Competitive Landscape: CSP B2C Multichannel Campaign Management, Worldwide, 2014

Transcription

1 G Competitive Landscape: CSP B2C Multichannel Campaign Management, Worldwide, 2014 Published: 20 October 2014 Analyst(s): Charlotte Patrick Multichannel campaign management is currently seeing expansion of CSP vendor product sets and opportunities for new types of market entrants. This research will inform vendor strategy teams of the competitive landscape and future market forces. Key Findings Full suite and larger vendors are continuing with portfolio expansion to build a complete multichannel campaign management (MCCM) portfolio. New areas include Web and social analytics and better campaign orchestration. Other types of vendors with less complete product sets are looking to expand into MCCM. For example, real-time offer vendors (known mainly for SMS-based outbound offers) are launching inbound campaigns and building out segmentation/analytics capabilities. Many communications service providers (CSPs) still have simple campaign management capabilities that they are not looking to rip out and replace with full MCCM suites. This is likely to underpin a level of market fragmentation going forward, allowing vendors without a full product set to compete. An area of R&D for larger vendors is improving the customer experience through messaging, rather than just through cross-selling or upselling CSP products. Like all customer experience activities, being able to prove return on investment is likely to be the biggest challenge. Recommendations Larger vendors: Clearly demonstrate how your products solve CSP-specific issues. This will help CSPs understand what they require from your broad portfolio and message against one of the key strengths of a small vendor their knowledge of solving specific CSP problems.

2 Other vendors: Concentrate on developing (or partnering with specialist vendors with) foundational, segmentation and analytics capabilities that can compete with those of your larger competitors. All vendors: Consider where customer experience messaging could fit with other parts of your product portfolio (for example, your digital commerce capabilities). Develop these areas first so that you can trial them with existing customers and prove return on investment before committing to a full development program. Table of Contents Analysis...3 Competitive Situation and Trends... 3 Market Definition...3 Market Forces... 5 Market Players...6 Full Suite Aspirants... 6 Larger Vendors With Core Functionality... 6 Customer Management and Business Support System (BSS) Vendors... 6 CSP-Specific Real-Time Vendors...7 Smaller Analytics Companies...7 The Future of Competition... 7 Future Balance of Larger and Smaller CSP MCCM Vendors... 7 Future Competitive Trends...8 Competitive Profiles...9 AsiaInfo Convergys Flytxt IBM Infor...13 Oracle...14 Pontis Razorsight SAP...15 Teradata...16 References and Methodology...16 Gartner Recommended Reading Page 2 of 24 Gartner, Inc. G

3 List of Figures Figure 1. Development of CSP MCCM Solutions... 4 Figure 2. Five Main Categories of Market Players...10 Analysis Competitive Situation and Trends Market Definition Gartner developed a maturity model for creating campaigns one that shows how a company's promotional strategy develops from mailing out brochures to customers to creating multichannel campaigns and personalized engagement strategies (see Note 1 below). In response to this trend toward more sophisticated campaigns, CSP MCCM vendors are expanding their portfolios in five functional areas shown in Figure 1. Gartner, Inc. G Page 3 of 24

4 Figure 1. Development of CSP MCCM Solutions Foundation Campaign Analytics Executing Campaigns Campaign Workflow Channels Timeline Simple Datasets e.g., Demographic Additional Datasets Usage Context Digital and social channels Broad Segments Richer Segments Dynamic Life stage Segments of one CLV Simple Analytics Predictive Analytics New Linked Products Lead management Loyalty management Search marketing Web analytics Historic Campaigns Real-Time/ Event- Triggered Campaigns Improved Management Campaign optimization Dialogue and persona management New Types of Campaign Customer experience Precision selling Churn management Improved Planning, Tracking and Measurement Limited Channels e.g., Direct mail, New Channels Mobile Call center Digital portals Social The blue boxes show Gartner's functional building blocks of MCCM, taken from "How to Evaluate Multichannel Campaign Management Applications." See Note 2 for more detail on the elements included within each of the blocks. Source: Gartner (October 2014) The movements within each of the blue building blocks are summarized below. Foundation: New types of data are collected, such as increasing amounts of historic customer usage data, to more accurately determine the best offer that could be made. Campaign analytics: Segmentation becomes more targeted potentially down to a "segment of one" for real-time marketing and more multidimensional. Predictive analytics then help to increase the chances of success by identifying customers most likely to take up an offer. New types of products are also being added to the MCCM portfolio that are "linked" to campaign management for example, Web analytics can help build a more detailed profile of the customer. Page 4 of 24 Gartner, Inc. G

5 Executing campaigns: CSP campaigns are increasingly delivered in "real time" or triggered by events for example, a customer stepping off an airplane and being offered a roaming bundle. More orchestration is also required as the number of channels used by a CSP for messages increases, to ensure that a customer receives a consistent message and is not overcontacted. Lastly, there is rising interest in moving away from cross-sell/upsell toward messaging for customer experience or at particular moments in the customer journey. Campaign workflows: Back-office tools for campaign management continue to be improved, resulting in better campaign planning, tracking and measurement. Channels: Vendors are looking to provide messaging across an increased number of customer touchpoints, with development ongoing in MMS, social, digital portals and mobile. Market Forces This increase in sophistication creates a number of market forces for vendors wishing to sell to CSPs. New capabilities are now required to complete a vendor's MCCM portfolio. Traditional campaign management is a mature market with multiple vendors, but a number of new technologies are needed particularly around real-time campaigns and orchestrating offers across channels. This has resulted in acquisitions and partnerships from the bigger and smaller vendors, respectively. Some parts of MCCM are of less interest to CSPs. Not all of the areas within Gartner's MCCM definition (see Note 2) are as relevant to CSPs as other verticals. For example, lead management solutions are more for vendors selling to B2B companies, and CSPs have relatively simple requirements around social and search marketing. New types of vendors are entering the market. New capabilities such as real-time campaigns have created opportunities for a new type of vendor bringing CSP-specific functionality and expertise. These vendors have gained good traction in some areas for example, with prepay recharge campaigns suitable for CSPs in developing markets, where even a small decrease in the recharge cycle can have a significantly positive effect. Purchasing is increasingly complex for CSPs. As CSPs will already have some campaign management functionality, adding in new areas creates complex decisions about whether to keep and add to their existing solution or to replace part or all of it. Additional decision points, especially for CSPs in developing markets, can also be around whether to take a managed solution, which can be a good way to fill gaps in knowledge within the organization. Potential new uses for MCCM offer new ways for vendors to differentiate. One example of a new application for campaign management solutions is in the area of customer experience: moving away from the selling of a product/service toward the use of messaging to provide help, education or an apology at a particular moment in the customer journey. This is a key area of research and development for the most sophisticated vendors currently. Gartner, Inc. G Page 5 of 24

6 Market Players When looking at vendors within the landscape for CSP MCCM, five main categories were noted. Full Suite Aspirants Examples: IBM, Oracle These vendors are currently in the Leaders quadrant of our "Magic Quadrant for Multichannel Campaign Management" and will have purchased functionality in most but not all of the areas defined by Gartner as being within an MCCM product (see Note 2). A typical prospect for these vendors would be a large, innovative Tier 1 or 2 CSP with ambitions to automate a full range of traditional and digital campaign management including simple, multistep, personalized and realtime campaigns. CSP requirements from their vendor will therefore include: Scalability for large volumes The ability to integrate marketing operations Consistency across channels The desire to try out new functionalities such as search or social marketing to lead the competition This type of sophisticated CSP will probably also be an existing customer for these vendors, which will be less interested in selling noncore functionality such as campaign management as a separate deal. Larger Vendors With Core Functionality Examples: Infor, SAP, Teradata These are typically Leaders or Challengers in the Magic Quadrant that sell to multiple verticals. They come from a range of backgrounds but are developing a sophisticated set of core campaign management products to enhance their portfolios. Many started with at least some capabilities within the MCCM product set for example, Infor's Ephiphany product providing inbound bestnext-offer capabilities to CSP contact centers. Outside of these core campaign management products, they are more likely to partner or not provide "linked" products (for example, search marketing, Web analytics or lead management). They target the same types of CSP as the full suite aspirants. Customer Management and Business Support System (BSS) Vendors Examples: AsiaInfo, Convergys These vendors are more likely to be focused solely on CSPs and have a good number of existing relationships with them useful for upselling campaign management products. However, they are having to develop a range of new products and skill sets to compete, starting with segmentation and analytics capabilities. Example vendors selected for this report tend to focus more on Page 6 of 24 Gartner, Inc. G

7 developing markets to avoid competing head-to-head with some of the vendors with more developed product sets. CSP-Specific Real-Time Vendors Examples: Flytxt, Pontis These are niche CSP vendors originating from the real-time campaign management space. We estimate that the CSP market for real-time offers is at about 30% penetration, with several known case studies of successful offers such as prepay top-up simulation (see "Hype Cycle for Communications Service Provider Operations, 2014"). Vendors in this space have been looking at branching out into broader campaign management but have patchy coverage (for example, they sometimes don't offer sophisticated segmentation). They have a stronger focus on consultancy and knowledge of CSP campaign management than the other vendor categories, which makes them suitable for customers with no prior experience of real-time campaigns and for CSPs in developing markets with more limited campaign management skill sets. Smaller Analytics Companies Example: Razorsight These are peripheral players in the MCCM market but are included in this report as they provide sophisticated analytics and segmentation to feed CSP campaign management solutions. The Future of Competition This section looks at some of the main competitive movements that we expect to see. Future Balance of Larger and Smaller CSP MCCM Vendors Challenges for the larger MCCM vendors over the next few years include: The ongoing need to invest in the consolidation of new purchases/partnerships to allow seamless interworking between the products. For example, ensuring appropriate speeds of data movement between different elements of the solution. Given the maturity of some parts of the product set, CSPs are unlikely to "rip and replace" with completely new solutions. This gives smaller vendors an ongoing place to provide parts of an MCCM solution and, since larger vendors are usually less able/willing to provide tailored, CSPspecific post-sales services, an opportunity to provide differentiating services on top of those larger vendor products. Smaller players will continue to look for new areas to use their capabilities. Such vendors face a number of challenges. Branching out into new areas of campaign management, some of which are already mature, will mean encountering new vendors with more sophisticated product sets. This may mean that Gartner, Inc. G Page 7 of 24

8 they either choose to focus on areas where they have most knowledge or partner to build capabilities. At this stage in the life cycle, a typical strategy for the types of smaller company discussed here may well be to exit the market. However, potential acquirers have often already developed their own solutions in areas such as real time reducing their appetite for such purchases. These challenges suggest the market will continue to be reasonably fragmented, with opportunities for the strongest smaller vendors to hold onto share particularly in developing markets or among less sophisticated CSPs. Future Competitive Trends The complexity of the CSP MCCM product means that it is useful to use the Gartner functional model to discuss competitive trends. Foundation: CSPs will continue to expand the types of data that they collect for campaign purposes, moving from call detail record information toward information from the operations support system (OSS) domain and unstructured data types. MCCM vendors will need to develop "ingestion capabilities" for these data types, which larger vendors may do by bringing in new parts of their own product set. The move toward OSS data may even provide opportunities for specialist customer experience management vendors to enter the space via partnerships with smaller MCCM players. Larger vendors are also expanding toward providing external datasets for use by their customers (for example, Oracle's purchase of BlueKai). Early CSP use cases for this external data are to provide better targeted digital and social messages by using vendors' collected data from these channels. It is likely to be easier for large vendors to develop these types of partnerships in the early days making it a point where they can differentiate. Campaign analytics: We will see development and partnering from the small/midsize vendors (such as those specializing in real-time campaigns) as they look to match the functionality of the larger vendors in core MCCM areas such as segmentation and predictive analytics. In addition, small, specialist analytics vendors will have opportunities to exploit holes in the capabilities of other vendors by offering products that provide more complex campaign analytics to feed into their campaign management platforms. Executing campaigns: The main question around the future development of campaign management functionality for CSPs is "what is the real return on investment for CSPs in developing messaging at different points in the customer journey?" As with many customer experience-related activities, articulating a business model is difficult. A message with a clear, measurable call to action is likely to have higher returns particularly when that call is a sales opportunity disguised as a customer experience message. An example would be a customer seen to be experiencing slow video streaming or making a complaint on a social media site being sent an offer of a faster mobile data service. Page 8 of 24 Gartner, Inc. G

9 Vendors who build good businesses in this area will have to learn to ingest and analyze new types of data, and will most likely also have solutions at parts of the customer journey where messaging looks most promising for example, digital commerce solutions or a CRM portfolio. Channels: CSPs will require vendors to support a broad mix of channels: Remains a good medium for retention and offers for the subset of customers who are prepared to read them. SMS Always opened and an obvious communication method for CSPs however, they need to be used sparingly (to avoid annoyance), have a high degree of relevance/targeting and enhance customer experience. Rich media-based campaigns (MMS) A replacement for SMS-based campaigns, offering a better user interface and content. Web-based campaigns Used as either general advertising or at specific moments in a digital commerce interaction. Contact center solutions Although CSPs are gaining traction in moving customers toward self-service portals, a place will remain for best-next-offers and other customer experience messaging during a customer call. Messaging within mobile apps A nascent area but one that offers opportunities to message the customer directly on their device in a relatively unobtrusive manner, and to support CSPs' desire to increase customer usage of their app. As discussed previously, the more channels are used the more orchestration and analytics will be required to support campaign management. This requirement is likely to play to the strengths of larger vendors in the longer term. Competitive Profiles Figure 2 summarizes the current competitive capabilities of the five vendor categories in respect of Gartner's MCCM functional areas. Gartner, Inc. G Page 9 of 24

10 Figure 2. Five Main Categories of Market Players Category Full Suite Aspirants Larger Vendors With Core Functionality Customer Mgmt. and BSS Vendors CSP-Specific Real-Time Vendors Smaller Analytics Companies Example Vendors IBM Oracle Infor SAP Teradata AsiaInfo Convergys Flytxt Pontis Razorsight Richer Segmentation Strong campaign mgmt. skills, including segmentation. Offer different types of segmentation with reasonable sophistication. Typically focused on personalization rather than group offerings. Simple to Predictive Analytics Developing but not always "native" capability and sophistication levels vary considerably. Building up predictive skills range typically less broad than vendors above. Still building a full set of predictive capabilities. Specialize in segmentation and advanced analytics. New Linked Products IBM and Oracle have acquired aggressively in order to offer full suites. More likely to partner to offer complete product sets. Fewer solutions and partnerships in this area, as "linked products" are not always key parts of a CSP MCCM portfolio. Some have loyalty mgmt. capabilities not provided by other vendors. New Types of Campaign More sophisticated vendors are discussing new areas such as customer experience messaging, and bringing in multiple sources of external data. Have real-time offers but more likely to be focused on marketing use cases than more broadly (e.g., customer experience). Improved Management Nearly all vendors have road maps that continue to build out mgmt. functions. New Channels Offer a range of channels. Developing new digital marketing skills. Strong in particular areas for example, SAP in commerce and Infor in inbound marketing. Will offer a range of outbound channels and the ability to integrate with inbound channels. Looking to build digital marketing skills. Come from a mobile outbound offers background. Extending capabilities to include inbound and other channels. Typically, feed into campaign mgmt. products or other operational systems (for customer experience-related activities). Green denotes a sophisticated, market-leading (or nearly market-leading) capability; yellow denotes gaps in capability or a reliance on outside partnership; red denotes very little or no functionality. BSS = business support system; CSP = communications service provider; MCCM = multichannel campaign management Source: Gartner (October 2014) Page 10 of 24 Gartner, Inc. G

11 AsiaInfo Market Overview AsiaInfo is a BSS solutions provider and market leader in China's billing, CRM and business intelligence (BI) markets. It offers campaign management products as part of its Veris CRM product set and analytics from its Veris BI portfolio. It provides business consultancy for customers within China, although not internationally. All its solutions run on a cloud-based platform and it has developed private cloud-based solutions for China Mobile and China Unicom that share functionality across regions. Its CRM portfolio as a whole generated $200 million last year, and its customer base includes the largest Chinese CSPs: U Mobile in Malaysia, Nepal Telecom and Telenor Group in Europe. How This Provider Competes As a vendor originating from the BSS domain, it provides solutions inside of BSS transformation projects that target a mix of Tier 1 and 2 CSPs. Although 90% of its revenue is still in the Chinese market, it is opening new regional sales offices within EMEA and has 100 staff deployed. Real-time decisioning and event-triggering competencies have been an area of recent focus, and the vendor has expanded the data that can be ingested inside of its complex event processing platform to allow triggers from the mobile data network, BSS, OSS and social media data. It then offers a mix of approaches for more nascent parts of the MCCM portfolio with a couple of areas not offered (although it can ingest data from other providers in the missing areas). It partners to bring functionality such as dialogue management and will create custom-built functionality in an area such as loyalty management, rather than offering an off-the-shelf product. Convergys Market Overview Convergys is a global customer management provider with customers in 31 countries, 125,000 employees and $3 billion in revenue. Its portfolio is focused around three main areas a customer service agents business, analytics competencies and a range of technical solutions including a campaign management offering. It has a managed operations offering including campaign designing, building, configuring, analytics and monitoring and offers a hosted solution in some regions with a road map that includes network function virtualization and cloud platforms. Convergys has eight customers with its customer management portfolio. How This Provider Competes Convergys targets all sizes of CSP in emerging countries and Tier 2/3 customers in developed markets, with a significantly sized APAC customer running 10,000 campaigns a month. Gartner, Inc. G Page 11 of 24

12 Like other vendors in the customer management/bss category, provision of telecom-grade solutions and integration is one of Convergys's key selling points. It does not offer all parts of the Gartner MCCM model but focuses on areas such as segmentation and built-in real-time capabilities, and is currently building up its predictive analytics capabilities. Unlike nearly all other vendors in this space, Convergys has its own inbound customer management systems enabling integration for inbound best-next-offers. Flytxt Market Overview Flytxt has corporate offices in Dubai and delivery centers in India. It originally provided real-time campaign management but has been moving into the broader campaign management space over the last two years by expanding its product portfolio. All deployments use private cloud and it has a considerable marketing consultancy (74 head count) that offers on-site and off-site consultancy to over half of Flytxt's customers. These staff provide necessary expertise for less sophisticated CSPs in developed markets in the areas of management, monitoring/analysis and data science. The company has 51 customers (including Vodafone, MTN, Bharti Airtel and Etisalat) and double-digit revenue growth. How This Provider Competes Flytxt has created a strong presence in developing markets by providing low-risk revenue-share products that tackle common issues in low-arpu markets, such as stimulating prepay recharge and marketing to avoid SIM swapping. Its moves into campaign management have seen it building out its predictive analytics capabilities with more self-learning, and moving into new channels such as the Web and apps (which have previously been less popular with its base of developing market CSPs). Current areas of activity include increasing its back-office functionality, such as dashboards and usage statistics, and, although it does not offer solutions in some nascent areas, it has a complete loyalty management capability. IBM Market Overview IBM's campaign management functionality historically focused on the postpaid space after the purchase of Unica. However, it has now built up real-time capabilities and offers typical real-time offers such as prepaid recharge. It provides cloud offerings for those requiring less sophisticated solutions as well as hybrid/on-premises solutions, where it has traditionally been strong. Post-sales consultancy is offered for those parts of the portfolio where it is important for example, around campaign management and Web analytics. Page 12 of 24 Gartner, Inc. G

13 Customers include a mix of global Tier 1 and 2 CSPs, including AT&T, Comcast, SingTel, SFR, TDC, NTT Docomo and Telefonica. IBM does not provide revenue. How This Provider Competes As a "full suite aspirant," IBM has predictive analytics from SPSS and some areas of functionality that other vendors do not for example, Web analytics, which it gained from its purchase of Coremetrics. It is currently building up capabilities around mobile and social, and moving into messaging around the customer journey. Recent purchases here include Xtify for mobile customer engagement, Tealeaf for customer experience behavioral analytics and Silverpop for cloud offerings. It is also funding R&D into areas such as persona management work on customer profiles (creating single IDs linked across different channels) and building up links to external sources of data via its Digital Data Exchange (currently over 150 sources including data exchanges, display advertisers and vendors). In future, given that marketing campaign management is a mature space, IBM is looking to expand and differentiate by providing continuous customer engagement. It announced its vision for this under the title of ExperienceOne in May Infor Market Overview Infor offers a range of enterprise solutions with strengths in the telecommunications vertical. Originating from the inbound campaign management space (with its purchase of Epiphany), it is now considered a Niche Player in our "Magic Quadrant for Multichannel Campaign Management." Solutions have historically been offered on-premises but it is now working to get its MCCM product into the cloud. It does not offer in-life consultancy but does offer value engineering to define business cases, and will work with a customer at the implementation stage and provide health checks, as needed. The CSP segment is one of its two strongest verticals, with customers mainly in North America and Western/Eastern Europe including Orange, T-Mobile and Turkcell. It is currently looking at building a customer base in Asia. Its total revenues are $2.7 billion, although it does not provide a split for campaign management products. How This Provider Competes Infor focuses on selling both basic and more sophisticated campaign management for marketers, and has event-driven customer experience campaigns such as messaging for when customers go over their minutes or see a spike in dropped calls. Offers can be delivered over all channels, with campaign coordination, real-time learning and a redesigned UI. Gartner, Inc. G Page 13 of 24

14 It does not offer a full range of "linked" products, but does have a digital asset management system that allows for some dynamic creation of content for example, changing addresses of the closest store based on the location of the campaign recipient. Oracle Market Overview Out of the vendors included in this report, Oracle has the most pieces of the Gartner functionality model detailed in Note 2 below, following its purchase of multiple smaller vendors such as Responsys for marketing orchestration. Oracle Marketing Cloud can't be purchased on-premises as Oracle believes that, going forward, a cloud implementation will allow marketers to get up and run faster while providing fewer issues around system upgrades. It offers creative, campaign, strategic and technical services across certain modules of the Oracle Marketing Cloud. Current customers include Verizon, AT&T, BT and Telus. Oracle does not provide revenue for its MCCM product set. How This Provider Competes Oracle competes by offering a wide set of apps for marketers, making campaign management part of the conversation. It is currently looking beyond software toward data provision using its data management platform, BlueKai, which already has a number of CSP-specific case studies. It also offers data aggregation into the Oracle Marketing Cloud, although analytics capabilities are not currently as big a focus area as some of its competitors. Its target customers are large-scale multinational CSPs, although it plans to extend its solutions to meet the requirements of smaller CSPs. Pontis Market Overview Pontis is an Israeli vendor coming, originally, from the real-time offer space now focusing on messaging products for marketers. Like other CSP-specific vendors, it will provide marketing/ operations consultancy with "dozens" of consultants offering methodologies and best practices. It offers solutions on-premises or as fully managed services. The company has over 25 customers and revenue of over $30 million. It has signed group agreements with VimpelCom, TIM Brasil and another global European CSP in the last 12 months. How This Provider Competes It targets large and midsize (over $30 million a month) CSPs and particularly focuses on those with both postpaid and prepaid customers. Its offering provides messaging for contextual marketing for CSPs (the "execution of messaging for continuous engagements with customers"), for revenue and customer satisfaction purposes. It does not offer traditional segmentation due to its particular focus Page 14 of 24 Gartner, Inc. G

15 on real-time offers, which require "segment of one" and can message into outbound channels such as SMS/USSD as well as social, apps and inbound channels. It is one of few vendors in this research to have expertise around on-screen, real-time recommendations within IPTV. Like others coming from the real-time offer space, it does not offer many of the more nascent areas of MCCM. Razorsight Market Overview Razorsight is a U.S.-based provider of cloud-based, descriptive and predictive analytics for sales, marketing, customer experience and finance. It offers consulting as part of the sales cycle only and 90% of its customers self-serve, with the rest taking a fully managed service. The company has 75 mainly U.S.-based customers, including AT&T, Verizon, Comcast, T-Mobile and Allstream, with some other customers in EMEA and recently Latin America. It has order revenue of $60 million. How This Provider Competes As a specialist analytics company, it has a limited product range in the MCCM area; however, it can provide segmentation and analytics for a campaign management solution. It targets the largest Tier 1 CSPs with out-of-the-box, cloud-based products, offering segmentation (for example, behavioral, value, response, demographic and churn) and descriptive/predictive analytics. Channels for which it would typically provide analytics for campaign management include Web, SMS, in-app, IPTV and inbound. SAP Market Overview SAP Customer Engagement Intelligence utilizes SAP Hana to provide traditional and real-time campaign management. It purchased KXEN in 2013 to enhance its predictive analytics capabilities and grow its partners in areas such as social media and Web analytics. It also plans to acquire SeeWhy a cloud-based provider that extracts and analyzes real-time data and provides digital channel messaging. It offers solutions on-premises or in the cloud and does not provide consultancy except around some of its newer products. Its CSP customers include T-Mobile, Cox Communications and Mobilink. SAP does not provide a view of revenue for this area. How This Provider Competes SAP looks to provide best-in-class solutions across a broad range of the MCCM functionalities, and targets all global CSPs. Gartner, Inc. G Page 15 of 24

16 It is actively purchasing and partnering to broaden its solution, and highlights its ability to provide cross-channel engagement for messaging in the marketing, sales and service processes. Teradata Market Overview Teradata's Integrated Marketing Cloud provides campaign management, and its real-time interaction manager messages into channels such as the Web or customer services. It provides CSPs with on-premises solutions as it does not see much desire for cloud-based solutions at present. Teradata's consultancy services include presales assessment and evaluation, support during implementation and postsales managed services. Teradata has 200 campaign management customers, although it does not provide a split of these by vertical. Named CSP customers include Verizon, Telefonica, Telenor, Vodafone and SK Telecom. How This Provider Competes Teradata targets the top third of the CSP market, whose strengths in dealing with large volumes of data and meeting complex needs it can address. It offers a good number of the areas set out in Gartner's functional diagram below (see Note 2) partnering in some of the "linked products" such as social and search marketing. It offers marketing operations functionality and is looking to expand its digital marketing capabilities for example, enabling an to be populated with the most up-to-date offers at the moment it is opened. It is also investing in anonymous-to-known tracking, helping to build up a picture of customers where little is known. This is useful to CSPs for their prepaid base. References and Methodology This Competitive Landscape was built up based on Gartner's existing definition of MCCM, and uses a good number of thought-leadership research notes on issues such as market direction and future user requirements. In addition, the 10 featured vendors were interviewed and asked a variety of questions on their functionality and opinions on future market direction. Page 16 of 24 Gartner, Inc. G

17 Acronym Key and Glossary Terms ARPU Average revenue per unit B2B B2C BSS CRM CSP IPTV MCCM MMS OSS SMS UI USSD Business to business Business to consumer Business support system Customer relationship management Communications service provider Internet Protocol TV Multichannel campaign management Multimedia Messaging Service Operations support system Short Message Service User interface Unstructured supplementary service data Gartner Recommended Reading Some documents may not be available as part of your current Gartner subscription. "Magic Quadrant for Multichannel Campaign Management" "Hype Cycle for Communications Service Provider Operations, 2014" "How to Evaluate Multichannel Campaign Management Applications" Note 1 Gartner's Promotional Maturity Model A five-stage model of promotional maturity is set out in: "Advance Your Promotional Strategy to Compete on the Customer Experience." Level 1: Strictly marcom Where managers develop marketing materials and broadcast them over one or two channels. Level 2: Mass marketing More targeted promotions sent to mass segments. Gartner, Inc. G Page 17 of 24

18 Level 3: Campaign launch machine More refined segmentation data is used to send campaigns over a mix of channels. Includes analytics to measure results. Level 4: Synchronized multichannel Finely targeted promotions aimed at coordinating twoway conversations between company and customer. Uses more sophisticated campaign management to adjust campaigns in order to maximize effectiveness. Level 5: Differentiated buyer experiences An engagement strategy with sophisticated analytics to develop personalized experiences. Predictive analytics is used to anticipate customer needs before they even recognize them. Note 2 Gartner Definition of Multichannel Campaign Management This note defines the elements included within each of the blue blocks in Figure 1. Figure 3. Elements of Gartner's Multichannel Campaign Management Goals Campaign Workflow Acquisition, Growth, Retention Campaigns UI, Planning, Roles and Approvals Tracking, Measurement, Multistep, Multiwave Process Workflow Personalization/Persona Management Real-Time Decisioning Channel Call Center Direct Mail Store/Office Executing Campaigns Event-Triggering Loyalty Management Dialogue Management Content Marketing Partners/ Distributors Campaign Optimization Web/Display Search Marketing Web Analytics IPTV Campaign Analytics Segmentation Lead Management Predictive Analytics Social Marketing Gaming Mobile Customer Profitability Analysis/Attribution Metrics Social Digital Commerce Foundation Data Cleansing and Matching, Data Modeling, Lists Data Warehouse/Data Mart/Source Data Source: Gartner (October 2014) Page 18 of 24 Gartner, Inc. G

19 Foundation Movements in the foundations of MCCM are often around the gathering of new types of data. These include: Digital retail data abandoned shopping cart, previous purchase behavior. Web usage browsing behavior. Social circle. CRM data such as complaints/trouble tickets. Location and contextual data. Trigger and event data for "real-time" campaigns typically that gained when a customer is interacting with a customer touchpoint or when a specific action is noted (for example, when the customer's prepay balance falls below a predefined level). Customer experience monitoring information mostly from OSS systems that allow CSPs to better assess a customer's experience with their device, services, network and connectivity. For example: Are they experiencing dropped calls? Have they got a rogue application that is draining battery power? Is their video service running smoothly? Campaign Analytics Segmentation: Defined in "How to Evaluate Multichannel Campaign Management Applications" as "techniques [that] enable the grouping of audiences based on different attributes along multiple dimensions. Traditional types of segmentation focused on products and who would be likely buyers. Newer groupings focus on potential profitability and the customer life cycle." CSP segmentations require data such as: Demographic information (age, socio-demographic categorization) Usage of services/web/content types providing needs-based segmentation for content or service campaigns Life stage attributes (silent period, growing usage, lowering usage) to identify potential customer journey stages where messaging might help the customer experience Voice of the customer insight identifying potentially unhappy customers Customer lifetime value to select high-value customers for specific campaigns Churn propensity Location and contextual information such as time of day Predictive analytics: The "Hype Cycle for Customer Analytic Applications, 2014" defines predictive analytics as "an approach to data mining with four attributes: an emphasis on prediction (rather than description, classification or clustering); rapid time to insight (measured in hours or days); an Gartner, Inc. G Page 19 of 24

20 emphasis on the business relevance of the resulting insights; and an increasing emphasis on ease of use, thus making the tools accessible to business users." Predictive techniques used by CSPs during campaign management include: Identification of customers most likely to purchase Churn scores (so that offers can be suppressed to certain customers who have a high probability of moving from one offer to the next in order to maintain their profitability particularly useful in developing markets where this is usual behavior) Propensity to win back Channel affinity Web analytics: The "Hype Cycle for Web Computing, 2014" defines Web analytics products as "specialized analytic applications used to understand and improve online channel user experience, visitor acquisition and actions, and to aid optimization efforts in digital marketing or intranets." CSP use cases for campaign management are either: For tracking the customer after responding to a campaign looking at click path, page views, items added to a shopping cart or content shared on social media, or For creating segmentation and personas using customers' Web behaviors Social marketing: The "Market Guide for Social Marketing Management" defines social marketing applications as offering "tools and templates that enable the creation, maintenance and optimization of a commercial presence in social environments." CSP activities in this area are still fairly nascent, but campaign management could be augmented with social data to either: Help them engage with customers/prospects in social conversations using social listening, publishing and engagement, or Gather feedback via social listening enabling profiling, scoring and segmenting of customers based on potential to purchase or other attributes Search marketing: "World-Class Building Blocks for Multichannel Campaign Management" defines search marketing as "the ability to market products and services by using a search function through methods such as organic search (getting free inclusion on third-party search engines, Google, Yahoo, MSN and so on), advertising based on keyword search or the ability for a company's own search tool to serve up products and services." CSPs can use the functionality to: Add insight to their customer profiles for example, what products customers are seeking, how customers are asking for them, and what they are looking for but cannot find Serve as a real-time lead-generation tool for improved decisions about which products or services to offer and how they are promoted Lead management: The "Magic Quadrant for CRM Lead Management" defines lead management processes as "taking in unqualified contacts and opportunities from a variety of sources, including Web registration pages and campaigns, direct mail campaigns, marketing, multichannel Page 20 of 24 Gartner, Inc. G