PEGA MARKETING VS. SALESFORCE MARKETING CLOUD

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1 PEGA MARKETING VS. SALESFORCE MARKETING CLOUD A PEGA MARKETING WHITEPAPER This paper is intended for marketing professionals who are considering their next Marketing and CRM application for their enterprises. It compares two popular solutions, Pegasystems Pega Marketing and Salesforce. com s Marketing Cloud, across four areas of functionality essential to meeting the complex customer experience needs of the enterprise.

2 Introduction As a marketing professional, you understand how the industry s landscape is evolving. Consumer expectations are rising. Customers expect personal, timely, and contextually relevant offers, recommendations, and content, and do not want to feel like they are being sold or spammed with irrelevant offers. Customers who receive consistent and relevant experiences that deliver on their needs and preferences are more likely to remain loyal. i If they re dissatisfied, it s easier than ever for them to take their business elsewhere and to share their negative experience with others via social networks. To enable marketers to be successful and drive revenue in complex global enterprises, marketing applications must be able to deliver in four areas: Anticipating what s right for your customers based on their context Evolving to understand your customers context as it changes Connecting the customers to great experiences Simplifying and automating the complex and real-time world of a marketer The gap between the promise of legacy Marketing and CRM systems and the value they actually deliver is significant, and that the gap is growing even larger as the pace of change accelerates. Salesforce.com ( Salesforce ) pioneered the use of cloud computing for sales force automation applications. ii Its marketing application, Salesforce Marketing Cloud ( Marketing Cloud ), is actually a collection of separate applications acquired with distinct subscription fees for each. iii Salesforce has focused the Marketing Cloud on delivering, dynamic content, personalized mobile app and Web experiences, and ecommerce recommendations. iv However, customer references note that integration with back-office systems, offline channels, and third-party marketing tools are areas for improvement. In fact for the clients that Forrester talked with it found high levels of dissatisfaction with the Marketing Cloud with almost three-fifths saying they intend to renegotiate their contract or move to another vendor. vi Pegasystems has helped complex, global enterprises and their marketers deliver better customer experiences and drive revenue. According to Forrester, Pegasystems demonstrates consistent decision making and crosschannel offer delivery, especially for telecommunications and financial services firms. References from the growing Pega Customer Decision Hub user base represent some of the largest RTIM ( Real Time Interaction Management ) environments in this study ( RTIM Wave ) and provide favorable reviews for customer data management, recommendation engine functionality, and offer optimization. vii Leveraging the strengths of the Pega 7 Platform and the Pega Customer Decision Hub, Pega Marketing connects and intelligently guides back and mid-office processes using industry-leading real-time interaction and case management capabilities. viii PEGA DEMONSTRATES CONSISTENT DECISION MAKING AND CROSS-CHANNEL OFFER DELIVERY Choosing the right marketing solution starts with understanding your challenges and goals, and selecting an application that will best support the complexity and scale of your organization and infrastructure. This can be an especially difficult task for large and complex organizations where making the wrong choice can have long-term, unwelcome effects. This paper examines the four areas listed above to compare Pega Marketing and Salesforce Marketing Cloud in their abilities to drive revenue and deliver world-class marketing in a complex environment. 2

3 Anticipating What s Right For Your Customers Based On Their Context The only way to deliver a real-time, personalized experience is to understand the customers context and anticipate their needs. Sometimes this means knowing a customer already has an issue awaiting resolution, and that any marketing at that moment may not be appropriate. Other times it may be recognizing that a retention or upsell offer perfectly suits a particular customer s needs and current situation. Pega Marketing helps you know your customers and anticipate their needs in real-time based on continuously evolving customer data and business context. It intelligently suggests the next best actions to maximize the longterm value of the relationship. Pega Marketing supports the design, testing, and execution of a company s decision strategies, ensuring recommended actions are instantly updated to account for changing customer interests, needs, and objectives. A rich set of business rule types including decision trees, declarative rules, and decision tables combined with predictive analytics support advanced decisioning, automating actions, and seamless connections to fulfillment activities. Pega Marketing uses big data to store customer interaction history and analytically determine the most likely customer behavior utilizing the strength of the Pega Customer Decision Hub. The Pega Customer Decision Hub acts as the brain analyzing data from all channels in real-time and then making intelligent predictions using its predictive and machine learning algorithms which ensures an organization is constantly adapting and improving performance. The Salesforce Marketing Cloud has some predictive analytics capabilities, yet most are informed only by digital channel data, and used to make product and content recommendations based on general crowd surfing behavior, with the majority of their customers using components of this to personalize , Web, and social media interactions. ix Alternatively, Pegasystems was recognized as a leader in the Forrester Wave for Real-Time Interaction Management, beating out Salesforce and all other vendors. Forrester states that Pegasystems, demonstrates consistent decision making and cross-channel offer delivery, especially for telecommunications and financial services firms. References from the growing Pega Customer Decision Hub user base represent some of the largest RTIM environments in this study and provide favorable reviews for customer data management, recommendation engine functionality, and offer optimization. Forrester added that Pegasystems offers, enterprise-class, marketer-friendly analytics, as well as crosschannel orchestration critical deliverables for real time interaction management. x xi PEGA CUSTOMER DECISION HUB USER BASE REPRESENT SOME OF THE LARGEST RTIM ENVIRONMENTS IN THIS STUDY. - FORRESTER 3

4 EverythingEverywhere (EE) is an excellent example of why Pega is a leader in RTIM. EE was looking for a way to increase revenue per customer and improve retention, and wanted to improve the relevancy of marketing and retention offers across all channels. Unfortunately, they had multiple systems across all channels (agents, retail stores, and digital), and were lacking deep analytics, which gave them no way of creating consistent or compelling offers. Customers received different offers in different channels, and the offers were not personalized or aligned to the business value of the customer. WE HAVE QUADRUPLED THE NUMBER OF SUCCESSFULLY ACCEPTED MARKETING OFFERS. - EE Suzanne Woolley, Head of Customer Base Management at EE, attested to the performance Pega has helped EE achieve saying, We have quadrupled the number of successfully accepted marketing offers. xii To do this, EE used Pega Marketing to determine the optimal offer strategy for each customer by taking real-time context, combining it with big data, applying analytics, and finding the best offer while still balancing EE s business objectives. In addition to the 400% increase in accepted offers, EE was also able to achieve: 3X the customer value retained during retention Retained an additional 4% of most valued customers each month Substantially decreased subscriber retention costs Evolving To Understand Your Customers Context As It Changes As a marketing professional, you understand the modern customer has come to expect a personalized experience, but what should you do to meet these expectations? Be Relevant & Contextual Align offers, sales, and service with where customers are on their buying journey at a particular point in time. Be Timely Have offers, sales, and service when customers want it. Be Consistent Don t present duplicate offers and treat each interaction as a separate, disconnected experience. WHAT WE ARE SELLING IS CHANGING; WHO WE ARE SELLING TO IS CHANGING (SOME ARE PEOPLE WE VE NEVER SOLD TO BEFORE); AND HOW THESE CUSTOMERS WANT TO BE ENGAGED, MARKETED, AND SOLD TO IS CHANGING TOO. - DIRECTOR OF MARKETING & STRATEGY xv You can think about this as the shift from product-centric segment based marketing to customer-centric marketing, which is a point of differentiation between the Salesforce Marketing Cloud ( Marketing Cloud ) and Pega Marketing. 4

5 While the Marketing Cloud is reported to be effective at , mobile, and Web marketing, this tends to be predominately, product-centric, segment oriented marketing. Product-centric marketing starts with offers and pushes them to segments. The Marketing Cloud is focused more on pre-orchestrating paths for customers, and segment based recommendations at pre-determined points on those paths. The segmentation does involve some level of targeting, however, this approach will inevitably result in many irrelevant messages that will be ignored by the people who receive them. Actually, in the most recent Magic Quadrant for Multichannel Campaign Management ( MCCM ) Gartner said, Salesforce is suited largely for digital channels, with remaining its sweet spot xiv and added that they need comprehensive attribution metrics and real-time, next-best-offer capability across online and offline channels. xv In contrast, Pega Marketing takes a customer-centric approach to marketing called Next-Best-Action marketing. Customer-centric marketing takes into account multiple roles and actions, not just sales. It also considers service, retention, and risk mitigation. The end goal transforms marketing from pushing irrelevant offers to taking the most appropriate action with each customer at that given moment, which will result in the highest value exchange for each party. This means that when you use Pega Marketing you are always thinking about: First, how to increase loyalty and improve the experience for each customer Second, assessing risks, costs, and value Third, how to continuously maximize a beneficial relationship Pega Marketing enables you to find the Next-Best-Action continuously, whether you are proactively or reactively communicating with customers. Pega Marketing allows you to run hundreds, even thousands, of strategies against predictive models to ensure the right sales, service, or risk action is taken. PEGA HAS THE BRAINS TO HELP AN AGENT DELIVER THE RIGHT TREATMENT TO THE RIGHT CUSTOMER AT THE RIGHT TIME ~ CEO OF SPRINT xvi Pega Marketing helped Sprint lower its customer churn to 1.56% a reduction of more than 30% in less than one year. The result prompted Marcelo Claure, the company s CEO, to say, Pega has the brains to help an agent deliver the right treatment to the right customer at the right time. xvii 5

6 Connecting The Customers To Great Experiences As marketing professionals, you know success isn t just limited to a one-time interaction. It s important to nurture customers and quickly fulfill on the promises you make as they progress through the Marketing, Sales, and Service experiences. According to a recent customer survey from Forrester, inadequate integration with backoffice systems was the biggest technical barrier to creative and customer facing systems chosen by 60% of the survey participants. xviii Additionally, more than 75% of respondents from the same survey indicated that ease of integration with other software components would be important when selecting a vendor. xix INTEGRATION IS AN AREA FOR IMPROVEMENT FOR SALESFORCE Despite its capabilities, the Marketing Cloud sits on a separate Cloud from the Sales and Service Clouds, and the integration of Marketing Cloud and Sales Cloud is a work in progress. xx Additionally, the Marketing Cloud itself is a collection of five separately acquired applications (ExactTarget, Active Audiences, Social Studio, Social.com, and Pardot) each with its own set of subscription fees. xxi Instead of unifying the view of the customers, this structure is likely to create silos, which makes it difficult to have a single view of the customer. Specifically for the Marketing Cloud, integration with back-office systems, offline channels, and third-party marketing tools is an area for improvement, and customer references echo this sentiment. xxii Although Salesforce reports 7,000 customers using RTIM functionality, the majority deploy real-time or mobile messaging, and less than 10% deploy RTIM offers across multiple channels. xxiii PEGASYSTEMS RECEIVED THE HIGHEST RANK FOR INTEGRATION - FORRESTER Conversely integration is a major strength for Pegasystems. Pega Marketing is built on the unified Pega 7 Platform, enabling it to leverage industry leading case management and business process capabilities xxiv to connect marketing to the back office legacy systems and ensure complete end-to-end customer experiences. Pegasystems received the highest ranks for integration in the Forrester RTIM Wave, a score that was 35% higher than the score Salesforce received. xxv All Pegasystems applications, including Pega Marketing, are built on a single, unified platform that makes getting a complete view of the customer much simpler. Using Pega Marketing, companies can increase the value that they realize from their customers throughout the customer lifecycle. As a result of this ability to integrate across channels and stages of the customer journey, Pega Marketing customers typically see increases in customer value throughout the customer lifecycle. Figure 1: Pega Customers See Benefits across the customer lifecycle 6

7 DECISIONING HAPPENS IN ONE CENTRAL PLACE, MAKING IT EASY FOR PNC TO PROVIDE A CONSISTENT CUSTOMER EXPERIENCE ACROSS ALL CHANNELS. - PNC PNC was able to build a system it called the Customer Interaction Management (CIM) System to deliver consistent customer experiences using Pega Marketing. CIM uses data, analytics, and customer insights at its core, and provides a 360-degree view of the customer. Features include centralized decisions, real-time decisions, adaptive learning, and two-way conversations. With CIM System, PNC was able to: Increase revenue Improve customer experience Receive an A for online marketing Increase employee enthusiasm and productivity John DeMarchis, Senior Vice President for Customer Management, PNC Financial Services Group, remarked, Decisioning happens in one central place, making it easy for PNC to provide a consistent customer experience across all channels. xxvi Simplifying And Automating The Complex And Real-Time World Of A Marketer As a marketing professional, you are tasked with managing hundreds of inbound and outbound campaigns, rules, and marketing strategies. Innovative tools and systems are constantly introduced, which means it is becoming increasingly important for a marketer to be able to manage all of these systems in a coordinated fashion. xxvii Salesforce Marketing Cloud was constructed to focus on the digital channels with remaining its sweet spot, xxviii and in effect gives the marketer only a partial solution for outbound marketing. PEGA ARBITRATES MULTIPLE OFFERS AND AUTOMATES TWO-WAY INTERACTIONS ACROSS INBOUND AND OUTBOUND CHANNELS. Conversely, Pega Marketing provides a single place to manage everything and is able cover the aspects that the Marketing Cloud misses on. Pega Marketing connects into digital and traditional channels, providing the marketer a single place to arbitrate multiple offers and manage two-way interactions simultaneously across inbound and outbound channels. xxix 7

8 350% INCREASE IN OFFER ACCEPTANCE OVER JUST OUTBOUND A global mobile telecommunications firm provides another example of a customer that used Pega Marketing to achieve dramatic results. The company now utilizes Pega as a central hub to automate its marketing strategies across all channels, which eliminates duplicate and/or contradictory messages. As a result, all of its strategies run more effectively, leading to strong results that included: A 350% increase in offer acceptance over just outbound xxx Reducing customer churn to 9.2%, one of the lowest levels in company history xxxi Conclusion This comparison presented four areas critical to enable marketers to be successful and drive revenue in complex global enterprises. To remain competitive, marketing organizations need to know their customers, tailor to their needs, and do it all faster and with fewer resources while directly connecting to the rest of the enterprise to deliver end-to-end customer experiences. Pega has proven itself capable of delivering this capability and flexibility at scale. Meanwhile, as industry observers have noted that Salesforce lacks integration points to drive consistent realtime interaction management across offline channels and must expand its vision for digital personalization to encompass contextually relevant, channel-agnostic RTIM. xxxii If you re a large enterprise considering your next marketing application, make sure you ask these questions: How does the application leverage analytics to both predict buyer needs, and also adapt on the fly as those needs change? How does the application move beyond batch and blast segmentation to engagement strategies that are tailored to the individual buyer? How will you offer frictionless touch points that are consistent across an abundance of new inbound and outbound channels? Will you be able to centrally manage your best strategies and campaigns in one platform, always available to deploy rapidly in the right channel to the right individual? To what extent does the application manage frequently changing, complex marketing programs across business units and geographies? Can you demonstrate this in a proof of concept? How does the application connect to the back office data sources operations needed to have a complete view of the customer and fulfill marketing offers? 8

9 I II III IV V VI VII VIII IX X Xi XII XIII XIV XV XVI XVII XVIII XIX XX XXI XXII XXIII XXIV XXV XXVI XXVII XXVIII XXIX XXX XXXI XXXII 2014 Temkin Experience Ratings, Bruce Temkin; Temkingroup.com, Mar Why Salesforce.com Has Passed Its Prime, Peter Cohan; Forbes, Feb Salesforce Is Bidding To Be Your Strategic Customer Platform; Should You Accept?, by Andrew Bartels, Paul D. Hamerman, Liz Herbert, Kate Leggett, John R. Rymer, and Lori Wizdo, April 10, Buyer Personas: How to Gain Insight into your Customer s Expectations, Align your Marketing Strategies, and Win More Business, by Adele Revella. Gartner: Magic Quadrant for Multichannel Campaign Management, Q Gartner: Magic Quadrant for Multichannel Campaign Management, Q Digital Experience Technology Integration: Go Beyond Just A Basket Of Solutions Tools And Technology: The Digital Experience Delivery Playbook by Mark Grannan August 27, 2015 Updated: September 3, Digital Experience Technology Integration: Go Beyond Just A Basket Of Solutions Tools And Technology: The Digital Experience Delivery Playbook by Mark Grannan August 27, 2015 Updated: September 3, Salesforce Is Bidding To Be Your Strategic Customer Platform; Should You Accept?, by Andrew Bartels, Paul D. Hamerman, Liz Herbert, Kate Leggett, John R. Rymer, and Lori Wizdo, April 10, The New Physics Of Lead-To-Revenue Management by Lori Wizdo, March 28, Gartner: Magic Quadrant for Multichannel Campaign Management, Q

10 ABOUT PEGASYSTEMS Pegasystems develops strategic applications for sales, marketing, service and operations. Pega s applications streamline critical business operations, connect enterprises to their customers seamlessly in real-time across channels, and adapt to meet rapidly changing requirements. Pega s Global 500 customers include the world s largest and most sophisticated enterprises. Pega s applications, available in the cloud or on-premises, are built on its unified Pega 7 platform, which uses visual tools to easily extend and change applications to meet clients strategic business needs. Pega s clients report that Pega gives them the fastest time to value, extremely rapid deployment, efficient re-use and global scale. For more information, please visit us at 2015 Pegasystems, Inc. All rights reserved. All trademarks are the property of their respective owners.