Why Read This? The last 10 years has seen a rapid growth in marketing technology suppliers. They bring exciting new ways to connect with customers, but they also mean changing how you do things. That’s not always easy. This week we cover 3 of the most common martech challenges you’ll face. Learn from our experiences of how to deal with them, and turn them to your advantage.
Ten years is a long time in marketing.
Ten years ago, marketers were still getting to grips with the opportunities that young technology companies like Amazon, Google and Facebook could offer. These tech companies were growing rapidly, but many marketers still saw them as still a relatively niche way to connect with customers. Technology wasn’t for marketing. Technology was what the IT geeks down in the basement did.
Ask 2011 marketers about technology, and you might get tales of forgotten passwords or printer connection problems. At best, they might be getting excited about the soon to launch iPhone 4S, with its 4.5 inch screen and some weird new feature Apple was calling Siri.
The Martech Index - 7,000+ suppliers
But lurking in the fringes of the marketing world, technology was starting to make its presence felt.
In 2011 Martech influencer Scott Brinker started posting an annual index of martech suppliers in the Martech landscape. That first index had 150 suppliers. Ten years later, there’s now well over 7,000 martech suppliers covered in the index.
The index groups these 7,000 suppliers into 39 different technology groups. That’s 39 potential ways to boost your marketing using technology.
And here’s where you run into the source of many martech challenges. Because, how do you know which of the 39 technologies you need? Particularly if you’re a marketer who still thinks technology is about passwords and printers.
The good news is you don’t need to know them all. It’s highly unlikely you’ll ever use of all them, anyway. But you do need to understand the marketing opportunities those technologies create.
When we reviewed those 39 technologies in our guide to marketing technology, we grouped them further into four key marketing activities :-
- One to one interactions with the customer
- Analytics – data and insight about the customer
- Advertising and media
- Enabling and optimising systems – technology that makes it easier to do marketing
When you can talk about martech in terms that relate to what marketers already know, then this breaks downs down some of the perceptions that technology is only for the IT team. It’s not. Technology is for everyone. That includes marketing.
Smart marketers stay open-minded. They recognise staying up-to-date with technology opportunities is part of being successful and relevant in marketing.
But this doesn’t mean all marketers get this.
Martech Challenge 1 - Close-minded marketers
Often it’s the marketers with the longest experience who find it the hardest to understand and accept martech opportunities.
Don’t get us wrong. Experience is a good thing.
But experience needs to adapt to changing environments. And martech definitely changes the marketing environment.
If experience makes you close-minded and wanting to keep things they way they were, you run a big risk.
You run a risk of becoming irrelevant. Of not being where customers are. Of missing out on opportunities to connect with today’s and tomorrow’s customers.
It’s not about throwing out classic marketing thinking. It is about applying that thinking in the way the world is now. Close-minded marketers want to live in the past. That’s a challenge for martech.
Some would say this close-mindedness comes with age. You can’t teach an old dog new tricks and so on.
But you don’t have to accept these ageist stereotypes.
Open-mindedness is not a preserve of the young. Anyone can be open-minded.
Recognising which marketers are close-minded about technology is a key martech challenge. The ones who get their secretaries to screen their emails, rarely go on social media and who’ve never downloaded an app, streamed a movie or played a video game.
If you want to fix this martech challenge, you need to coax these old marketing dogs into learning new martech tricks.
Show them how it helps connect with customers. How it brings new insights. How it increases the impact of advertising and media and how they can use technology to make marketing processes much more efficient.
Ask them to be more open-minded.
Digital natives and digital immigrants
This open-mindedness goes beyond marketing and martech. It applies to all users of new technology.
He wrote that younger people who grew up with new technology (digital natives born in 1980 or after) find it relatively easy.
Technology comes to them naturally because they’ve never known life without it.
Digital immigrants on the other hand (born before 1980) do remember life before new technology became so widespread.
They grew up in a world of analogue phones, pagers and faxes. New technology means digital immigrants have to throw away old learning and open themselves up to new ways of working. That can be a challenge.
But they can be swayed to look at the opportunities. A harder challenge lies with the digital phobics, the ones who outright reject technology.
For them, you need to go right to the heart of the issue. You have to remind them that marketing is still about people. Martech doesn’t change what marketing’s for. It changes the world in which marketing works.
Technology changes, people don’t
To help these close-minded marketers see martech as an opportunity, not a challenge, be open with them that marketing still has the same jobs to do. It’s still about winning customers, building brands and growing sales. It’s still a people focussed skill.
That hasn’t changed.
But to paraphrase a well known quote from Deb Schulz, people don’t change, but technology does. It’s those changes that technology brings that change the context in which marketing works.
Martech changes the context
Martech changes the context of how you interact with customers and build brands. In your PEST analysis in your marketing plan, martech impacts all four of the political, economic, social and technological sectors.
(Think about the laws on data privacy and usage (political), the growth in e-Commerce channels (economic) and social media (social) if you think it’s just a technology impact).
In the past, traditional media companies controlled how you connected with customers. They were the middlemen you used (via marketing agencies) to get advertising on TV, on the radio and in the press.
You may still use marketing agencies for this, but they’re not as necessary as they were. This is especially true for smaller businesses. Technology means you can now do your own media planning and buying. Less need for awkward meetings with media suppliers.
Of course, to do this, you need to learn new digital marketing skills. If you’re an open-minded marketer, you don’t see these as martech challenges, but martech opportunities.
Let’s look at digital media for example. These plans usually contain high amounts of detail.
If you’re an open-minded marketer, you recognise digital media gives you lots of flexibility and control in how, where and when customers will see your media.
But if you’re a close-minded marketer, you write off these plans as too detailed.
You use that cop-out line about being a “big picture thinker” that marketing strategists seem to love.
You only look for “big” opportunities when in fact it’s often the cumulation of many “small” opportunities that actually makes up the big opportunity.
Because there’s so much choice for customers, “big” is becoming less relevant. Media is fragmented, and customers have much more choice and much more power. They expect more personalised experiences.
“Dear customer” is no longer good enough. Customers expect you to know who they are.
That’s why there’s now so many martech suppliers who can help you with technology that improves one to one interactions with customers.
It’s all about the context
The range of choices in martech challenges the view that marketing is all black and white. Big isn’t always best. Martech creates shades of grey in the world of customer connections. Small details in the customer experience can and do make a difference. (check out our digital marketing generation gap article for example)
Context matters. What’s your goal with the customer? What’s the best way to achieve it?
If you need to drive nationwide awareness of your brand, then yes, TV is still a great option.
But remember, many people watch shows on catch-up. They skip the ads. Hard to get awareness if your advertising is on fast-forward.
Many people also watch shows on streaming services like Netflix, that carry no advertising.
Hard to get awareness with customers watching a channel with no advertising.
But let’s say your marketing challenge is to drive trial.
You want customers to order food from your restaurant on a Friday night for example.
These types of small, specific customer experience moments are only possible because of what martech now offers.
It’s these types of direct customer interactions where martech challenges become martech opportunities.
This level of precision targeting down to individual customer experiences scares close-minded marketers, particularly the digital phobics.
This level of precision targeting down to individual customer experiences scares close-minded marketers, particularly the digital phobics. Technology does mean getting down into the detail sometimes, and that’s a challenge martech has to help close-minded marketers overcome.
Open-minded martech thinking
So, what’s the solution to this martech challenge? Well, time will help. Older digital phobic marketers retire eventually. Digital natives will be the norm in marketing.
Martech often also uses new ways of working like agile methodology.
This is a great approach that was originally an IT skill. But it can work in many other areas, including marketing.
It solves many traditional project management problems with a new focus on smaller, more empowered teams.
(Check out our guide to marketing innovation to see how you can use agile working to launch new products faster).
Use agile as a way to get close-minded marketers engaged with martech. Explain that it speed up processes and decision-making. It gets you to faster solutions. All marketers want that.
Martech Challenge 2 - Dominant major players
The next martech challenge doesn’t come from marketing, but from the martech industry itself. There’s a big divide in martech suppliers. They’re usually either very big or very small.
Among the 6,997 smaller players, you’ll find many small specialist players. There’s many start-ups trying to carve out a specific niche.
Trouble is, if they’re successful and win that niche, they become acquisition targets for the big suppliers. Check out Magento, Datorama and Marketo for example. All were successful niche players, who are now owned by one of the big 3.
We’ve worked with all 3 of the martech suppliers. They do what they do very well. You can learn a lot from them. They hire excellent digital and marketing technology experts are reliable and easy to work with. They also put on great events, with excellent guest speakers.
Sounds too good to be true, right?
Martech services from the Big 3 costs a fortune
There’s a price to pay for all these services. And it’s a big price.
They can afford to do all these things (hire good people, run high quality events) because the prices they charge companies to use their technology are usually huge. We’re talking six and seven figures investment levels on an annual basis.
That’s a lot of money for what’s basically software in many cases.
Ok, everyone’s needs to earn a living. We get that.
But when it comes to commercial return on investment, some of the quotes we’ve seen for martech systems have been crazy.
This means, in small and / or traditional businesses, the business case for martech is hard. It’s not always easy to show the benefit until you’ve started to use the technology. And you can’t use the technology without stumping up the cash.
This budget catch-22 is a real martech challenge. But thankfully, there are ways to work around it. .
Have a plan B
Remember those other 6,997 martech suppliers who are not the big 3? They’re all hungry for your business too. That makes martech a very competitive market, which you can use to your advantage.
You can do lots of martech activity without ever going near the Big 3. At much cheaper levels and, in some cases, even for free.
Easy to make a business case on something that’s cheap or free, right?
For example, this website is built on WordPress.
You get access to their plug-in service where you can add extra functionality to your site at a low cost or even free. All without going through agencies or using developers. And all use to make a better experience for your customers.
(For the behind the scenes view of WordPress, check out the book, The Year Without Pants by Scott Berkun. Great read about a fascinating company with a great culture and set of values).
As another example, we use Mailchimp to set up and run our newsletter service. It’s free up to 2,500 sign-ups, so you only need to pay when you start to get a bit bigger. A great tool for business new to martech.
Getting round the martech challenge of the dominant major players means being able to clearly define your martech needs and being able to research who’s best able to meet them. The big player are great for integrated solutions, but they come at a high cost.
Often, simpler martech suppliers can do the same job and deliver better value.
Martech Challenge 3 - Lack of a common language
The last of our martech challenges deals with how traditional marketing and martech communicate with each other. Both marketing and martech each have their own language. Jargon, phrases and technical terms that can confuse people who haven’t learned them.
Try to bring the two together, and the lack of a common language makes things difficult. Getting marketing to understand what martech is saying and vice versa is one of the most frustrating martech challenges to overcome.
Fortunately, it’s also one of the easier martech challenges to fix.
You just need to find a way to get them speaking the same language.
For us, user stories are like the Esperanto of marketing and IT teams. They take concepts and terms that both sides understand and express them in a way that’s simple enough for anyone to understand.
A user story is a simple tool that IT teams use to define a system requirement. It states what the user needs to do, and why they need to do it.
It usually has a specific format that looks like this :-
As a (user/customer), I want to (need), so that I can (benefit).
(Check out our guide to marketing technology for more on user stories).
Customers, needs and benefits. Three words that marketers could and should recognise. Because they’re words that good marketers use all the time.
Identify who the customer is. Work out their need, and why they have it, so your brand can offer the right benefit to meet that need.
Martech and marketing people can understand this simple concept and language. They can turn those from martech challenges into marketing opportunities.
Marketing opportunities through martech
Once you understand the user story, then you can work on martech solutions that create marketing opportunities.
Nothing wrong with traditional market research, but it can’t match the speed of insight generation that martech offers.
You can be highly flexible in where, when and how you buy media when you use advertising and media martech.
No lock-in into long lead times like with traditional media. You can easily set-up and run a new advert on your social media channels in less than a few hours.
For customers, this makes your brand seem more current, more topical, more relevant. They can engage with your brand in a more personal and real-time way.
Use martech to sell to customers
And then of course, there’s the fact that you can also use martech to sell to them. That’s an amazing business opportunity.
With e-Commerce, you can set up your own online store. You can be a retailer. You can still deal with traditional and online retailers as part of your e-Commerce strategy and planning. But direct-to-consumer (D2C) is the most exciting marketing opportunity of all.
Sell exclusive products. Sell additional services. Create a trusted channel straight from your brand direct to the customer.
But e-Commerce supported by martech gives you so many opportunities to grow your brand with customers online. Sell exclusive products. Sell additional services. Create a trusted channel straight from you to the customer.
We remember setting up our first online store for a big FMCG business more than six years ago. (see our article on how not everyone’s a fan of e-Commerce)
As we were setting up the pilot, we got a huge amount of push-back and pressure not to do it. We kept a shit list of all the close-minded people and all the negative comments we got.
Why would anyone want to shop this way?
Shouldn’t we leave that to the retailers?
Are you crazy, this will never work?
Three years after that store launched, it had passed the $45m mark in sales, and it’s still going today. That’s the sort of opportunity that makes overcoming some of these martech challenges worthwhile.
The pioneers are the ones with arrows in their backs
So, when it comes to martech challenges keep an open mind and stay positive. Remember that technology changes, but people don’t.
It’s important to be an innovator.
There’s great comment in Clayton Christensen’s book The Innovators Dilemma about how hard it is to be an innovator in most businesses. It goes something like “you always recognise the pioneers in any business. They’re the ones with the arrows in their backs”.
We know that feeling.
Using martech to its full advantage does mean being an innovator. And as long as you focus on martech opportunities rather than martech challenges, you’re far more likely to succeed.
Conclusion - The 3 biggest martech challenges and how to overcome them
We shared 3 martech challenges in this article.
The challenge of persuading close-minded marketers to embrace the martech opportunity.
The challenge in terms of cost when working with the dominant martech suppliers.
And the lack of a common language between marketing and martech.
There’s some common themes that run though the solutions to these martech challenges.
Themes like being open-minded and open to new ways of working. Themes like being agile and flexible in how you work. And themes like seeing martech as an opportunity, not a challenge.
Martech doesn’t change what marketing’s for. It’s still for customers. But it gives you different opportunities in terms of how you best meet customer needs. User martech to build faster customer insights, better customer experiences and more efficient ways of working.