SAP CEO Bill McDermott announced today the company's $ 800 million acquisition of Qualtrics over the weekend. You would expect less for such a big deal. McDermott believes in the data. Qualtrics Provide a solution that eliminates the gap between your company's operational data and your customers, wherever they are located.
The concept of Qualtrics is to understand customer emotions. McDermott sees this as a key element in the company's customer care puzzle, which not only plays a big part in customer experience, but also drives the company's primary cloud business. This is because it provides a means of constantly getting feedback from customers.
In that context, he saw the deal as a variant. "You can combine this experience data with your work and combine it with Qualtrics and SAP In a way the world has never done before, and I believe it will change the world as we know it today, "McDermott told TechCrunch Monday.
Those who followed the industry were not so sure. They liked the deal and saw the possibility of combining this type of data, but it might not be a game changer that McDermott would hope for after spending $ 8 billion on the company.
Paul Greenberg, chief executive officer of The 56 Group and the CRM author of the lightweight CRM book, says it is clearly a big acquisition for the company, but he says it takes two more steps to get it. Market leader. Greenberg said in an interview with TechCrunch, "SAP will be a good acquisition to continue attracting SAP to the customer-oriented side."
A customer experience is a broad term that includes understanding what customers want, forecasting what they want, understanding who they are, what they are thinking, and what they are looking for. They need to collect data across different vendors' systems that deal with different parts of the puzzle, so they can solve problems that are more difficult than you might think.
Companies like Adobe and Salesforce have made this a key business focus. SAP is at the heart of an ERP company that manages and gathers data by managing key internal operating systems such as finance, procurement, and HR.
Tony Byrne, founder and chief analyst at Real Story Group, is confident that QualTRics likes to bring SAP, but it is not as big a deal as McDermott suggests. Qualtrics can conduct the more sophisticated research that marketers want, but Unlike SurveyMonkey and others, Qualtrics can complement SAP's HR tooling by gaining experience in the digital workplace. "It's not really a central CEM piece, and his company's research shows that SAP still finds flaws in marketing tools and technology (MarTech).
Brent Leary, founder of CRM Essentials, agrees that SAP is a good company when combined with a $ 2.4 billion CallidusCloud purchase earlier this year, but there is a way to catch up with Salesforce and Adobe. "With the acquisition of Callidus, we can gain insight into a specific B2B-centric customer experience, but companies such as Adobe and Salesforce I think more pieces will be needed in terms of the B2C experience creation tool that focuses on the marketing / experience cloud. "
It is not yet known whether McDermott is the real game changer, but industry experts believe that it will leverage the company's customer experience initiative more as a gradual component to help develop it. If they are right, McDermott may not finish shopping yet.