• April 25, 2007
  • By Colin Beasty, (former) Associate Editor, CRM Magazine

Responsys Answers the Acquisition Bell

Responsys has acquired predictive analytics and contact optimization firm Loyalty Matrix, in a deal that will help Responsys in its strategy to shift from being an email company to serving the larger arena of on-demand marketing. The merger with Loyalty Matrix adds a layer of predictive analytics, which gives Responsys clients the ability to determine a customer's lifetime value and likelihood of attrition, and to identify a prospect's propensity to respond to marketing. "We're designing our on-demand marketing solutions to shrink the time spent on getting campaigns out the door so that marketers can focus on smart and successful marketing," says Dan Springer, CEO of Responsys. Clients looking for predictive analytics services to complement their work with Responsys previously had to contract with a separate vendor or build an internal team to run manual analytics, says Scott Olrich, CMO at Responsys. "Loyalty Matrix's productized and subscription-based approach to providing analytics blended perfectly with our own." Responsys wants to keep these customers in-house, Olrich says, by using Loyalty Matrix's ability to plot the best marketing mix for each customer, increasing campaign profitability. Loyalty Matrix uses prebuilt customer segmentation models that enable users to cross reference customer and prospect data to determine the best form of messaging for an individual. "Many of the clients using these models are seeing 50 percent increases in response rates," Olrich says. The marriage of Web analytics and email marketing is one of the hotter trends in Internet marketing, according to David Daniels, a vice president and research director at Jupiter Research. "It's definitely the next big thing to happen to email marketing," he says. Companies on the Web-analytics side include Coremetrics, Omniture, WebTrends, and WebSideStory, while players within the ESP space include CheetahMail, EmailLabs, and Silverpop. "We've seen it already with online advertising, behavioral and contextual targeted advertising," he says. "While the adoption is increasing slowly, the fact that the vendors in this space on both sides of the equation have invested product development dollars into making this a pretty key feature of their applications also signals that there's a lot of demand, pent up demand, in the marketplace for it." Related articles: Coremetrics's Spring Fling
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