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May 14, 2009

The Forrester Wave: UK Database Marketing Service Providers, Q2 2009


by Dave Frankland for Direct Marketing Professionals

Making Leaders Successful Every Day

For Direct Marketing Professionals


Includes a Forrester Wave May 14, 2009

The Forrester Wave: UK Database Marketing Service Providers, Q2 2009


no outright leader Within a Fragmented Market
by Dave Frankland with carlton a. Doty and Emily Murphy

ExEcUT i v E S U M Ma ry
For several years, Forrester has evaluated database marketing service providers in the US. However, not all of these providers operate internationally, and we receive frequent inquiries specific to the UK market. In Forresters 77-criteria evaluation of UK database marketing service providers, we found that all eight provide a compelling offering. RAPP, Marketing Databasics, Occam, and GB Group led the pack due in large part to a combination of advanced analytics, strategy services, and strong account management. Dataforce, Acxiom, Callcredit Marketing Solutions, and Experian Integrated Marketing are all Strong Performers: Dataforce is a worthy all-arounder; Acxiom, Callcredit, and Experian each offer strong data sourcing and a solid range of services.

Tabl E o F co nTE nTS


2 Database Marketing Is Valuable In A Recession The UK MSP Market is Made Up of a Motley crew 4 UK Database Marketing Service Provider Evaluation Overview our analysis Hinges on Three Dimensions Evaluation criteria Emphasize Database Focus 5 Evaluated Service Providers All Deliver A Strong Offering 7 Vendor Profiles leaders Strong Performers other notable vendors 13 Supplemental Material

n oT E S & rE S o U rcE S
Forrester conducted in-depth evaluations in Q4 2008 and Q1 2009 of eight UK database marketing service providers: acxiom, callcredit Marketing Solutions, Dataforce, Experian integrated Marketing, Gb Group, Marketing Databasics, occam, and raPP. The services evaluation included vendor surveys and executive interviews. We also surveyed 88 vendor-supplied references online; and interviewed more than 35 customers and partners by phone.

Related Research Documents How UK Firms Use Database Marketing Services May 14, 2009
The Forrester Wave: Database Marketing Service Providers, Q4 2007 november 2, 2007

2009, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please email clientsupport@forrester.com. For additional information, go to www.forrester.com.

The Forrester Wave: UK Database Marketing Service Providers, Q2 2009


For Direct Marketing Professionals

DAtAbASE MARKEtIng IS VAlUAblE In A REcESSSIOn Despite the global economic slowdown, database marketing service providers (MSPs) in the UK have a fairly positive outlook for the future. Why? At a time when accountability and return on investment are paramount, MSPs help marketers to: 1) identify their best customers and prospects; 2) create a dialogue with them through a variety of media; and 3) measure the impact of each interaction. We surveyed 88 customers of the eight vendors evaluated for this Wave about what they look for in a provider and what they like best and least about their existing MSPs.1 They told us:

Quality of service is the most important factor. The most frequently selected element chosen
by marketers as one of two most important things they consider in an MSP was the quality of the MSPs people or service (selected by 63% of respondents). Other key factors include the MSPs understanding of the firms business or industry (25%), the MSPs technical capabilities (23%), the consistency with which it executes (20%), the strategic contribution it makes to the firms business (19%), and price (19%). The good news for MSPs is that these largely mirrored the elements that marketers liked best about working with their providers.

Price, limited resources, and failure to deliver are most disappointing. We asked marketers

what two things they find most disappointing about their service provider and, encouragingly, we didnt find a standout element of disappointment. The most frequent responses selected by marketers included price (cited by 22% of respondents); limited resources (20%); the ability to deliver and/or follow through as promised (17%); the inflexible nature of contracts (15%); the lack of strategic contribution (15%); and the speed of database update cycles (14%).

the UK MSP Market Is Made Up Of A Motley crew During the past two to three years, each of the eight providers that we evaluated has been through some form of significant change ranging from mergers and acquisitions to changes in business model and focus. In fact, no two providers are alike, approaching database marketing services from various vantage points and, in many cases, offering a range of services beyond database marketing services (see Figure 1). The firms we evaluated include traditional service bureaus; data providers; contact center providers; analytics and intelligence service firms; and full-service agencies. Among UK marketers, we found:

A strong focus on customer intelligence. All of the firms we evaluated seek to build single

customer views (SCV) and to help their clients manage customer journeys over their life cycles. These firms have invested significantly in technology and people to drive customer intelligence and enhance their clients marketing results. Different firms have different approaches some lead with analytics, while others offer it as an add-on service. Clients that we interviewed frequently cited analytics and intelligence as one of the primary reasons for selecting their service providers.

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Figure 1 Database Marketing Service Providers Have Different Focus areas


Strategy and planning List and data sourcing Functional areas of focus Database management and data processing

Service providers 1. Acxiom 2. Callcredit Marketing Solutions 3. Dataforce 4. Experian Integrated Marketing 5. GB Group 6. Marketing Databasics 7. Occam 8. RAPP

Signicant focus
47325

Moderate focus

Limited focus

No focus

Source: Forrester Research, Inc.

A small number of highly complex clients. In general, we found that the UK market has about

two dozen firms with highly complex outsourced needs. For the most part, Experian services the lions share of these firms, along with Acxiom, to a lesser extent. For the remainder of the market, most firms offer prepackaged or configurable solutions usually centered on an Alterian or Aptecos FastStats solution. In general, outside those highly complex relationships, the UK MSPs have standardized on Alterian for more advanced solutions and FastStats at the lower tier.

Digital is much more than an afterthought. Having covered the US MSP market for

several years, it was a refreshing change to see digital communications with an equal, if not stronger, seat at the table alongside offline channels like direct mail and telemarketing. Digital conversations extended far beyond email where they often start and stop in the US and

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Measurement

Execution

Analytics

Creative

The Forrester Wave: UK Database Marketing Service Providers, Q2 2009


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encompassed mobile, online advertising, and Web analytics and optimization. Crucially, most firms are also focused on understanding and enhancing multichannel communication to ensure digital and offline communication support and improve one another.

General satisfaction with their service. Overall clients that we spoke with displayed a high

level of customer satisfaction although it should be noted that most references were provided by the vendors. We heard some consistent concerns across most providers, primarily relating to depth of resources, substandard project management, and pricing concerns for ad hoc projects that occur outside their ongoing services.

UK DAtAbASE MARKEtIng SERVIcE PROVIDER EVAlUAtIOn OVERVIEw To assess the state of the UK database marketing service provider market and see how the vendors stack up against each other, Forrester evaluated the strengths and weaknesses of top MSPs. Our Analysis Hinges On three Dimensions After examining past research, user need assessments, and vendor and expert interviews, we developed a comprehensive set of evaluation criteria. We evaluated vendors against 77 criteria, which we grouped into three high-level buckets:

Current offering. We reviewed vendors overall account management and service delivery, as
well as their strategy services, data sourcing, technical services, analytical services, creative services, execution and fulfillment offering, and measurement services.

Strategy. We evaluated each vendors go-to-market strategies and assessed their ability to deliver
on these strategies. We also evaluated the relative importance of database management for the firms UK business and assessed their ability to tailor services to specific industry verticals.

Market presence. Most vendors in this evaluation are either privately held or are smaller

divisions within large conglomerates. This made it difficult to break out revenues and growth rates. The figures used in our analysis are Forrester estimates based on speaking to clients about deal sizes and other information that we could gather.

Evaluation criteria Emphasize Database Focus Forrester included eight vendors in the assessment: Acxiom, Callcredit Marketing Solutions, Dataforce, Experian Integrated Marketing, GB Group, Marketing Databasics, Occam, and RAPP. Each of these vendors has (see Figure 2):

Significant hosted database experience. Our primary selection criterion was based on market
share. To be included in this evaluation, vendors had to show that they supported a substantial number of marketing databases.

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A balance of customer and prospect databases. We were also looking for a mix of retention or
hybrid versus acquisition systems. Most of the demand we see in the industry is for retention and hybrid solutions. Vendors with a sole emphasis on acquisition/prospecting were excluded.

Support for a wide range of industries. To ensure that our findings were relevant to marketers
in a broad range of industries, only vendors that serve a range of industries were evaluated.
Figure 2 Evaluated vendors: vendor information and Selection criteria
Number of industries representing at least 5% of client base 5 8 5 5 5 6 6 6

Vendor Acxiom

Number of database clients 33 40 43 37 16 18 16 20

Percentage of retention/ hybrid clients 33% 70% 80% 62% 100% 80% 70% 85%

Callcredit Marketing Solutions Dataforce Experian Integrated Marketing GB Group Marketing Databasics Occam RAPP

Vendor selection criteria Vendors host and manage at least 10 databases. Vendors demonstrate a balance of retention/hybrid and pure acquisition systems. Vendors client base represents a balance of industries. 47325
Source: Forrester Research, Inc.

EVAlUAtED SERVIcE PROVIDERS All DElIVER A StROng OFFERIng There is no outright leader in the UK market, and given the small size of several players, Forrester expects to see some further consolidation over the next few years either from within the UK or from US companies seeking to expand their global footprint. Our evaluation uncovered a market in which (see Figure 3):

Strategy, analytics, and service delivery propel Leaders to the fore. RAPP narrowly leads

the category because of its breadth of services, integrated vision, and emphasis on strategy and

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The Forrester Wave: UK Database Marketing Service Providers, Q2 2009


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analytics. Marketing Databasics and GB Group also offer strong strategy and analytic offerings and stand out for their service delivery and the strength of their client feedback. Occam has a strong analytical and integrated offering targeted at the midmarket.

Strong Performers provide robust performance. Dataforce shows promise as it brings

database to the core of its offerings. Acxiom and Callcredit Marketing Solutions compete with strong data and execution services. Experian services many of the largest and most complex database marketers in the UK. Its technical capabilities make it a solid provider for these firms, but we find its strategy and vision to be inconsistent.

This evaluation of the database marketing service provider market is intended to be a starting point only. We encourage readers to view the detailed product evaluations and adapt the criteria weightings to fit their individual needs through the downloadable Forrester Wave Excel-based vendor comparison tool.
Figure 3 Forrester Wave: UK Database Marketing Service Providers, Q2 09
Risky Strong Bets Contenders Performers Leaders

Strong

Market presence

RAPP Full vendor Marketing GB Group participation Databasics Experian Dataforce Integrated Occam Marketing Current oering Acxiom Callcredit Marketing Solutions

Go online to download the Forrester Wave tool for more detailed product evaluations, feature comparisons, and customizable rankings.

Weak Weak Strategy Strong


Source: Forrester Research, Inc.

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Figure 3 Forrester Wave: UK Database Marketing Service Providers, Q2 09 (cont.)


Marketing Databasics Experian Integrated Marketing Forresters Weighting Callcredit Marketing Solutions Dataforce GB Group

Acxiom

Occam 3.13 3.55 3.30 3.00 3.09 4.00 0.00 2.00 4.40 0.00 4.20 4.00 4.50 5.00 0.00 0.00 0.00 1.50 1.00 2.00 1.00 1.22

CURRENT OFFERING Account management and service delivery Strategy services Data sourcing and services Technology and technical services Analytical services Creative services Execution and fulllment Measurement Other capabilities STRATEGY Corporate strategy Focus Industry strategy Channel strategy Cost Customer feedback MARKET PRESENCE Clients Revenues Employees Industry presence

50% 30% 10% 10% 20% 10% 5% 10% 5% 0% 50% 70% 20% 10% 0% 0% 0% 0% 40% 50% 10% 0%

3.23 2.15 3.30 4.40 3.71 3.75 2.00 3.95 4.00 0.00 3.30 3.00 3.50 5.00 0.00 0.00 0.00 4.00 4.00 4.00 4.00 1.36

3.01 2.30 2.80 3.80 3.18 3.85 0.60 4.00 4.20 0.00 3.45 3.50 3.50 3.00 0.00 0.00 0.00 3.40 3.00 4.00 2.00 1.29

3.36 2.95 3.60 2.80 3.69 3.50 2.00 3.98 5.00 0.00 3.35 3.50 3.00 3.00 0.00 0.00 0.00 3.60 5.00 3.00 1.00 1.06

3.24 2.55 3.60 5.00 3.85 4.00 1.20 2.65 2.40 0.00 2.65 2.50 3.00 3.00 0.00 0.00 0.00 4.60 4.00 5.00 5.00 1.21

3.83 4.65 4.05 2.80 3.80 4.05 0.60 3.20 4.60 0.00 3.35 3.50 2.50 4.00 0.00 0.00 0.00 1.00 1.00 1.00 1.00 1.12

3.80 4.55 4.20 2.60 3.55 5.00 0.60 2.92 4.40 0.00 3.65 3.50 4.50 3.00 0.00 0.00 0.00 1.00 1.00 1.00 1.00 1.21

3.96 3.80 4.70 2.00 3.59 4.50 5.00 4.84 5.00 0.00 3.50 4.00 3.00 1.00 0.00 0.00 0.00 2.60 2.00 3.00 3.00 1.34

All scores are based on a scale of 0 (weak) to 5 (strong).


Source: Forrester Research, Inc.

VEnDOR PROFIlES leaders

RAPP. Omnicom powerhouse RAPP rebranded globally in Q4 2008, which brought together

WWAV Rapp Collins and Identex in the UK. The reorganization moved the companys data offering from a tangential offering to a core asset throughout the organization. RAPP positions itself as a provider of strategic data-driven solutions with integrated multichannel delivery. Marketing databases are core to the firms UK offering, and database clients account for approximately 35% of UK revenues. The company demonstrates strong strategy, analytics, creative, and execution and fulfillment capabilities. Client feedback was generally positive with broad praise for the companys account management, proactive service, and understanding of the big picture, although we heard concern from some clients regarding the firms process-heavy approach and lack of flexibility.

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RAPP

The Forrester Wave: UK Database Marketing Service Providers, Q2 2009


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We consider our relationship to be a real partnership. RAPP has invested the time to get to know our business and our industry. They understand how we work and make me look good. RAPPs account management and service is great. They understand the opportunities for our business but also have a very pragmatic view. They continually focus on the ROI of our relationship we think of them as a true strategic partner. They can be a bit too process heavy. The end product is always robust, and I like that reliability, but Id like to see some more flexibility and dynamism.

Marketing Databasics. Marketing Databasics (MDB) is a subsidiary of Indicia Group, a

marketing services group headquartered in London. MDB has a strategic and analytically driven approach to database marketing. The company often commences client engagements with its proprietary DataSteps, which provides a strategic road map and benchmark for client relationships. Marketing databases are a core offering for the firm, and database clients account for 60% of UK revenues. Forrester believes that the company will seize new opportunities to compete as it partners within the Indicia Group, particularly with direct marketing agency Entire. MDB receives general praise from clients, especially related to its account management, proactive service, and client intimacy. In our online survey of clients, MDB had the joint highest Net Promoter Score.2 It received mixed reviews relating to its responsiveness and exuberance on upselling. Their account management is exceptionally strong. From senior to junior staff, I cant rate them highly enough. They are very responsive. Its the sort of service you can only dream of. We see them as a strategic partner. They pick up thoughts and ideas very quickly they are able to run with minimal input and give us ideas that dont reflect the minimal information weve given them. While we do think of them as a strategic partner, at times it can feel like they are keener to cross-sell than to help us get the most out of what were already paying for.

Occam. Occam is a private equity-backed marketing services firm. It began life in 1993,

providing the Reciprocate database to formalize the swapping of non-profit donor data. Since then, the company has layered on service bureau and database offerings. Almost three-quarters (73.5%) of revenues are derived from hosted marketing database clients, and the company views managed databases as key to its future success. Occam focuses its database services offerings on midtier companies (FTSE 350) and subsidiaries or departments within larger companies, delivering packaged solutions that are repeatable, industry-specific, and cost-competitive. Clients describe Occam as highly responsive and client-focused, although Occam will need to continue to invest, particularly in people, where a number of clients referenced its lack of depth. It will also need to demonstrate discipline in targeting the midmarket, as it has struggled when delivering complex installations.

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Their account management is great. They are very cooperative, and there are several people that I can pick up the phone and call. They are not a clock-watching agency their support is first class. They understand how a marketing department works analytically and commercially. Their service delivery is operationally strong, and commercially they are very pragmatic. We are probably their most complex client, and we exposed the weakness in their system. It felt like they had a talented orchestra, but no conductor. But they are open and honest and demonstrate a strong commitment to make our relationship work.

GB Group. GB Group is listed on the London Stock Exchange and describes itself as the

UKs leading identity management business. The company has three primary business areas focused on data authentication, data integrity, and data solutions. It ties the three businesses together around identity management, and its vision for the marketing business is to be the leader in identity-based marketing services. The company began hosting databases in 1997, and previously performed as a service bureau. It continues to provide data processing and bureau services to more than 100 clients. Forrester estimates that about 20% of total GB Group revenues are derived from database clients. Clients offered broad and unsolicited praise for its account management structure. The company is described by clients as part of the team, proactive, responsive, flexible, and reliable although one client commented that it is sometimes too pedantic and not as fast as the client might like. They have a brilliant approach to account management. They provide both an account manager and a commercial director, and they have my best interest in mind. Even when they know we have budget, there is never a hard sell. They only recommend what it is right for our business. Ive been in this industry for a couple of decades, and this is the first time Ive worked with a company that didnt try to bamboozle me. They work with me. Theyve really got to know our business and consistently deliver. They are part of the marketing team. If I have any concern, its that we rely on them so much. They understand our needs and see things from the clients perspective they understand what we need to demonstrate our value internally to our business.

Strong Performers

Dataforce. Dataforce is a subsidiary of Twenty plc, a UK-based marketing services group.

Dataforce accounts for the vast majority of Twentys revenues. Before it was acquired by Twenty in 2006, Dataforce was primarily a contact center and response handling business. It built its first database in 1991, and brought database management to the forefront of its offering in 2007.

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Since then, the company has invested in seasoned, senior talent and in its facilities, technology, and systems. Approximately 30% of Dataforces UK revenues are derived from marketing database clients. Client feedback was generally positive and described the firm as flexible and responsive. However, the company is still in transition and has hit some speed bumps along the way. It demonstrates a commitment to delivering on its promise but will need to invest further to complete its transition. We selected Dataforce due to their vision of the future and because they presented more innovation than any other firm. They have been brilliant at suggesting new ways of doing things, and have been extremely flexible. It is a great partnership it actually feels like a joint venture. They are very proactive and flexible. They are innovative and seem to see this as a long-term relationship. But we are a little over-reliant on some core individuals. When one went on holiday, everything stopped. They have a lot of ideas which is good but they are constantly looking for us to spend more money with them. Were not sure that weve proven the initial investment and would prefer to prove that before discussing other ideas that we dont know will deliver a return.

Acxiom. Acxiom is a $1.4 billion marketing and information management solutions company,

headquartered in Arkansas, US. Its UK operations are located in Teddington, Middlesex, and it has operations in 12 countries. The company is focused on enhancing its global, multichannel, and consulting businesses. It recently experienced leadership changes in the UK, and clients point to some disruption in services as a result. Approximately half of Acxioms total UK revenues are derived from hosted marketing database clients, and more than 60% of database solutions are prospect solutions. The company recently introduced MarketEdge-X, its packaged, industry-specific midmarket solution, in the UK market. Overall, Acxiom is very technically competent, and client feedback is generally positive. Given its traditional technical heritage and a general lack of strategic and proactive service, Acxiom will need to adapt its UK service delivery to accommodate the arrival of MarketEdge-X. Acxiom is very reliable. They always meet their service-level agreements, and they have a great industry perspective. They give us great insight into trends among our peers. Their account management is generally positive, but its not particularly proactive. However, their technical input is critical. They understand our business, and we can talk candidly about what the business requires. Acxiom provides extremely strong technology support its very stable and reliable. But they are very technically driven. Nobody is coming up to me and saying if we did this, it would be better. I know that they are trying to change. They talk more about innovation, but its just words at the moment.

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Callcredit Marketing Solutions. Callcredit Marketing Solutions is a newly formed division

of Callcredit Information Group (CIG). CIG is a subsidiary of the Skipton Building Society, a UK building society with more than 13 billion in assets. CIG also operates a Credit Solutions division. The Callcredit Marketing Solutions division comprises the former EuroDirect, Broadsystem, and GMAP Consulting businesses. It is focused on delivering an end-to-end solution that combines data and technology; consultancy and analytics; customer interaction; and multichannel dialogue capabilities. Database management is a core area of focus for Callcredit Marketing Solutions. Marketing Solutions marketing services accounts for approximately 50% of CIG revenues, and revenues from database clients account for more than 70% of marketing services revenues. The newly formed division has the requisite ingredients to become a strong player in the UK market if it can bring together its various components and deliver a client experience greater than the sum of its parts. Clients did note some headaches during the merger process. Ive always found them to be very responsive. I raised what could have been a complicated issue with them yesterday morning, and by this morning they had a response that allowed us to still hit our overall deadline. They are always there and always respond very well to every request. But they are not very proactive. As a result, we think of them as a vendor rather than a partner. They are held back by legacy systems and processes they are working through some of that because of the merger. But I still dont have a single point of contact that everything gets channeled through Im spending more time than I would like managing too many parts of the relationship.

Experian Integrated Marketing. Experian is a $3.9 billion global information services

business. In January 2006, it acquired ClarityBlue, a marketing database solutions provider, to complement its existing marketing services business. In July 2007, it launched the Experian Integrated Marketing (EIM) division to service UK marketing clients. Since completing its ClarityBlue acquisition, EIM is the largest database services firm in the UK. EIM hosts and manages some of the largest and most complex marketing databases in the UK. Approximately, 55% of UK revenues are derived from hosted marketing database clients. Clients point to a strategic divide between Experian in the UK and US. Experian has a broad range of services, although, clients say that it struggles to coordinate them. Its high-end clients demonstrate a high degree of satisfaction. Overall, however, there is little consistency in client feedback. Their account management is excellent frankly, they are part of my team. They are highly responsive, perhaps only reasonably proactive, but they understand our business better than we do.

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They can be very autocratic. They have a set way of doing things, which prevents them thinking from a wider or different perspective. I havent been happy with the overall delivery I dont expect to have to have a conversation twice a year about pulling up their bootstraps. Before the acquisition they felt like a partner; now they are just a sales organization. They have an arrogance that they are better than everyone else, but it isnt necessarily true its more a reflection of their size than their skills or capabilities. Other notable Vendors In addition to the eight vendors in the assessment, Forrester considered these other vendors and determined that their solutions did not meet the selection criteria at this time:

Alchemetrics. Alchemetrics primary solutions include marketing database management,


digital marketing services, data and insight services, and a data bureau.

Blue Sheep. Blue Sheep provides data-driven marketing services to B2B clients. Solutions
include a prospect platform, customer platform, and customer intelligence offering.

CACI. CACI provides a range of marketing solutions and information systems to local and
central government and to businesses from most industry sectors. The company provides database services on a hosted basis and as a systems integrator.

CDMS. Originally an in-house print and mail operation for Littlewoods, today, CDMS is an

integrated provider of marketing services. The company provides print and mail services, data management, analytics, and image management.

Data Lateral. Data Lateral is the database marketing arm of the Lateral Group, which focuses
on marketing communications management for both online and offline marketing and customer communications.

Dunnhumby. Dunnhumby is an international marketing service consultancy, best known for


its loyalty and points-program support. The company supports client data insights, customer experience, customer engagement, and brand value initiatives.

Eclipse. Eclipse is a full-service marketing agency offering strategy development, database


management, contact center support, and design and fulfillment services.

EHS Brann. EHS Brann is a subsidiary of Euro RSCG 4D which offers direct, digital, data, and
media services.

EMB Marketing Sciences. EMB is a business consultancy. Its marketing sciences division
provides strategic marketing, technical, and analytical services

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G2 Data Dynamics. G2 Data Dynamics is a subsidiary of Grey Global Group, a WPP company.
It includes the former MDS Global Consulting.

Harte-Hanks. Harte-Hanks is a global direct marketing and data management provider


headquartered in San Antonio, Texas.3

ResponseOne. ResponseOne is a full-service agency offering data intelligence solutions, direct


solutions, list and media planning, and media sales.

SmartFocus. Best known as a campaign management software provider, SmartFocus also

provides a managed service in the UK comprising marketing database services, digital, and multichannel marketing services.

Targetbase Claydon Heeley. In August 2008, Omnicom agencies Targetbase and Claydon

Heeley merged to form Targetbase Claydon Heeley. The merger brings together Targetbases data and analytics expertise with Claydon Heeleys creative expertise.4

SUPPlEMEntAl MAtERIAl Online Resource The online version of Figure 3 is an Excel-based vendor comparison tool that provides detailed product evaluations and customizable rankings. Data Sources Used In this Forrester wave Forrester used a combination of four data sources to assess the strengths and weaknesses of each solution:

Vendor surveys. Forrester surveyed vendors on their capabilities as they relate to the evaluation
criteria. Once we analyzed the completed vendor surveys, we conducted vendor calls where necessary to gather details of vendor qualifications.

Executive briefings. We spent a half day with the executive team of each vendor, in person or by
phone, to understand their vision, approach to the market, and plans for future direction.

Online customer survey. We conducted an online survey of at least 10 hosted database clients
of each vendor. Customer references were provided by the vendors.

Customer reference calls. To validate product and vendor qualifications, Forrester also
conducted reference calls with a minimum of four of each vendors current customers. Customer references were provided by the vendors.

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the Forrester wave Methodology We conduct primary research to develop a list of vendors that meet our criteria to be evaluated in this market. From that initial pool of vendors, we then narrow our final list. We choose these vendors based on: 1) service offering; 2) customer success; and 3) Forrester client demand. We eliminate vendors that have limited customer references and services that dont fit the scope of our evaluation. After examining past research, user need assessments, and vendor and expert interviews, we develop the initial evaluation criteria. To evaluate the vendors and their products against our set of criteria, we gather details of product qualifications through a combination of evaluations, questionnaires, and surveys and discussions with client references. We send evaluations to the vendors for their review, and we adjust the evaluations to provide the most accurate view of vendor offerings and strategies. We set default weightings to reflect our analysis of the needs of large user companies and/or other scenarios as outlined in the Forrester Wave document and then score the vendors based on a clearly defined scale. These default weightings are intended only as a starting point, and we encourage readers to adapt the weightings to fit their individual needs through the Excel-based tool. The final scores generate the graphical depiction of the market based on current offering, strategy, and market presence. Forrester intends to update vendor evaluations regularly as product capabilities and vendor strategies evolve. EnDnOtES
1

For more information about what we heard from UK marketers about their service providers, See the May 14, 2009, How UK Firms Use Database Marketing Services report. Forrester surveyed at least 10 reference clients of each vendor, asking: On a scale of zero to 10, how likely is it that you would recommend your provider to a friend or colleague? We used the Net Promoter methodology (subtracting the percentage of detractors [those that scored less than a six] from the promoters [those that scored higher than nine]) to calculate a score for each vendor. These scores were then compared across all eight vendors. Harte-Hanks was one of 12 companies evaluated in the November 2, 2007 Forrester Wave evaluation of database marketing service providers. For more information, see the November 2, 2007, Harte-Hanks Excels As A Midmarket Database Marketing Service Provider report, and see the November 2, 2007, Forrester Wave: Database Marketing Service Providers, Q4, 2007 report. Targetbase was one of 12 companies evaluated in the November 2, 2007 Forrester Wave evaluation of database marketing service providers. For more information, see the November 2, 2007, Targetbase Delivers A Grand Slam Of Integrated Strategy, Analytics, Technology, And Creative report, and see the November 2, 2007, Forrester Wave: Database Marketing Service Providers, Q4, 2007 report.

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