Magic Quadrant for CRM Lead Management

Magic Quadrant for CRM Lead Management
23 April 2013 ID:G00247202 Analyst(s): C hris Fletcher

VIEW SUMMARY CRM lead management's contribution to revenue growth fuels investment and overall satisfaction levels. However, IT leaders should be aware that organizational alignment, analytics and bestpractice maturity continue to present challenges. EVALUATION CRITERIA DEFINITIONS
Ability to Execute Product/Service: C ore goods and se rvice s offe re d by the ve ndor that com pe te in/se rve the de fine d m ark e t. This include s curre nt product/se rvice capabilitie s, quality, fe ature se ts, sk ills and so on, whe the r offe re d native ly or through O EM agre e m e nts/partne rships as de fine d in the m ark e t de finition and de taile d in the subcrite ria. Overall Viability (Business Unit, Financial, Strategy, Organization): Viability include s an asse ssm e nt of the ove rall organization's financial he alth, the financial and practical succe ss of the busine ss unit, and the lik e lihood that the individual busine ss unit will continue inve sting in the product, will continue offe ring the product and will advance the state of the art within the organization's portfolio of products. Sales Execution/Pricing: The ve ndor's capabilitie s in all pre sale s activitie s and the structure that supports the m . This include s de al m anage m e nt, pricing and ne gotiation, pre sale s support, and the ove rall e ffe ctive ne ss of the sale s channe l. Market Responsiveness and Track Record: Ability to re spond, change dire ction, be fle x ible and achie ve com pe titive succe ss as opportunitie s de ve lop, com pe titors act, custom e r ne e ds e volve and m ark e t dynam ics change . This crite rion also conside rs the ve ndor's history of re sponsive ne ss. Marketing Execution: The clarity, quality, cre ativity and e fficacy of program s de signe d to de live r the organization's m e ssage to influe nce the m ark e t, prom ote the brand and busine ss, incre ase aware ne ss of the products, and e stablish a positive ide ntification with the product/brand and organization in the m inds of buye rs. This "m ind share " can be drive n by a com bination of publicity, prom otional initiative s, thought le ade rship, word-of-m outh and sale s activitie s. Customer Experience: R e lationships, products and se rvice s/program s that e nable clie nts to be succe ssful with the products e valuate d. Spe cifically, this include s the ways custom e rs re ce ive te chnical support or account support. This can also include ancillary tools, custom e r support program s (and the quality the re of), availability of use r groups, se rvice -le ve l agre e m e nts and so on. Operations: The ability of the organization to m e e t its goals and com m itm e nts. Factors include the quality of the organizational structure , including sk ills, e x pe rie nce s, program s, syste m s and othe r ve hicle s that e nable the organization to ope rate e ffe ctive ly and e fficie ntly on an ongoing basis. Completeness of Vision Market Understanding: Ability of the ve ndor to unde rstand buye rs' wants and ne e ds and to translate those into products and se rvice s. Ve ndors that show the highe st de gre e of vision liste n and unde rstand buye rs' wants and ne e ds, and can shape or e nhance those with the ir adde d vision. Marketing Strategy: A cle ar, diffe re ntiate d se t of m e ssage s consiste ntly com m unicate d throughout the organization and e x te rnalize d through the we bsite , adve rtising, custom e r program s and positioning state m e nts. Sales Strategy: The strate gy for se lling products

Market Definition/Description
Lead management integrates business process and technology to close the loop between marketing and direct or indirect sales channels, and to drive higher-value opportunities through improved demand creation, execution and opportunity management. Lead management processes include unqualified contacts and opportunities from various sources, such as Web registration pages and campaigns, direct mail campaigns, email marketing, multichannel campaigns, database marketing and third-party leased lists, social CRM and social networking sites, and tradeshows. The output of lead management processes — qualified, scored, nurtured, augmented and prioritized selling opportunities — are handed off to direct, indirect or e-commerce sales channels for action and closure. For the purpose of this Magic Quadrant, the term "product" will refer to licensed, onpremises applications or software as a service (SaaS), cloud-based application services. CRM lead management can be used in B2B, business-to-business-to-consumer (B2B2C) and business-toconsumer (B2C) CRM processes.
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Magic Quadrant
Figure 1. Magic Quadrant for CRM Lead Management



and generated $95 million in revenue in 2012. Geographic Strategy: The ve ndor's strate gy to dire ct re source s. sk ills and offe rings to m e e t the spe cific ne e ds of ge ographie s outside the "hom e " or native ge ography. Viability: Although CallidusCloud has made several acquisitions and generated $95 million in revenue. Key verticals include software and business services. LeadFormix is integrated with salesforce. including incentive compensation management. se rvice . Strengths Sales focus: CallidusCloud's products focus on sales force automation (SFA). Rapleaf and other sites to aggregate data and extend the insight of a prospect for sales users. Revenue growth: CallidusCloud has made several acquisitions. Integration and product road map: LeadFormix is a relatively recent acquisition for the vendor. consolidation. Business Model: The soundne ss and logic of the ve ndor's unde rlying busine ss proposition. Time to productivity: LeadFormix provides a relatively short time to productivity for marketing and sales users. m ark e ting. e x pe rtise . e ithe r dire ctly or through partne rs. e x pe rtise or capital for inve stm e nt.4/14/2014 Magic Quadrant for CRM Lead Management that use s the appropriate ne twork of dire ct and indire ct sale s. the company showed a loss of $27 million in 2012.gartner. development tools and user interface and understand the CallidusCloud product road map for ongoing integration and future functionality development. channe ls and subsidiarie s as appropriate for that ge ography and m ark e t. including LeadFormix. sales performance.com. se rvice s and the custom e r base . functionality. The product can extract data and insight from Data. so. LinkedIn. LeadFormix can also be used to aid in identifying anonymous visitors and providing visibility to sales users and management on the volume and score of leads currently in process. The vendor extends its sales performance management and sales effectiveness capabilities with lead management capabilities from the LeadFormix acquisition completed in 2012.com/technology/reprints. providing lead management capabilities that can be used and deployed directly by a sales team. including ve rtical m ark e ts. Innovation: Dire ct. sk ills. m e thodology and fe ature se ts as the y m ap to curre nt and future re quire m e nts. and lead management. te chnologie s. sk ills and offe rings to m e e t the spe cific ne e ds of individual m ark e t se gm e nts. users that require third-party resources for developing lead management applications or customization should evaluate their requirements in this area before investing in CallidusCloud or LeadFormix. integration between LeadFormix and CallidusCloud is ongoing. and com m unication affiliate s that e x te nd the scope and de pth of m ark e t re ach. Users should evaluate functionality such as centralized administration. a marketing automation vendor. consulting companies and service providers. in 2012. de fe nsive or pre -e m ptive purpose s. com ple m e ntary and syne rgistic layouts of re source s. Microsoft Dynamics CRM and NetSuite. Source: Gartner (April 2013) Return to Top Vendor Strengths and Cautions CallidusCloud CallidusCloud is a Niche Player and a new addition to this Magic Quadrant. The solution can be extended with the CallidusCloud sales enablement solution that helps lead nurturing with content aligned to the customer buying cycle. Gartner estimates that approximately 80% of the vendor's total revenue is in North America. configure price quote. Offering (Product) Strategy: The ve ndor's approach to product de ve lopm e nt and de live ry that e m phasize s diffe re ntiation.do?id=1-1FE8XKF&ct=130503&st=sb 2/14 .com. re late d. Gartner estimates that less than http://www. Vertical/Industry Strategy: The ve ndor's strate gy to dire ct re source s. The vendor acquired LeadFormix. Cautions Basic functionality: CallidusCloud's ecosystem includes approximately 50 agencies.

Reference customers gave high grades to Pardot's support and service. lacks deep analytics and reporting capabilities. however. such as the ability to support multiple. salesforce. The vendor is most appropriate for complex. with scale.4/14/2014 Magic Quadrant for CRM Lead Management 10% of revenue comes from the LeadFormix product. such as the Interactive Marketing Hub. Return to Top IBM IBM is a Challenger in this Magic Quadrant. The Pardot product is not yet fully integrated with all ExactTarget applications. Pardot lead management can be augmented with ExactTarget's email marketing. which accounts for a large majority of lead management technology and service investment. or to provide adjacent functionality. a SaaS solution that leverages Coremetrics and provides central support for email and digital campaigns. essential for http://www. Pardot has native integration with salesforce. completed an initial public offering (IPO) and completed the acquisition of Pardot in 2012. while other products (such as Coremetrics. enterprise lead management initiatives. prospective customers should ask for technology road map details regarding CallidusCloud and LeadFormix. digital marketing agencies. These partnerships expand ExactTarget's sales and support reach. tracking. NetSuite and SugarCRM. and with WordPress for content management. and management. IBM announced IBM Marketing Center. Strengths Marketing vision. partnerships. IBM has raised its visibility with chief marketing officers (CMOs) through the delivery of thought leadership and research in marketing. integrates with and appends data from multiple social sites. It continues to expand its presence and its technology assets in CRM and marketing. execution and technology: The vendor has articulated a vision for marketing automation and lead management and has shown its ability to execute on plan. The vendor generated $292 million in revenue in FY12. While reference customers gave positive feedback on the quality of Pardot products and service. The EMM group has several marketing technologies: Unica provides lead management capabilities. it showed a loss of $21 million in 2012 and $35 million in 2011. IBM. ExactTarget will have to broaden its marketing and sales messaging to compete more effectively in this segment. including email. Europe and the Asia/Pacific region. Return to Top ExactTarget ExactTarget is a Visionary and appears in the CRM lead management Magic Quadrant for the first time.com. consulting companies and service provider organizations globally. The vendor was a Leader in the 2012 Magic Quadrant for CRM Multichannel Campaign Management (MCCM) and the 2012 and 2013 Magic Quadrant for Marketing Resource Management (MRM).000 customers globally. Product portfolio: IBM continues to expand its product portfolio through organic development and acquisition. references cited the need for a separate database for complete end-to-end reporting and analytics. service provider partnerships and support: The vendor has partnerships with multiple technology providers. based on Pardot. Competition and B2B positioning: ExactTarget's vision to provide an integrated marketing automation platform puts it into direct competition with several large vendors. ExactTarget acquired Pardot in 2012 to provide B2B lead management functionality and to move beyond its email marketing core. integration with Adobe CQ5 is available through partners. growth and global presence: IBM is a global company with $104 billion in revenue in FY12. but is not standard. Oracle. Strengths Viability. has integrated analytics and key performance indicators (KPIs). ExactTarget has more than 600 clients using its native Google AdWords Connector product. Agency. and provide an important part of the marketing automation ecosystem. The vendor's investment in R&D was $54 million in 2012. including Adobe. Pardot lags the functionality provided by some lead management vendors. posted 41% growth year over year. In 2012. has direct sales and support representation in North America. social and data management.com and Teradata. In 2012. and the Interactive Marketing Hub provides a single management dashboard across multiple ExactTarget applications. IBM also delivered on tighter integration between Coremetrics and IBM Campaign. global lead management applications centrally. Latin America. Cautions Breadth of lead management functionality: ExactTarget's lead management functionality.do?id=1-1FE8XKF&ct=130503&st=sb 3/14 . Financial and organizational strength: ExactTarget claims more than 6. such as campaign management. and has developed a strong senior management team.com/technology/reprints. site personalization. Enterprise reach: Pardot was designed for and sold to meet the needs of small and midsize organizations.gartner. mobile. within Pardot. Microsoft Dynamics CRM. global presence and a broad product portfolio. and sales/support focus is on its core email and digital marketing products. and a majority of ExactTarget's technology. ExactTarget will need to continue investing in expanding the capability and scalability of Pardot's lead management offering to be able to compete with enterprisescale lead management solutions already on the market. Gartner estimates growth of the Enterprise Marketing Management (EMM) division since 2011 to be approximately 20% per year. Tealeaf and Cognos) add incremental functionality for Web analytics or reporting. particularly in B2B.

LaunchPoint for partner applications. but large organizations should assess their product needs. Growth challenges: Marketo has executed against its sales growth plans.0 can leverage modules (including IBM Campaign. especially in Europe and the Asia/Pacific region.com/technology/reprints. EMM v. Customer Growth: Marketo has an impressive set of customer logos. Smaller. and IBM will need to continue to execute and innovate to remain competitive in this marketplace.com expands its own lead management capabilities. other vendors focused on digital marketing also represent a threat as a growing share of the marketing budget is directed toward digital-only initiatives.0. Return to Top Marketo Marketo.4/14/2014 Magic Quadrant for CRM Lead Management providing insight to lead management applications that increasingly rely on digital channels.4 million in revenue. generated $58. and compare this investment to the bundled alternative solutions available from the Leaders in this Magic Quadrant. prospective customers should identify all required applications and integration points required to meet their business requirements. Marketo has partnerships with Microsoft Dynamics CRM. but reference customers reported that support has lagged. indicate that a transaction — either an IPO or an acquisition by a larger vendor — may be in Marketo's future.9. http://www. Enterprise Reach: About half of Marketo's customers are SMBs. and that do not require adjacent MRM. Marketo filed for an IPO in early 2013. particularly around adjacent marketing application segments in which Marketo does not participate.com's AppExchange Customer Choice Award for marketing.com. and manufacturing. Breadth and scalability: Last year's Magic Quadrant for CRM Lead Management reported on new functionality provided in Unica 8. and identify Marketo and partner resource availability against the scope of their requirements. Cautions Competition: Marketing automation has become a focus for several enterprise technology vendors. and expanded its sales and partner organization in North America. has created confusion.com: Marketo is dependent on salesforce. SAP and other technology partners. some products. Clients should be clear on which technologies and deployment models will be required to fulfill all of their organizations' lead management requirements.com or Microsoft Dynamics CRM user interfaces. Marketo continues to deliver on product functionality. but could be exposed if salesforce.9. although Marketo claims that 140 partners have been certified worldwide. and revenue modeling. Consider IBM EMM for lead management when integration with other IBM assets is required. need attention. a Leader in the 2013 and 2012 Magic Quadrants for CRM Lead Management. including more than 2. an easy learning curve for marketing professionals and short time to productivity make Marketo popular with sales teams and marketing management.com. with more than 80% (a Gartner estimate) of its customers using salesforce. as well as Marketo's IPO filing. IBM Leads. Marketo Sales Insight provides lead visibility to sales users in native salesforce. IMM or MCCM functionality. Customers should consider the potential impact of an IPO or merger and acquisition (M&A) transaction on their organizations.000 customers in technology and media.do?id=1-1FE8XKF&ct=130503&st=sb 4/14 . such as expanding its marketing analytics capability. are available only as SaaS solutions. integration with Facebook and social applications. secured $100 million in venture capital and gained several awards. Complexity and branding: IBM's broad range of products and services can support complex lead management applications.com. Professional services staff with early levels of Marketo product experience and a lack of trained partners in some regions. insurance. Gartner client inquires show that the rebranding of some product lines. Strengths Sales productivity: Tight integration with salesforce. business services.gartner. The growth trajectory and venture capital investment. focused vendors continue to have an edge with accounts that require a best-of-breed lead management solution. Cautions Salesforce. The vendor won several large accounts in 2011 and 2012. showed strong revenue and customer growth. Europe and the Asia/Pacific region. but may require investment in several individual software applications for a complete solution. including salesforce. and how integrations between SaaS and licensed applications will be developed and supported. now marketed as IBM Enterprise Marketing Management v. Recognition and agility: The vendor has marketed itself very aggressively. with an approximately 50/50 split for new Marketo customers between large enterprises and SMBs. particularly in financial services. such as IBM Marketing Center. or when additional marketing functionality (such as MRM. Mix of on-premises and SaaS: Given IBM's hybrid deployment model. was released in January 2013. while a majority of IBM's lead management and marketing automation products are licensed and deployed on-premises. technology and communications. The latest version of this product. such as the use of EMM in place of Unica.6. Marketo Revenue Cycle Analytics enables forecasting of future revenue based on current lead volume/quality. Reference customers frequently cited IBM's scale and prior presence in the account as reasons for selecting the vendor for B2B and B2B2C lead management initiatives. IBM Digital Analytics and IBM PredictiveInsight) to provide a complete lead management solution. integrated marketing management [IMM] or MCCM) is anticipated. Prospective users should evaluate service and support resources in their regions. The vendor continues to build its enterprise customer base.

IMM and MRM. Dynamics CRM provides interoperability with other Microsoft products. so that a company that has standardized on Dynamics CRM can move to a best-of-breed alternative while keeping its CRM investment and processes largely intact. based on the vendor's growth and its ability to span both lead management and campaign management capabilities.1 provides extraction. While other vendors have aggressively built a vision and technology base to address this segment. via Dynamics CRM Online. Gartner estimates that Neolane's revenue is divided approximately equally between North America and Europe. Microsoft's offering provides a solution that does not require a second vendor. life sciences. enhanced marketing analytics. Deployment choice: Dynamics CRM can be implemented on-premises or. should evaluate the best-of-breed technologies that integrate with Dynamics CRM.6. Neolane v. lead management. B2B2C and B2C usage models and support both lead management and campaign management applications. Dynamics CRM is appropriate for companies that do not have complex lead management requirements. and advertising/media planning and promotion. Reliance on solution providers: Most lead management applications. and can integrate with multiple CRM systems simultaneously. and has developed a customer base of more than 400 customers in media. campaign management. and distributed marketing capabilities for supporting multiple geographic regions or brands on a single Neolane instance. although Microsoft partners do have expertise in this area. Several best-of-breed lead management applications integrate with Dynamics CRM. Digital marketing: Neolane has added social marketing features such as social sign-on and http://www. and it secured a $27 million financing round in early 2012.do?id=1-1FE8XKF&ct=130503&st=sb 5/14 . telecom. Integration: The MarketingPilot acquisition was completed late in 2012. Microsoft acquired MarketingPilot in 2012. SQL Server. but that have more robust lead management requirements. will require integration or custom development with other applications or data repositories. Strengths Integrated functionality: For companies that have basic lead management requirements and have standardized on Dynamics CRM. as a SaaS multitenant solution. Cautions Basic functionality: Microsoft has not articulated a vision for digital marketing as part of a lead management solution. entertainment.4/14/2014 Return to Top Magic Quadrant for CRM Lead Management Microsoft Microsoft is a Niche Player in this Magic Quadrant. but basic. Dynamics CRM and Dynamics CRM Online also share a common data model.gartner. which helped to extend its capabilities for lead management. Customers should ask Microsoft for additional insight on technology road map plans for MarketingPilot. Companies with lead management requirements that extend beyond Dynamics CRM's functionality should evaluate MarketingPilot's capabilities in MRM. Return to Top Neolane Neolane is a Visionary in this Magic Quadrant. so integration of its capabilities into Dynamics CRM is still in process.com/technology/reprints. so clients that require additional expertise and services for lead management should plan on finding a Microsoft partner with both Dynamics CRM and marketing expertise. Microsoft has not focused its own professional services or expertise in marketing or lead management. additional software investment. The vendor has not developed or packaged either horizontal templates for standard lead management processes or industry-specific lead management templates. Strengths Growth and viability: Neolane supports lead management and campaign management capabilities. and has not invested in building thought leadership in marketing automation or adjacent marketing areas. Clients with Dynamics CRM deployments. and was a Visionary in the 2012 Magic Quadrant for CRM Lead Management and a Visionary in the 2012 Magic Quadrant for CRM MCCM. or integration between two separate CRM and lead management products. financial services. lead management capabilities that are part of Dynamics CRM. based on its integrated. or that are in the early stages of developing a lead management strategy. retail. and should evaluate those capabilities against functionality available from lead management vendors featured in this Magic Quadrant. transformation and loading (ETL) data management capabilities. Microsoft Dynamics CRM was a Leader in the 2012 Magic Quadrant for SFA. Flexibility and innovation: The vendor is able to span B2B. Ecosystem and interoperability: Microsoft has developed a broad and global ecosystem of technology and service partners that can be leveraged as part of a Dynamics CRM lead management deployment. The vendor has developed technology or consulting partnerships with several digital agencies and consulting companies. such as SharePoint. Neolane uses the same code base for on-premises and SaaS implementations. representing 40% revenue growth. Neolane reported $58 million in revenue for FY12. even basic ones. Microsoft continues to offer only basic lead management functionality. This makes Dynamics CRM one of the few CRM applications that offers a choice of deployment types and provides an integrated lead management capability. high tech and consumer products in 20 countries. Azure and Office.

although this should be balanced against the needs of the larger.1 provides enhancements in these areas but prospective users should confirm their analytics and reporting requirements against Neolane's standard functionality. and where a SaaS architecture is not appropriate. SaaS offering: Neolane supports both on-premises and hosted product offerings from the same single-tenant code base. Experienced marketers prefer Eloqua for its ability to support multichannel lead management processes. Cautions Oracle transition: The Oracle acquisition has raised concerns among some Eloqua customers regarding product road map and integration plans. A majority of Neolane users opts for on-premises implementations. Major industry segments include high tech. financial services and manufacturing. and ask Oracle for guidance on the technology road map. Implementation considerations: In some use cases.com tool. with support for multiple countries. bundling of the salesforce. and provides the ability to generate content and offers through Facebook. The vendor has added additional analytics reporting capabilities for B2B users. KPIs and data management functionality of Neolane was only average. and is appropriate only for companies that currently have. currencies. as well as ongoing support for integration with salesforce. Siebel Enterprise Marketing is a mature product and is actively sold where integrated marketing.com. reference customers noted that the analytics.6. but reference users reported that flexibility also brings some product complexity. ETL and reporting: Last year.com/technology/reprints. and enables analytics and reporting throughout the marketing and selling cycle. Cautions Complexity: Neolane is flexible enough to support multiple business models. Gartner expects that the Oracle acquisition will expand Eloqua's sales and support resources. and broaden its geographic presence. Return to Top Oracle (Eloqua) Oracle (Eloqua) is a Leader in this Magic Quadrant and also in the 2012 Magic Quadrant for CRM Lead Management. Siebel CRM. languages and brands.6. global customers that Oracle Eloqua typically supports. strong lead scoring. customer satisfaction. users that require a SaaS offering should evaluate the vendor's singletenant architecture and confirm its ability to scale this model to larger numbers of customers and transaction volumes. and the Eloqua Discover for Salesforce. The latest Neolane v. its first industry solution for financial services. Innovation: Oracle Eloqua has delivered on innovation. integrates with other Siebel assets (such as Siebel Analytics and Siebel Sales).1.4/14/2014 Magic Quadrant for CRM Lead Management user profile capture capabilities. http://www. including HTML5 campaign user interface. Product breadth: Siebel Enterprise Marketing can enable adjacent marketing functionality. or plan to implement. The vendor acquired Eloqua in February 2013. has added additional channels (such as in-app offer management and push notification) and can support lead management applications delivered across multiple geographic areas. sales and customer support functionality on a common technology platform are requirements.gartner. and HTML5 support for mobile devices. the product is now known as Oracle Marketing Cloud Service (Oracle Eloqua). Users and prospective users should plan for some short-term disruption and change.do?id=1-1FE8XKF&ct=130503&st=sb 6/14 . Eloqua reported $95. Financial position and execution: Oracle Eloqua has maintained strong growth and sales execution in the face of strong competitors and rapid technology changes in the market.com Chatter product for internal social collaboration. Oracle Eloqua has a longer time to productivity than some other lead management offerings.com technologies: Gartner estimates that more than 60% of Eloqua's customers are integrated with salesforce. Strengths Broad Siebel functionality: Siebel Enterprise Marketing provides lead management for B2C and B2B applications. Strengths Product functionality: Oracle Eloqua scored high marks for product functionality. Return to Top Oracle (Siebel) Oracle (Siebel) is a Niche Player in CRM lead management. Analytics. and a growing ecosystem of marketing service providers (MSPs) and partners. as well as speak with current users that have implemented v. reporting.com and Microsoft Dynamics CRM. integration with salesforce.8 million in revenue in 2012 and 34% growth from the prior year. The Siebel Enterprise Marketing product is dependent on Siebel CRM. the Eloqua AppCloud marketplace for technology partner applications. Organizations with more narrow and specific B2B lead management requirements should compare Neolane with the Leaders in this Magic Quadrant. Focused functionality: Oracle Eloqua's focus is on lead management. organizations that require additional marketing automation functionality (such as MRM and campaign management) should consider the vendors featured in this Magic Quadrant that provide broader marketing automation offerings. support and future integration plans with other Oracle CRM applications.

but also present the vendor's native lead management capability with serious competition. Chatter.com users with a wide range of choices. Customers evaluating Marketing Cloud functionality should be aware that the functionality can be used to build or augment a lead management application. Cautions Dependency on Siebel CRM: Siebel Enterprise Marketing is appropriate only for companies that currently have. Innovation: Salesforce. Strengths Market presence and ecosystem: Salesforce. including several bestof-breed lead management vendors featured in this Magic Quadrant. non-AppExchange partner applications) technologies can be used to build lead management applications in lieu of licensing a lead management application. It has one of the largest ecosystems of marketing and lead management technology and consulting partners in the industry.com (i. it has built up one of the broadest ecosystems of marketing automation partners. salesforce. Its out-of-the-box lead management capability supports basic lead management.com is a Niche Player in this Magic Quadrant. but does not represent the best-of-breed capability provided by other vendors in this segment — many of which are Salesforce App Exchange partners.com and Marketing Cloud (Buddy Media and Radian6) applications and other native salesforce. and provides technologies (such as Chatter and Data.do?id=1-1FE8XKF&ct=130503&st=sb 7/14 .com/technology/reprints. Oracle CRM On Demand and Oracle Sales Cloud Service (formerly Oracle Fusion Sales) should confirm the product road map. Technology partners and service providers: The product has a broad and global set of technology and service provider partnerships. but does not provide a turnkey lead management solution.com provides lead management capability. but it does not provide lead management.com) that augment salesforce. Tools such as Chatter or Data. and enables the handoff and tracking of qualified leads to direct and indirect sales channels. Return to Top SAP SAP is a Niche Player in this Magic Quadrant. Prospective customers should also understand the vendor's technology road map for future enhancements to Siebel Enterprise Marketing. with 2012 revenue of more than $2 billion.com has become one of the largest vendors of CRM applications. Oracle Commerce. Several of its products. including Data. Radian6 and Buddy Media. for organizations that require broader marketing functionality. it does enable a company with basic lead management requirements to build a lead management application without involving another vendor.com.e.com provide important incremental functionality to partners' applications and to the vendor's own Marketing Cloud application. can be used to augment lead management and marketing applications. such as Eloqua (acquired by Oracle). and its lead management offering is appropriate for companies that have implemented SAP CRM and SAP CRM Marketing. The acquisitions of some partners. Siebel Email Marketing and Oracle Marketing Analytics provide additional functionality for email marketing and marketing/sales analytics. Building blocks: Sales Cloud. campaign management or MRM application functionality out of the box. Siebel CRM. Clients evaluating Siebel Enterprise Marketing should understand the technology dependencies and costs associated with meeting their business requirements. Data. Pardot (acquired by ExactTarget) and MarketingPilot (acquired by Microsoft). Product road map clarity: Gartner client inquiries indicate confusion concerning out-of-the-box integration and the technology road maps for Oracle's multiple CRM applications.com is the fastest-growing CRM vendor. and in comparison to plans for the recently acquired Eloqua product. Chatter. Marketing infrastructure: Marketing Cloud provides infrastructure capabilities that can exist alongside or augment marketing applications. SAP technologies in adjacent http://www. salesforce.com Salesforce. availability and license costs directly with Oracle.gartner.com's AppExchange lead management partners provide salesforce. Organizations considering integration of Siebel Enterprise Marketing with Oracle applications such as Oracle Service Cloud Service (formerly RightNow).com continues to build out its infrastructure of sales and marketing capabilities through organic development and acquisition. or plan to implement. but does not compete with the Leaders in this Magic Quadrant with its out-of-thebox lead management functionality.. Siebel Campaign Management integrates with Siebel Sales. Return to Top salesforce. Cautions Not best of breed: As a Niche Player vendor. Complex solutions: Complex lead management requirements will usually require the implementation of other Oracle applications to augment functionality.4/14/2014 Magic Quadrant for CRM Lead Management including campaign management and MRM. have caused some level of disruption to the partner ecosystem. AppExchange partners: Salesforce. While this approach isn't appropriate for every business with lead management requirements.com's lead management capabilities as well as AppExchange partner offerings. including Siebel Enterprise Marketing and lead management. However.

although email marketing continues to account for a majority of its revenue. MRM capabilities. Functionality: The vendor has evolved from email marketing to include lead management functionality. IBM. Reference customers gave positive feedback on the vendor's responsiveness to market changes and the integration of new features into the product set. estimated at approximately $70 million. SAP was a Leader in the 2013 Magic Quadrant for MRM. as compared with Leaders' time to productivity of less than four weeks. mobile and digital marketing assets. Return to Top Silverpop Silverpop is a Niche Player and a new entrant in this year's Magic Quadrant. including Accenture. While SAP CRM Marketing can be hosted by SAP or a partner. Cloud: SAP CRM Marketing is a licensed application that is predominantly implemented onpremises. PwC and others. with SAP CRM 7. high tech. lead scoring and integration with major vendors' technology.4/14/2014 Magic Quadrant for CRM Lead Management areas. as well as on postsales support. compared with SaaS solutions on the market. based on the Business ByDesign SaaS platform. especially with large volumes of customer data. and is appropriate only for companies that have implemented or plan to implement SAP CRM. NetSuite and salesforce. Hana and MRM. Web tracking. such as social. Ecosystem and services: SAP service and technology partners. extend the vendor's capabilities beyond lead management and make it most suitable for SAP users with broader and more complex marketing requirements in addition to lead management. challenges with the upfront financial investment and application installation overhead remain a challenge for companies with short time-to-market requirements. Capgemini.do?id=1-1FE8XKF&ct=130503&st=sb 8/14 . Gartner estimates that approximately 30% of new customers deploy Silverpop to support lead management applications. enabling real-time segmentation and complex lead management. Solution complexity: Reference users comment on the complexity and time required to develop and deploy lead management applications. A majority of Silverpop's revenue is based in North America. data. email campaigns. and integration of external data sources. analytics and data segmentation. SAP's lead management capability functions best for large organizations that use SAP and have requirements for broad campaign management and MRM capabilities. life sciences and financial services help drive industry-specific lead management applications. advanced analytics and segmentation. Silverpop was founded in 1999 and attracted several rounds of venture capital and private equity early on. high tech. The Rapid Deployment Solutions available for SAP CRM support accelerated implementation and reduce time to productivity. Analytics and segmentation: SAP lead management can provide deep integration with customer information. Cautions Viability: Privately held. Gartner estimates that the vendor grew approximately 15% during 2012 and generated about $80 million in revenue that year from about 1. such as Adobe. adding additional complexity and time to productivity.800 customers. Microsoft Dynamics CRM.com/technology/reprints. SAP Hana applies data management and analysis to customer information to support complex segmentation. the short time to productivity and the ease of use of the product. Silverpop has made several acquisitions. Value: Silverpop customers report that they chose Silverpop based on the relatively low cost of the solution. The product supports functionality including campaign management.gartner. and Rapid Deployment Solutions) strengthen SAP's marketing capabilities. campaign management and MRM capabilities.com. Strengths Agility: Silverpop provides SaaS email marketing and lead management for companies in retail. reporting and business rules kept in SAP CRM or other SAP applications. reference customers note that SAP tends to lag behind smaller and more nimble competitors in terms of integration of social channels. mobile. and solutions for manufacturing. The recently introduced SAP 360 Customer product. and that growth of SAP CRM Marketing licenses exceeded 20% in 2012. Deep experience. Gartner estimates that as much as 50% of SAP CRM deals now include SAP CRM Marketing. The product road map includes more-advanced predictive and visualization capabilities. The typical customer is a midmarket organization or department within a larger company. its installed base. predictive analytics and a Hana-based marketing management platform to manage lead management. Strengths Increased marketing focus: SAP has increased its focus on marketing significantly during the past year. financial services and business services. provides basic lead management capabilities appropriate for the midmarket or enterprises with simpler requirements. including Vtrenz in 2007. to strengthen its capabilities in lead management. campaign management and multiple channels. such as advanced analytics. Potential http://www. dynamic content delivery. Dependency on SAP CRM limits SAP's ability to expand to non-SAP customers. extend the vendor's marketing reach. SAP has also articulated a vision for SaaS marketing capabilities that will support social media analytics. Deloitte. but the road map and integration with the core SAP CRM product should be evaluated by companies considering this option. SAP was a Leader in the 2013 Magic Quadrant for MRM. Cautions SAP CRM dependency: SAP's lead management is an integrated set of functionality within SAP CRM and SAP CRM Marketing.0 providing the most recent marketing and lead management functionality. Adjacent SAP technology and services (including Hana.

Enterprise presence: Teradata is well-suited for large organizations with lead management requirements. Separate development and code bases: The Teradata and Aprimo platforms are built in separate development environments (Teradata is Java-based. Furthermore. Teradata has partnerships with service providers such as Accenture. enterprise companies with complex data management requirements that extend beyond lead management should evaluate Teradata against other vendors with complex marketing automation portfolios. user interfaces and development environments. Oracle Siebel and Microsoft Dynamics CRM. based on its broad lead management and data management capabilities.6 billion in revenue in 2012. Viability and product road map: The vendor completed its acquisition of eCircle for digital marketing. and will appeal to midmarket organizations and departments within larger organizations that manage their own lead generation activities. as well as lead management. and is continuing to integrate this functionality as part of its lead management capability and as the core of new functionality called Digital Messaging Center. indicating that Teradata continues to grapple with integration challenges. campaign management. Strengths Breadth of product: Teradata's lead management functionality is provided by Aprimo Marketing Studio 8. but users comment on the need to manage multiple administrative tools. Go to market: The integration of Aprimo and other acquired technologies or companies continues. Teradata was a Leader in the 2013 Magic Quadrant for MRM. reported more than 300 new customers. The vendor generated more than $2. and supports a broad range of enterprise customers in financial services. insurance. technical and time resource requirements. and/or that currently have other Teradata products in place. and grew revenue from its marketing applications between 10% and 20% from the prior year (a Gartner estimate).do?id=1-1FE8XKF&ct=130503&st=sb 9/14 . A vendor appearing in a Magic Quadrant or MarketScope one year and not the next does not necessarily indicate that we have changed our opinion of that http://www. Aprimo Marketing Studio has integration with salesforce. and with Adobe SiteCatalyst for Web analytics. Scale: Silverpop is challenged to maintain both visibility and feature/function parity with other companies in the sector. especially in the competitive midmarket sector. but Gartner has made similar observations in Magic Quadrants published in 2012. Teradata released integration of its Teradata Relationship Manager and Teradata Real Time Inbound Manager products with Digital Messaging Center earlier this year. IMM and email that will underpin predictive analytics capabilities for lead management.gartner. Return to Top Teradata Teradata is a Challenger in this year's Magic Quadrant. on-premises solution (Aprimo Marketing Studio) or a multitenant SaaS service (Aprimo Marketing Studio On Demand). each with its own code base. Teradata's primary strength is in B2C and campaign management interactions where the ability to manage large volumes of data across multiple consumer-facing channels is critical. although data management and workflow functionality has been integrated across both platforms. Companies with limited resources and budget. technology and business services. The product road map.8 and Aprimo Marketing Studio On Demand.4/14/2014 Magic Quadrant for CRM Lead Management customers should evaluate the vendor's ongoing R&D investment in its core lead management capability. The eCircle acquisition further complicates the product set and can prove challenging for customers looking for a single integrated and consistent development. IMM and campaign management. B2B2C and B2C business applications. Silverpop will have to execute on its product strategy while continuing to ramp up its own marketing outreach. Aprimo is Microsoft-based). The email-centric feature set fulfills the criteria for this Magic Quadrant. or that require a lead management solution with a shorter time to productivity. Capgemini and Deloitte. marketing analytics and IMM. development plans and vision articulated by Teradata address these issues. need to support both B2B and B2C interactions. the mix of vendors in any Magic Quadrant or MarketScope may change over time. Teradata also provides other applications to support campaign management. Return to Top Vendors Added or Dropped We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as markets change. Mind share: Marketing automation is growing rapidly and has spawned several aggressive and vocal competitors.com. however. IMM. the breadth of its technology may represent too large a financial and technology investment for B2B organizations with more-focused lead management requirements. administration and user interface environment.com/technology/reprints. As a result of these adjustments. Cautions Complexity: Teradata has a strong product portfolio for large companies with marketing requirements that span campaign management. The vendor has also articulated a vision for integrating its MRM. Aprimo is available as either a licensed. the 2012 Magic Quadrant for IMM and the 2012 Magic Quadrant for CRM MCCM. data warehousing and analytics in B2B. should evaluate Leaders and Visionaries in this Magic Quadrant to compare their financial. Teradata's complete solution set includes data warehousing. but that also have adjacent complex marketing automation and data management requirements. MRM.

videos.g. Other vendors with lead management capabilities that did not meet the Inclusion Criteria include Act-On Software. import/export. e-commerce sites. Required as well is the ability to provide a preconfigured set of reports. ExactTarget and Silverpop have been added to this year's Magic Quadrant. or on custom development or services (e. mobile. search sites. store. Return to Top Added CallidusCloud. a vendor must meet all the technical capabilities listed below (in the Inclusion Criteria: Technology section and in the Inclusion Criteria: Market Presence and Company Viability section) as standard or optional components of its CRM lead management product. sales and executive users.g. such as documents or PDFs. analytics. etc. therefore. Lead Augmentation: This is the ability to append missing or additional information to the lead from external. real-time/near-time processes and offline. HubSpot and Responsys. direct mail marketing. Also required is the ability to eliminate incomplete. Lead input capabilities need to support online. XML.. SFA. Also required is the ability to monitor. to increase the lead score and the probability to close. tradeshows. batch input of data. seminars or events (in person and virtual). augmentation. social networking or social CRM applications. The vendor does not need to provide a database. KPIs and BI as they relate to continuous marketing improvement and lead management maturity.com/technology/reprints. email marketing. or a change of focus by a vendor. Web and e-commerce sites. scoring. Lead Scoring/Qualification: This is the ability to create multiple lead qualification and scoring http://www. call and contact centers). access and report on data stored in either the lead management application or in SFA/customer support and service applications to provide closed-loop marketing analytics.gartner. at a minimum. analyze and segment unqualified leads from campaign management applications.g. Lead Aggregation/Lead Database: This is the ability to collect. third-party sources (e.g.4/14/2014 Magic Quadrant for CRM Lead Management vendor. and database and data management applications.. KPIs and Business Intelligence (BI): This is the ability to leverage integration tools (APIs.. Inclusion criteria functionality cannot depend on applications or functionality provided by partners.. customer service and support applications (e. and the ability to feed those unqualified leads into the lead management application. missing email fields). process management and nurturing across at least three lead generation and lead management channels in a single campaign. Return to Top Inclusion and Exclusion Criteria To be included in the Magic Quadrant for CRM Lead Management. store. Required as well is the ability to augment or nurture a lead with additional collateral or value-added content. changed evaluation criteria. Required as well is the ability to collect and build demographic and behavioral history in the lead management database for individual unqualified leads as they mature through the lead management application. and third-party database/lists.. including source applications (e. redundant or duplicate lead information based on criteria set by the end-user organization. text and mobile marketing. Analytics.g. Vendors also must provide professional services and consulting that guide user organizations in the use of analytics. referral systems and websites) and execution applications (e. custom application development provided by the vendor's professional service organization or a system integrator): Multichannel Lead Management: This is the ability to provide lead management functionality for inbound and outbound marketing initiatives. Examples of lead generation channels include websites and microsites. but a data model and the ability to collect/source data that will be stored in the database are required. Vendors must provide a visual or graphical representation of the data and metrics in a format appropriate for marketing. Also required is the ability to generate operational and strategic KPIs sufficient to monitor and guide revenue generation. lead collection.do?id=1-1FE8XKF&ct=130503&st=sb 10/14 . Inclusion Criteria: Technology All inclusion criteria functionality must be available as a standard or an optional part of the application as provided by the vendor. This may be a reflection of a change in the market and. management dashboards. and to integrate and store this information in the lead management database and associate it with the appropriate lead or customer information. analyze and report on leads. This includes. digital marketing applications. contact center and email) to use in closed-loop marketing analyses. spreadsheets. or Web-based content. Also required is the ability to collect. metrics and KPIs as integral parts of the packaged application.) to transfer data among applications. Return to Top Dropped Two Oracle products that support lead management — Oracle CRM On Demand Marketing and Oracle Fusion Marketing — did not meet the inclusion criteria and are not included in this Magic Quadrant (see "How to Understand the Criteria for the 2013 Magic Quadrant for CRM Lead Management"). third-party data providers. execute on.

do?id=1-1FE8XKF&ct=130503&st=sb 11/14 . Vendors must be able to execute multiple lead qualification and scoring processes simultaneously. Inclusion Criteria: Market Presence and Company Viability The inclusion criteria for market presence and company viability includes: Vendor revenue from the lead management product (a combination of product or service licenses. opportunity value. high tech. IMM. third-party application developers. execution (selling to clients at an appropriate later time) and removal (the removal of dead-end leads from the database so that they are no longer nurtured or pursued). Packaged lead management templates must be available for line-of-business applications. The lead management product must provide the capabilities defined in the Inclusion Criteria: Technology section. Lead Process Management: This is the ability to create lead management workflows or business process management rules using a graphical workflow or business process tool or a nongraphical scripting tool to create a lead management application that dynamically routes leads through the lead scoring. partner relationship management [PRM]. as lead management functionality integrated and sold as part of a CRM or SFA application. social. Financial.) The lead management product must be delivered as a stand-alone lead management technology. data or services. Required as well is the ability to execute multiple lead management processes and workflows simultaneously within a single instance of the product. estimated customer value. then it can provide the total number of installed customers. B2C or B2B2C) to enterprise and midenterprise customers (midenterprise is defined as having a minimum revenue of more than $250 million per year). Strategy.g. Also required is the ability to dynamically pass leads to a sales execution system (e. and to advance the state of the art in the company's product portfolio. total number of customers acquired in 2011 and 2012. customer support. Twitter and Facebook. architecture and integration capabilities. maintenance (building relationships for a longer-term selling cycle). qualification.com/technology/reprints. SFA. based on criteria such as a campaign. The vendor must have developed an ecosystem of partners that provides consulting. Functionality can be provided through licensed software. e-commerce. and customer management applications or services. annual maintenance. and must currently be installed and providing lead management functionality (B2B. MSPs.4/14/2014 Magic Quadrant for CRM Lead Management processes. and average deal size. PRM. call/contact center applications and legacy applications) using published and supported APIs or integration interfaces. and seasonal criteria. with at least 12 net new customers that have implemented the vendor's lead management technology in the prior 12 months. Lead Nurturing: This is the ability to manage and control the lead life cycle from collection to conversion.gartner. Also required is the ability to provide content management systems directly or via partners that support the development. geography. OEMs and technology providers). Integration. strategy or process consulting providers. and to dynamically route the leads that meet the qualification or scoring criteria to the next appropriate lead management process part of lead process management. augmentation and distribution processes based on execution criteria (e. The vendor must have a minimum of 20 production implementations worldwide across at least three industries (e. at a minimum. product type or customer segment. call/contact center application or e-commerce) on the basis of user-defined routing. or for automation of cross-industry (horizontal) lead management functionality.g.. storage and usage of content management as it is used to support lead-nurturing activities. This includes the current product capabilities. Overall Viability (Business Unit. or as a hosted or SaaS offering. Organization): This is the viability of the organization's overall financial strength. such as LinkedIn. technology base. digital marketing. SFA. growth rates in 2011 and 2012. The vendor must have a direct sales and customer support presence in at least two of these three regions: North America and Latin America. or partners (value-added resellers [VARs]. APIs and Templates: This is the ability to integrate with third-party applications (e. supporting and investing in the product. technology or services that extend the value of the lead management product. http://www. estimated value and status of prior process steps).. SFA. EMEA.. scoring or qualification rules. the financial and practical success of the business unit or company. and professional services provided by the vendor) must have been a minimum of $20 million during the past four quarters. and the Asia/Pacific region..g. including. Also required is the ability to integrate with social sites.g. financial services and manufacturing). virtual event. digital agencies. distributors. If a vendor is privately held and chooses not to disclose revenue information. Examples of these partnerships include service providers. email marketing or MRM applications. and the likelihood of the business unit or company to continue selling. Return to Top Evaluation Criteria Ability to Execute Product/Service: These are licensed or SaaS applications offered by the vendor that provide lead management functionality and integration with adjacent applications. (Gartner may estimate revenue for vendors that choose not to submit financial and revenue information. add-on applications or service providers. Vendor products must be able to integrate with major CRM. marketing data. The lead management product must have been available for license in the market for a minimum of one year. or as lead management functionality integrated with MCCM. feature sets.

and that is intended to expand the scope. if any. policies and global scope. System integration. methodology. Strategy. or mergers and acquisitions. and other relevant criteria as they impact the customer experience and map to current and future requirements. sales and support infrastructures. skills. users or vertical industry groups. skills and offerings to meet the specific needs of geographic regions outside the headquarters region. such as third-party tools or consulting methodologies. This criterion also considers the vendor's history of responsiveness. and the overall effectiveness of the direct and indirect sales and sales management organization. competitive activity. marketing. customer support and service. training. Table 1. customer-led social networking initiatives. channels and subsidiaries. competitors act. including the published list price of the vendor's product (licensed or SaaS) and any optional modules needed to meet the minimum product requirements as defined above. and presales technical support. and pricing and negotiation activities. consulting organizations and technology partnerships. Organization) Sales Execution/Pricing Market Responsiveness and Track Record Marketing Execution C ustomer Experience Operations Weighting High Standard Standard High No Rating High No Rating Source: Gartner (April 2013) Completeness of Vision Market Understanding: This is the vendor's ability to understand buyers' needs. management or technology resources. Ability to Execute Evaluation Criteria Evaluation Criteria Product/Service Overall Viability (Business Unit. Customer Experience: This is the availability and viability of internal customer service and support capabilities. expertise. the soundness and logic of the vendor's underlying business proposition). expertise. external resources. or communication affiliates that extend the scope and depth of market reach. application. technology. or capital in areas such as product development. such as system integration or technology partnerships during presales and sales activities.gartner. as well as annual maintenance fees. capabilities or global presence of the vendor and its products for its customers. and any required services. customization or related services. This criterion addresses the vendor's execution during contract negotiations. RFPs or quote responses. strategy consulting and distribution partnerships are integral parts of the sales strategy. and its strategy to direct resources. Offering (Product Strategy): This is the vendor's strategy for product development and delivery that emphasizes market differentiation. including support resources. and its global strategy that will impact its ability to meet the needs of a global customer base. systems. The product strategy includes the vendor's business model (for example. RFI/RFP activities. time to market. skills and investments to meet the specific needs of individual market segments. change direction. be flexible and achieve competitive success as opportunities develop. Sales Strategy: This is the vendor's ability to articulate and demonstrate the development of a sales strategy that leverages direct and/or indirect sales. It includes the vendor's ability to marshal and coordinate required third-party resources. Financial. including partnerships with global system integrators. Table 2. functionality. Market Responsiveness and Track Record: This is the vendor's ability to respond. Vendors that show the highest degree of vision listen to and understand buyers' wants and needs. Innovation: This is the investment of financial. services and the customer base. and related internal or external resources.4/14/2014 Magic Quadrant for CRM Lead Management Sales Execution/Pricing: The vendor's sales and pricing includes all presales and sales activities. Completeness of Vision Evaluation Criteria Evaluation Criteria Market Understanding Marketing Strategy Sales Strategy Weighting High No Rating Standard http://www. as appropriate for the geography and market. This criterion also addresses cost and pricing competitiveness as they relate to competitors with comparable capabilities. directly or through partners. customer needs evolve and market dynamics change.com/technology/reprints. It also includes responsiveness to customer or prospect RFIs. its vertical or industry strategy that will direct resources. technology and industry advances.do?id=1-1FE8XKF&ct=130503&st=sb 12/14 . and can shape or enhance them with their added vision. and the availability of user groups and SLAs. technologies. implementation fees. and to translate these needs into products and services. third-party and partner relationships.

but they do not yet provide best-of-breed lead management that is both broad and functionally deep. Visionaries may have strong technology vision and road map. or by selling into their installed base as an add-on technology. campaign management. Lead management capability is not best-ofbreed. and either profitability or the ability to attract outside investment. financial stability. partner relationships or scalability of their solution. and customers show high levels of satisfaction and success with their implementations.4/14/2014 Offering (Product) Strategy Business Model Vertical/Industry Strategy Innovation Geographic Strategy High No Rating No Rating Standard No Rating Magic Quadrant for CRM Lead Management Source: Gartner (April 2013) Quadrant Descriptions Leaders Leaders in the CRM lead management market provide market-leading functionality that supports B2B. MSPs or consulting organizations. CRM or Web analytics) that are valuable to buyers that require a single vendor platform to fulfill multiple functional requirements. a key value proposition is integration with currently implemented technology or infrastructure. and are often dependent on selling to existing clients. Return to Top Niche Players Niche Players provide a basic set of lead management features to a narrow segment of the potential market. such as the requirement to incorporate social channels. analytics).com/technology/reprints. Return to Top Visionaries Visionaries have a strong vision for a set of technologies that includes lead management. or that do not require the depth of functionality provided by Leaders or Challengers. meaning that some technology offerings can be adapted to support some or all of these http://www. but lack the Ability to Execute demonstrated by Leaders. Marketing automation processes. Niche Players often lack vision. The vendors demonstrate market awareness and nimbleness by their ability to develop and deploy support for new market and user requirements. and supports both outbound and inbound marketing processes. Visionaries are thought leaders and innovators that have not yet gained broad market penetration and adoption. Visionaries may be looking to capitalize on market momentum by emphasizing their role as part of the ecosystem as they invest in internal R&D or M&A activity to increase their market presence and potentially move to either a Challenger or Leader position. MRM. or are unable to deliver on a vision they try to articulate. Challengers often provide lead management functionality that is dependent on another product from the same vendor. but lack the depth of functionality of the Leaders. The vendors have developed an ecosystem of technology partners and provide deep integration with key applications such as SFA. Return to Top Context Several vendors provide technology that can be used to support both lead management and campaign management activities. all have an interdependence at some level on common functionality (for example. examples include the development of industry-specific templates for lead management. Leaders are able to show viability through revenue growth. Web analytics or content management solutions. or the ability to interface with public social channels that are specific to a target audience. and have demonstrated their ability to sell and support enterprise-scale customers and deployments on a global basis. organizational growth. but Challengers provide market presence and adjacent technologies (such as MRM.gartner. Their markets are often defined by vertical industry expertise. They meet Magic Quadrant criteria. Other vendors provide narrowly focused products that concentrate on best-of-breed lead management and are able to react quickly to changes in the market. they are able to provide in-depth professional services and consulting through both their own services organization and through the development of partnerships with leading solution providers. Challengers are often slower to react to changes in the market and lag behind the Leaders. Niche Players may be limited in geographic reach. including lead management. and may attempt to extend their functionality and win customers through a dependence on professional service engagements. Return to Top Challengers Challengers in CRM lead management offer breadth of functionality. Leaders sell successfully in more than a single vertical industry. Visionaries can also come from an adjacent market sector and are looking to expand their total addressable market by moving into lead management.do?id=1-1FE8XKF&ct=130503&st=sb 13/14 . These vendors are appealing to customers with limited budgets or constrained technology resources. B2B2C and B2C lead management processes across multiple channels. and social for CRM.

are secondary for the primarily B2B users that rely on more-established marketing channels. technical and marketing resources. Marketing and sales organizations looking to invest in lead management should understand their requirements in the context of features and functions. have had a major impact on the speed with which lead management applications can be deployed. Web landing pages. and their required time to productivity. which includes lead management. Gartner’s Board of Directors may include senior managers of these firms or funds. The distinct lines between B2B and B2C continue to exist. or its affiliates. presales call centers. digital marketing. and/or its affiliates. Three primary characteristics define CRM lead management: 1. Inc. completeness or adequacy of such information and shall have no liability for errors. Vendors that support lead management as part of an integrated marketing automation suite can also manage MCCM. particularly information (big data) and cloud. Inc. The integration of digital marketing technology and processes has also had a major impact on lead management. The opinions expressed herein are subject to change without notice. Gartner does not provide legal advice or services and its research should not be construed or used as such. but are becoming more blurred.do?id=1-1FE8XKF&ct=130503&st=sb 14/14 . Gartner disclaims all warranties as to the accuracy. funds or their managers. including email. omissions or inadequacies in such information. large organizations may benefit from this broader set of functionality. and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. while organizations with more specific or narrow requirements may find this approach overly complex and expensive. while having some impact. MRM and IMM processes. CRM lead management is evolving from a technology that was implemented predominantly by B2B and B2B2C organizations. Investment in lead management is expected to continue during the next several years as organizations continue to focus on increasing enterprise growth. attracting and retaining new customers. an inside sales team or an automated channel. The information contained in this publication has been obtained from sources believed to be reliable. a VAR or distributor). Nexus of Forces technologies. but also creating additional complexity and integration points for existing lead management processes.” About Gartner | C areers | Newsroom | Policies | Site Index | IT Glossary | C ontact Gartner http://www. your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner. and. providing B2B marketing professionals with a broader set of tools and functionality. A focus on business and marketing processes 2. All rights reserved.gartner. but also in terms of their ability to invest financial resources. and integrating those into B2B lead management processes. Although Gartner research may include a discussion of related legal issues. B2C organizations. such as social. and maximizing productivity of the sales organization. such as an e-commerce site Return to Top © 2013 Gartner. and is now becoming more prevalent in consumer-facing. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. For further information on the independence and integrity of Gartner research. an indirect sales team (for example. in some industries. seminars and education sessions. but this approach generally does not match the best-of-breed features and functionality provided by Leaders. CRM vendors can all provide some level of lead management capability. Similarly. Investment in lead management is also being underpinned by the overall growth and success of the CRM markets and by investment in digital marketing: CRM lead management impacts revenue by leveraging investments in SFA. B2B marketers are adopting technologies and channels formerly associated primarily with consumer-facing activities. Gartner is a registered trademark of Gartner. and will account for more than $4.com/technology/reprints.2 billion by 2016 — representing the largest growth of any CRM segment. Similarly. see “Guiding Principles on Independence and Objectivity. Gartner research is produced independently by its research organization without input or influence from these firms. A handoff of the qualified lead to a direct salesperson. This publication consists of the opinions of Gartner’s research organization and should not be construed as statements of fact. Recent M&A and IPO activities underscore market interest in this sector. physical print and in-person trade events.com.4/14/2014 Magic Quadrant for CRM Lead Management marketing automation capabilities. A focus on products or services that represent a sizable investment on the part of the business or the consumer (also known as "considered purchases") 3. Social and mobile. social and established marketing channels. Gartner is a public company. If you are authorized to access this publication. Return to Top Market Overview Gartner estimates that investments in CRM marketing automation applications and services. grew by more than 20% in 2011 and 2012.