It’s not the Tools, It’s the Craftsman

It turns out that IndexTools does have nearly 80 percent of Omniture’s standard off-the-shelf functionality (77 percent to be exact). Yet, so does almost everyone else. Google Analytics has 64 percent of the standard features (excludes premium and custom features) offered by Omniture. And Coremetrics, Unica and WebTrends all deliver more standard features out of the box than Omniture. Our recently published Web Analytics Buyer’s Guide reveals that the functionality gap between Web analytics tools is narrow and differentiators will surface in flexibility and data integration capabilities. Only one-third of analytics clients surveyed listed standard features and functionality as a priority when selecting vendors. Flexibility of reporting, ability to service business needs and accuracy of information all outweigh features in the buying deliberation process.

As far as tools go, there’s not a huge difference in the tools that a carpenter would pull together to frame a house and the set that my three year old uses. He’s got a hammer, tape measure, level and a saw and walks around with them in a backpack like he’s ready to conquer the world. Despite the fact that these plastic tools will only get him so far in framing out a new house, they represent all the necessary components to do so. Yet, even with equivalent tools we all know that while one carpenter may be capable of building a magnificent abode, another might struggle with a birdhouse. Thus, today’s tools have less to do with how far an organization can go with Web analytics because other factors have significantly more impact. The ability to leverage data through unlimited segmentation, blended analysis, and capture/reporting of custom elements is becoming increasingly important as web analysts grow more sophisticated. Further, the ability to integrate multiple data sources into an analytics solution to obtain a holistic picture of business performance is a differentiating factor for data-driven organizations. Solutions that are leading the enterprise-class constellation from Omniture, Coremetrics and Unica are facilitating these complex tasks. And the others are not too far behind.

I’d like to congratulate all of the leaders in this year’s enterprise and SMB constellations and give a hearty thanks to all who participated. This report was about five months in the making and required significant help and cooperation from numerous individuals. One thing I realized in the process is that there is an analytics vendor out there for every business. I demo’ed some great tools and each one of them had at least one eye-opening quality demonstrating true innovation. Yet, attempting to definitively state which is best in the market requires understanding the unique needs of an organization. JupiterResearch reports (especially Buyer's Guides), are meant to initiate dialogue between analysts and our clients. While the report stands on its own, it is meant to be directional in nature and the insight that clients receive by understanding the content with respect to their unique businesses is invaluable. Thus, I welcome any questions or inquiries if you’d like to learn more about the method behind the report or how it applies to your business.

If I were holding the checkbook...

I’m no equity analyst, nor do I want to play one on TV…so I’ll speculate on what I think Coremetrics should do with their new $60M in series E funding. (If you want the equity take, here’s a post from the Deal.com.)


Shout from the Rooftops
Coremetrics maintains widespread notoriety among analytics pros, yet there’s a big wide Web out there just entering the shallow end of the analytics pool. Coremetrics should invest in marketing programs to increase awareness and position themselves as the next step in Web analytics solutions.


Take on the Jolly Green Giant
While the green glow of Omniture will be tough to shadow, competition is good for everyone. Omniture has been the Web analytics powerhouse of 2007, but if anyone has the chops to make a run at them – Coremetrics is poised to do so. As a smaller and potentially nimbler organization, Coremetrics has a chance to shine on service, support and [retail] vertical expertise.



Shopping Spree
Well, not really a spree since $60M ain’t what it used to be, but perhaps an acquisition. Adding multivariate testing capabilities or fortifying their search marketing solutions wouldn’t hurt. Coremetrics has been successful at creating tools for the marketer and should look to acquire technologies that make it increasingly easy to execute on strategic functions without technical intervention. The greatest opportunities may be around optimizing search and ad spending.


Continued Commitment to Development
Glimpses of the Coremetrics’ 2008 roadmap foreshadow significant improvements. Enabling the data to work for their clients by providing greater access and visualization is a priority, but embracing the reality of increased consumer control is a necessity. Social networks, UGC and the voice of the customer are creating a cacophony of insight. Someone needs to figure out how to make sense of it all and convert data into action.

From the Campfire to the Rave

I’ve been on the road for the last two weeks attending what could be considered the pinnacle of the Web analytics universe. Coremetrics kicked off in Fort Worth Texas and then most recently Omniture held its client summit in Salt Lake City. The Coremetrics client summit was a full cowboy affair, complete with faux campfires, classic cowboy western video clips and line dancing (for those inclined) at Billy Bob’s bar & grill. The following week, Omniture had an entirely different thematic approach, which felt more like a rave branded in Omniture green. Prior to the opening keynote, attendees were ushered into the massive ballroom with flashing lights, a stainless steel art deco stage and full blaring rave music [check out Manoj’s pictures and video posted on WebAnalyticsWorld]. It was quite a contrast to Coremetrics event, yet there were some striking similarities between the two events. I feel extremely fortunate to have been invited to attend each one and am inclined to share my perspective on these dueling rivals in the evolving Web analytics marketplace.

Training & Education:
On the day preceding the summit, Omniture held educational sessions for newly acquired Visual Sciences customers by enlightening them on transitioning to SiteCatalyst and Discover. Participating clients that I talked to anticipated a laid back casual approach, but instead encountered a rigorous roll-up-your-sleeves intensive training session. Throughout the three days of the Omniture event, they had pros on hand to answer technical questions and aid in real-time implementation issues. They set up “Hot Labs”, for account managers to work with clients on any topic and by my observation they were well attended.

Coremetrics held its formal Coremetrics University training on the day following its summit and although I didn’t get to inquire about the results of the training sessions, numerous clients were looking forward to a comprehensive experience. Coremetrics also had pros on hand throughout the event to answer technical questions and tackle real-time problem solving. Every exec I spoke with challenged attendees to stump the experts on the floor and if my inquisitions were any indication, they were doing a solid job.

Keynotes & Presentations:
Coremetrics opened with a Wild West skit that depicted “Dusty” cowboys dependent on the digital world. A fitting analogy for the chasm that is the digital divide and a graceful segue to Joe Davis’ keynote on How the Web Was Won – or – at least continues to evolve. Laura Evans, from Resource Interactive, followed with her presentation on the Open Brand and John Squire delivered “Got Marketing?” solutions which included Coremetrics’ 2008 updates on Search, Intelligent Offer, LiveMail and Coremetrics Connect. Day two featured an in depth look at the product roadmap and a glimpse of the new toys within the interface. John Payne’s enthusiasm was unfettered as he demonstrated the new Explore data visualization tool. Eric Peterson from Web Analytics Demystified followed by walking attendees through a captivating presentation on measuring visitor engagement, his delivery continues to evolve as Eric delves deeper into the metrics and process. Coremetrics closed with a short-and-sweet message delivered by Joe Davis and a highlight reel of images and video captured throughout the event.

Omniture delivered on their promise of a mix of entertainment and education. Josh James kicked things off by illustrating the new composition of Omniture after its 2007 acquisition rampage. CTO, Brett Error then walked attendees through the SiteCatalyst v14 enhancements and other features on the development front. Peter Kim of Forrester delivered a presentation on Marketing and purportedly challenged other analyst firms to a basketball game on the premise that they could win based on more players (I think we could take ‘em shorthanded). Day one closed with Lance Armstrong’s emotional story of overcoming cancer, where he encouraged us to believe in a cause and take affirmative action. Day two began with Seth Godin’s highly entertaining presentation, first flattering the crowd by touting them as the smartest marketing minds in the universe, then challenging them to create something remarkable and break the constraints of mediocrity. Omniture closed with Brett’s summary recap, a look ahead and a lively interactive feedback session of how to improve on their solutions. He took copious notes and demonstrated Omnitures’ devotion to customer driven development.

Both companies ran multiple simultaneous tracks throughout their client summits making for tough decisions on where to focus. I found the content delivered by each vendor to be compelling, technical and highly educational. I’ll go so far as to say that the topics delivered and ensuing discussions were at a sophistication level beyond many other analytics events I’ve attended.

Breaking News & Product Releases:
Coremetrics came out of the gate with announcement of their new integration platform, Coremetrics Connect. While it’s largely a catch-up move to Genesis and even WebTrends’ Open Exchange, their documentation process and integration guidance is well-considered. John Squire delivered a message of acquisition, conversion and retention and rounded out the product enhancements (i.e., custom report templates, key segments, export builder) around these principles. The flex-based Explore product (widely available in the spring 2008 release) is a data visualization tool that quickly renders dynamic charts and enables analysts to “interrogate the data”.

Omniture’s 2008 product mix equates to 50% Web analytics solutions (comprised of SiteCatalyst, Discover On-Demand & On-Premise and Genesis integrations), 25% is Search Center and the remaining 25% is the new Test & Target combination of Offermatica and Touch Clarity. The SiteCatalyst user interface went through a dramatic redesign from v13.5 with applause-worthy menu improvements, single sign-on, video measurement, intelligent help and Web services APIs. Search Center v3 also debuted with integration capabilities that enable centralized control over multiple keyword bidding and monitoring solutions, scaleability to manage 50 million keywords and automated optimization.

Entertainment:
While this category bears no reflection on the product offerings of each vendor, Omniture was over the top. Lance Armstrong was inspirational, but the rave party with neon green light sticks, fresh sushi and Grammy award winning Flight of the Conchords was truly entertaining. Bret and Jermaine act exactly as they do on the HBO series and showcased their genuine musical abilities. The armadillo racing in Fort Worth Texas never stood a chance. I’ll admit that Billy Bob’s was a place like none other, but line dancing and bull rides do not compare. My bias for skiing over golf favored Omniture who sponsored a day at Snowbird, while Coremetrics golf enthusiasts teed up in Texas. I opted to stay in Utah for an extra day which paid off with over six inches of fresh snow and an epic day of Utah powder.

Summary:
Both vendors succeeded in showing their clients a good time, educating them on the new features and demonstrating forward-looking vision. These companies are driving the Web analytics industry forward. I expect that 2008 will be a banner year for both Coremetrics and Omniture and their rivals in the marketplace have a high bar set before them.

Connecting with Coremetrics

Here in Fort Worth, Texas at Coremetrics’ “How the Web Was Won” client summit, the theme is all Western. The keynote featured some Cowboy fun along with classic Clint Eastwood and Robert Redford video clips. But yesterday, the company was all business, announcing the introduction of their new technology integration platform, called Coremetrics Connect. While some may view this as playing catch-up to Omniture’s Genesis program and WebTrends’ Open Exchange, data integration is not something to rush into.

The platform was built on four tenets of closed loop marketing, which include: Extensible data delivery, Core APIs, Flexible reporting and Integration Wizards. Perhaps the most novel concept of the integration partnerships are the clearly defined documentation processes, integration briefs, best practice examples and full disclosure on what the integrations entail. This level of detailed explanation will be available for all technologies included in Coremetrics Connect, making the qualification process stringent, with hopes that this will pay off for ease of integration for clients. There are currently 25 qualified participants in the program, and more on the way. The Integration wizards (available in the Spring 2008 release) will allow marketers to simply select certified technologies from a list within the user interface and walk through the set-up process.

Coremetrics is careful to point out that Connect is not just another partner program, but a process for marketers to acquire behavioral data from adjacent technology applications, analyze the data and make actionable decisions. However, the differentiators between Connect, Genesis and Open Exchange are subtle, and they are not likely to cause clients to jump ship for another web analytics vendor. Yet, there’s quite enough going on within the Web analytics market to cause anxiety among clients. Coremetrics just Cowboy’d up to the Optimization table with their own integrated Digital Marketing solution.

Serving Up Context with Analytics

Coremetrics released the latest version of its digital marketing suite this week with a focus on “Powering Contextual Marketing”. Their solution keys in on behavioral patterns across the multi-channel environment to target customers through email, banner ads, organic search and web browsing to seize them during critical cycles within the buying and consideration process. The general idea is to place the right offer in front of the customer at the right time. They’re attempting this by taking behavioral information collected during online sessions and mapping it against the Coremetrics LIVE Profile database to develop more targeted segments and more relevant content for visitors.

The contextual marketing concept utilizes the behavioral information and extends that to include predictive modeling, which drives relevance. For example, information gained about customers such as; what they left in their shopping carts, what they purchased and additional products they browsed during a session is coupled with user profile database information. The contextual marketing solution indicates which products sold to other visitors with similar demographic characteristics who also viewed similar products. Using this knowledge, contextual messaging can be delivered to prospects via email or other channels to draw them back to the site.

Advanced segmentation is a hot topic among analytics vendors lately as WebTrends also recently announced their Visitor Intelligence for Commerce solution. Primarily for merchandising, the solution targets customers based on their demonstrated interactions and interests. Similar to the Coremetrics solution, the WebTrends Visitor Intelligence platform uses real-time clickstream data and has the ability to tie in aggregate customer information from their Marketing Warehouse to drive relevance and probable sales using a segmentation strategy. Both products are likely to be a hit with retailers struggling to provide targeted messaging and relevant promotions to customers. The differentiators for marketers and merchandisers applying these tactics will emerge in the level of automation of each solution and the ease of use within the respective user interfaces.