You probably caught today’s news that SAP has announced the intention to acquire SeeWhy, subject to closing and regulatory conditions. In this blog I’ll net out why we decided to align with SAP, and what it means for our customers and partners.
SeeWhy was founded on pioneering principles of continuous calculations that enable real time 1-to-1 marketing. Last year, the Company was awarded a patent covering our CORE™ in memory calculation engine, which we use to continually process in the region of 20 billion events per day as visitors interact on more than 4,000 ecommerce sites around the world.
Click-by-click, as data streams in, the SeeWhy CORE technology analyzes everything from a first visit to a purchase in real time to trigger the next best action for that unique customer at that moment in time. CORE enables SeeWhy to analyze data very differently from traditional architectures: There’s no data warehouse. There are no batches of data. There are no segments. 1-to-1 marketing campaigns are driven by the behavior of individual visitors, and the real time context of what the shopper is doing, right now. True 1-to-1 marketing at scale. In practice, this means that SeeWhy is always in step with a customer’s path to purchase and driving the highest ROI in ecommerce (on average lifting ecommerce revenues by more than 5% representing $10’s of millions of incremental revenue for larger brands).
In recent months, our technology has become strategically important to marketers as the explosion of data sources meets a desire to move away from bulk campaigns that risk annoying customers with irrelevant noise. They are seeking out easily integrated and automated technologies that leverage ‘signals of intent’ and personalize at a 1-to-1 level at scale, capturing the moment when the customer is ready to buy and serving up engaging and contextually relevant content. Forrester and Gartner are both talking about this demand.
This urgent need to be able to process signals of intent in real time from individual customers and make sense of them raised SeeWhy’s profile and led to a number of firms taking strategic interest in the Company.
From SeeWhy’s point of view, we had reached a point of inflection. Having hit some major milestones (4,000 live deployments in more than 25 countries; profitability; market leadership etc.) it became apparent to us that the market had finally evolved to understand and value our approach.
To maximize the potential of this big opportunity and grow the use of CORE, SeeWhy considered raising a significant round of market expansion capital, or joining forces with a strategic partner. While there is always plenty of capital around for fast-growing, profitable SAAS companies like SeeWhy, from today’s announcement, you can see that we chose the strategic route – and with SAP.
There are three primary reasons for going this way:
1. Execution of vision – our ambition is really big. We concluded that it is easier to execute our vision for the next generation of behavioral marketing from within a company that already has ecommerce, front and back office, and marketing automation platforms to build on. Each is highly complementary, as shown in the diagram below.
2. Access to data – marketing automation fundamentally needs to be a part of enterprise systems to ensure it does not become yet another stovepipe. Data such as inventory, product data, customer history and profiles are all critical to deciding what the next best action is for an individual customer. What’s required is one version of the truth in real time, and that data resides in enterprise systems.
3. Access to markets – SAP gives SeeWhy incredible reach into key accounts and markets around the globe. This will turbocharge our growth by a different order of magnitude, including expansion to more B2B best-practice use cases.
What does the acquisition mean for SeeWhy customers and partners?
In short, it means business as usual. SeeWhy will continue to operate as a wholly owned subsidiary of SAP. The plan is to expand the team aggressively and grow the business. This is good news for both customers and partners alike as SeeWhy will have more resources and the security of being part of one of the largest software companies in the world, while keeping the autonomy to execute and innovate.
For our partners, including Email Service Providers (ESPs), and ecommerce platforms, rest assured. While we will integrate with SAP and hybris to leverage the reach and breadth of the “mother ship” and accelerate our growth, SeeWhy remains committed to an independent future, continuing to support and extend more than 30 real time integrations with cloud marketing services as before.
The acquisition is a win-win-win and the SeeWhy team will remain intact and is incredibly motivated and energized to drive the next generation of behavioral marketing across industries.