It would appear that the cows have come home: in a surprising move, Sitecore yesterday that it has entered into a definitive agreement to acquire Moosend, an e-mail marketing automation and campaign management platform used by a diverse set of customers. This includes leading brands such as Domino’s, Interpublic Group, and Sephora, among others. The acquisition is expected to close by the end of May.
“Moosend perfectly complements Sitecore’s industry-leading core offering to create a personalization powerhouse for modern enterprises," said Steve Tzikakis, the CEO of Sitecore. "Moosend’s state-of-the-art marketing automation and AI-powered customer engagement features will streamline Sitecore’s ability to engage, nurture, and convert customer relationships to deliver personalized experiences across every channel. The combined offering will make it easier for marketers to deploy and measure campaigns and automate workflows across the entire customer journey – a game-changer for the majority of brands not yet set up for lifecycle marketing.”
Acquisitions have become almost commonplace among the leaders in the CMS and DXP categories, particularly with solutions that expand a platform's capabilities around data. According to Sitecore, this move was driven by the ongoing shifts in data-driven personalization – and the risks and challenges posed by privacy. While data is essential to personalization, there are mounting concerns around privacy due to breaches caused by problematic data collection methods. This, along with other factors, have businesses questioning the value of personalization at scale.
In fact, back in 2019, Gartner predicted that 80% of marketers would abandon personalization efforts by 2025 due to the increased complexity and a lack of consumer trust. It was a gloomy outlook for both marketers and technology vendors, but clearly on point in a world of scaling data privacy governance.
Consumers are often unaware of how and when their data is being collected and where it is used. They’re also experiencing overload from increasingly cluttered inboxes and mobile notifications, causing them to ignore even the most carefully customized message. The resulting conundrum has left CMS and DXP platforms struggling with how to serve personalized experiences while meeting the consumer expectation of privacy and trust across multiple dimensions.
“It’s a paradox of modern times," said Tzikakis. "Consumers expect brands to cater to them as unique individuals, providing a consistent experience everywhere and rewarding loyalty in deeper ways; at the same time, they want privacy first – more control over data, less confusion on how it’s used, and an end to creepy targeting and algorithmically garbled messaging that only a bot would love.”
Recognizing the depth of the privacy problem, Sitecore aims to facilitate both the modern art and science of earning customer relationships through experiences – to make consenting to data-sharing an afterthought. If they can deliver on this vision, they may have a significant advantage in shaping the future of the industry.
The acquisition of Moosend is just the latest move in Sitecore’s ambitious $1.2 billion growth plan. In a highly publicized purchase less than two months ago, the DXP leader acquired two companies on the same day: Boxever, a SaaS-based Customer Data Platform (CDP) providing decisioning and experimentation, and Four51 – a digital commerce pioneer that powers custom, highly scalable e-commerce B2B marketplace solutions. With the addition of Moosend, it appears that Sitecore has amassed everything it needs to deliver a complete, end-to-end SaaS-based digital experience platform – and elevate their competitive posture.
Sitecore delivers a digital experience platform that empowers the world’s smartest brands to build lifelong relationships with their customers. A highly decorated industry leader, Sitecore is the only company bringing together content, commerce, and data into one connected platform that delivers millions of digital experiences every day. Leading companies including American Express, ASOS, Carnival Cruise Lines, Kimberly-Clark, L’Oréal, and Volvo Cars rely on Sitecore to provide more engaging, personalized experiences for their customers. Learn more at Sitecore.com.