What do you think of when you hear the words “marketing cloud?” Most likely, your mind conjures up Adobe, Salesforce, Oracle. Maybe even IBM.
Then there’s Teradata.
As noted in the first Forrester Wave evaluating enterprise marketing software suites (aka marketing clouds) released Tuesday, Teradata is more often recognized for its data warehousing solutions.
Over the years, Teradata acquired a handful of companies to build its Integrated Marketing Cloud, including campaign management from Aprimo and email marketing from the German company eCircle.
It more recently bought digital creative agency Ozone Online and several social media monitoring services from Argyle Social with an eye on enabling “personalized messaging and centralized data in one place across platforms,” said Darryl McDonald, president of Teradata Marketing Applications, speaking on stage at the company’s 2014 Partners conference in Nashville this week.
“The goal,” he said, “is to bring together marketing strategy with the process automation and applications” required to integrate customer data and online activity for better return on investment. “That’s what the Teradata Integrated Marketing Cloud is all about.”
Of course, that’s what every marketing cloud ostensibly is all about.
So, how is Teradata marketing cloud different and, more to the point, what’s in there, exactly?
Teradata’s marketing cloud is comprised of three core competencies: marketing operations, campaign management and digital messaging.
Marketing operations, bolstered by Teradata’s 2010 Aprimo acquisition, aims to help with workflow, budget and asset management. Campaign management is comprised of the real-time interactions manager (RTIM) and customer interaction manager, also powered by portions of the Aprimo tech and certain other capabilities developed in-house.
“All of the vendors we looked at, including Teradata, have real-time interaction management or offer some kind of decision management tool – but all of them have made it into a separate module,” said Rusty Warner, principal analyst and Forrester and co-author of the Wave report. “Teradata’s is very well integrated, but it exists separately from the campaign tool.”
The digital messaging portion enables the usual marketing tasks: campaign creation, testing, execution and optimization via email, social and mobile. Two recent acquisitions – eCircle in 2012 and Ozone Online in May – and the impending integration (scheduled for 2015) of Argyle Social assets round out these capabilities.
“With all that in mind, we focus on two aspects of integration,” said Wes Moore, VP of solutions marketing for Teradata Applications, the division of Teradata Corporation created following the Aprimo acquisition. “One, integrating marketers, as in facilitating marketers to work together; and two, the technical integration we’ve invested in to integrate the applications themselves.”
Underpinning those three components sit a marketing analytics layer and customer data-management functionality, which facilitate the collecting and creation of customer profiles.
“All of these capabilities are in support of customers with databases on Teradata, although we work with other databases as well, including Oracle,” Moore told AdExchanger. “We do a lot of it through services today and take advantage of our Teradata heritage, but we’re also looking to build out our analytics as a separate piece.”
Although Forrester only gave Teradata so-so marks on the strategy side (2.2 out of 5) and on its market presence (2.33 out of 5), the Integrated Marketing Cloud scored better than SAP, Oracle and IBM, and just behind Salesforce.com, in the “current offering” category, which includes capabilities, application usability, integration and scale.
And On The Paid Media Side…? (Crickets)
Teradata’s marketing cloud doesn’t have a paid media function though it partners with platforms like DataXu and Google’s DoubleClick.
While Teradata claims its marketing cloud clients can manage spend through the campaign management application, they can’t take action on it.
“I’d use Teradata for the view and the adjustments, but if I wanted to act upon it, I’d take it to a DSP to actually go and execute,” Moore said.
Paid media functionality isn’t a given in the marketing cloud world. Despite the head start companies like Oracle, Adobe and Salesforce have, Forrester’s Warner sees the inclusion of paid media as a time-sensitive opportunity for Teradata.
“Traditional marketers or campaign managers are responsible for more and more of marketing and advertising spend, and they’re also responsible for some of the technology decisions that will impact both sides of the house,” Warner said. “But as we see ad tech and martech coming closer together, it won’t just be an opportunity, it will be a necessity for them to address it in some way.”
Teradata CMO Lisa Arthur agrees with that sentiment wholeheartedly. In addition to DataXu and DoubleClick, she noted that Teradata’s LiveRamp partnership enables relationships between Teradata and more than 70 different ad exchanges.
“The lines are blurring between marketing and service and between marketing and sales – and that’s happening within marketing itself,” Arthur told AdExchanger. “Keeping digital separate is starting to cause a problem because the insight team has created silos, almost like what we saw happen with ecommerce.”
That’s where Teradata’s Integrated Marketing Cloud differs, she said.
“Our cloud is focused on knowing the customer, collecting information about a prospect and having them opt in with a handshake of trust,” Arthur said. “Then we can put our innovations to work through the ad networks and DSPs to drive revenue for the brand.”
And now, the question on everyone’s mind: How integrated is it, really?
That’s part of what Warner and his Wave co-author, Forrester analyst Cory Munchbach, set out to discover.
They asked two similar, but nuanced, questions. One, how well do the parts of the suite integrate with each other? And two, how well does the suite or its components integrate with a client’s existing environment and existing marketing ecosystem? Warner and Munchbach spoke with Teradata customers to get the real scoop.
Regarding integration within the suite itself, Teradata scored pretty well (3.07 out of 5).
“To get a score like that, you had to be above 70% of the maximum score, so Teradata is not far off what the other vendors were getting,” Warner said. “The customers we talked to – and it seemed like most of them were using multiple parts of the suite together – were generally pleased.”
About 60% of Teradata’s Integrated Marketing Cloud clients are also using a Teradata data warehousing/analytics platform, which makes the data integration process fairly smooth. Forrester’s Wave also found that Teradata has “come a long way in supporting non-Teradata customer databases.”
The trouble came on question two. “They did much worse when it came to how well they integrated into an existing environment,” he said. “The score was 1 for Teradata in that category.”
But Arthur said to expect way more in terms of integration in 2015 – and by “integration” she means everything.
“When we think about integration, we think about the integration of data, of channels of processes, of cloud, of services,” she said. “A marketer could have our cloud, which is an amazing cockpit for driving engagement, and still not have the change they need happening in their organization or the skill sets within their organization to execute. That’s why we don’t stop at the software or the cloud. For us, it’s about how we surround a customer with services that are strategic and that will help them ignite their brand engagement.”
Teradata Customers Speak (Sometimes)
According to Moore, roughly 35% of the top Fortune 500 companies use parts of Teradata’s Integrated Marketing Cloud, although there are several customers using the whole shebang.
One such client is Etisalat Misr, the Egyptian arm of mobile telco giant Etisalat, which operates across 17 countries in the Middle East, Africa and Asia. Etisalat Misr uses Teradata’s enterprise data warehouse platform, as well as Teradata’s Integrated Marketing Cloud in its entirety.
One year after implementing the marketing cloud, Etisalat Misr’s campaigns went from generating 1.5% of corporate revenue to 3.5%, a number that nearly doubled to 7% after two years. The telco also saw a healthy reduction in churn, from 12% to 8%.
“[The marketing cloud] helped us with our time to market and helped us be more proactive and insightful with our customers,” Etisalat Misr commercial programs manager Wael Mourad told AdExchanger. “The whole back-end system gave me as a marketer the opportunity to engage with customers and bring more revenue to my company, which was the beauty of it for us. We’ve been adding new building blocks and new modules every year.”
Other clients include 7-Eleven, which uses Teradata’s RTIM tool, customer interaction manager and digital messaging to feed personalized offers through its app with help from loyalty player Brierley+Partners with impressive results: 3 million app downloads, 10 million daily sessions and 50,000 new users monthly.
Car rental company Hertz, which uses RTIM to deliver real-time offers, has also seen success. Hertz customers receive a text message as soon as they land in an airport with information about their impending rental, including car type and where to pick up the vehicle. If they don’t like the car that’s been assigned to them, they can use their phone to select an alternative model.
Teradata doesn’t seem to have a problem attracting blue-chip brands – P&G, Volvo, American Eagle Outfitters, Virgin Limited Edition and Samsung are all on the roster – but it does appear to have a bit of an issue getting its customers to shout about its good qualities from the proverbial rooftops, Warner noted.
It’s an odd fact to be told at the Teradata Partners conference, where about 4,000 people, many of them Teradata customers, have all flown to Nashville for an ostensible Teradata lovefest.
“On the overall customer reference side, they had one of the lowest scores. I think several of the vendors were surprised at how low their scores were,” Warner said. “We’re at a conference where customers come every year to talk about how much they love these guys, yet, when it came down to an NPS [net promoter score]-type question, Teradata didn’t do nearly as well as some of the other vendors we looked at.”
Perhaps this nugget from the Wave report goes some way towards answering why: “Customer references with more than five years’ tenure speak highly of campaign management and MRM [marketing resource management] functionality, but they are critical of the effort required to integrate Teradata into existing environments.”
Warner also noted that Teradata has some room to improve when it comes to sales strategy. Part of that has to do with how salespeople approach the Integrated Marketing Cloud, which is bundled into Teradata’s general revenue reporting. Warner and Munchbach had to guess-timate revenue for the marketing cloud from the total report. After a bit of number crunching, they determined that the Integrated Marketing Cloud makes up about 10% of Teradata’s overall revenue, as compared to Adobe Marketing Cloud (roughly one-third of Adobe’s revenue) or Marketo (100%).
But that’s not necessarily something Teradata needs to sweat. What the company does need to focus on is a clearer go-to-market strategy.
“Oracle and IBM have even smaller percentages of their overall revenue solutions dedicated to the marketing solution,” Warner said, suggesting that Teradata’s product strategy isn’t “as finely tuned” as some of the others. “The way Teradata products are priced, and the fact that [the marketing cloud] is not reported as a separate business, indicated that they seem to still be selling individual products.”
A Dark Horse?
Warner and Munchbach called strong performer SAS a “dark horse” in their Wave – Munchbach went so far as to call it “one of the best-kept secrets in marketing” in a previous interview with AdExchanger – but Warner agreed that Teradata is a bit of a dark horse itself. Or at least it has the potential to make some waves on the next Wave.
“Teradata’s product capability scores aren’t as high as SAS, but they really are pretty good,” Warner said. “And if they could fix some of those strategy pieces and work on their go-to-market, I think we would see quite a different performance in this sort of evaluation.”
As for the future, Teradata will need to focus on becoming a top-of-mind choice for potential customers considering a digital marketing solution, Warner said.
“Obviously, Teradata is pretty solid on the data-driven technology side,” Warner said. “But they’re going to have to do a bit more to convince the market that they’re a serious digital marketing player.”