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Simplify your MarTech ecosystem for clarity and growth

Cut spend and increase impact by simplifying your MarTech stack

Current marketplace uncertainty has led to stagnant marketing budgets as companies aim to be more liquid. As marketing budgets trend horizontally, 71% of CMOs believe they lack sufficient budget to execute upon their strategic goals1, with 75% of CMOs feeling the pressure to “do more with less1”. With increased scrutiny from leadership on marketing spend, organizations must identify the highest impact solutions that support profitable growth.

Before the recent economic slowdown, many companies made large COVID-fueled MarTech investments to service the digital consumer. There are now more than 11,000 solutions available in the MarTech space2, with the average marketing organization owning 91 different tools3. Despite the fact that marketers are sitting on numerous MarTech investments, many failed to deliver their promised value. In fact, 58% of marketers say they do not utilize the full breadth of capabilities in their MarTech stack4.

As teams now face increased executive scrutiny, many are finding that consolidating and simplifying MarTech stacks is an efficient way to reduce costs and streamline operations. There are two primary methods for deriving additional value from a MarTech stack without reducing its capabilities:

  • Consolidating redundant technologies
  • Retiring idle technologies that no longer deliver results

Evaluating redundant technologies for consolidation

With the recent rapid and decade-long expansion of MarTech solutions, combined with the desire to meet customers where they are, many companies have accumulated significant redundant or underutilized marketing technology6.

  • On average, more than half (51%) of MarTech tools amassed by an organization are redundant (perform identical or overlapping functions) 7
  • Nearly two-thirds (63%) of marketers say redundant technology either has no impact or has negatively impacted their company’s ROI7

Recently KPMG discovered that a client had accrued several separate email and SMS marketing tools. Each tool was owned and operated by different, siloed teams.

The client, with assistance from KPMG, determined that these disparate solutions could be replaced with a single marketing automation solution. The client chose Salesforce Marketing Cloud as it not only matched the features of the three previous products, but it simplified and streamlined their overall technology stack. Salesforce Marketing Cloud provided one centralized solution to distribute all key customer communications. This structure proved a far better customer experience as it ensured the application of global suppression rules across campaigns and allowed the marketing team to leverage control groups.

The marketing organization also benefited from a significantly better user experience as they only had to manage one solution to support customer journeys. As an added benefit, the engineering teams working in support of marketing were able to provide high quality, more up-to-date data feeds since a singular provider meant that data preparation was consistent. Centralizing communications through a single solution enabled this organization to improve customer experience while significantly reducing technical debt.

Identify and retire idle or underutilized technologies

The ongoing adoption of MarTech paired with high employee turnover (as well as fluctuating marketing objectives) has resulted in many organizations struggling to use their technology effectively. In fact, many organizations voice that MarTech solutions are significantly underutilized (or worse - completely idle):

  • 44% of marketing leaders have solutions that have largely gone unused8
  • 68% of marketers say the market is lacking people with the necessary MarTech, data, or marketing operations skills to effectively garner value9

A marketing technology is only as valuable as the ability of the organization to leverage it. A recent KPMG client initially had five different content management technologies in place to host their website and a set of landing pages. When KPMG consultants dug in, they found something even more concerning–many of the solutions showed minimal usage and the organization had no trained or certified users of the technologies.

KPMG worked with the client to build and execute on a plan that would sunset the idle technologies–one that would reduce cost, as well as complexity. (This plan came after detailed investigation into the company’s remaining technologies.) With this came a plan to train and certify key MarTech team members so the company could derive value from the remaining technologies. KPMG also instituted a recurring review of the organization’s MarTech stack which will help them identify idle or unused technology on an ongoing basis and ensure all pieces fit within their MarTech ecosystem.

Increase ROI by trimming MarTech bloat

Given the state of the economy, marketers now have the perfect opportunity to rationalize their MarTech stack and prove ROI. Below are a few steps marketers can take to ensure their stack facilitates agility and increases impact:

1

Define current and future marketing use cases

Successful marketing organizations document both external (customer) and internal (employee) use cases that can be enabled through technology. External use cases define the types of experience the organization wants to provide the consumers with throughout their experience with the company. Internal use cases outline how the marketing organization will utilize technology to execute on strategy and meet objectives.

2

Identify capabilities needed for those marketing use cases

Once use cases are defined, identify the technology capabilities needed to achieve them. These capabilities should be vendor agnostic, and should focus on the functionality required to support marketing operations and the customer experience.

3

Assess current state MarTech stack

After identifying the capabilities needed, create an inventory of the current state of the MarTech stack. This should include an architecture diagram, data flows, user personas involved, and the purpose of each application. Map each application to the defined marketing capabilities and take note of underutilized tools (or tools with overlapping purposes, such as two email platforms).

4

Build an actionable roadmap

Once the audit has concluded, create a list of actions your organization can take to streamline your MarTech stack. Prioritize actions based on exertion and projected business impact while considering critical dependencies. These actions should be sequenced into a 2-3 year roadmap and coordinated with a cross-functional team for execution.

5

Schedule regular audits

The roadmap should be executed in an iterative nature that enables the team to drive immediate impact–as well as allows for quick adjustment when necessary. Given the volatile nature of today’s market, the roadmap should be revisited on a frequent basis and compared against market trends and performance for best results.

An ROI-focused marketer does not fall victim to sunk cost fallacy or shiny object syndrome that results in an overly elaborate MarTech stack. Rather, marketers must make a conscious effort to ensure each tool in their toolkit contributes positively to organizational goals.

If you’d like to hear more about how we’ve guided clients through market uncertainty and advised on how to improve the ROI of their MarTech investments, please reach out to our Customer Advisory team.

Footnotes

  1. Source: Gartner, "Survey reveals 71% of CMOs believe they lack sufficient budget to fully execute their strategy in 2023", May 22, 2023
  2. Source: Chief martec, "Marketing technology landscape map 2023" Mary, 2023
  3. Source: Chief Marketer, "How many Martech tools does your company really need?" Erik Archer Smith, (January 23, 2019)
  4. Source: Gartner, "Disruptions derail progress in martech utilization" 2022
  5. Source: Forbes, "Artificial intelligence and the future of marketing" Bernard Marr (September 9, 2022)
  6. Source: Forrester, "Nationwide takes a process-first approach to reduce technical debt" Craig Le Claire & Renee Taylor-Hout, (June 14, 2023)
  7. Source: Capterra "Marketing app sprawl is wasting time and money. Here's how to fix it" Meghan Bazaman, (May 2, 2023)
  8. Source: CleverTouch, "The state of MarTech 2023" Lisa Artemis, March 8th, 2023
  9. Source: The MarTech Alliance, "The state of MarTech 2022" Graham Charlton (April 1, 2023)"

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