Salesforce Will Acquire Demandware for $2.8 Billion in Move into Digital Commerce
As an agency that does a great deal of work with both Demandware and Salesforce, we were very pleased when we heard that Demandware was acquired by Salesforce.
If you are in the ecommerce and CRM space, you’ve probably already heard both positive and negative reactions. For those who know both of these technical platforms, it’s not all that unexpected a move for Salesforce to make.
While there are still a lot of details to be announced, here is what it means for the future of ecommerce.
1) Companies Will Continue to Double-Down on the Automation of Their Customer Experience
Since the economic downturn in 2008, enterprises stopped investing in, well, everything. This lack of attention has created significant technical debt in the front-end of their businesses. As we all emerge from this time, investments in ecommerce and digital relationships will naturally target SaaS and cloud technologies.
2) The Ecommerce and CRM Market is Consolidating
When you look at the ecommerce landscape over the last several years, it’s been marked by acquisitions like Oracle’s purchase of ATG in 2010 and SAP’s purchase of Hybris in 2013.
In addition, IBM’s purchase of Bluewolf, Salesforce’s acquisition of ExactTarget, and Vista Equity’s purchase of Marketo all show the market is understanding the value of an integrated consumer engagement system.
3) A Platform Now Exists to Build 1-to-1 Relationships Between Customers and the Enterprise
When you combine the power of the biggest CRM cloud platform and the most robust ecommerce platform, the future is rife with opportunities for personalized ecommerce experiences.
With actionable data available from both systems, retailers now have the power to adjust marketing campaigns and promotions based on customer behaviors and preferences.
4) This is a Future-Forward Investment
Of course as this deal progresses, there will be the inevitable shuffle of technology, integration, and implementation. Given the complementary solutions provided, this will create a cooperative environment that celebrates the strengths of each community.
‘There are so many ways it accelerates our mission to transform retail.’ ~Demandware CEO Tom Ebling
5) Great Things are Coming for Customers of Both Demandware and Salesforce
Demandware customers will gain access to the proven sales, marketing, and analytics functions from Salesforce – gaining even more insight into the complete buying journey or life cycle of their customers. The customers of Salesforce gain a world-class ecommerce platform providing order management, point of sale, store operations and predictive intelligence services.
With this development, great opportunities lie ahead for retailers who want to invest in a commerce strategy to target more meaningful relationships between the consumers and the enterprise.
The team here at CQL is excited to utilize our enterprise-level, platform and custom development experience to help our customers integrate and take advantage of all these new capabilities – providing an even better buying experience for consumers.