Responsys acquires Loyalty Matrix

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E-mail marketing services firm Responsys has bought predictive analytics company Loyalty Matrix to add predictability and optimization for clients that include 24 Hour Fitness, Apple, the Chicago Sun-Times and Draftfcb.

The acquisition will allow Responsys to expand its on-demand capabilities, allowing marketers to identify the most profitable customer segments and predict optimal marketing campaigns for individual segments. Terms of the transaction were not disclosed.

"This is Responsys' second acquisition in just over a year," said Scott Olrich, chief marketing officer of Responsys. The Loyalty Matrix acquisition will allow Responsys to become an "on-demand marketing company capable of helping marketers not only deliver but now predict and deliver the right message to each customer via e-mail, direct mail and mobile channels," he said.

"Direct marketers can now improve campaign profitability and customer satisfaction by determining the best mix of marketing messages for each customer," Mr. Olrich said.

Loyalty Matrix has experience in making predictions, including those related to campaign response rates, lifetime customer value, intent to purchase and future propensity toward attrition, cross-sell or up-sell. Its flagship product -- MatrixOptimizer -- leverages a combination of standardized processes and analytics technology. It integrates marketing data that include transactions, contacts, usage/behavior and third-party information and applies predictive models.

The Loyalty Matrix employee base will join the Responsys team at the Redwood City, CA, office.

"As we have seen with recent acquisitions, such as Google's [planned] purchase of DoubleClick and Omniture's acquisition of Touch Clarity, vendors are quickly acquiring new functionality to meet marketers' needs for more integrated applications instead of simple point solutions," Mr. Olrich said. "So instead of using one vendor for e-mail, one for print, one for analytics, et cetera, marketers are turning toward … a 'one-stop' integrated marketing platform."

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