploy- partner with CSO Insights. Meanwhile, key on-demand players
ment, is the real jewel for midmarket customers. expanded beyond basic contact management functionality to
SAP is the most surprising participant on the midmarket become serious contenders against the traditional packaged
leaderboard. Although only a fraction of SAP’s CRM revenues suite vendors that cater to smaller business. And as verticaliza-
are attributed to midmarket clients, its growing stake in CRM tion and right-size applications continue to grow in popularity,
business means it must be taken seriously. Market share reports larger CRM leaders are doing their best to nudge those that cater
from CSO Insights indicate that SAP is winning 10 percent of specifically to smaller business into niche roles.
sales-oriented deals in the midmarket, while AMR Research
credits SAP with 13 percent of the overall customer manage- The Leaders
ment space. SAP’s focus is expected to remain the larger enter- Microsoft, by its dominating presence and user adoption, is a
prise, but with the muscle and back-office resources it bona fide SMB leader in addition to its midmarket standing.
commands, the ripple effects are clearly felt in the midmarket. Growth in Microsoft’s CRM business is extremely strong,
helped both by its enormous fleet of resellers and its relatively
The Winner recent launch as compared to its competitors. While a clear
Some in the industry deride Siebel Systems’ oft- leader, and despite the
SMB SUITE CRM
reinvented midmarket strategy as merely a ploy to get GoldMine parent Front- promise of easy, powerful
in the front door of smaller firms to upsell them to Range Solutions has Outlook integration, not all
unsteadily positioned itself
Siebel’s full enterprise suite. (Once known as the Mid- are convinced that Microsoft
as a complete CRM vendor
Market Edition, the vendor’s main offering is now called Siebel for some time, but the is an ideal solution for
Professional.) Siebel answered those intimations decisively with coming months will be SMBs, due to hefty server
the acquisition and ongoing integration of UpShot into Siebel FrontRange’s make-or-break requirements. “There’s a lot
CRM OnDemand—and despite shrinking year-over-year rev- opportunity to provide enough of Microsoft infrastructure
integrated functionality in sales,
enues, Siebel has staked a solid claim to the midmarket vanguard. you have to install before
marketing, and service to be a
Even with a clear minority of its revenues coming from the legitimate contender for SMBs you can even begin with MS
midmarket, Siebel does substantial trade with midsize enter- in need of a complete solution. CRM,” says Erin Kinikin,
prises—more than many of its midmarket peers put An on-demand version of Gold- vice president at For-
Mine is imminent, and given
ONE TO WATCH
together—owing to sales of OnDemand, its midmarket suite, rester Research. How-
the success enjoyed by SMB
and its core Siebel Enterprise product. Siebel has clearly set its ever, Laura Preslan,
leaders NetSuite and Sales-
sights on a midmarket looking to buy capabilities that were force.com, it may be a crucial CRM research direc-
once considered out of reach, and by any name, its offerings step in establishing a foothold tor at AMR Research,
will be on many RFPs from the very same mid-tier companies in the market. The hosted solu- says that Microsoft’s
the CRM industry expects will provide strong growth in com- tion could open the door to get- strong integration is
ting more functionality to
ing years. In the midmarket as in the top-tier enterprise, Siebel leading to record user
customers faster, and without
is on everyone’s mind. —Jason Compton the need for consulting. “Any- adoption rates.
body can implement a Gold- From humble beginnings
Mine or MS CRM or ACT!, but as NetLedger, an on-demand
SMB Suite CRM the big issue is synchronizing
forecasts and doing rollup, and
alternative to small business
accounting software, Net-
the hosted vendors can do that
The Market much better with much less Suite has grown into a
T
he small business CRM space has been flooded with pain than the traditional desk- legitimate CRM contender.
functionality at affordable price points, and integrators top guys, Kinikin says.
” Although its CRM function-
and customers alike can’t be blamed for shaking their As the company works to ality is not as deep as some
reassert its sales leadership and
heads and working out just what their options are. Business as established players, it has
to establish true across-the-
usual was rocked by the arrival of Microsoft last year, which—at board functionality, FrontRange enjoyed explosive growth
least temporarily—shifted a great deal of attention onto the soft- should finally realize the poten- among customers seeking
tial that the GoldMine name has
carried for years. —J.C.
48 customer relationship management / september 2004 www.destinationCRM.com
REPUTATION FOR REPUTATION FOR
SALES FORCE AUTOMATION CUSTOMER SATISFACTION DEPTH OF FUNCTIONALITY
Best Software (ACT!) 3.4 2.2
FrontRange (GoldMine) 2.8 3.4
Interface Software 4.5 4
Maximizer Software 2.6 2.8
Salesnet 3.75 3.6
THE 2004 CRM LEADER AWARDS
sales and back-end integration capabilities. The lure of NetSuite Best also deserves honorable mention for adding ACCPAC
is simple: run essentially all business functions, front and back CRM to its SMB mix. The Web-based service is sold both as an
end, on one hosted platform. on-demand and on-premise solution. The market penetration
Onyx Software is a curious presence in our market leader for ACCPAC CRM remains low, but the company hopes to slot
calculations. Although primarily a midmarket player catering it between ACT! and SalesLogix in its product mix—and come
to larger companies, it enjoys substantial uptake with smaller to the on-demand market with a more appropriate offering than
firms—and has been shoved out of its traditional midmarket the ill-fated Interact.com attempt of a few years back. “ACCPAC
leadership role by such enterprise players as Siebel and People- fills a couple of holes for them, but it is not clear where ACCPAC
Soft. “Onyx is seeing success in the public sector,” but even is going to end up,” Kinikin says. —Jason Compton
strong verticals won’t protect the company from competitive
realities, says AMR Research’s Preslan. “I think they have a lot
to fear in Microsoft.” Sales Force Automation
No one expects Onyx to reinvent itself as an SMB provider—
the company continues to serve large midmarket firms and to The Market
S
seek larger midmarket deals—however, it does serve a substantial ales force automation, say the seasoned veterans of CRM,
share of the SMB market. is where it all began. When contact management was
Salesforce.com rounds out the SMB leaders, having largely limited to index cards and pipelines were figments
attracted a substantial small-business following with simple of delirious imaginations, SFA came to bring order. Even as
pricing plans and an implicit promise to make CRM easier CRM increasingly becomes a company-wide strategy, the num-
than competitive packaged products. Although the company’s bers clearly indicate that there remains an important place for
sforce integration platform is largely seen as a play to encour- sales-focused initiatives in modern enterprise.
age enterprise adoption, Salesforce.com’s SMB customers SFA products from such vendors as Siebel, Salesforce.com,
should soon see the fruits of third-party plug-ins. and Onyx continue to be sought-after when sales efficiency and
sales effectiveness solutions are needed, particularly at larger
The Winner firms. However, because of the maturity and evolution of the
Last year’s midmarket runner-up has lived in inter- SFA market, we chose to focus on those companies that remain
esting times, which in this case some see as both a primarily pure-play SFA vendors.
curse and a blessing. Parent company Best Soft-
ware continues to grow its CRM stake and The Leaders
SalesLogix is driving that growth. But not all has been easy. “The news is that GoldMine and Maximizer both survived the
Difficulties with SalesLogix 6 appeared to cost general manager past year,” says Jim Dickie, a partner with CSO Insights. Micro-
Tim Fargo his job. His replacement, Jon Van Duyne, dismantled soft’s entry into CRM drew the attention of many traditional SFA
SalesLogix’s direct sales force to restore reseller confidence, and integrators, cutting into the reseller base available to both CRM
is refocusing the company’s efforts to improve functionality and and SFA vendors. Even so, GoldMine is faring quite well in the
to promptly resolve software problems. As a result, Best enjoyed SFA market. As a result, parent company FrontRange Solu-
continued (if muted) growth of its CRM revenues, and has a tions has enjoyed strong quarter-to-quarter growth in recent
strong lead in SMB market share. Van Duyne largely managed months, and brought in a new channel director to bolster confi-
to keep the reseller channel together despite the lure of dence among GoldMine VARs. Although FrontRange consid-
Microsoft, and has been handed a gift-wrapped package in ers its GoldMine/HEAT pairing a complete CRM suite, analysts
ACCPAC CRM and its large partner roster. say they are waiting for improvements in GoldMine later this year
Although turnkey vertical packages and on-demand CRM have that will give the software true CRM functionality for SMBs.
become watchwords, and analysts and CRM adopters both ago- Maximizer Software, a name once uttered in the same
nized about the costs and potential pitfalls of heavily modified CRM breath as ACT! and GoldMine, had fallen on hard times, but
platforms, Van Duyne has embraced a contrarian approach. He that hasn’t stopped the company from continuing to improve its
directly touts SalesLogix’s strength as a customizable software sys- product. The release of Maximizer 8 this past May resulted in a
tem for business—and cites that capability as the appeal for its large strong spike in sales for the company, hinting that the wait-and-
reseller network and 6,000-plus and growing customer base. see period for Maximizer is over. And although the company
50 customer relationship management / september 2004 www.destinationCRM.com
REPUTATION FOR REPUTATION FOR
MARKETING PERFORMANCE MGMT CUSTOMER SATISFACTION DEPTH OF FUNCTIONALITY
Unica 3.8 4.4
Aprimo 3.4 3.8
E.piphany 3.2 3.6
SAS Institute 3.6 3.8
Siebel Systems 2.2 2.9
THE 2004 CRM LEADER AWARDS
has a smaller market share than its traditional rivals, some in- Now part of the Best Software family, the company had
dustry watchers attribute that variance to Maximizer’s focus on pledged to work to build more links between ACT! and its wide
profitability instead of new revenue growth. CRM magazine’s range of SMB accounting software. If Best is true to its
Leaders formula does not account for profitability, but living to announced strategy, ACT! users will soon have a smooth
fight another year is its own reward. upgrade path to ACCPAC CRM, the company’s hybrid pack-
Doubtless below the radar for many SFA customers compared aged/on-demand solution.
with the over-the-counter high flyers ACT! and GoldMine, New functionality for ACT! has not been quick in com-
Interface Software is a segment leader by virtue of strong ing—as of this writing, it has been more than one year since
performance in its vertical (professional services companies like ACT! saw an upgrade. For an established workhorse, that’s not
law firms) and extremely high marks from analysts. The strong necessarily a bad thing. “Here’s something that wasn’t broke
market ownership by SFA mainstays, combined with pressure when they [Best] bought it, and the great thing is that they left
from on-demand services, has all but forced new entrants to find it alone,” Dickie says. For a while, anyway. ACT! 2005 was
a niche and serve it well. “In [Interface’s] field…I consider them released August 24. —Jason Compton
tops,” says Rich Bohn, executive
SALES FORCE AUTOMATION
An up-and-coming on- editor of SellMoreNow.com.
demand provider with the On-demand leadership in the Marketing Performance
promise to make a signifi-
cant splash, Entellium
SFA-only space comes from Management
already offers strong sales Salesnet. While accumulating
tools and some support and customers more slowly than on- The Market
M
marketing functionality to a demand cohort Salesforce.com, arketing performance management (MPM) is a
growing customer base. The Salesnet took a more focused catch-all that takes pieces of both marketing
system emphasizes process
approach than attempting to be resource management and marketing operations
and workflow, and currently
sells at a significant discount all things to all people. And con- management and blends them with the campaign manage-
to larger on-demand rivals. En- trary to popular wisdom ment and lead management functionality that many vendors
tellium already promises Out- that says on-demand solu- include in their marketing automation suites. Not surpris-
ONE TO WATCH
look integration, sought after by tions tend to be less flexi- ingly, all that blending makes it difficult to definitively locate
customers who rely on Outlook
ble to individual corporate the boundaries of the market, and so the blurring of its con-
for email and basic contact man-
agement tasks. needs than packaged soft- stituents is inevitable. Generally speaking, though, the MPM
The highly modular solution, ware, Dickie gives high space is the top-level approach to marketing efforts, designed
designed to let companies turn marks to Salesnet for its to reach out to both prospective and existing customers.
on support and marketing func- ability to mold to a com- As if all those blurred lines didn’t make selling in this mar-
tionality as needed, is already
pany’s specific sales process. ket challenging enough, the rules kept changing this past year,
aggressively targeting compa-
nies with complex ERP integra- “Salesnet is clearly the strongest with the creation of the national Do-Not-Call registry, the
tion needs. Because most player in the marketplace for implementation of the federal CAN-SPAM law, and the bur-
companies find it easier to companies that have a struc- geoning threats of phishing and identity theft. Despite all the
experiment with on-demand tured [sales] methodology,” he obstacles there’s been “an uptick in the number of deals this
sales, we expect Entellium’s ear-
says. The company has already year,” says Elana Anderson, senior analyst of enterprise appli-
liest leadership and success will
come in the SFA space. —J.C. launched three vertical solution cations at Forrester Research. Anderson estimates that licensed
packages, with more on the way. software sales in the marketing automation segment grew by
about 6 percent in 2003, to roughly $350 million.
The Winner
After all these years ACT!—what some consider to The Leaders
be the original SFA tool—remains locked in a fight By most estimates privately held Aprimo’s revenues are
with archrival GoldMine. Arguably the most avail- roughly divided between campaign management and MRM
able CRM tool in the world, sold through integra- offerings, which are powerful enough to attract big-name
tors as well as retailers, ACT! claims to have 2 million active clients like Bank of America and Merrill Lynch. Analysts say
users and claims that the number is climbing. Aprimo’s strength is serving the B2B market. This year the
52 customer relationship management / september 2004 www.destinationCRM.com
THE 2004 CRM LEADER AWARDS
company outpaced all but one of its peers, as it landed several executives say the marketing module is one of the company’s
new tier-one clients, retained nearly 100 percent of its existing fastest-growing offerings, and several analysts said its
users, and introduced Aprimo Marketing 6.0, adding new enhancements this year in loyalty management are a major
workflow capabilities, among other features, to the flagship step forward. Even though the company’s marketing line is
product. All that effort paid off, with the company scoring near less mature than its others, “they’ve been able to get mind-
the top in functionality and customer satisfaction. share in this market with what is a rudimentary product,”
Despite E.piphany’s avid fan base among customers of its Selland says. According to Anderson, this edition is the first
marketing offerings—the company “provides the best cus- marketing automation solution “that will be able to get
tomer references, bar none,” Anderson says—it still yearns to be [Siebel] to the table to compete against vendors like Unica
considered a vendor of full-suite enterprise CRM. The com- and E.piphany in high-end consumer marketing companies.”
pany made compelling progress last year, trimming losses and
refocusing its efforts, going to an indirect sales model outside The Winner
of North America and Western Europe and targeting five main Unica scored off the charts in CRM magazine’s sur-
vertical markets: financial services, insurance, tele- vey of functionality and customer satisfaction—one
communications and media, travel and leisure, and retail. The of the few Market Leaders to top both lists in its cat-
E.6 product line, including what Anderson calls “best-of-breed egory. “Unica knows more about database marketing
functionality for real-time decisioning,” won over a number of than any vendor in the space,” Anderson says. The company
analysts and customers, helping the company score high among released Affinium 6 this past year, and the entire Affinium prod-
the leaders in customer satisfaction and functionality. uct line scored excellent reviews, especially for its Optimize and
SAS Institute remains the most recognizable name in the Interact modules. Anderson says the company also has “a good
marketing arena, having parlayed its strength in innovation, footprint across a marketing automation suite that is continu-
data mining, and analytics to ing to expand.” Campaign management is still the focal point of
become, as Aberdeen’s Vice the suite, Anderson says, but this year Unica “has significantly
MARKETING PERFORMANCE MANAGEMENT
Why build expertise when President of Sell-Side Research ramped up its resources to sell the Affinium Plan module, and
it’s out there to be snapped
Chris Selland says, “the gold is starting to gain some traction with Affinium Optimize.”
up at bargain-basement
prices? DoubleClick spent standard, and the dominant The company leveraged its strength in database marketing
the year gobbling up vari- force.” Analysts agree that the and marketing automation to keep ahead of its competition,
ous bits of marketing func- company’s Marketing Automa- landing more new clients than most of its peers—achieving
tionality, most notably in tion 4.0 is a powerful release, record revenue growth, totaling $31.4 million in 2003. And
the form of SmartPath,
one that’s rumored to make the Unica’s latest product launch, Affinium eDelivery Services,
which had been seen as
Aprimo and Unica’s closest usability issues that have dogged promises to extend the company’s functionality lead.
competition. The result is a SAS a thing of the past. Accord-
vendor offering all the ing to analysts, SAS’s offer-
fixin’s when it comes to
marketing performance
ings—which scored a close CRM Analytics
second to Unica in
management. Now all the
The Market
ONE TO WATCH
company has to do is con- breadth of functional-
M
vince prospects that it has ity—could even pose a ore top business executives are demanding data
the wherewithal to inte- threat to Unica’s leader- analytics as part of their CRM software purchases.
grate all that newfound func- ship in the space. “There’s been a real growing focus on CRM appli-
tionality—and remove the
Until this year’s cations in analytics in the past year,” says Gareth Herschel, a
banner-advertising stigma that
still wafts around it. Since Dou- release of Siebel 7.7, research director at Gartner. “Companies are getting on the
bleClick is more of a service Siebel Systems had CRM bandwagon for analytics as they see that a raised [CRM]
provider than a software put little emphasis on its mar- profile can do a lot to drive an organization’s revenue.”
provider, according to Selland, keting tools. But that has never With this increased awareness and demand comes oppor-
“in many ways [it’s] the Sales-
stopped the company from tunity for growth. And the analytics vendors—especially the
force.com of this market. ”
Luckily for DoubleClick, he trying to trample over its bet- market leaders—are seizing that opportunity. “The big guys
says, “this is a market that’s ter-entrenched peers. Siebel continue to dominate the market,” says Chris Selland, vice
more likely to go for a Sales-
”
force.com model. —J.W.
54 customer relationship management / september 2004 www.destinationCRM.com
REPUTATION FOR REPUTATION FOR
CRM ANALYTICS CUSTOMER SATISFACTION DEPTH OF FUNCTIONALITY
SAS Institute 4.2 4.8
Business Objects 3.8 3
Cognos 3.8 3
E.piphany 3.6 3.2
Teradata 4.8 4.8
THE 2004 CRM LEADER AWARDS
president of sell-side research for Aberdeen Group. One rea- Data Integrator 6.5 for specialized data cleansing activities.
son for this, according to AMR Research analyst Paul Kirby, is Cleaner data means better analytics, so Business Objects could
that many potential customers implement technologies from parlay the partnership into increased sales.
the larger companies to have a single analytics provider. Cognos, which Herschel ranks just behind Business
Objects for a vendor with a broadly focused data analytics
The Leaders operation, is seeing significant interest in its Web-based enter-
Teradata, the data warehousing and analytics division of prise query and reporting application, Cognos ReportNet,
NCR, is one of the big guns in the analytics market, accord- released in September 2003.
ing to Selland. Teradata “handles a tremendous amount of The application is integrated within Cognos’ business intelli-
data in its data warehouse business,” Kirby says. “As the vol- gence offering. Cognos ReportNet builds on the business intel-
ume grows, the analytics increases accordingly.” ligence application’s query and reporting functions. It offers
However, according to Herschel, Teradata is so driven by the multiple-language support for companies with business in mul-
warehouse business that it will allow competitors to take the tiple countries, helping the company strengthen its relation-
analytics portion of a contract as long as Teradata gets the ware- ships with current customers, while catching the attention of
housing end of the business. Nevertheless, Teradata’s analytics new prospects. The multilanguage capability is increasingly
business continues to grow as many of Teradata’s clients see important as companies seek one solution for multinational
increased need for more comprehensive analytics. operations, giving Cognos a stronger worldwide offering.
Business Objects offers a solid, broadly focused applica- E.piphany unveiled a new version of its application, while
tion, according to analysts. The company added to the depth returning to some of its roots, according to Selland. In 2003 the
of its offering when it acquired Crystal Decisions in December company rolled out E.piphany 6.5, which the company credits
2003. With the acquisition for its 30 percent revenue growth over fiscal year 2002. The
CRM ANALYTICS
License revenues for Business Objects now has part- release offers better analytics of marketing campaigns, as well as
Siebel Systems grew more nerships with more than 1,500 deeper analysis of marketing campaign parameters. E.piphany
than 80 percent in fiscal firms, including systems inte- also announced several major new customers during the year
year 2003, according to the
grators, original equipment that chose E.piphany in large part for its improved analytics
company. In one of the
most recent “wins” for the manufacturers, and value- offering. According to Gartner’s Herschel, E.piphany has the
analytics division, Siebel is added resellers—and an esti- best operations system among the CRM analytics vendors.
providing analytics support for mated 24,000 customers
Minneapolis-based Jostens, a worldwide. The Winner
maker of class rings, year-
BusinessObjects 6.5, which The behemoth of the analytics market continues to
books, and graduation prod-
ucts. Though analytics is only a started shipping at the end of be SAS Institute, which dominated the market
small portion of Siebel’s total June, integrates with Crystal with $1.34 billion in total revenues. In 2003 the
business, Selland says, the Version 10 products. The com- company launched the SAS 9 business intelligence
company’s sheer size makes bination offers Web query and platform, which includes predictive modeling. The company
potential analytics customers
analysis, as well as reporting also released a customer intelligence application, SAS Mar-
take notice.
Editor’s note: SPSS was the and analytic capabilities. This keting Automation 4, which is based on SAS 9. “SAS is the
2003 Market Leaders CRM Ana- breadth of functionality is get- Rolls Royce of data analytics,” Aberdeen’s Selland says.
lytics One to Watch, but during ting attention from cus- The new predictive analytics capabilities should help the
the 2004 judging process the tomers and analysts. company maintain its market dominance. “SAS sells more than
ONE TO WATCH
firm was restating its financial
Business Objects also anyone else and has the staff support to keep the growth on tar-
numbers, thus could not be
included. The company is con- entered a partnership get,” says Herschel, who also considers SAS the best vendor in
ducting a review of its audit agreement with First- terms of predictive analytics.
committee. With the potential logic, one of CRM maga- Although other companies are attracting attention as the
uncertainty, SPSS wasn’t con- zine’s data quality analytics arena continues to gain in importance, SAS’s large
sidered among the leaders,
leaders. Under the agree- customer base remains among the most loyal in the category.
though a few analysts did men-
tion the company as an impor- ment Business Objects embed- And while the company continues to add new clients, its lead-
tant player in its market niches: ded tools from Firstlogic into ership can only stay strong. —Phillip Britt
education, healthcare, and
financial services. —P.B.
56 customer relationship management / september 2004 www.destinationCRM.com
REPUTATION FOR REPUTATION FOR
DATA QUALITY CUSTOMER SATISFACTION DEPTH OF FUNCTIONALITY
Acxiom 4 4.6
Ascential Software 3.2 3.6
Firstlogic 3.4 3
Group 1 3.6 3
Trillium (Harte-Hanks) Software 4 3
THE 2004 CRM LEADER AWARDS
Data Quality as a leader in the market. A 2003 Meta Group report cites First-
logic as the leading pure-play data quality company. For CRM-
The Market specific applications, Firstlogic goes to market with such
ata quality continues to grow in importance. In fact, partners as traditional CRM vendors Siebel and PeopleSoft.
D analysts agree that there’s a direct correlation between
the quality of a company’s data and the financial per-
formance of the company itself.
Trillium acquired Avellino Technologies at the end of Feb-
ruary, a deal that should add to the profitability of this division
of Harte-Hanks, Friedman says. The Harte-Hanks relationship
The outlook for the market is promising due to the increased is an important one, analysts say, because it gives Trillium the
interest from large enterprises, according to Gartner analyst Ted financial backing that private data quality vendors don’t have.
Friedman. Meta Group expects data quality adoption rates to con- Trillium’s acquisition buoyed the company’s presence, which
tinue to expand 20 to 30 percent annually over the next few years. already benefits from partnerships with such industry leaders
as Accenture, IBM, and Siebel. Trillium also unveiled several
The Leaders major, successful installations with large telecom companies
Group 1 continues to enjoy the benefit of a bigger market and financial services firms.
footprint than its competitors, though Firstlogic, Trillium, Ascential Software has completed the successful inte-
and Ascential have been more innovative lately, according to gration of recent acquisitions into its own product offerings,
Friedman. He estimates that about a third of Group 1’s strengthening the attractiveness of its overall suite. “Ascential
$100 million in total revenues comes from data quality work. Software has gained market mind-share by leveraging its size
Growth has been a strong suit this past year. “Outside of and market presence,” Friedman says. “It acquired data qual-
acquisitions, much of their revenue has come from the ity technology from Vality Technology and Metagenix in
strength they already had in the marketplace,” Friedman says. 2002. Positioning around the importance of data quality in
“They built up a large installed database over the years.” integration initiatives, Ascential has been integrating the
Group 1 also added to its business through its acquisition of products and has repackaged them as the QualityStage and
Sagent Technology in October 2003. (Sagent is now part of ProfileStage components of its enterprise integration suite.”
Group 1’s enterprise solutions division.) The combined offering Analysts also cite Ascential’s handling of customer data
enables client companies to issues and the flexibility to address data domains as key
DATA QUALITY
Market research firm access data from multiple sources strengths that help bolster the company’s market presence.
Winter Corp. recognized to populate CRM and other
Experian Information Solu- enterprise systems. Group 1 also The Winner
tions in 2004 for having the
has market strength from its The top data quality vendor from a CRM stand-
world’s most-used client
database, one that handles partnership agreements with point is Acxiom, which receives an estimated
887 simultaneous queries at its Siebel and other CRM vendors to $700 million of its $1 billion in revenue from
peak workload. Though CRM- offer data quality support within CRM-related data quality analytics, according to
related data quality represents those vendors’ applications. Gartner analyst John Radcliffe’s estimates. Though an esti-
only about a quarter of Exper-
In the past year Firstlogic mated growth rate of just over 5 percent may not look spec-
ian’s total revenue, according
to Radcliffe, the Atlanta-based released its new technology plat- tacular, it continues a trend of steady increases from the
company ramped up its data form, IQ8, which com- 35-year-old data quality company.
ONE TO WATCH
quality business in the past pany officials say took “You can’t do CRM without data quality,” says Radcliffe,
year. Experian also developed 2.5 years and 103,000 who sees Acxiom as offering the most complete package in
the Express version of its ana-
man-hours of engineering this area. “Having [data quality] is vital just to pass go.”
lytical marketing database, for
smaller clients that have work to develop. This was AMR Research analyst Paul Kirby also calls Acxiom a strong
smaller budgets. Though it still a welcome release to its data quality player due to its focus on CRM.
has a strong focus in the credit- already satisfied customer Acxiom is expected to continue its solid growth on a world-
reporting arena, Experian is base. “Firstlogic benefits from wide scale as it realizes some of the benefits of last year’s
continuing to grow its CRM-
strong customer service and sup- acquisitions of Caritas Europe and Consodata. The business
related data quality presence.
Based on the company’s sheer port,” Friedman says. deals expanded Acxiom’s European operations to five addi-
size, its growth in data quality Firstlogic is continually cited tional countries. —Phillip Britt
could push it into a leadership
role in 2005. —P .B.
58 customer relationship management / september 2004 www.destinationCRM.com
REPUTATION FOR REPUTATION FOR
CRM CONSULTANCIES CUSTOMER SATISFACTION DEPTH OF FUNCTIONALITY
Accenture 3.5 4.25
BearingPoint 4 3.75
Capgemini 2.75 3.25
Deloitte Consulting 3.25 4
IBM BCS 3.5 4
THE 2004 CRM LEADER AWARDS
CRM Consultancies made a firm commitment to provide CRM clients with balanced
scorecards and metrics to help assess the value of CRM projects.
The Market Deloitte Consulting is best known for giving clients the
veryone loves the idea of out-of-the-box simplicity, but star treatment. The firm has what one analyst calls “a collegiate
E no one honestly expects to remove third-party consul-
tants from the CRM equation anytime soon. Much like
the enterprise CRM market, consultancies are staking out posi-
atmosphere to it, [and] its clients tend to have an affinity with
it.” Another analyst characterizes Deloitte as “a better-focused,
better-run company” than its peers, one that doesn’t try to be
tions on either side of the best-of-breed divide: Some claim to everything to everyone. It does especially well in its areas of
be one-stop shops for strategy, integration, and maintenance, expertise, such as real estate and consumer packaged goods.
while others are content to specialize in one niche or another. Though a distant third in terms of revenue, based on client sat-
In the end the continuing need for both strategic and tactical isfaction alone Deloitte would get top marks—and that’s the
assistance kept this year’s winners very much on the move. main reason several analysts said Deloitte would be one of only
The market itself is decidedly top-heavy, with five firms a handful of consultancies to see growth in the coming year.
combining for about half of what analyst firm IDC estimates IBM Business Consulting Services has spent the year
was an $8.6 billion market for CRM-related consulting in the finalizing the absorption of what used to be PwC Consulting,
United States last year. Not surprisingly, those five were the and doing a fine job of it. One measure of that successful
Market Leaders this past year, but for highly varied reasons. assimilation has been continued growth that most other con-
sultancies would envy, in part thanks to the new partnership
The Leaders with Siebel Systems for its OnDemand offering, which is just
Considering BearingPoint’s flat revenues, the fact that it has one of many partnerships that helped drive business to IBM’s
maintained a leadership position is testament to its perseverance. consulting practice last year. “IBM has the most momentum
The firm focused on fewer industries than some of its competi- in the marketplace around CRM, because of PwC,” says Laura
tors, but it excelled in them, particularly the more technical verti- Preslan, CRM research director at AMR Research. According
cals. BearingPoint also benefited from vendor-specific to some analysts, however, customer satisfaction slipped a bit,
specialization, with deployments of some of the smaller CRM as some poor staffing choices may have impacted results.
vendors. “BearingPoint, for its size, probably has more KANA or “They’re missing the basic blocking and tackling,” says one
E.piphany resources [than IBM BCS or Accenture],” says one analyst, who says existing PwC clients had come to expect a
analyst. That targeted approach may explain the firm’s sterling higher level of attention. That wasn’t enough, apparently, to
customer satisfaction rating— scare away the long-standing accounts that helped generate
CRM CONSULTANCIES
Inforte stood out for its outscoring its competitors. what one analyst firm estimated to be more than $2 billion in
sterling reputation and Capgemini’s strengths in CRM-related revenue last year.
laserlike concentration on Europe and in certain verticals
CRM. Its March acquisition (e.g., communications, life sci- The Winner
of SAP business intelli-
ences) bring it back to the table One thing Accenture’s clients don’t have to worry
gence specialist Compendit
only added to its strengths. again and again. The com- about is that the consultancy is going away anytime
ONES TO WATCH
The resulting combination pany’s CRM practice bene- soon—not with $3.51 billion in cash on hand.
leverages Inforte’s existing fited this past year from a Accenture’s big draw is the breadth and depth of its
focus on SAP implementations, series of phased projects expertise, but at least one analyst says the firm’s single best dif-
but even before the merger the
that required business- ferentiator is its clear strategic vision, not its record for execu-
firm had already more than
doubled operating income. process work before an tion. Accenture’s traditional dominance in Siebel Systems
Another consultancy with an implementation, playing to implementations doesn’t cast the long shadow it once did, as
eye on cracking the list is Unisys, Capgemini’s strengths and Siebel’s fortunes have dimmed somewhat, but Accenture still
which played a strong hand in helping to win over clients that may managed to notch a 6 percent increase in CRM-related revenue.
the financial services and trans-
have been skittish about long-term The firm’s renewed focus on analytics and marketing sciences
portation industries, and in the
public sector. If the firm can contracts. The North American helped it branch out into CRM’s more fertile fields, as well—
spread its wings a little by cross- division began to address its attri- and explains in part why Accenture got the category’s highest
ing over to other verticals, there tion problems this year, and has score in terms of breadth of offerings. —Joshua Weinberger
may be a new member of the
top five next year. —J.W.
60 customer relationship management / september 2004 www.destinationCRM.com
