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

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Magic Quadrant for CRM Lead ManagementPublished: 7 June 2012

Analyst(s): Chris Fletcher

CRM lead management investment increases as executives turn tomarketing automation to fuel growth. Impact on revenue generation is highand satisfaction with vendors is generally strong, but organizationalalignment issues continue to reduce potential impact.

Market Definition/DescriptionLead management integrates business process and technology to close the loop betweenmarketing and direct or indirect sales channels, and to drive higher-value opportunities throughimproved demand creation, execution and opportunity management. Lead management processestake in unqualified leads from a variety of lead generation sources, including Web registration pagesand campaigns, direct mail campaigns, digital marketing channels and sources, email marketing,multichannel campaigns, database marketing and third-party leased lists, social CRM and socialnetworking sites, and tradeshows and other events (such as webinars, or customer or prospectevents).

The outputs of lead management processes — qualified, scored, nurtured, augmented andprioritized 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 aservice (SaaS), cloud-based application services. CRM lead management can be used in business-to-business (B2B), business-to-business-to-consumer (B2B2C) or business-to-consumer (B2C)CRM processes.

Magic QuadrantFigure 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 ofapproximately 39% over 2010. Founded in 1999, Eloqua sells primarily to B2B and B2B2Cindustries, including high tech, professional services, financial services and manufacturing.

Strengths

■ Strong product functionality: Scored high marks from surveyed customers for productfunctionality, customer support and overall satisfaction with the product. Users with experienceacross multiple vendors' products noted Eloqua's longer time to productivity and steeperlearning curve, but also its ability to support complex multichannel lead managementprocesses. Eloqua10, the vendor's latest product, is based on HTML5 and provides a simplerand easier-to-use user interface (UI) than prior versions. The product also simplifies several

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development and administrative tasks. Eloqua Social Suite and Eloqua Engage for iPad provideintegration and support for major social sites and iPad tablets.

■ Strong financials: Strong financial position, including 39% growth from 2010 to 2011 andrevenue of $71 million in 2011. Filed S-1 for initial public offering (IPO) in August 2011, althoughat the time of publication, Eloqua remained a private company.

■ User satisfaction: High satisfaction levels with the product and vendor reported by referenceaccounts indicate high probability of success for new Eloqua customers.

■ AppCloud: In 2011, Eloqua announced AppCloud, a marketplace for B2B marketingapplications. AppCloud has more than 50 applications, and partners include Data.com andRadian6 (salesforce.com), ON24, and Citrix Systems.

Cautions

■ Longer time to productivity: Steeper learning curve and higher licensing costs, compared withsome other best-of-breed vendors, although Eloqua accelerates the learning curve with aservice 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 possibleevents, such as merger and acquisition (M&A) activity. Companies investing in Eloqua solutionsshould 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 managementrequirements and limited resource availability, or those that have not already standardized on Unicafor 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-knownglobal presence and a broad range of technology assets to support marketing automation,digital marketing and e-commerce. IBM (Unica) reported 21% growth for its EnterpriseMarketing Management group from 2010 to 2011. Consider Unica's Enterprise Marketing Suitewhen marketing resource management (MRM), integrated marketing management (IMM) ormultichannel campaign management (MCCM) functionality is also key; when Unica is already astandard for marketing automation; or when complex, enterprise lead management is required.

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■ Domain expertise: Unica claims 2,500 customers worldwide and implementations in financialservices, telecommunications, life sciences and high-tech industries, and supports leadmanagement and broader marketing management applications for enterprise-scaleimplementations. IBM (Unica) was a Leader in "Magic Quadrant for Marketing ResourceManagement," "Magic Quadrant for Integrated Marketing Management" and "Magic Quadrantfor 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, UnicaOptimize, Unica eMessage, Unica PredictiveInsight, Unica Distributed Marketing and UnicaNetInsight Enterprise, to deliver this functionality. Additional functionality that is new with the8.6 release includes the ability to access Web behavior data from Coremetrics, social mediasupport and integration with Facebook and Twitter, and response/attribution tracking acrossoffline and online channels. Additional functionality that augments marketing applicationsincludes IBM applications such as Cast Iron, Cognos, Coremetrics, InfoSphere, SterlingCommerce and WebSphere Commerce, as well as bidirectional synchronization withsalesforce.com.

Cautions

■ B2B support: Unica's expertise and implementations are predominantly in B2C applications orenterprise-scale lead management, while a majority of lead management requirements continueto occur in B2B and, increasingly, B2B2C applications. Although Unica has been used inseveral enterprise-scale B2B implementations, prospects and reference accounts have statedthat the vendor does not display the depth of understanding of B2B lead managementrequirements 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 shouldevaluate their deployment options and requirements when considering Unica againstexclusively SaaS offerings provided by the Leaders.

■ Digital and social: Unica's recently released Enterprise Marketing Management update providesout-of-the-box integration with Coremetrics Web data and social sites, and attribution trackingacross multiple channels. Because these are new capabilities, we encourage prospectivebuyers to compare this functionality with that of the Leaders in this segment. Unica will seeincreasing 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 andmarketing automation. The vendor generated approximately $30 million in revenue in 2011 (Gartnerestimate), 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.


Strengths

■ Functionality and time to productivity: Reference accounts consistently praise Marketo's easeof use, short time to productivity, and rich analytic and reporting capability. Analytics-basedrevenue performance management (RPM) provides revenue visibility for future quarters, basedon lead volume/quality/scoring currently in the pipeline. Marketo recently acquired CrowdFactory to provide additional functionality that augments lead management processes. Marketoannounced a native Force.com application, Sales Insight, which is embedded in salesforce.comto provide lead visibility to sales teams.

■ Viability: Solid financial resources, experienced and respected management, and a strongmarketing voice and presence in the market.

■ Partnerships: Marketo is a salesforce.com/AppExchange partner, with a large majority of itscustomers using salesforce.com. Marketo recently announced a deeper partnership withMicrosoft for integration with Dynamics CRM and Dynamics CRM Online. Marketo also haspartnerships with Adobe, Cisco, and Citrix for the integration of online meeting services; withDell Boomi for application integration; with ExactTarget for email marketing; and with ON24 forthe integration of webcasts and virtual events. Marketo was selected as best marketingapplication in salesforce.com's AppExchange in 2011.

Cautions

■ Salesforce.com-centric: Heavy focus on salesforce.com users. Marketo has recently deepenedits integration with Microsoft Dynamics CRM, which should help Marketo to sell to a broaderbase of customers.

■ VC presence and profitability: Large VC presence indicates that the vendor may be positioningtoward an IPO or M&A transaction, which could cause shorter-term disruption for currentcustomers. 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 enterprisesector. It lags in broader marketing automation functionality, although its technology road maphighlights development in areas such as MRM. Marketo is also actively building out itstechnology and agency partnerships through its Marketo Alliance program.

Microsoft Dynamics CRM

Microsoft is a Niche Player among lead management vendors, with capabilities that are embeddedin Dynamics CRM and Dynamics CRM Online. Dynamics CRM is only appropriate for companiesthat are currently using it for sales force automation (SFA) and CRM, and that have fairly basic leadmanagement needs.


Strengths

■ Relative simplicity: Microsoft Dynamics CRM integrated lead management capability eliminatesthe need for a second lead management vendor, and can reduce the complexity of integrating alead management or marketing automation application into a current CRM or SFA environment.Microsoft Dynamics CRM is appropriate for companies that do not have complex leadmanagement requirements; for companies that are at the early stages of developing anddeploying lead management processes and prefer to use technology from a single vendor; andfor companies that have already deployed Microsoft Dynamics CRM for SFA or customersupport and that want to leverage current investments before investing in another product withbroader capabilities.

■ Integration: All marketing and sales data is kept in a single Dynamics CRM applicationdatabase, simplifying analytics and reporting. For example, information on when an opportunitycloses is available immediately for closed-loop lead management reporting. The latest release,Dynamics CRM Q2 2012, includes some enhancements, such as the addition of customworkflow entities to the CRM Online version, enabling customers with complex leadmanagement workflow requirements to use either Dynamics CRM or Dynamics CRM Online.The workflow capability is based on Windows Workflow Foundation; Microsoft also providesseveral prebuilt workflows for lead management and CRM processes. Microsoft Dynamics CRMsupports conditional formatting for simpler, user-defined workflows.

■ Choice: Dynamics CRM is available as either an on-premises or SaaS application, makingDynamics CRM one of the few applications to provide both an integrated lead managementcapability and a choice of deployment options. Several lead management products, includingthose from Leaders in this Magic Quadrant, are currently integrated with Dynamics CRM, sothat alternatives that include Microsoft Dynamics CRM and a best-of-breed set of capabilitiesare available.

Cautions

■ Limited functionality: Dynamics CRM does not provide a best-of-breed lead managementcapability, 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 SalesForce Automation" and "Magic Quadrant for CRM Customer Service Contact Centers."However, Microsoft's innovations in Dynamics CRM's lead management capabilities during thepast year have been limited, at a time when competitive solutions are increasing theirfunctionality.

Neolane

The only Visionary in this Magic Quadrant, Neolane saw 47% growth in 2011, generated revenue ofapproximately $44 million and secured VC funding of $27 million. The vendor has about 350 B2B


and B2C customers in industries including media and entertainment, life sciences and financialservices. Neolane was founded in France and approximately half of its revenue comes from theEMEA 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 forCRM Multichannel Campaign Management." It has successfully generated partnerships withand 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 isincluded in more than one-third of its deals; was one of the first products to offer Facebookcustomized pages and offers; and supports multiple email, Web, social, and webinar channelsthat play a role in lead management.

■ Flexibility: Neolane is adaptable enough as a platform to meet the needs of B2B, B2C, andB2B2C companies at a competitive cost. Its references gave high scores for categories likeoverall satisfaction, features and functions, ease of deployment, and integration with otherapplications. Deployment is either on-premises or SaaS.

Cautions

■ Complexity: Reference customers commented on the complexity of building and maintaininglead 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 andanalytics.

■ Growth: Customers ranked Neolane positively for overall satisfaction, but also commented thatorganizational growth created some resource shortfalls. Support levels and escalationprocedures 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 amature product that can provide broad functionality for B2C and B2B processes, integrates withother Siebel applications (such as Siebel Analytics and Siebel Sales), and provides end-to-endautomation of lead processes. The product is dependent on Siebel CRM, and is appropriate only forcompanies that currently have, or plan to implement, Siebel CRM.

Strengths

■ Breadth of functionality: Siebel provides core lead management functionality, enablingoutbound phone and sales campaign execution and follow-up, inbound response handling,


response and lead qualification and scoring, lead management, and lead-to-opportunityconversion. Siebel Lead Management can be used without other Siebel Marketing modules(such as Siebel Campaign Management) for multichannel lead generation, lead augmentationand lead-nurturing processes using email, Web, event, contact center, partner and mobilechannels. Siebel Campaign Management integrates with Siebel Sales, and enables the handoffand tracking of qualified leads to direct and indirect sales channels. Siebel Email Marketing andOracle Marketing Analytics provide additional functionality for email marketing and marketing/sales analytics. Siebel CRM Enterprise Marketing, when implemented with adjacent Siebelapplications, supports complex lead management processes, integrates with other Siebelapplications (such as Siebel Sales, Siebel Analytics and Siebel Loyalty Management), andprovides analytics and reporting insight throughout the marketing and selling cycle.

■ End-to-end automation: Reference customers cite end-to-end automation of the marketing andsales process, including campaigns, lead management and sales, as a top strength of theproduct.

■ Ecosystem: Siebel is a mature product with a wide range of system integration, implementationand technology partners that can add value to complex, enterprise-scale lead management.

Cautions

■ Complex solutions: Complete lead management applications will require the implementation ofseveral Siebel modules, such as Siebel CRM Enterprise Marketing, Siebel Lead Management,Siebel Sales and Siebel Analytics. Prospective customers should carefully evaluate andunderstand all application dependencies and investment requirements. Siebel LeadManagement provides basic functionality, but most companies will require additional modules(such as Campaign Management or Marketing Analytics) to be on par with the functionalityoffered by best-of-breed alternatives.

■ Future direction: Because Siebel CRM Enterprise Marketing is a mature product, customersshould anticipate limited functional enhancements, and should clearly understand Oracle'slong-term support policy in regard to Siebel. Prospective or current users should evaluate andunderstand Oracle's product road map and Fusion migration support policies. Customersshould also understand the financial implications and technical support available whenevaluating a potential migration from Siebel to Fusion.

■ Best-of-breed alternatives: Customers using Siebel CRM will find Siebel CRM EnterpriseMarketing an appropriate solution if they want to stay within the Oracle product portfolio, butthey should also evaluate non-Oracle lead management products.

salesforce.com

Salesforce.com is a Niche Player in this Magic Quadrant. Its native lead management capabilityprovides 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 systemintegrators, strategy and implementation firms; and provides a strong ecosystem (through itsAppExchange partners) of best-of-breed lead management applications.


Strengths

■ Viability: Salesforce.com is a well-known CRM vendor that generated approximately $1.6 billionin revenue in 2011 and supports 100,000 customers with its hosted CRM applications. Majorverticals for salesforce.com's lead management capabilities include financial services andinsurance, telecom, high tech, and professional services. The vendor has financial strength,global presence, and a very strong ecosystem of third-party lead management and marketingautomation technologies that integrate with it. Customers frequently cited salesforce.com'sstability and financial viability as a key consideration.

■ Basic, but cost-effective solution: An integrated CRM and lead management capabilityeliminates the need for a second vendor and a second license, and reduces the integrationissues frequently encountered in multivendor implementations. Reference customers cited costof ownership as an important part of their decision. Salesforce.com and CampaignManagement support lead management applications across email, Web and social channels;lead scoring; lead routing; and reporting and analytics. Visual Workflow supports the graphicaldesign of lead management applications, including the configuration of rules and triggers thatenable email campaigns. A defined lead object is core to salesforce.com, enabling developersto build enhanced lead management capabilities and a sharing model that enables access tothe lead on an individual or group level. Social CRM provided through Chatter and Radian6enables 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, suchas quick response (QR) code readers or scanners. Integration with Service Cloud 2 enables thegeneration of leads from customer support activities. Data.com provides support for cleaningand augmenting CRM data records that are part of lead management and SFA processes, aswell as for targeted list building; Data.com also provides contact information for 4 millioncompany records and 30 million contact records for enabling B2B campaigns.

■ Ecosystem and market presence: Salesforce.com, when used with Campaign Management andData.com, provides basic lead management capabilities; for companies that require moreadvanced functionality, salesforce.com also offers a strong ecosystem of lead managementvendors, system integration partners, strategy and implementation partners, and add-ontechnology options. System integration partners that provide services for lead managementinclude Accenture, Capgemini and Deloitte. Salesforce.com provides lead managementcapabilities based on its Sales Cloud, Campaign Management and Data.com products. Inaddition, several vendors covered in this Magic Quadrant, including Eloqua, Marketo andNeolane, are salesforce.com AppExchange partners and provide best-of-breed leadmanagement capabilities to salesforce.com applications.

Cautions

■ Not best of breed: Salesforce.com's native lead management capability is not competitive withofferings from the Leaders in this Magic Quadrant. Companies with complex lead managementapplication requirements may need to license a best-of-breed vendor's technology, incurringadditional costs and related issues with integration and implementation. Companies that havestandardized on salesforce.com, Sales Cloud and Data.com should evaluate the integrated lead


management capability provided in these products against their business requirements.Companies that require more advanced lead management functionality can choose fromseveral 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 customersshould consider the impact on their organizations if salesforce.com were to acquire one of theirAppExchange partners or one of the best-of-breed vendors that provide them with leadmanagement.

SAP (SAP CRM)

SAP is a Niche Player in CRM lead management. SAP's lead management capabilities areintegrated with SAP CRM and SAP CRM Marketing, and are suggested for companies that currentlyuse, or intend to use, its products. Marketing departments in an SAP environment should evaluateSAP lead management to see whether it meets their requirements before seeking best-of-breedsolutions.

Strengths

■ Integrated solution: SAP's lead management functionality is an integral part of SAP CRMMarketing 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 leadmanagement, but at the expense of providing best-of-breed capabilities. An SAP RapidDeployment Solution (RDS), a combination of preconfigured applications and professionalservices, supports accelerated implementation/fixed-price lead management. Other marketingautomation functionality includes campaign management planning and execution, MRM,collaborative lead management with channel partners and dealers (online and via PDFinteractive form exchange), marketing development funds, and partner channel management.Advanced analysis includes real-time offer management in campaigns. The vendor reports thatabout 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 increasedfocus on B2C offerings, such as the Hana Accelerator, which has the ability to deal with verylarge sets of data, such as social media sources. In the B2B2C space, SAP introducedCollaborative Campaign Management to include partners in campaign planning and execution.SAP also has extended its loyalty management capability to include partnerships that have jointloyalty 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, ExactTargetand OpenText,) to broaden its vision and marketing ecosystem.

■ Road map: 2012 includes plans to release a Hana-based predictive segmentation solutioncalled SAP Audience Discovery and Targeting, along with advanced segmentation andpredictive propensity models. SAP plans to release a hosted model for loyalty. Social additions


will include tighter integration with NetBase for social monitoring and with StreamWork forsocial collaboration. Additional plans include enhanced lead view and scoring across socialactivities, buying history, and all customer and prospect data.

Cautions

■ Lagging the Leaders: Customers note SAP CRM Marketing's lack of newer features, such asthe integration of social functions. While integration with SAP CRM and other SAP applicationsis a major driver for customers, some note that SAP's lead management functionality is notcompetitive with best-of-breed alternatives. Companies should consider alternatives if SAP isnot part of their current or planned environments, or if their organizations require adoption ofnewer technologies as part of lead management initiatives.

■ SaaS: SAP CRM Marketing is available as a licensed, on-premises product, and it can also behosted 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 marketingautomation and lead management under the Aprimo brand. Teradata is a Leader in "MagicQuadrant for Integrated Marketing Management" and "Magic Quadrant for CRM MultichannelCampaign 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. Thevendor 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 inwhich 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 MarketingStudio On Demand provide lead management, online marketing, visitor monitoring, Webanalytics (via integration with Omniture), and integration with salesforce.com, Oracle Siebel andMicrosoft Dynamics CRM. Marketing Studio also provides contact record deduping; automatednurturing campaigns integrated with content delivery, lead scoring, and the ability to provide anoptimal mix of content and channels; an integrated content library; and scoring rules thatdynamically vary by product, region or value. Teradata's recent acquisition of eCircle willprovide Aprimo with digital marketing and regulatory compliance capabilities, as well asadditional lead generation services, including list rental brokering, list quality management,optimized lead collection microsites and proprietary vertical portals for lead management toaddress marketing acquisition efforts.


■ Deployment: Marketing Studio can be deployed on-premises, hosted or hybrid; MarketingStudio On Demand is SaaS-only. Reference customers gave good scores to Aprimo for theiroverall satisfaction with implementations, with 83% indicating they were satisfied or verysatisfied.

Cautions

■ Road map vision: References gave Teradata only average scores for its lead managementvision and product road map strategies, indicating that better communication and a clearertechnology direction (particularly in regard to integration of the two product lines) should bepriorities. However, prospective Aprimo customers should take the time to understand thevendor's vision for lead management, which includes real-time scoring and decisioning, as wellas enhanced rule-based content and nurture marketing.

■ Lagging behind the Leaders: Teradata lags behind in some areas of innovation, particularly inintegrating digital marketing areas (including email, social marketing and webinars). This wasreflected 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. ConsiderAprimo for lead management when MRM or MCCM functionality is also required, or when it isalready implemented for data warehousing or analytics.

■ Operational overhead: High implementation, development and maintenance resourcerequirements. Reference customers also commented on challenges in integrating Aprimo withCRM and other customer applications already in place. Teradata received average scores onAprimo's ability to integrate with other applications, although this should be considered in thecontext of the larger and more-complex implementations that Aprimo supports. Companieswith more-focused lead management requirements and limited resources, or companies thatrequire integration and support of social channels as standard product functionality, shouldconsider alternative vendors.

Vendors Added or Dropped

We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as marketschange. As a result of these adjustments, the mix of vendors in any Magic Quadrant orMarketScope may change over time. A vendor appearing in a Magic Quadrant or MarketScope oneyear and not the next does not necessarily indicate that we have changed our opinion of thatvendor. This may be a reflection of a change in the market and, therefore, changed evaluationcriteria, 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 thesegment. Due to strong client interest in this product sector, as well as continuing innovation in theintegration of social, mobile and analytic capabilities into lead management processes, theMarketScope was upgraded to this year's Magic Quadrant.


Vendors or products that are in this year's Magic Quadrant, but that did not appear in last year'sMarketScope include salesforce.com.

Two Oracle products that support lead management — Oracle CRM On Demand Marketing andOracle Fusion CRM Marketing — did not meet the inclusion criteria of 12 productionimplementations and a minimum of $20 million in revenue at the time of publication and are notincluded 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 raisingof minimum vendor revenue to $20 million — vendors that appeared in last year's MarketScope, butnot in this year's Magic Quadrant include Leads360, LoopFuse, Manticore Technology, Pardot andSilverpop. The decision to raise the minimum revenue level was based on the needs of theenterprise and midenterprise companies that require strong financial viability and extensivecorporate 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 theapplication, as provided by the vendor. Inclusion criteria functionality cannot depend onapplications or functionality provided by partners, or on custom development or services (forexample, custom application development provided by the vendor's professional servicesorganization or a system integrator):

■ Multichannel lead management: The ability to provide lead management functionality, includinglead collection, analytics, augmentation, scoring, process management and nurturing, across aminimum of three lead generation and lead management channels within a single campaign.Examples of lead generation channels include websites, e-commerce sites, customer serviceand support applications (such as call and contact centers), email marketing, text and mobilemarketing, social networking or social CRM applications, events (in person and virtual), directmail marketing, and third-party databases/lists.

■ Lead collection/lead database: The ability to collect, store, execute on, import/export, analyzeand 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 adatabase, but the data model and the ability to collect/source data that will be stored in thedatabase are required.

■ Analytics, key performance indicators (KPIs) and business intelligence (BI): The ability toleverage integration tools (APIs, XML, etc.) to transfer data between applications, includingsource applications (e.g., third-party data providers, referral systems and websites) andexecution applications (e.g., SFA, contact center and email), to use in closed-loop marketing


analysis. The ability to generate operational and strategic KPIs. The ability to provide apreconfigured set of reports, management dashboards, metrics and KPIs as an integral part ofthe packaged application.

■ Lead augmentation: The ability to append missing or additional information to the lead fromexternal, third-party sources (such as missing email fields), and to integrate and store thisinformation into the lead management database and associate it with the appropriate lead orcustomer information. The ability to eliminate incomplete, redundant or duplicate leadinformation based on criteria set by the end-user organization. The ability to augment or nurturea 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 toclose.

■ Lead scoring/qualification: The ability to create multiple lead qualification and scoringprocesses, based on criteria such as a campaign, product type, customer segment, estimatedcustomer value, opportunity value or seasonal criteria; to execute multiple lead qualification andscoring processes simultaneously; and to dynamically route leads to the next-appropriate leadmanagement process part of lead process management.

■ Lead process management: The ability to create lead management workflows or businessprocess management rules, using a graphical workflow or business process tool, or anongraphical scripting tool, to create a lead management application that dynamically routesleads through the lead scoring, qualification, augmentation and distribution processes based onexecution criteria (such as geography, estimated value and status of prior process steps). Theability to dynamically pass leads to a sales execution system (such as SFA, partner relationshipmanagement [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 toconversion.

■ 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 andsupported set of APIs or integration interfaces.

Market Presence and Company Viability

■ Vendor revenue: Vendor revenue (the combination of product or service licenses, annualmaintenance, and professional services provided by the vendor) totals a minimum of $20 millionduring the past four quarters. If a company is privately held and chooses not to discloserevenue information, it can provide instead the total number of installed customers, growthrates in 2010 and 2011, total number of customers acquired in 2010 and 2011, and averagedeal size. (Note: Gartner may estimate revenue for vendors that choose not to submit financialand revenue information.)

■ Product functionality: The lead management product is delivered as a stand-alone leadmanagement technology, or as lead management functionality integrated and sold as part of a


CRM suite, SFA application or marketing automation application. Functionality can be providedthrough licensed software, or as a hosted or SaaS service.

■ Product availability: The lead management product has been available for license in the marketfor a minimum of one year, and is currently installed and providing lead managementfunctionality (B2B, B2C or B2B2C) to enterprise and midenterprise customers (midenterprise isdefined as an enterprise with a minimum revenue of more than $250 million per year). Thevendor must also have a minimum of 20 production implementations worldwide, and theseimplementations must span a minimum of three industries (for example, high tech, financialservices and manufacturing).

■ Market presence: The vendor has a direct sales and customer support presence in at least twoof the following three regions: North America and Latin America; Europe, Africa, and MiddleEast (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-partyapplication developers, add-on applications or service providers, strategy or process consultingproviders, or partners (value-added resellers [VARs], distributors, original equipmentmanufacturers [OEMs] and technology providers).

■ Customer implementations: The vendor has a minimum of 12 new customers that haveimplemented the vendor's CRM lead management technology in the previous 12 months. Thedecision to include a vendor or a vendor's product in this Magic Quadrant is based on thecompany and product meeting the inclusion criteria, and is made by Gartner. Vendors thatchoose 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, inaccordance with Gartner Magic Quadrant policies and methodologies.

Microsoft and Oracle opted not to submit product information or customer references for this MagicQuadrant. Information that is presented on these vendors and their lead management capabilities isbased on information gathered from other sources, including, but not limited to, vendor briefingsthat these companies have conducted with Gartner in the past; primary research conducted byGartner; 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 marketdefinition and detailed in the subcriteria.

■ Overall Viability (Business Unit, Financial, Strategy, Organization): Viability includes anassessment of the overall organization's financial health, the financial and practical success ofthe business unit, and the likelihood of the individual business unit to continue investing in the


product, to continue offering the product and to advance the state of the art within theorganization's portfolio of products.

■ Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure thatsupports them. This includes deal management, pricing and negotiation, presales support andthe overall effectiveness of the sales channel.

■ Market Responsiveness and Track Record: Ability to respond, change direction, be flexible andachieve competitive success as opportunities develop, competitors act, customer needs evolveand market dynamics change. This criterion also considers the vendor's history ofresponsiveness.

■ Customer Experience: Relationships, products and services/programs that enable clients to besuccessful with the products evaluated. Specifically, this includes the ways customers receivetechnical support or account support. This can also include ancillary tools, customer supportprograms (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


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 visionlisten and understand buyers' wants and needs, and can shape or enhance those with theiradded vision.

■ Sales Strategy: The strategy for selling a product that uses the appropriate network of directand indirect sales, marketing, service and communication affiliates that extends the scope anddepth of market reach, skills, expertise, technologies, services and the customer base.


■ Offering (Product) Strategy: The vendor's approach to product development and delivery thatemphasizes differentiation, functionality, methodology and feature set as they map to currentand future requirements.

■ Innovation: Direct, related, complementary and synergistic layouts of resources, expertise orcapital 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


Quadrant Descriptions

Leaders

Leaders in the CRM Lead Management market provide best-of-breed functionality that supportsB2B, B2B2C and B2C lead management processes across multiple channels. The vendorsdemonstrate market awareness and nimbleness by their ability to develop and deploy support fornew market and user requirements. The vendors have developed an ecosystem of technology andsystem integration partnerships, and have demonstrated their ability to sell and support customersglobally. Leaders are able to show viability through revenue growth, organizational growth, andeither profitability or the ability to attract outside investment. Leaders sell successfully in more thana single vertical industry, and customers show high levels of satisfaction and success with theirimplementations.

Challengers

Challengers in CRM lead management offer breadth of functionality either on an integratedmarketing automation platform, or with a CRM suite. Lead management capability is typically not


best-of-breed, but Challengers provide market presence and adjacent technologies that arevaluable 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 currentlyimplemented technology or infrastructure. Challengers are often slower to react to changes in themarket 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 notyet provide best-of-breed solutions or very broad marketing automation capability. Visionaries maybe looking to capitalize on market momentum by emphasizing their role as part of the ecosystem asthey invest in internal R&D or possible M&A activity to increase their market presence andpotentially move to either a Challenger or Leader position. Visionaries are thought leaders andinnovators 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 potentialmarket. Their markets are often defined by vertical industry expertise, or by selling into theirinstalled base as an add-on technology. They meet Magic Quadrant criteria, but attempt to extendtheir functionality with professional service engagements. Niche Players may be limited ingeographic reach, partner relationships or scalability of their solution. Niche Players are appealingto customers with limited budgets or constrained technology resources, and those that are willingto compromise on functionality. Niche Players often lack vision, or are unable to deliver on a visionthey try to articulate.

ContextCRM lead management is predominantly implemented by B2B organizations, although B2B2C andB2C companies selling high-value, considered products or services are adopting B2B businessmodels. Several lead management vendors provide narrowly focused products that concentrate onbest-of-breed lead management and are able to react quickly to changes in the market, such as therequirement to incorporate social channels.

CRM suite vendors have all integrated some level of lead management into their products, but theseproducts generally do not represent the best-of-breed features and functionality provided byLeaders. Vendors that support lead management as part of an integrated marketing automationsuite can also manage MCCM, MRM and IMM processes, but may be overly complex andexpensive for companies that require focused lead management. Marketing and sales organizationslooking to invest in lead management should understand their requirements in the context offeatures and functions, but also in terms of their propensity to invest, their available technical andmarketing resources, and their desired time to productivity.


Market OverviewThe 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 billionmarket in 2011, is expected to have year-over-year double-digit growth for the next three years. Itrepresents the largest growth area in CRM, compared with sales and customer service softwarerevenue forecasts (see "Forecast: Enterprise Software Markets, Worldwide, 2008-2015, 4Q11Update" [Note: This document has been archived; some of its content may not reflect currentconditions.]).

Key Findings

The success and impact of lead management is increasing as lead management technologiesmature 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 salesand revenue objectives, and more than 69% were completely satisfied with their vendor and withapplication functionality.

Companies deploying CRM lead management applications are realizing measurable impact onrevenue, and marketing professionals are focusing analytics, dashboards and KPIs to monitor andmeasure the impact on revenue growth. However, many organizations still struggle with aggregatingthis data across multiple CRM and SFA applications, and rely on simple, operational KPIs to gaugeimpact.

Organizational issues, rather than technical challenges, continue to be one of the biggest obstaclesto 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 leadmanagement initiatives depends on shared objectives and vision across sales, channels, marketing,product management, IT and, ideally, senior management. However, in almost 70% of thecompanies surveyed, sponsorship and ownership for lead management initiatives continue to residewith marketing. Additional challenges identified were a lack of resources (including time) within themarketing organization; integration of lead management with other applications; and measuringbusiness impact via analytics or KPIs.

Lead management is no longer only for B2B organizations. Although a majority of lead managementapplications are implemented by B2B companies, B2C and B2B2C companies have implementedlead management in industries as diverse as insurance, automotive, financial services, consumerproducts and services, and have realized direct positive impact on revenue. The underlyingconsideration in all these applications is not whether the sale is made to a corporation or anindividual, but whether the value of the sale is large enough (a "considered sale") to justify theinvestment in lead management technology.

Analysis

CRM lead management has matured significantly from when Gartner published "MarketScope forCRM Lead Management" in March 2011. Senior management is laser-focused on customer


acquisition and customer retention and marketing professionals are developing lead managementprocesses and expertise that support these goals, but, almost as important, are also able toquantify the contribution that marketing is making to top-line revenue objectives. The combinationof a focus on customer acquisition and revenue goals, and an overall maturing of technologyplatforms 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 ofpartnerships with system integration and technology partners, and overall good levels of usersatisfaction.

The success and the impact of lead management is increasing as lead management technologiesmature 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 salesand revenue objectives, and more than 69% were completely satisfied with their vendor and withapplication functionality. Perceptions of the impact of lead management at senior levels in theorganization continue to lag, however. When asked how CEOs or COOs would rate the impact, only55% of respondents said senior executives would give lead management initiatives the same ratingthat they would, which has impact in terms of realizing organizational vision and gaining support forlead management initiatives.

User organizations will grapple with vendor choice and implementation decisions at the start of alead 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 theneed for a second vendor relationship and can reduce integration challenges; however, none ofthese 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 mayintroduce implementation and integration challenges. Vendors that provide broader marketingautomation functionality, such as IBM (Unica) and Teradata-Aprimo, provide MCCM, marketinganalytics or MRM that can extend the functionality of lead management, but also increase thedeployment time and complexity of the solution.

Recommended ReadingSome 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 ManagementCapabilities"

"Criteria for Magic Quadrant for CRM Lead Management"

"Roundup of CRM Lead Management, Campaign Management, and Digital Marketing Research in2011"

"MarketScope for CRM Lead Management"


"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 includesan assessment of the overall organization's financial health, the financial and practicalsuccess of the business unit, and the likelihood that the individual business unit willcontinue investing in the product, will continue offering the product and will advancethe state of the art within the organization's portfolio of products.

Sales Execution/Pricing: The vendor's capabilities in all presales activities and thestructure 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, beflexible and achieve competitive success as opportunities develop, competitors act,customer needs evolve and market dynamics change. This criterion also considers thevendor's history of responsiveness.

Marketing Execution: The clarity, quality, creativity and efficacy of programs designedto deliver the organization's message to influence the market, promote the brand andbusiness, increase awareness of the products, and establish a positive identificationwith the product/brand and organization in the minds of buyers. This "mind share" canbe driven by a combination of publicity, promotional initiatives, thought leadership,word-of-mouth and sales activities.

Customer Experience: Relationships, products and services/programs that enableclients to be successful with the products evaluated. Specifically, this includes the wayscustomers receive technical support or account support. This can also include ancillarytools, 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. Factorsinclude the quality of the organizational structure, including skills, experiences,programs, systems and other vehicles that enable the organization to operateeffectively and efficiently on an ongoing basis.


Completeness of Vision

Market Understanding: Ability of the vendor to understand buyers' wants and needsand to translate those into products and services. Vendors that show the highestdegree of vision listen and understand buyers' wants and needs, and can shape orenhance those with their added vision.

Marketing Strategy: A clear, differentiated set of messages consistentlycommunicated 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 ofdirect and indirect sales, marketing, service, and communication affiliates that extendthe scope and depth of market reach, skills, expertise, technologies, services and thecustomer base.

Offering (Product) Strategy: The vendor's approach to product development anddelivery that emphasizes differentiation, functionality, methodology and feature sets asthey map to current and future requirements.

Business Model: The soundness and logic of the vendor's underlying businessproposition.

Vertical/Industry Strategy: The vendor's strategy to direct resources, skills andofferings to meet the specific needs of individual market segments, including verticalmarkets.

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 tomeet the specific needs of geographies outside the "home" or native geography, eitherdirectly or through partners, channels and subsidiaries as appropriate for thatgeography and market.


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

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