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FOR B2C MARKETING PROFESSIONALSThe Forrester Wave : Email Marketing ServiceProviders, Q3 2016Tools And Technology: The Email Marketing Playbookby Rebecca McAdamsJuly 27, 2016Why Read This ReportKey TakeawaysWe identified 10 significant email marketingservice providers — Acxiom, Adobe, Epsilon,Experian Marketing Services, IBM, Oracle,Salesforce, Selligent, SmartFocus, and YesLifecycle Marketing — and researched, analyzed,and scored them. This report shows how welleach provider fulfills our criteria and wherethey stand in relation to each other to help B2Cmarketers choose the right partner for their needs.Email Marketing Can Help You BecomeCustomer-ObsessedCompanies are heeding the call to becomecustomer-obsessed and leveraging email to helpthem operationalize those efforts and createagility. Marketers look to email service providersfor support.Epsilon, Salesforce, And Oracle Lead The PackForrester’s research uncovered a market in whichEpsilon, Salesforce, and Oracle lead the pack.Acxiom, Adobe, Experian Marketing Services, andYes Lifecycle Marketing offer competitive options.Selligent, IBM, and SmartFocus are Contenders.The Forrester Wave Model Can Identify YourBest PartnerUse the detailed Forrester Wave model toview and weight the criteria used to scoreparticipating vendors in order to create a customvendor shortlist.FORRESTER.COM
FOR B2C MARKETING PROFESSIONALSThe Forrester Wave : Email Marketing Service Providers, Q3 2016Tools And Technology: The Email Marketing Playbookby Rebecca McAdamswith Shar VanBoskirk, Mary Pilecki, and Stephanie LiuJuly 27, 2016Table Of Contents2 Email Marketing Activates CustomerObsession4 The Email Marketing Service ProviderLandscape ExplainedOur Evaluation Considers Three Dimensions6 Vendor ProfilesLeadersNotes & ResourcesIn May 2016, Forrester evaluated 10 email serviceproviders: Acxiom, Adobe, Epsilon, ExperianMarketing Services, IBM, Oracle, Salesforce,Selligent, SmartFocus, and Yes LifecycleMarketing. It also conducted phone interviews with27 customer references from these vendors andsurveyed an additional 63 via an online survey.Related Research DocumentsStrong PerformersContenders11 Supplemental MaterialBrief: How To Organize For Email MarketingThe Forrester Wave : Email Marketing Vendors,Q3 2014Thriving In A Post-Digital WorldForrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA 1 617-613-6000 Fax: 1 617-613-5000 forrester.com 2016 Forrester Research, Inc. Opinions reflect judgment at the time and are subject to change. Forrester ,Technographics , Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of ForresterResearch, Inc. All other trademarks are the property of their respective companies. Unauthorized copying ordistributing is a violation of copyright law. Citations@forrester.com or 1 866-367-7378
FOR B2C MARKETING PROFESSIONALSJuly 27, 2016The Forrester Wave : Email Marketing Service Providers, Q3 2016Tools And Technology: The Email Marketing PlaybookEmail Marketing Activates Customer ObsessionCompanies are heeding the call to become customer-obsessed — 71% of global business andtechnology decision-makers tell us that improving customer experience is a high or critical priority.1 Butputting customer obsession into practice is hard work, especially in a post-digital world.2 Our researchfor this report found that 70% of marketers expect to increase their investment in email strategy, in partto help them operationalize efforts toward customer obsession (see Figure 1). Specifically, marketers:› Use email to create agility. Marketers are no longer using email just to drive sales and customerretention. In addition to these goals, email also enables handier customer engagement —like responding to changing market conditions and generating brand awareness (see Figure2).3 Furthermore, customized, in-moment communications — like triggers or contextual andpersonalized messages — are more widely practiced (see Figure 3).› Turn to partners for support. Enterprise email teams are generally understaffed andunderstructured.4 And while some marketers want to grow email marketing emphasis organically,most rely on partners to help with email strategy, operations, and email analytics capabilities.5› Don’t get their needs fully met. Email vendor offerings today are still too polarized to whollymeet email marketer needs. For example, research for this evaluation shows that vendors thatemphasize the automation of cross-channel communications support tend to be thin aroundstrategy and creative support. Meanwhile, firms that emphasize data and data science lack theusability and ease of integration more commonly found in marketing automation partners.FIGURE 1 Email Investment Will Increase In 2016“By the end of 2016, how will your email spending have changed across the following categories?”Increased significantlyIncreased somewhatDeveloping our email strategyManaging the email programStayed the same51%19%43%11%Hiring dedicated6%email resourcesSpending on email6%analytics capabilities5%Investing in newemail technologyDecreased somewhat29%44%39%50%52%58%38%35%2%2%5%3%2%Base: 63 email marketers(percentages may not total 100 because of rounding)Source: Forrester’s Q2 2016 Global Email Marketing Services Forrester Wave Customer ReferencePhone/Online Survey 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-73782
FOR B2C MARKETING PROFESSIONALSJuly 27, 2016The Forrester Wave : Email Marketing Service Providers, Q3 2016Tools And Technology: The Email Marketing PlaybookFIGURE 2 Marketers Value Goals Beyond Sales And Retention“By the end of 2016, how will your email spending have changed across the following categories?”Increased significantlyIncreased somewhatDeveloping our email strategyManaging the email programStayed the same51%19%43%11%Hiring dedicated6%email resourcesSpending on email6%analytics capabilities5%Investing in newemail technologyDecreased somewhat29%44%39%50%52%58%38%35%2%2%5%3%2%Base: 63 email marketers(percentages may not total 100 because of rounding)Source: Forrester’s Q2 2016 Global Email Marketing Services Forrester Wave Customer ReferencePhone/Online Survey 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-73783
FOR B2C MARKETING PROFESSIONALSJuly 27, 2016The Forrester Wave : Email Marketing Service Providers, Q3 2016Tools And Technology: The Email Marketing PlaybookFIGURE 3 Marketers Apply More Agile Methods To Connect With Customers“How long has your company used the following email marketing innovations?”More than three yearsOne to three yearsTriggered transactional mic content14%Responsive design24%33%38%24%50%74%13%Microsegment targeting 7%Email-embedded video 5%11%35%11%Open-time personalization 7%18%40%29%Contextual marketingIntegration with other channelsDon’t use but plan to/would like to13%53%58%25%21%63%60%Base: 57 to 63 email marketers(not all responses shown)Source: Forrester’s Q2 2016 Global Email Marketing Services Forrester Wave Customer ReferencePhone/Online SurveyThe Email Marketing Service Provider Landscape ExplainedTo determine how well current vendors could support marketers’ needs for email as a catalysttoward customer obsession, Forrester evaluated the strengths and weaknesses of top emailservice providers (ESPs). Specifically, we included 10 vendors — Acxiom, Adobe, Epsilon,Experian Marketing Services, IBM, Oracle, Salesforce, Selligent, SmartFocus, and Yes LifecycleMarketing — all of which (see Figure 4):› Offer a proprietary email platform. The initial qualifier for this evaluation is thatvendors under consideration must offer a first-party email deployment platform. Servicesorganizations — like DEG or Precision Dialogue — that manage client email programs usingpartner technologies are not eligible.› Have a dedicated email marketing revenue stream. We evaluated vendors that earned atleast 60 million from the sale of email marketing products and services in 2015.6 Boutiqueproviders like MailChimp or Bluecore were too small. 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-73784
FOR B2C MARKETING PROFESSIONALSJuly 27, 2016The Forrester Wave : Email Marketing Service Providers, Q3 2016Tools And Technology: The Email Marketing Playbook› Support enterprise firms. Forrester’s clients are mostly enterprises. So we evaluate vendors thatserve a similar audience. Only vendors that can show that enterprise clients, defined as companieswith 1,000 employees or more, account for at least 30% of their account base were included. ESPsselling to small or midsized marketers, like Maropost or SparkPost, were screened out.› Compete against other enterprise ESPs. For this year’s evaluation, Forrester also consideredhow firms commonly compete with each other based on vendor-disclosed competitors and ourown client inquiries. This ensured that the study was of like players and eliminated vendors thatmight deliver marketing emails — like Sitecore or Monetate — but as part of an alternative primarybusiness model.FIGURE 4 Evaluated Vendors: Vendor Information And Selection CriteriaProduct versionevaluatedDate evaluatedAcxiom Impact10.3Q2 2016AdobeAdobe CampaignN/AQ2 2016EpsilonAgility Harmony1.0.78.11917Q2 2016Experian Marketing ServicesExperian Marketing Suite6.6.0.0Q2 2016IBMIBM Marketing Cloud16.2Q2 2016OracleOracle Responsys6.28Q2 2016SalesforceSalesforce Marketing CloudN/AQ2 2016SelligentSelligent Campaign6.2.5Q2 2016SmartFocusThe Message CloudN/AQ2 2016Yes Lifecycle MarketingYesmail360iN/AQ2 2016VendorProduct evaluatedAcxiomVendor selection criteriaThe vendor must offer a proprietary email platform.The vendor must have a dedicated email marketing revenue stream and have reported at least 60 millionin annual email revenue in 2015.The vendor’s enterprise customer base must represent at least 30% of the vendor’s total customers.Forrester defines enterprise-sized customers as firms with at least 1,000 employees.The vendor must compete against other enterprise email service providers. 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-73785
FOR B2C MARKETING PROFESSIONALSJuly 27, 2016The Forrester Wave : Email Marketing Service Providers, Q3 2016Tools And Technology: The Email Marketing PlaybookOur Evaluation Considers Three DimensionsCriteria for this year’s evaluation drew from recent conversations with clients about their emailmarketing and broader messaging needs as well as past research, ForecastView data, and trendsin marketing technology. From these inputs, we developed 27 criteria to assess vendors, which wegrouped into three high-level buckets:› Current offering. We assessed each vendor’s current product and service offerings, focusing onkey differentiators among vendors’ technology platforms, services, globalization, and customersatisfaction. We specifically excluded from our evaluation functionality that is of common quality fromall vendors, such as deliverability monitoring, triggered campaign support, and collaboration tools.› Strategy. We also evaluated the management team, corporate vision, and development road mapfor each vendor, factoring in the experience each management team has had working together, aswell as how articulate and plausible its vision was against its demonstrated and planned capabilities.› Market presence. Finally, we took into account the annual email marketing revenue, globalfootprint, employee management, and customer retention rate for each vendor.Vendor ProfilesThis evaluation of the email marketing service provider market is intended to be a starting point only.We encourage clients to view detailed product evaluations and adapt criteria weightings to fit theirindividual needs through the Forrester Wave Excel-based vendor comparison tool (see Figure 5). 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-73786
FOR B2C MARKETING PROFESSIONALSJuly 27, 2016The Forrester Wave : Email Marketing Service Providers, Q3 2016Tools And Technology: The Email Marketing PlaybookFIGURE 5 Forrester Wave : Email Marketing Service Providers, Q3 ’16Challengers sforceExperian Marketing ServicesIBMCurrentofferingOracleAcxiomGo to Forrester.com todownload the ForresterWave tool for moredetailed productevaluations, featurecomparisons, andcustomizable rankings.SelligentYes Lifecycle MarketingSmartFocusAdobeMarket presenceWeakWeakStrategyStrong 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-73787
FOR B2C MARKETING PROFESSIONALSJuly 27, 2016The Forrester Wave : Email Marketing Service Providers, Q3 2016Tools And Technology: The Email Marketing perian Marketing ServicesIBMOracleSalesforceSelligentSmartFocusYes Lifecycle MarketingFIGURE 5 Forrester Wave : Email Marketing Service Providers, Q3 ’16 (Cont.)CURRENT OFFERINGTechnology platformServicesGlobalizationCustomer .700.002.261.502.751.703.00STRATEGYStrength of management teamCorporate visionDevelopment road 03.003.003.104.003.001.00MARKET PRESENCEEmail marketing revenueGlobal footprintEmployee managementCustomer .003.003.001.004.003.00All scores are based on a scale of 0 (weak) to 5 (strong).Leaders› Epsilon. Epsilon’s study-leading current offering shows off one of the most flexible technologyplatforms, balanced with excellent campaign operations, technology, strategy, and creativeservices. As one client reference explains, this blend works well for demanding enterprisefirms: “We are not an easy client. But Epsilon has met our every need with care and operationalexcellence.” Here’s to Epsilon maintaining this dedication as it extends its strategic charter toinclude building brand strategy and digital experiences for clients.› Salesforce. In the words of one client reference: “I have not found an [email service provider] thatcan compare to the customization and integration [Salesforce] has.” We believe it. This vendor’sdynamic content, analytics and reporting, security, and support of distributed business models aretop-notch. Salesforce also boasts the most satisfied customers we surveyed. Email leaders at this 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-73788
FOR B2C MARKETING PROFESSIONALSJuly 27, 2016The Forrester Wave : Email Marketing Service Providers, Q3 2016Tools And Technology: The Email Marketing Playbookfirm drive broader company strategy, so email marketers of all sizes will know their voices matter.Just don’t expect heavy analytics or strategy consulting support — that is the one place whereservices-led firms get a leg up on this dynamo.› Oracle. Formerly Responsys, this vendor’s strong functionality, experienced leadership team, andbuttoned-up corporate vision just two years into its acquisition by Oracle assure its continuedplacement as a Leader in this study. Cutting-edge firms with big budgets will especially like itsstrong testing, integration, and creative services capabilities. Expect some sluggish accountservice, however. Customer reference scores for this vendor trail those of other Leaders. As oneclient reference explains, “I feel highly confident in [Oracle’s] reliability and product road map. It’sthe service and administrative tasks that are slow due to the many layers of approvals requiredwithin the larger [Oracle] organization.”Strong Performers› Acxiom. Welcome to the Strong Performer category, Acxiom. Its investment in developing a newemail platform paid off. Capable segmentation, dynamic content testing, security practices, andsupport for a distributed business model, combined with high-performing campaign operationsand technical services, mean that for the first time, Acxiom can suit more than just the full-servicebuyer. Big enterprises shouldn’t expect the bells and whistles of more pure-play tech firms;Acxiom still sells a tech-plus-services approach. But client references are glad they can have moreautonomy on the platform when they want.› Adobe. Marketing technology incumbent Adobe debuts as a Strong Performer in its firstappearance in Forrester’s email service provider Wave because of its competent strategic visionand willingness to invest to grow its email business. Today, the usability and personalizationcapabilities of Adobe Campaign fall short, and Adobe is still building out its professional servicesoffering. But for now, existing Adobe Marketing Cloud customers who don’t need consultingsupport or marketers who want to be part of a collaborative development process with their vendorwill find Adobe Campaign a reasonable “yes.”› Experian Marketing Services. In the words of one client reference we interviewed, ExperianMarketing Services is “functional but not intuitive.” We agree. This vendor has more traction thanit has had in previous years’ evaluations due to its facility for dynamic content testing, predictiveanalytics, campaign operations, and tech services. However, its segmentation, personalization,strategic services, and integrations with third-party partners fall short compared with Leader-levelcompetitors. Even so, we think multinational marketers who need help with day-to-day programoperations will like this vendor’s broad footprint and dedication to global account management.› Yes Lifecycle Marketing. This year, Yes Lifecycle Marketing (YLM) lands as a Strong Performerdue more to the diligence of its management team, dedication to employee retention, and handson approach to campaign operations than to its current functionality. Its unexceptional usability,personalization, dynamic content, and integration capabilities are all areas the vendor expects 2016 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law.Citations@forrester.com or 1 866-367-73789
FOR B2C MARKETING PROFESSIONALSJuly 27, 2016The Forrester Wave : Email Marketing Service Providers, Q3 2016Tools And Technology: The Email Marketing Playbookto upgrade with its new Yesmail360/360i product, which was planned to be released after thisevaluation. This release will bring added value to US-based challenger brand types who alreadybuy YLM’s services-led approach — 91% of current clients renew with this firm annually.Contenders› Selligent. This evaluation catches the new Selligent — a combination of StrongView and Selligent —in an in-between stage that doesn’t yet include the best features of its prior technology platforms. Itsusability, dynamic content testing, and integration capabilities all score below average, and the firmoffers only limited professional services. Global marketers who like a self-service solution should staytuned, however. The firm already demonstrates best-in-class support for predictive analysis, globalaccount support, and international communications. And its management team articulates a clearvision for customer-first marketing and plans to launch ne
Enterprise email teams are generally understaffed and understructured.4 And while some marketers want to grow email marketing emphasis organically, most rely on partners to help with email strategy, operations, and email analytics capabilities.5 › Don’t get their needs fully met. Email
