Dear CMO: Spend Wisely on MarTech Stacks
MarTech stacks are commanding most of a CMO’s budget and attention nowadays in the face of evolving consumerism. In fact, according to Gartner, 79% of Marketing departments have a specific budget just for investing in technology.
This radical shift from traditional to ultra-modern is happening at an extreme pace. Very few can truly comprehend what is going on, hence there are times when we have to take faster decisions.
Perhaps the ironic thing about this is that as a marketer you need MarTech. Without a MarTech stack it will become increasingly difficult to communicate with prospects. Just like you would have a digital marketing strategy, you now officially need a MarTech strategy as well.
You will have to test-drive the tools at your disposal and think what more might you need. MarTech itself is innovating at such a pace that it is probably impossible to keep up. This is one of the most important reasons why you need a stack in the first place.
You need to cover it all from email marketing to social media monitoring. If you want the best results, you will have to choose specialized solutions and stitch them together.
What goes on in MarTech Stacks?
MarTech stacks are like ecosystems. There are different tools that are integrated together, and depend on each other for the system to thrive. You need a backbone platform like CRM or marketing automation first.
Then, you would require a marketing middleware like data management platforms and APIs for integration. You will need marketing operations technology like asset management and customer experience technology like demand-side platforms (DSPs).
All these working together would create successful MarTech stacks.
It’s all about Spending Right…
When it comes to MarTech investments, it’s not about spending as much as you can. It’s about spending on the right tool. Everything now happens at such a fast pace, it sometimes results in us taking an incorrect decision.
However, life is all about living and learning, as well as rectifying past mistakes if we make any. If we take a look at this report, we will see that in 2015 only 41% agreed that their company is spending the right amount on MarTech. All this while, 42% disagreed about their company’s spending.
Fast forward this to 2016, you will see that only 25% disagree and 47% agree that their company is spending right.
I think this speaks volumes about how companies are adapting to the changes and taking the right decisions.
According to the 2016 Marketing Technology Landscape Supergraphic, there are around 4000 MarTech solutions in the market today. Finding the right fit might not be easy but you will surely find the perfect fit for your company, provided you do your due diligence.
Spending your budget on the right tool is just part of the process. The next part involves how much you are getting for spending on this piece of technology. In other words, what is your ROI?
Increasing your MarTech budget will not help you if you are not spending your money wisely. Take a step back and think. Are you increasing your budget and spending it just for the sake of it?
I think it is perfectly okay to take your time and pick the right stack for your company. It is much better than spending on something that will ultimately result in a failure.
How to get the most out of your MarTech Stack?
Let us elaborate on the second part that involves getting the most out of your MarTech. Therefore, your spending cannot be wise if you are not getting the most out of it.
Here’s a few things that you need to take care of:
Alignment: No company can benefit from advanced marketing technology if there is no one to steer the ship correctly. As the CMO, you need to understand the short-term and long-term marketing goals first. Then, you need to chalk out a strategy and figure out what tools you might need to achieve these goals. Your investments will go in vain, if you can’t align them with your goals.
Workforce: MarTech stacks are not automated robots. You will still need to look after the day-to-day functioning of these tools. You will have to tweak them when required. You can emerge victorious only through a process of trial and error. You need to figure out the skills that your workforce already has, and what more you might need.
You can either choose to train them or else you can bring in specialists to harness the power of MarTech.
Integration: Integrate, integrate, and integrate. A standalone tool might be a great addition to your MarTech acquisitions but it is nothing in the face of a well-oiled MarTech stack. You see, every piece of such a stack specializes in its functions. It knows what to do, when to do and how to do it best. Integrating all the pieces of your stack together to form a massive colossus is what you should aim for. That is ammunition enough to take down your competition.
Finally, as the CMO, you are the buyer and must be fully aware of what you are buying. Needless to say, don’t buy just for the sake of it. See, if it fits your organization. Otherwise let it go and wait for the right tool.
Drop us a line at [email protected] if you need expert assistance in designing your company’s MarTech stack!