SAP announced yesterday that it is currently acquiring Emarsys. This buyout complements SAP Customer Experience – the CX suite that was previously C / 4HANA. With Emarsys, this suite should benefit from advanced marketing personalization capabilities.
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The terms of the future agreement were not disclosed. The Austrian Marketing Automation Publisher is known for its personalization options, cross-channel campaign management and its Customer Data Platform (CDP). Customers mainly include sales and B2C companies.
Emarsys has 1,500 customers worldwide. Sales are not public, but estimates are estimated at $ 100 million per year. The publisher also raised $ 55.3 million in funding.
Its CEO, Ohad Hecht, announced in an interview with Forbes last year that he had been approached twice about a buyout. The third will therefore have been the right one.
According to David Raab, founder of the Customer Data Platform Institute website, Emarsys has a CDP but is still better known for its personalization engine (the CDP was then added). In strategic terms, he compares this process more to the acquisition of Evergage by Salesforce in February, a startup that also offers a content personalization engine and digital marketing services.
“SAP has functions for marketing but isn’t really known for that. SAP is also more geared towards B2B than B2C. This agreement really fills a void for him, ”analyzes David Raab. “I would like to know the price of the buyback – in my opinion it should not have been stated”.
A CDP at SAP
For its part, SAP has had a CDP since May 2019. This offering is largely based on Gigya technology, which the German publisher bought in September 2017, explains Adrian Nash, Head of Strategy for SAP Customer Experience.
For him, however, Emarsys is a natural addition to SAP Customer Experience. “I can’t yet tell you exactly or completely how it will look like. What I can tell you, however, is that we have a clear idea of what to do with it, “he says, adding that he will provide more details” when the deal will be finalized and when the two teams will become products actually fulfilled ”.
For a long time, SAP planned to add marketing personalization functions to web and mobile applications. The aim was already to increase its customers’ e-commerce sales. However, the events of 2020 accelerated these plans. Besides Adrian Nash, the e-business activity of SAP customers would have increased by 50% during the time of delivery.
On the way to more personalization in marketing, faster
Content personalization is hardly new to marketers. With the crisis, CEOs would also have become clearly aware of their importance, adds Alex Timlin, SVP vertical at Emarsys, recalling a context in which digital channels become critical in almost closed physical companies.
They would also understand how digital can better retain customers and increase engagement for a brand or retailer with better knowledge of buyers and more detailed marketing.
“These are no longer small secondary projects,” says Alex Timlin. “They are much more important and significant for companies today”.
Adrian Nash also promises that further innovations from SAP CX will be presented as part of the SAP Customer Experience Live. The event takes place practically on October 14th.