Interelate: More on Tap Than Apps

  • Written By: L. Talarico
  • Published: September 15 2000

Interelate: More on Tap Than Apps
L. Talarico - September 15, 2000

Event Summary

Interelate, a customer intelligence ASP, bundles applications and industry expertise in data analysis, database marketing, analytics, and CRM to deliver an analytical CRM service to its customers. Analytical CRM functions include data mining, campaign management, personalization, and click stream analysis. Interelate provides its clients with customer analytics, proprietary and 3rd party data models and scoring, data mining, campaign management, personalization, and real-time recommendation capabilities. This is done by pulling data from its client's customer and operational data systems and processing it through Interelate's analytics platform.

The offering consists of two components. The first is hosted applications from vendors such as E.piphany and Net Perceptions. The second is expert data cleansing and analysis so the data processed by the applications is actionable for the client. Interelate recently announced packaged services in three industry verticals for its Global 2000 clients:

  • E-Commerce - A service designed to enhance customer acquisition and loyalty by attracting site traffic, segmenting registered users by value, and converting high-value segments into customers.

  • Financial Services - A service designed to increase cross-selling by segmenting a client's existing customer base depending on a client's likelihood to purchase additional financial services.

  • Travel and Leisure - A service designed to improve both customer acquisition and cross-selling by profiling the behavioral predisposition of existing customers and new prospects.

Interelate reports average implementation time ranges from 2 to 3 months depending on the nature of the client's existing IT infrastructure and the type of services requested. Pricing depends on the range of services provided as well as the amount and frequency of data analysis. Interelate's focus is to compete primarily on quality of service rather than price.

Market Impact

Interelate's business model is highly focused on delivering analytical CRM services to Global 2000 companies in the three vertical markets. This is a different approach from that of many ASPs such as Corio and USInternetorking, who deliver many applications to a wide range of organizations with implementation expertise, but limited expertise in providing best practices on using the applications after they are installed. Interelate's key differentiator is that they do have the expertise to provide best practices for using software packages such as E.piphany and Net Perceptions.

Although TEC is unaware of any direct competition, a number of CRM vendors supply analytical CRM applications. Companies such as BroadVision, Broadbase, SAS, Quadstone, and WebTrends provide one or more of these functions. Finding an ASP that hosts these products with value-added services is difficult.

Some of Interelate's achievements validate their business model. Goldman Sachs is both a customer and a financier. Additional financing comes from firms such as Deutsche Banc and Dell Computer. Other high profile customers include McKinsey & Company, Nissan Corporation, and the US Department of Defense. Interelate has also attracted 250 employees since its inception in July 1999.

User Recommendations

Interelate's offering is not for every firm considering a CRM implementation. Their service is targeted towards Global 2000 organizations that need analytical CRM functionality but do not want to invest the time and upfront cost, nor be subject to the high implementation risk associated with installing the components of analytical CRM. Furthermore Interelate's offering does not focus on providing operational CRM. Firms looking for call center management, sales force automation, or customer service tracking need to consider other options.

One of the most compelling reasons for a Global 2000 company to select Interelate is the fact that there are no additional human resources or technology investments necessary to be up and running. Interelate claims to provide 100% of the functionality of the E.piphany and Net Perceptions products to a business manager.

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