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Responsys adds analytics to email marketing

With its acquisition of Loyalty Matrix, Responsys is taking the first step to becoming an on-demand marketing suite.

Responsys Inc. today acquired Loyalty Matrix, an online marketing analytics firm, seeking to extend its capabilities beyond direct mail campaigns.

"The emerging model that we start to see a lot of interest around is an on-demand model where companies have pre-built models for you," said Scott Olrich, chief marketing officer with Responsys. "The value of that model is not just that segmentation and analytics but by combining that with our data. We've always done data integration, so we have transactional data as well and also a lot of click stream data."

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Loyalty Matrix has about 20 customers, including 24 Hour Fitness, Apple, and the Chicago Sun Times. Its history is primarily with direct mail campaigns. For example, with Loyalty Matrix models and its own data, 24 Hour Fitness found that customers who hadn't been to the gym within 30 days of signing up for a membership were most likely to attrite. The company sent out a mailing to this customer base offering a free guide to the facility.

With Responsys, customers will be able to add that ability to its email marketing capabilities. When brought together, data will reside both in a client's data mart and either the Loyalty Matrix or Responsys systems.

"We don't need to own all the data we really want to have transaction history and response and conversions from marketing," Olrich said.

Today's move is a must if Responsys is going to expand beyond its existing footprint, according to Surresh Vittal, senior analyst with Cambridge, Mass.-based Forrester Research.

"If Responys' vision is to build an on-demand marketing suite, analytics becomes a core component," he said. "It's a noble move, but frankly they're broadening beyond email marketing which we know is a low margin, commoditized business. Can they convince customers why they're a better fit than Unica or Aprimo? That's going to be their challenge."

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