“Five years ago, our IT and marketing teams were not collaborating and our customer engagement and marketing campaigns were mass mail,” said Stephen McKinnon, CIO of Luxottica Retail Asia Pacific. “We now measure business back to the store level, which draws a line right back to marketing and sales.”
Although Luxottica had built what McKinnon described as a “huge customer database,” it contained mostly transactional data, with very little behavioral data. Luxottica used to “market to a budget,” but now that the brand is looking to do far more targeted campaigns, “our budget is actually increasing.” Notably, SAP acquired behavioral marketing technology company SeeWhy, which helps ecommerce companies get a handle on behavioral signals.
“We want to build that consistent data capability around ‘customer data management,’” said Brian Walker, chief strategy officer for SAP hybris, SAP’s commerce platform, which will be the first SeeWhy integration point. “We are taking a much more strategic view of what an enterprise needs and what a marketer needs.”
SAP seemed to step away from its positioning in the CRM space, instead pushing its new Customer Engagement and Commerce platform, consisting of hybris, SeeWhy, its partner integration to Adobe Marketing Cloud and customer intelligence tools such as Audience Discovery and Targeting. "E-commerce" is too narrow a term to describe the in-store and mobile features the company is building and "CRM" doesn't adequately depict all SAP is doing with data-driven marketing and commerce, Walker noted.
But is all of this enough to make SAP competitive? Ray Wang, chairman and principal analyst for Constellation Research, is wary.
While the company didn’t reveal any plans to build, acquire, or partner to strengthen its stack, “many believe that SAP has not successfully rolled out enough applications or platforms that customers want to purchase,” noted Wang. “SAP will have no choice but to make more acquisitions in areas where customers have been pursuing a surround SAP strategy."