IBM is cited as a leader in The Forrester Wave B2C Commerce Suites, Q3 2012
Eloqua earns the "Leader of the Leaders" spot in Gartner Magic Quadrant
1. G00226897
Magic Quadrant for CRM Lead Management
Published: 7 June 2012
Analyst(s): Chris Fletcher
CRM lead management investment increases as executives turn to
marketing automation to fuel growth. Impact on revenue generation is high
and satisfaction with vendors is generally strong, but organizational
alignment issues continue to reduce potential impact.
Market Definition/Description
Lead management integrates business process and technology to close the loop between
marketing and direct or indirect sales channels, and to drive higher-value opportunities through
improved demand creation, execution and opportunity management. Lead management processes
take in unqualified leads from a variety of lead generation sources, including Web registration pages
and campaigns, direct mail campaigns, digital marketing channels and sources, email marketing,
multichannel campaigns, database marketing and third-party leased lists, social CRM and social
networking sites, and tradeshows and other events (such as webinars, or customer or prospect
events).
The outputs of lead management processes — qualified, scored, nurtured, augmented and
prioritized selling opportunities — are handed off to direct sales and/or channel sales organizations.
CRM lead management applications can be licensed; on-premises applications; or software as a
service (SaaS), cloud-based application services. CRM lead management can be used in business-
to-business (B2B), business-to-business-to-consumer (B2B2C) or business-to-consumer (B2C)
CRM processes.
2. Magic Quadrant
Figure 1. Magic Quadrant for CRM Lead Management
Source: Gartner (June 2012)
Vendor Strengths and Cautions
Eloqua
A Leader in this Magic Quadrant, Eloqua reported 2011 revenue of $71 million, showing growth of
approximately 39% over 2010. Founded in 1999, Eloqua sells primarily to B2B and B2B2C
industries, including high tech, professional services, financial services and manufacturing.
Strengths
■ Strong product functionality: Scored high marks from surveyed customers for product
functionality, customer support and overall satisfaction with the product. Users with experience
across multiple vendors' products noted Eloqua's longer time to productivity and steeper
learning curve, but also its ability to support complex multichannel lead management
processes. Eloqua10, the vendor's latest product, is based on HTML5 and provides a simpler
and easier-to-use user interface (UI) than prior versions. The product also simplifies several
Page 2 of 23 Gartner, Inc. | G00226897
3. development and administrative tasks. Eloqua Social Suite and Eloqua Engage for iPad provide
integration and support for major social sites and iPad tablets.
■ Strong financials: Strong financial position, including 39% growth from 2010 to 2011 and
revenue of $71 million in 2011. Filed S-1 for initial public offering (IPO) in August 2011, although
at the time of publication, Eloqua remained a private company.
■ User satisfaction: High satisfaction levels with the product and vendor reported by reference
accounts indicate high probability of success for new Eloqua customers.
■ AppCloud: In 2011, Eloqua announced AppCloud, a marketplace for B2B marketing
applications. AppCloud has more than 50 applications, and partners include Data.com and
Radian6 (salesforce.com), ON24, and Citrix Systems.
Cautions
■ Longer time to productivity: Steeper learning curve and higher licensing costs, compared with
some other best-of-breed vendors, although Eloqua accelerates the learning curve with a
service option, Eloqua SmartStart, designed to ramp up new users more quickly.
Implementation times are also typically longer, although this is also a reflection of more-
complex lead management applications Eloqua typically supports.
■ IPO: No external communication since August 2011 in regard to an IPO or other possible
events, such as merger and acquisition (M&A) activity. Companies investing in Eloqua solutions
should consider the potential impact of an IPO or M&A transaction.
■ Dependency on salesforce.com: A majority of Eloqua users are integrated with salesforce.com;
evaluate integration requirements for non-salesforce.com implementations.
IBM (Unica)
IBM (Unica) is a Niche Player in CRM lead management, and is used most commonly in more-
complex B2C implementations, or when a broader marketing automation capability is required.
Companies in B2B or B2B2C industries, or companies with more-focused lead management
requirements and limited resource availability, or those that have not already standardized on Unica
for other parts of their organization, should evaluate Unica's capabilities against Leaders.
Strengths
■ Viability and growth: IBM generated $106.9 billion in revenue in 2011, and has a well-known
global presence and a broad range of technology assets to support marketing automation,
digital marketing and e-commerce. IBM (Unica) reported 21% growth for its Enterprise
Marketing Management group from 2010 to 2011. Consider Unica's Enterprise Marketing Suite
when marketing resource management (MRM), integrated marketing management (IMM) or
multichannel campaign management (MCCM) functionality is also key; when Unica is already a
standard for marketing automation; or when complex, enterprise lead management is required.
Gartner, Inc. | G00226897 Page 3 of 23
4. ■ Domain expertise: Unica claims 2,500 customers worldwide and implementations in financial
services, telecommunications, life sciences and high-tech industries, and supports lead
management and broader marketing management applications for enterprise-scale
implementations. IBM (Unica) was a Leader in "Magic Quadrant for Marketing Resource
Management," "Magic Quadrant for Integrated Marketing Management" and "Magic Quadrant
for CRM Multichannel Campaign Management."
■ Breadth and scalability: Unica's Enterprise Marketing Management suite, based on Unica 8.6,
provides a rich lead management platform, including Unica Campaign, Unica Leads, Unica
Optimize, Unica eMessage, Unica PredictiveInsight, Unica Distributed Marketing and Unica
NetInsight Enterprise, to deliver this functionality. Additional functionality that is new with the
8.6 release includes the ability to access Web behavior data from Coremetrics, social media
support and integration with Facebook and Twitter, and response/attribution tracking across
offline and online channels. Additional functionality that augments marketing applications
includes IBM applications such as Cast Iron, Cognos, Coremetrics, InfoSphere, Sterling
Commerce and WebSphere Commerce, as well as bidirectional synchronization with
salesforce.com.
Cautions
■ B2B support: Unica's expertise and implementations are predominantly in B2C applications or
enterprise-scale lead management, while a majority of lead management requirements continue
to occur in B2B and, increasingly, B2B2C applications. Although Unica has been used in
several enterprise-scale B2B implementations, prospects and reference accounts have stated
that the vendor does not display the depth of understanding of B2B lead management
requirements that Leaders have exhibited.
■ SaaS: A majority of Unica customers have implemented on-premises versions of the product,
while some components of the Enterprise Marketing Management suite, such as email creation,
are available only as SaaS solutions, resulting in a hybrid deployment model. Customers should
evaluate their deployment options and requirements when considering Unica against
exclusively SaaS offerings provided by the Leaders.
■ Digital and social: Unica's recently released Enterprise Marketing Management update provides
out-of-the-box integration with Coremetrics Web data and social sites, and attribution tracking
across multiple channels. Because these are new capabilities, we encourage prospective
buyers to compare this functionality with that of the Leaders in this segment. Unica will see
increasing market pressure from nimble, SaaS-based competitors in lead management,
especially in the B2B segment.
Marketo
Marketo, a Leader in the Magic Quadrant, is focused primarily on B2B lead management and
marketing automation. The vendor generated approximately $30 million in revenue in 2011 (Gartner
estimate), generated 130% growth over 2010 and secured $50 million in additional venture capital
(VC) funding. Marketo provides SaaS-based lead management to companies in the high-tech,
business services and healthcare industries.
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5. Strengths
■ Functionality and time to productivity: Reference accounts consistently praise Marketo's ease
of use, short time to productivity, and rich analytic and reporting capability. Analytics-based
revenue performance management (RPM) provides revenue visibility for future quarters, based
on lead volume/quality/scoring currently in the pipeline. Marketo recently acquired Crowd
Factory to provide additional functionality that augments lead management processes. Marketo
announced a native Force.com application, Sales Insight, which is embedded in salesforce.com
to provide lead visibility to sales teams.
■ Viability: Solid financial resources, experienced and respected management, and a strong
marketing voice and presence in the market.
■ Partnerships: Marketo is a salesforce.com/AppExchange partner, with a large majority of its
customers using salesforce.com. Marketo recently announced a deeper partnership with
Microsoft for integration with Dynamics CRM and Dynamics CRM Online. Marketo also has
partnerships with Adobe, Cisco, and Citrix for the integration of online meeting services; with
Dell Boomi for application integration; with ExactTarget for email marketing; and with ON24 for
the integration of webcasts and virtual events. Marketo was selected as best marketing
application in salesforce.com's AppExchange in 2011.
Cautions
■ Salesforce.com-centric: Heavy focus on salesforce.com users. Marketo has recently deepened
its integration with Microsoft Dynamics CRM, which should help Marketo to sell to a broader
base of customers.
■ VC presence and profitability: Large VC presence indicates that the vendor may be positioning
toward an IPO or M&A transaction, which could cause shorter-term disruption for current
customers. Marketo is not yet profitable (Gartner estimate).
■ Moving to enterprise: A majority of Marketo customers are smaller, fast-growing companies,
and the vendor needs to prove its ability to consistently compete and win in the enterprise
sector. It lags in broader marketing automation functionality, although its technology road map
highlights development in areas such as MRM. Marketo is also actively building out its
technology and agency partnerships through its Marketo Alliance program.
Microsoft Dynamics CRM
Microsoft is a Niche Player among lead management vendors, with capabilities that are embedded
in Dynamics CRM and Dynamics CRM Online. Dynamics CRM is only appropriate for companies
that are currently using it for sales force automation (SFA) and CRM, and that have fairly basic lead
management needs.
Gartner, Inc. | G00226897 Page 5 of 23
6. Strengths
■ Relative simplicity: Microsoft Dynamics CRM integrated lead management capability eliminates
the need for a second lead management vendor, and can reduce the complexity of integrating a
lead management or marketing automation application into a current CRM or SFA environment.
Microsoft Dynamics CRM is appropriate for companies that do not have complex lead
management requirements; for companies that are at the early stages of developing and
deploying lead management processes and prefer to use technology from a single vendor; and
for companies that have already deployed Microsoft Dynamics CRM for SFA or customer
support and that want to leverage current investments before investing in another product with
broader capabilities.
■ Integration: All marketing and sales data is kept in a single Dynamics CRM application
database, simplifying analytics and reporting. For example, information on when an opportunity
closes is available immediately for closed-loop lead management reporting. The latest release,
Dynamics CRM Q2 2012, includes some enhancements, such as the addition of custom
workflow entities to the CRM Online version, enabling customers with complex lead
management workflow requirements to use either Dynamics CRM or Dynamics CRM Online.
The workflow capability is based on Windows Workflow Foundation; Microsoft also provides
several prebuilt workflows for lead management and CRM processes. Microsoft Dynamics CRM
supports conditional formatting for simpler, user-defined workflows.
■ Choice: Dynamics CRM is available as either an on-premises or SaaS application, making
Dynamics CRM one of the few applications to provide both an integrated lead management
capability and a choice of deployment options. Several lead management products, including
those from Leaders in this Magic Quadrant, are currently integrated with Dynamics CRM, so
that alternatives that include Microsoft Dynamics CRM and a best-of-breed set of capabilities
are available.
Cautions
■ Limited functionality: Dynamics CRM does not provide a best-of-breed lead management
capability, and is appropriate for companies with basic lead management requirements.
Dynamics CRM's lead management capabilities have not evolved significantly from a year ago
(see "MarketScope for CRM Lead Management" [Note: This document has been archived;
some of its content may not reflect current conditions.]).
■ Lack of focus: Dynamics CRM has been selected as a Leader in "Magic Quadrant for Sales
Force Automation" and "Magic Quadrant for CRM Customer Service Contact Centers."
However, Microsoft's innovations in Dynamics CRM's lead management capabilities during the
past year have been limited, at a time when competitive solutions are increasing their
functionality.
Neolane
The only Visionary in this Magic Quadrant, Neolane saw 47% growth in 2011, generated revenue of
approximately $44 million and secured VC funding of $27 million. The vendor has about 350 B2B
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7. and B2C customers in industries including media and entertainment, life sciences and financial
services. Neolane was founded in France and approximately half of its revenue comes from the
EMEA market (Gartner estimate). R&D is primarily located in France.
Strengths
■ Functionality and partners: The Neolane platform supports lead and campaign management,
enabling the company to be a Visionary in both this Magic Quadrant and in "Magic Quadrant for
CRM Multichannel Campaign Management." It has successfully generated partnerships with
and sold through agency and marketing service providers, including Epsilon, KBM Group,
Targetbase, Acxiom and others. Neolane's API provides a service-oriented architecture (SOA)-
compliant layer that enables integration to third-party applications.
■ Innovation: Neolane has been quick to adopt new functionality. Neolane Social Marketing is
included in more than one-third of its deals; was one of the first products to offer Facebook
customized pages and offers; and supports multiple email, Web, social, and webinar channels
that play a role in lead management.
■ Flexibility: Neolane is adaptable enough as a platform to meet the needs of B2B, B2C, and
B2B2C companies at a competitive cost. Its references gave high scores for categories like
overall satisfaction, features and functions, ease of deployment, and integration with other
applications. Deployment is either on-premises or SaaS.
Cautions
■ Complexity: Reference customers commented on the complexity of building and maintaining
lead process workflows, but also gave high marks to the flexibility of the Neolane platform.
■ Analytics and KPIs: References gave average scores to Neolane's packaged reporting and
analytics.
■ Growth: Customers ranked Neolane positively for overall satisfaction, but also commented that
organizational growth created some resource shortfalls. Support levels and escalation
procedures should be evaluated as part of due diligence.
Oracle (Siebel)
Oracle is a Niche Player in CRM lead management. Oracle Siebel CRM Enterprise Marketing is a
mature product that can provide broad functionality for B2C and B2B processes, integrates with
other Siebel applications (such as Siebel Analytics and Siebel Sales), and provides end-to-end
automation of lead processes. The product is dependent on Siebel CRM, and is appropriate only for
companies that currently have, or plan to implement, Siebel CRM.
Strengths
■ Breadth of functionality: Siebel provides core lead management functionality, enabling
outbound phone and sales campaign execution and follow-up, inbound response handling,
Gartner, Inc. | G00226897 Page 7 of 23
8. response and lead qualification and scoring, lead management, and lead-to-opportunity
conversion. Siebel Lead Management can be used without other Siebel Marketing modules
(such as Siebel Campaign Management) for multichannel lead generation, lead augmentation
and lead-nurturing processes using email, Web, event, contact center, partner and mobile
channels. Siebel Campaign Management integrates with Siebel Sales, and enables the handoff
and tracking of qualified leads to direct and indirect sales channels. Siebel Email Marketing and
Oracle Marketing Analytics provide additional functionality for email marketing and marketing/
sales analytics. Siebel CRM Enterprise Marketing, when implemented with adjacent Siebel
applications, supports complex lead management processes, integrates with other Siebel
applications (such as Siebel Sales, Siebel Analytics and Siebel Loyalty Management), and
provides analytics and reporting insight throughout the marketing and selling cycle.
■ End-to-end automation: Reference customers cite end-to-end automation of the marketing and
sales process, including campaigns, lead management and sales, as a top strength of the
product.
■ Ecosystem: Siebel is a mature product with a wide range of system integration, implementation
and technology partners that can add value to complex, enterprise-scale lead management.
Cautions
■ Complex solutions: Complete lead management applications will require the implementation of
several Siebel modules, such as Siebel CRM Enterprise Marketing, Siebel Lead Management,
Siebel Sales and Siebel Analytics. Prospective customers should carefully evaluate and
understand all application dependencies and investment requirements. Siebel Lead
Management provides basic functionality, but most companies will require additional modules
(such as Campaign Management or Marketing Analytics) to be on par with the functionality
offered by best-of-breed alternatives.
■ Future direction: Because Siebel CRM Enterprise Marketing is a mature product, customers
should anticipate limited functional enhancements, and should clearly understand Oracle's
long-term support policy in regard to Siebel. Prospective or current users should evaluate and
understand Oracle's product road map and Fusion migration support policies. Customers
should also understand the financial implications and technical support available when
evaluating a potential migration from Siebel to Fusion.
■ Best-of-breed alternatives: Customers using Siebel CRM will find Siebel CRM Enterprise
Marketing an appropriate solution if they want to stay within the Oracle product portfolio, but
they should also evaluate non-Oracle lead management products.
salesforce.com
Salesforce.com is a Niche Player in this Magic Quadrant. Its native lead management capability
provides basic lead management, but does not represent a best-of-breed capability.
Salesforce.com is a major vendor of CRM applications; has built up a strong ecosystem of system
integrators, strategy and implementation firms; and provides a strong ecosystem (through its
AppExchange partners) of best-of-breed lead management applications.
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9. Strengths
■ Viability: Salesforce.com is a well-known CRM vendor that generated approximately $1.6 billion
in revenue in 2011 and supports 100,000 customers with its hosted CRM applications. Major
verticals for salesforce.com's lead management capabilities include financial services and
insurance, telecom, high tech, and professional services. The vendor has financial strength,
global presence, and a very strong ecosystem of third-party lead management and marketing
automation technologies that integrate with it. Customers frequently cited salesforce.com's
stability and financial viability as a key consideration.
■ Basic, but cost-effective solution: An integrated CRM and lead management capability
eliminates the need for a second vendor and a second license, and reduces the integration
issues frequently encountered in multivendor implementations. Reference customers cited cost
of ownership as an important part of their decision. Salesforce.com and Campaign
Management support lead management applications across email, Web and social channels;
lead scoring; lead routing; and reporting and analytics. Visual Workflow supports the graphical
design of lead management applications, including the configuration of rules and triggers that
enable email campaigns. A defined lead object is core to salesforce.com, enabling developers
to build enhanced lead management capabilities and a sharing model that enables access to
the lead on an individual or group level. Social CRM provided through Chatter and Radian6
enables internal collaboration around a lead and external social listening to generate new leads.
Web-to-Lead and a robust set of APIs enable integration with other systems and devices, such
as quick response (QR) code readers or scanners. Integration with Service Cloud 2 enables the
generation of leads from customer support activities. Data.com provides support for cleaning
and augmenting CRM data records that are part of lead management and SFA processes, as
well as for targeted list building; Data.com also provides contact information for 4 million
company records and 30 million contact records for enabling B2B campaigns.
■ Ecosystem and market presence: Salesforce.com, when used with Campaign Management and
Data.com, provides basic lead management capabilities; for companies that require more
advanced functionality, salesforce.com also offers a strong ecosystem of lead management
vendors, system integration partners, strategy and implementation partners, and add-on
technology options. System integration partners that provide services for lead management
include Accenture, Capgemini and Deloitte. Salesforce.com provides lead management
capabilities based on its Sales Cloud, Campaign Management and Data.com products. In
addition, several vendors covered in this Magic Quadrant, including Eloqua, Marketo and
Neolane, are salesforce.com AppExchange partners and provide best-of-breed lead
management capabilities to salesforce.com applications.
Cautions
■ Not best of breed: Salesforce.com's native lead management capability is not competitive with
offerings from the Leaders in this Magic Quadrant. Companies with complex lead management
application requirements may need to license a best-of-breed vendor's technology, incurring
additional costs and related issues with integration and implementation. Companies that have
standardized on salesforce.com, Sales Cloud and Data.com should evaluate the integrated lead
Gartner, Inc. | G00226897 Page 9 of 23
10. management capability provided in these products against their business requirements.
Companies that require more advanced lead management functionality can choose from
several best-of-breed vendors that integrate with salesforce.com.
■ Workflow development: Lead management processes can be developed with a visual workflow,
but often need to be augmented with workflow scripts within salesforce.com.
■ M&A: Given salesforce.com's basic lead management functionality, prospective customers
should consider the impact on their organizations if salesforce.com were to acquire one of their
AppExchange partners or one of the best-of-breed vendors that provide them with lead
management.
SAP (SAP CRM)
SAP is a Niche Player in CRM lead management. SAP's lead management capabilities are
integrated with SAP CRM and SAP CRM Marketing, and are suggested for companies that currently
use, or intend to use, its products. Marketing departments in an SAP environment should evaluate
SAP lead management to see whether it meets their requirements before seeking best-of-breed
solutions.
Strengths
■ Integrated solution: SAP's lead management functionality is an integral part of SAP CRM
Marketing and SAP CRM. The strength of this approach is that lead management processes,
data and customer information all integrate tightly to provide end-to-end, closed-loop lead
management, but at the expense of providing best-of-breed capabilities. An SAP Rapid
Deployment Solution (RDS), a combination of preconfigured applications and professional
services, supports accelerated implementation/fixed-price lead management. Other marketing
automation functionality includes campaign management planning and execution, MRM,
collaborative lead management with channel partners and dealers (online and via PDF
interactive form exchange), marketing development funds, and partner channel management.
Advanced analysis includes real-time offer management in campaigns. The vendor reports that
about 50% of its active CRM 7.0 customers use SAP CRM Marketing.
■ Big data progress: Notable changes in 2011 include the release of CRM 7.0 with an increased
focus on B2C offerings, such as the Hana Accelerator, which has the ability to deal with very
large sets of data, such as social media sources. In the B2B2C space, SAP introduced
Collaborative Campaign Management to include partners in campaign planning and execution.
SAP also has extended its loyalty management capability to include partnerships that have joint
loyalty programs.
■ Ecosystem: SAP has developed an impressive set of customer councils (e.g., CMO Community)
and technology or consulting partnerships (e.g., Accenture, Capgemini, Deloitte, ExactTarget
and OpenText,) to broaden its vision and marketing ecosystem.
■ Road map: 2012 includes plans to release a Hana-based predictive segmentation solution
called SAP Audience Discovery and Targeting, along with advanced segmentation and
predictive propensity models. SAP plans to release a hosted model for loyalty. Social additions
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11. will include tighter integration with NetBase for social monitoring and with StreamWork for
social collaboration. Additional plans include enhanced lead view and scoring across social
activities, buying history, and all customer and prospect data.
Cautions
■ Lagging the Leaders: Customers note SAP CRM Marketing's lack of newer features, such as
the integration of social functions. While integration with SAP CRM and other SAP applications
is a major driver for customers, some note that SAP's lead management functionality is not
competitive with best-of-breed alternatives. Companies should consider alternatives if SAP is
not part of their current or planned environments, or if their organizations require adoption of
newer technologies as part of lead management initiatives.
■ SaaS: SAP CRM Marketing is available as a licensed, on-premises product, and it can also be
hosted by SAP or a partner. A SaaS deployment option is planned, but not yet available.
■ Complexity and market lag: Customers comment on the complexity of the SAP environment,
and the impact on the time required to design and deploy a lead management application.
Teradata-Aprimo
Teradata is a major supplier of data warehousing and analytics technology, and provides marketing
automation and lead management under the Aprimo brand. Teradata is a Leader in "Magic
Quadrant for Integrated Marketing Management" and "Magic Quadrant for CRM Multichannel
Campaign Management," and is a Challenger in this Magic Quadrant.
Strengths
■ Viability: 2011 revenue for Teradata was approximately $2.3 billion, a 22% increase from 2010.
Major markets for Aprimo include high tech, business services and financial services. The
vendor has a global presence and a broad set of partners, including Adobe, Accenture,
Capgemini and salesforce.com.
■ Robust feature/functions: A robust, but also complex, marketing automation environment in
which lead management is a feature set alongside IMM, analytics and campaign management;
it is well-suited to the needs of the large enterprise. Aprimo Marketing Studio 8.7 and Marketing
Studio On Demand provide lead management, online marketing, visitor monitoring, Web
analytics (via integration with Omniture), and integration with salesforce.com, Oracle Siebel and
Microsoft Dynamics CRM. Marketing Studio also provides contact record deduping; automated
nurturing campaigns integrated with content delivery, lead scoring, and the ability to provide an
optimal mix of content and channels; an integrated content library; and scoring rules that
dynamically vary by product, region or value. Teradata's recent acquisition of eCircle will
provide Aprimo with digital marketing and regulatory compliance capabilities, as well as
additional lead generation services, including list rental brokering, list quality management,
optimized lead collection microsites and proprietary vertical portals for lead management to
address marketing acquisition efforts.
Gartner, Inc. | G00226897 Page 11 of 23
12. ■ Deployment: Marketing Studio can be deployed on-premises, hosted or hybrid; Marketing
Studio On Demand is SaaS-only. Reference customers gave good scores to Aprimo for their
overall satisfaction with implementations, with 83% indicating they were satisfied or very
satisfied.
Cautions
■ Road map vision: References gave Teradata only average scores for its lead management
vision and product road map strategies, indicating that better communication and a clearer
technology direction (particularly in regard to integration of the two product lines) should be
priorities. However, prospective Aprimo customers should take the time to understand the
vendor's vision for lead management, which includes real-time scoring and decisioning, as well
as enhanced rule-based content and nurture marketing.
■ Lagging behind the Leaders: Teradata lags behind in some areas of innovation, particularly in
integrating digital marketing areas (including email, social marketing and webinars). This was
reflected in reference data that gave Teradata only average marks for satisfaction with feature/
function levels, and that lagged behind the higher scores that Leaders achieved. Consider
Aprimo for lead management when MRM or MCCM functionality is also required, or when it is
already implemented for data warehousing or analytics.
■ Operational overhead: High implementation, development and maintenance resource
requirements. Reference customers also commented on challenges in integrating Aprimo with
CRM and other customer applications already in place. Teradata received average scores on
Aprimo's ability to integrate with other applications, although this should be considered in the
context of the larger and more-complex implementations that Aprimo supports. Companies
with more-focused lead management requirements and limited resources, or companies that
require integration and support of social channels as standard product functionality, should
consider alternative vendors.
Vendors Added or Dropped
We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as markets
change. As a result of these adjustments, the mix of vendors in any Magic Quadrant or
MarketScope may change over time. A vendor appearing in a Magic Quadrant or MarketScope one
year and not the next does not necessarily indicate that we have changed our opinion of that
vendor. This may be a reflection of a change in the market and, therefore, changed evaluation
criteria, or a change of focus by a vendor.
Added
This is the first year that CRM lead management has been covered in a Magic Quadrant. In 2011,
Gartner published "MarketScope for CRM Lead Management," which included 15 vendors in the
segment. Due to strong client interest in this product sector, as well as continuing innovation in the
integration of social, mobile and analytic capabilities into lead management processes, the
MarketScope was upgraded to this year's Magic Quadrant.
Page 12 of 23 Gartner, Inc. | G00226897
13. Vendors or products that are in this year's Magic Quadrant, but that did not appear in last year's
MarketScope include salesforce.com.
Two Oracle products that support lead management — Oracle CRM On Demand Marketing and
Oracle Fusion CRM Marketing — did not meet the inclusion criteria of 12 production
implementations and a minimum of $20 million in revenue at the time of publication and are not
included in this Magic Quadrant (see "Criteria for Magic Quadrant for CRM Lead Management").
Dropped
Due to the raising of the inclusion criteria for this year's Magic Quadrant — in particular, the raising
of minimum vendor revenue to $20 million — vendors that appeared in last year's MarketScope, but
not in this year's Magic Quadrant include Leads360, LoopFuse, Manticore Technology, Pardot and
Silverpop. The decision to raise the minimum revenue level was based on the needs of the
enterprise and midenterprise companies that require strong financial viability and extensive
corporate resources, and is not a reflection on the potential value of these vendors' products.
Inclusion and Exclusion Criteria
Technology
All inclusion criteria functionality needs to be available as a standard or optional part of the
application, as provided by the vendor. Inclusion criteria functionality cannot depend on
applications or functionality provided by partners, or on custom development or services (for
example, custom application development provided by the vendor's professional services
organization or a system integrator):
■ Multichannel lead management: The ability to provide lead management functionality, including
lead collection, analytics, augmentation, scoring, process management and nurturing, across a
minimum of three lead generation and lead management channels within a single campaign.
Examples of lead generation channels include websites, e-commerce sites, customer service
and support applications (such as call and contact centers), email marketing, text and mobile
marketing, social networking or social CRM applications, events (in person and virtual), direct
mail marketing, and third-party databases/lists.
■ Lead collection/lead database: The ability to collect, store, execute on, import/export, analyze
and report on leads. Lead input capabilities need to support both online, real-time/near-real-
time processes and offline, batch input of data. The vendor does not need to provide a
database, but the data model and the ability to collect/source data that will be stored in the
database are required.
■ Analytics, key performance indicators (KPIs) and business intelligence (BI): The ability to
leverage integration tools (APIs, XML, etc.) to transfer data between applications, including
source applications (e.g., third-party data providers, referral systems and websites) and
execution applications (e.g., SFA, contact center and email), to use in closed-loop marketing
Gartner, Inc. | G00226897 Page 13 of 23
14. analysis. The ability to generate operational and strategic KPIs. The ability to provide a
preconfigured set of reports, management dashboards, metrics and KPIs as an integral part of
the packaged application.
■ Lead augmentation: The ability to append missing or additional information to the lead from
external, third-party sources (such as missing email fields), and to integrate and store this
information into the lead management database and associate it with the appropriate lead or
customer information. The ability to eliminate incomplete, redundant or duplicate lead
information based on criteria set by the end-user organization. The ability to augment or nurture
a lead with additional collateral or value-added content, such as documents or PDFs,
spreadsheets, videos, or Web-based content, to increase the lead score and the probability to
close.
■ Lead scoring/qualification: The ability to create multiple lead qualification and scoring
processes, based on criteria such as a campaign, product type, customer segment, estimated
customer value, opportunity value or seasonal criteria; to execute multiple lead qualification and
scoring processes simultaneously; and to dynamically route leads to the next-appropriate lead
management process part of lead process management.
■ Lead process management: The ability to create lead management workflows or business
process management rules, using a graphical workflow or business process tool, or a
nongraphical scripting tool, to create a lead management application that dynamically routes
leads through the lead scoring, qualification, augmentation and distribution processes based on
execution criteria (such as geography, estimated value and status of prior process steps). The
ability to dynamically pass leads to a sales execution system (such as SFA, partner relationship
management [PRM], call/contact center application and e-commerce) on the basis of user-
defined routing, scoring or qualification rules.
■ Lead nurturing: The ability to manage and control the lead life cycle from collection to
conversion.
■ Integration and APIs: The ability to integrate with third-party applications (such as SFA, PRM,
call/contact center applications and legacy applications) using a standard, published and
supported set of APIs or integration interfaces.
Market Presence and Company Viability
■ Vendor revenue: Vendor revenue (the combination of product or service licenses, annual
maintenance, and professional services provided by the vendor) totals a minimum of $20 million
during the past four quarters. If a company is privately held and chooses not to disclose
revenue information, it can provide instead the total number of installed customers, growth
rates in 2010 and 2011, total number of customers acquired in 2010 and 2011, and average
deal size. (Note: Gartner may estimate revenue for vendors that choose not to submit financial
and revenue information.)
■ Product functionality: The lead management product is delivered as a stand-alone lead
management technology, or as lead management functionality integrated and sold as part of a
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15. CRM suite, SFA application or marketing automation application. Functionality can be provided
through licensed software, or as a hosted or SaaS service.
■ Product availability: The lead management product has been available for license in the market
for a minimum of one year, and is currently installed and providing lead management
functionality (B2B, B2C or B2B2C) to enterprise and midenterprise customers (midenterprise is
defined as an enterprise with a minimum revenue of more than $250 million per year). The
vendor must also have a minimum of 20 production implementations worldwide, and these
implementations must span a minimum of three industries (for example, high tech, financial
services and manufacturing).
■ Market presence: The vendor has a direct sales and customer support presence in at least two
of the following three regions: North America and Latin America; Europe, Africa, and Middle
East (EMEA); and the Asia/Pacific region. In addition, the vendor has system integration,
consulting, technology, or sales and support partnerships in at least two of those regions.
Examples of these partnerships can include system integrators, service providers, third-party
application developers, add-on applications or service providers, strategy or process consulting
providers, or partners (value-added resellers [VARs], distributors, original equipment
manufacturers [OEMs] and technology providers).
■ Customer implementations: The vendor has a minimum of 12 new customers that have
implemented the vendor's CRM lead management technology in the previous 12 months. The
decision to include a vendor or a vendor's product in this Magic Quadrant is based on the
company and product meeting the inclusion criteria, and is made by Gartner. Vendors that
choose not to submit the information described above, but that meet the inclusion criteria,
appear in the Magic Quadrant on the basis of information gathered from other sources, in
accordance with Gartner Magic Quadrant policies and methodologies.
Microsoft and Oracle opted not to submit product information or customer references for this Magic
Quadrant. Information that is presented on these vendors and their lead management capabilities is
based on information gathered from other sources, including, but not limited to, vendor briefings
that these companies have conducted with Gartner in the past; primary research conducted by
Gartner; client interactions and inquiries; and other primary and secondary sources.
Evaluation Criteria
Ability to Execute
■ Product/Service: Core goods and services offered by the vendor that compete in/serve the
defined market. This includes current product/service capabilities, quality, feature sets, skills,
etc., whether offered natively or through OEM agreements/partnerships as defined in the market
definition and detailed in the subcriteria.
■ Overall Viability (Business Unit, Financial, Strategy, Organization): Viability includes an
assessment of the overall organization's financial health, the financial and practical success of
the business unit, and the likelihood of the individual business unit to continue investing in the
Gartner, Inc. | G00226897 Page 15 of 23
16. product, to continue offering the product and to advance the state of the art within the
organization's portfolio of products.
■ Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure that
supports them. This includes deal management, pricing and negotiation, presales support and
the overall effectiveness of the sales channel.
■ Market Responsiveness and Track Record: Ability to respond, change direction, be flexible and
achieve competitive success as opportunities develop, competitors act, customer needs evolve
and market dynamics change. This criterion also considers the vendor's history of
responsiveness.
■ Customer Experience: Relationships, products and services/programs that enable clients to be
successful with the products evaluated. Specifically, this includes the ways customers receive
technical support or account support. This can also include ancillary tools, customer support
programs (and the quality thereof), availability of user groups, service-level agreements, etc.
Table 1. Ability to Execute Evaluation Criteria
Evaluation Criteria Weighting
Product/Service High
Overall Viability (Business Unit, Financial, Strategy, Organization) Standard
Sales Execution/Pricing Standard
Market Responsiveness and Track Record High
Marketing Execution No Rating
Customer Experience High
Operations No Rating
Source: Gartner (June 2012)
Completeness of Vision
■ Market Understanding: Ability of the vendor to understand buyers' wants and needs and to
translate those into products and services. Vendors that show the highest degree of vision
listen and understand buyers' wants and needs, and can shape or enhance those with their
added vision.
■ Sales Strategy: The strategy for selling a product that uses the appropriate network of direct
and indirect sales, marketing, service and communication affiliates that extends the scope and
depth of market reach, skills, expertise, technologies, services and the customer base.
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17. ■ Offering (Product) Strategy: The vendor's approach to product development and delivery that
emphasizes differentiation, functionality, methodology and feature set as they map to current
and future requirements.
■ Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or
capital for investment, consolidation, defensive or pre-emptive purposes.
Table 2. Completeness of Vision Evaluation Criteria
Evaluation Criteria Weighting
Market Understanding High
Marketing Strategy No Rating
Sales Strategy Standard
Offering (Product) Strategy High
Business Model No Rating
Vertical/Industry Strategy No Rating
Innovation Standard
Geographic Strategy No Rating
Source: Gartner (June 2012)
Quadrant Descriptions
Leaders
Leaders in the CRM Lead Management market provide best-of-breed functionality that supports
B2B, B2B2C and B2C lead management processes across multiple channels. The vendors
demonstrate market awareness and nimbleness by their ability to develop and deploy support for
new market and user requirements. The vendors have developed an ecosystem of technology and
system integration partnerships, and have demonstrated their ability to sell and support customers
globally. Leaders are able to show viability through revenue growth, organizational growth, and
either profitability or the ability to attract outside investment. Leaders sell successfully in more than
a single vertical industry, and customers show high levels of satisfaction and success with their
implementations.
Challengers
Challengers in CRM lead management offer breadth of functionality either on an integrated
marketing automation platform, or with a CRM suite. Lead management capability is typically not
Gartner, Inc. | G00226897 Page 17 of 23
18. best-of-breed, but Challengers provide market presence and adjacent technologies that are
valuable to buyers that require a single vendor platform to fulfill multiple functional requirements.
The focus is often on IT buyers that are looking for deep levels of integration with currently
implemented technology or infrastructure. Challengers are often slower to react to changes in the
market and lag behind the Leaders, and are often dependent on selling to existing clients.
Visionaries
Visionaries have a strong vision for a set of technologies that include lead management, but do not
yet provide best-of-breed solutions or very broad marketing automation capability. Visionaries may
be looking to capitalize on market momentum by emphasizing their role as part of the ecosystem as
they invest in internal R&D or possible M&A activity to increase their market presence and
potentially move to either a Challenger or Leader position. Visionaries are thought leaders and
innovators that have not yet gained broad market penetration and adoption.
Niche Players
Niche Players provide a basic set of lead management features to a narrow segment of the potential
market. Their markets are often defined by vertical industry expertise, or by selling into their
installed base as an add-on technology. They meet Magic Quadrant criteria, but attempt to extend
their functionality with professional service engagements. Niche Players may be limited in
geographic reach, partner relationships or scalability of their solution. Niche Players are appealing
to customers with limited budgets or constrained technology resources, and those that are willing
to compromise on functionality. Niche Players often lack vision, or are unable to deliver on a vision
they try to articulate.
Context
CRM lead management is predominantly implemented by B2B organizations, although B2B2C and
B2C companies selling high-value, considered products or services are adopting B2B business
models. Several lead management vendors provide narrowly focused products that concentrate on
best-of-breed lead management and are able to react quickly to changes in the market, such as the
requirement to incorporate social channels.
CRM suite vendors have all integrated some level of lead management into their products, but these
products generally do not represent the best-of-breed features and functionality provided by
Leaders. Vendors that support lead management as part of an integrated marketing automation
suite can also manage MCCM, MRM and IMM processes, but may be overly complex and
expensive for companies that require focused lead management. Marketing and sales organizations
looking to invest in lead management should understand their requirements in the context of
features and functions, but also in terms of their propensity to invest, their available technical and
marketing resources, and their desired time to productivity.
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19. Market Overview
The CRM market as a whole continued to enjoy a strong rebound in 2011 with revenue reaching
$11.9 billion in 2011, a 12.7% growth from 2010. Marketing automation software, a $2.8 billion
market in 2011, is expected to have year-over-year double-digit growth for the next three years. It
represents the largest growth area in CRM, compared with sales and customer service software
revenue forecasts (see "Forecast: Enterprise Software Markets, Worldwide, 2008-2015, 4Q11
Update" [Note: This document has been archived; some of its content may not reflect current
conditions.]).
Key Findings
The success and impact of lead management is increasing as lead management technologies
mature and organizations gain expertise in managing multichannel lead processes. More than 67%
of respondents identified lead management as having a critical or major impact on achieving sales
and revenue objectives, and more than 69% were completely satisfied with their vendor and with
application functionality.
Companies deploying CRM lead management applications are realizing measurable impact on
revenue, and marketing professionals are focusing analytics, dashboards and KPIs to monitor and
measure the impact on revenue growth. However, many organizations still struggle with aggregating
this data across multiple CRM and SFA applications, and rely on simple, operational KPIs to gauge
impact.
Organizational issues, rather than technical challenges, continue to be one of the biggest obstacles
to success in lead management, with almost 40% of references identifying alignment of marketing,
sales and other customer-facing departments as their greatest challenge. The success of lead
management initiatives depends on shared objectives and vision across sales, channels, marketing,
product management, IT and, ideally, senior management. However, in almost 70% of the
companies surveyed, sponsorship and ownership for lead management initiatives continue to reside
with marketing. Additional challenges identified were a lack of resources (including time) within the
marketing organization; integration of lead management with other applications; and measuring
business impact via analytics or KPIs.
Lead management is no longer only for B2B organizations. Although a majority of lead management
applications are implemented by B2B companies, B2C and B2B2C companies have implemented
lead management in industries as diverse as insurance, automotive, financial services, consumer
products and services, and have realized direct positive impact on revenue. The underlying
consideration in all these applications is not whether the sale is made to a corporation or an
individual, but whether the value of the sale is large enough (a "considered sale") to justify the
investment in lead management technology.
Analysis
CRM lead management has matured significantly from when Gartner published "MarketScope for
CRM Lead Management" in March 2011. Senior management is laser-focused on customer
Gartner, Inc. | G00226897 Page 19 of 23
20. acquisition and customer retention and marketing professionals are developing lead management
processes and expertise that support these goals, but, almost as important, are also able to
quantify the contribution that marketing is making to top-line revenue objectives. The combination
of a focus on customer acquisition and revenue goals, and an overall maturing of technology
platforms and expertise within the organization, is helping to drive lead management investment:
Almost all vendors in this Magic Quadrant reported strong growth in revenue, expansion of
partnerships with system integration and technology partners, and overall good levels of user
satisfaction.
The success and the impact of lead management is increasing as lead management technologies
mature and organizations gain expertise in managing multichannel lead processes. More than 67%
of respondents identified lead management as having a critical or major impact on achieving sales
and revenue objectives, and more than 69% were completely satisfied with their vendor and with
application functionality. Perceptions of the impact of lead management at senior levels in the
organization continue to lag, however. When asked how CEOs or COOs would rate the impact, only
55% of respondents said senior executives would give lead management initiatives the same rating
that they would, which has impact in terms of realizing organizational vision and gaining support for
lead management initiatives.
User organizations will grapple with vendor choice and implementation decisions at the start of a
lead management project. All CRM applications (such as Microsoft Dynamics CRM, SAP CRM,
Oracle Siebel Marketing and salesforce.com) provide some level of lead management, eliminate the
need for a second vendor relationship and can reduce integration challenges; however, none of
these vendors provides best-of-breed functionality and, as a result, are not Leaders in the category.
Vendors that are Leaders provide robust capability, but require an additional investment and may
introduce implementation and integration challenges. Vendors that provide broader marketing
automation functionality, such as IBM (Unica) and Teradata-Aprimo, provide MCCM, marketing
analytics or MRM that can extend the functionality of lead management, but also increase the
deployment time and complexity of the solution.
Recommended Reading
Some documents may not be available as part of your current Gartner subscription.
"Magic Quadrants and MarketScopes: How Gartner Evaluates Vendors Within a Market"
"Toolkit: Use Gartner's Lead Management Maturity Model to Assess Lead Management
Capabilities"
"Criteria for Magic Quadrant for CRM Lead Management"
"Roundup of CRM Lead Management, Campaign Management, and Digital Marketing Research in
2011"
"MarketScope for CRM Lead Management"
Page 20 of 23 Gartner, Inc. | G00226897
21. "Leverage CRM Lead Management KPIs to Link Marketing Investment to Business ROI"
Evaluation Criteria Definitions
Ability to Execute
Product/Service: Core goods and services offered by the vendor that compete in/
serve the defined market. This includes current product/service capabilities, quality,
feature sets, skills and so on, whether offered natively or through OEM agreements/
partnerships as defined in the market definition and detailed in the subcriteria.
Overall Viability (Business Unit, Financial, Strategy, Organization): Viability includes
an assessment of the overall organization's financial health, the financial and practical
success of the business unit, and the likelihood that the individual business unit will
continue investing in the product, will continue offering the product and will advance
the state of the art within the organization's portfolio of products.
Sales Execution/Pricing: The vendor's capabilities in all presales activities and the
structure that supports them. This includes deal management, pricing and negotiation,
presales support, and the overall effectiveness of the sales channel.
Market Responsiveness and Track Record: Ability to respond, change direction, be
flexible and achieve competitive success as opportunities develop, competitors act,
customer needs evolve and market dynamics change. This criterion also considers the
vendor's history of responsiveness.
Marketing Execution: The clarity, quality, creativity and efficacy of programs designed
to deliver the organization's message to influence the market, promote the brand and
business, increase awareness of the products, and establish a positive identification
with the product/brand and organization in the minds of buyers. This "mind share" can
be driven by a combination of publicity, promotional initiatives, thought leadership,
word-of-mouth and sales activities.
Customer Experience: Relationships, products and services/programs that enable
clients to be successful with the products evaluated. Specifically, this includes the ways
customers receive technical support or account support. This can also include ancillary
tools, customer support programs (and the quality thereof), availability of user groups,
service-level agreements and so on.
Operations: The ability of the organization to meet its goals and commitments. Factors
include the quality of the organizational structure, including skills, experiences,
programs, systems and other vehicles that enable the organization to operate
effectively and efficiently on an ongoing basis.
Gartner, Inc. | G00226897 Page 21 of 23
22. Completeness of Vision
Market Understanding: Ability of the vendor to understand buyers' wants and needs
and to translate those into products and services. Vendors that show the highest
degree of vision listen and understand buyers' wants and needs, and can shape or
enhance those with their added vision.
Marketing Strategy: A clear, differentiated set of messages consistently
communicated throughout the organization and externalized through the website,
advertising, customer programs and positioning statements.
Sales Strategy: The strategy for selling products that uses the appropriate network of
direct and indirect sales, marketing, service, and communication affiliates that extend
the scope and depth of market reach, skills, expertise, technologies, services and the
customer base.
Offering (Product) Strategy: The vendor's approach to product development and
delivery that emphasizes differentiation, functionality, methodology and feature sets as
they map to current and future requirements.
Business Model: The soundness and logic of the vendor's underlying business
proposition.
Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and
offerings to meet the specific needs of individual market segments, including vertical
markets.
Innovation: Direct, related, complementary and synergistic layouts of resources,
expertise or capital for investment, consolidation, defensive or pre-emptive purposes.
Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to
meet the specific needs of geographies outside the "home" or native geography, either
directly or through partners, channels and subsidiaries as appropriate for that
geography and market.
Page 22 of 23 Gartner, Inc. | G00226897
