The nature of business-to-customer interactions has changed. The coronavirus from China has accelerated this change as more shoppers shift to online purchasing and expect a highly personalized experience. In light of this demand for enhanced online client experiences, Salesforce (NYSE:CRM) stock may be setting up for a strong move.
The company made an early move into cutting-edge technology that will cement its place as the undisputed leader in tech-enhanced customer-relations management. Moreover, Salesforce’s response to coronavirus concerns has been swift and compelling. These factors combine to produce a cogent case in favor of CRM stock.
A Significant Acquisition
The company made a savvy move with its acquisition of Seattle-based Tableau Software, which solidified its position as the preeminent personalized-marketing provider. This was the best $15.7 million purchase that Salesforce could have made.
Tableau specializes in data visualization and analysis. But Tableau uses artificial intelligence, or what you might call business intelligence to do this. It’s often much faster and more powerful than previously used data analytics methodologies.
Dan Vesset, the group vice president of analytics and information management research at IDC, observes the importance of artificial-intelligence integration, tech-enhanced marketing. He explains, “The ability to rapidly turn all distributed data into insight using diverse visualization, analytics and AI methods will define tomorrow’s leaders.”
Leveraging the power of artificial intelligence via Tableau will enable Salesforce to provide faster and more potent data-driven insights to multiple stakeholders throughout the business vertical. As Vesset observes, “Salesforce’s acquisition of Tableau gives customers the ability to ensure that self-service and embedded decision support and augmentation is available to all executives, managers and front line employees.”
The Tableau integration is an ongoing development. However, so far it appears to be going smoothly and profitably. In fact, Tableau Chief Financial Officer Damon Fletcher celebrated the company generating $1 billion in revenue in 2019. Clearly, Fletcher is eager to combine forces with Salesforce:
“As far as my team, we have been working closely with our Salesforce colleagues to support the business and integration — everything from the tremendous effort that goes into adopting the Salesforce fiscal calendar to aligning our technology and collective resources.”
Responding to the Crisis
A major part of effective personalized marketing is being responsive to all stakeholders’ needs. In the wake of the coronavirus crisis, Salesforce has truly stepped up to the plate and delivered a comprehensive response.
For one thing, Salesforce is maintaining smooth operations and solid stakeholder relations by assuring that “[a]ll vendor hourly service providers and interns will be paid.” Moreover, the company is pitching in by “donating $1 million to UCSF’s COVID-19 Response Fund and $500K to the CDC Foundation’s Emergency Response Fund.”
Investors will be heartened to learn that Salesforce is also introducing its platform to new prospective clients during this time, while also helping essential first responders during this ongoing health crisis. Specifically, Salesforce “will provide free access to technology for emergency response teams, call centers, and care management teams for health systems affected by coronavirus.”
It’s also encouraging to know that Tableau is helping out. Through Tableau, Salesforce has recently developed “a free data resource hub to help organizations see and understand coronavirus data in near real-time” using data from Johns Hopkins University, the World Health Organization and the Centers for Disease Control and Prevention.
Additionally, the company is offering team-collaboration platform Quip Starter for free through Sept. 30 “to any Salesforce customer or non-profit organization.” These efforts will show a whole new group of potential users what Salesforce has to offer. Plus, they will establish the company as a mindful, responsive personalized-marketing software provider in these challenging times.
The Takeaway on CRM Stock
Acquiring Tableau was a smart move for Salesforce. Responding so powerfully to the coronavirus crisis was not only smart, but the right thing to do. Owning CRM stock is also the right thing to do, as the company will continue to meet the growing demand for more immediate and intelligent personalized-marketing solutions.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets. As of this writing, he did not hold a position in any of the aforementioned securities.
