Saturday , September 25 2021

Analysts weighing in the $ 8B SAP Qualtrics deal see no game changer – TechCrunch

SAP CEO Bill McDermott was raised today about his company's acquisition of Qualtrics of $ 8 billion over the weekend. You do not expect less for such a big deal. McDermott considers the Qualtrics data Provides customer bridging the gap between his company's operational data and customer data wherever he lives.

The idea behind Qualtrics is to understand the customer's feelings as it happens. McDermott sees this as an important part of the company's customer management puzzle, one that can turn it into being not only a major player in customer experience but also pushing the company's underlying cloud business. This is because it provides a way to constantly reconnect from the customer, one that is difficult to determine otherwise.

In that regard, he saw the deal as a transformative. "By combining these experience data with operations, we can combine this through Qualtrics and SAP in a way that the world has never done before, and I think it will change this world as we know today, "said McDermott TechCrunch on Monday.

Others who follow the industry carefully were not so convinced. While they liked the deal and saw the potential of combining these types of data, it may not be the game switch McDermott hopes to spend after spending $ 8 billion on his company.

Paul Greenberg, head of The 56 Group and author of CRM's Book of Speed ​​of Light, says it's definitely a big acquisition for the company, but he says it takes more than one acquisition or two to challenge market leaders. "This will be an advantageous acquisition for SAP's desire to continue pivoting the company to the customer, but it's not crucial," says Greenberg. TechCrunch

Customer service is a broad term that means understanding your customer at granular level, anticipating what they want, understanding who they are, what they have bought and what they are looking for right now. This is harder to solve than you can imagine, especially since it is about collecting data from systems from a variety of providers that handle different parts of the jigsaw puzzle.

Companies like Adobe and Salesforce have made this their primary business focus. SAP is in its heart an ERP company that collects data by managing key internal operating systems such as finance, procurement and HR.

Tony Byrne, founder and chief analyst at Real Story Group, says he likes what Qualtrics gives to SAP, but he is not sure it's as big a deal as McDermott suggests. "Qualtrics allows you to do more sophisticated forms of research that marketers really want, but the dual advantage is that Qualtrics, unlike SurveyMonkey and others, has experience in the digital workplace, which can complement some of SAP's HR- tool." But he adds that it is not the central CEM part and that his company's research has found that SAP still has holes, especially in marketing tools and technology (MarTech).

Brent Leary, based on CRM Essentials, agrees that SAP has a good business, especially in combination with CallidusCloud's $ 2.4 billion purchase from earlier this year, but it has ways to get in touch with Salesforce and Adobe. "Qualtrics provides a wider perspective of customers due to operational data from back and front office systems. The Callidus acquisition helps to create insights into some B2B-focused customer experiences. But I think more bits may be needed for B2C experience creation tools. as companies like Adobe and Salesforce focus on marketing / experience clouds, he explained.

Whether this is a real game banger as McDermott suggested remains to be seen, but industry experts we spoke with believe it will be more of an incremental piece that helps move the company's customer experience initiative forward. If they are right, maybe McDermott may not be ready to shop yet.

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