Precisely why did SAP buy Qualtrics?

On Weekend, SAP again redefined the features of its marketing platform, announcing the purchase of survey and research firm Qualtric for $8 billion.

Qualtrics offers survey software with regard to assessing customer and employee behaviour for about 9000 enterprise customers. Located in Provo, Utah and Seattle, the business said it would maintain those head office and its separate brand, even as this integrates into the SAP ecosystem.

Projecting $400 million within revenue this year, Qualtrics had been getting ready to go public, following a similar route by its main competitor, SurveyMonkey.

Why this particular acquisition? But , provided the enormous price tag, the key issue is: Why did SAP get this to purchase?

The two businesses are pitching the idea that Qualtrics offers X-data, or experience-related data, which, whenever married to SAP’ s functional data, provides a complete view associated with experience management:

According to Andrew Joiner, CEO of customer experience administration firm InMoment, the price shows the particular “ strong demand for technologies that helps companies tap into experience information, ” in this case by getting study answers from customers, would-be clients and employees at scale.

It also points the way to the next stage, where survey responses can be improved with other data layers to create a multi-dimensional assessment of customers and employees, he or she said via email. If prosperous in doing so, this makes SAP’ s operational and identity information all the more valuable because of how it will help understand users and workers in scale.

“ An ultra high-definition picture” associated with customer relationships. Actually Tony Kavanagh, CMO of CUSTOMER RELATIONSHIP MANAGEMENT Insightly, said that “ the only way in order to effectively manage customer relationships would be to build an ultra high-definition image of them using data, ” depending on survey-generated preferences, interactions and use data.

Combined with AI and CRM, he said, this provides SAP “ a very robust consumer engagement platform” for competing towards major marketing platforms like Salesforce, Adobe and Microsoft. What SYSTEMS APPLICATIONS AND PRODUCTS had been missing that Qualtrics offers, he said, was “ an organized way to understand and map the [customer’s] journey. ”

But Gartner VP Andrew Frank emailed that this pay for wasn’ t a directly reactive move against SAP’ s greatest marketing cloud competitors.

Instead, he said, it is “ more of a bet on difference, ” which can be utilized in conjunction along with marketing analytics and performance administration tools.

Almost 70 acquisitions. “ SAP has to set its own impact, ” Gartner Senior Director/analyst Ilona Hansen said, “ and is creating its own unique culture going forward to achieve success and for standing out of their rivals. ”

She mentioned that Qualtrics offers more than just client surveys to define the customer trip and expand on customer partnership management, including employee surveys, item assessment and brand awareness, that all fit well into SAP’ s strategy of positioning alone for the “ intelligent enterprise. ”

The Qualtrics buy is only the latest of nearly seventy acquisitions since the early 1990s by Germany-based SAP, which together are usually adding up to an unique mix.

In January, for instance, this acquired sales performance management device CallidusCloud and conversational user encounter platform Recast. ai. In Sept of last year, it picked up identification management platform Gigya and, the prior year, marketing attribution provider Swipoa.

Why this particular matters to marketers. Since marketing tools are significantly interoperable and integrated, large marketing and advertising clouds like SAP need to continuously add differentiators that make them distinctive. The addition of Qualtrics adds a study tool that Adobe, Salesforce, Oracle and Microsoft lack, and assists SAP obtain an unique positioning within the competitive landscape.

This story first appeared on MarTech Today. For more on marketing technologies, click here.


About The Writer

Barry Levine covers marketing and advertising technology for Third Door Press. Previously, he covered this room as a Senior Writer for VentureBeat, and he has written about these as well as other tech subjects for such books as CMSWire and NewsFactor. This individual founded and led the web site/unit at PBS station Thirteen/WNET; proved helpful as an online Senior Producer/writer just for Viacom; created a successful interactive online game, PLAY IT BY EAR: The very first CD Game; founded and directed an independent film showcase, CENTER DISPLAY SCREEN, based at Harvard and Meters. I. T.; and served more than five years as a consultant towards the M. I. T. Media Laboratory. You can find him at LinkedIn, and Twitter at xBarryLevine.

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