For a decade, companies have been identifying, selecting, and managing their marketing technology based on expedience, rather than long term sustainability. That’s not surprising, given the constant change in martech (marketing technology). Unfortunately, reliance on this traditional approach to martech selection and management is too narrowly focused and exposes companies to risks of poor adoption rates, duplicative functionality, inconsistent customer data, poor customer and employee experiences, and marginal ROI.
Meanwhile, customers are requiring a more connected and personalized cross-channel experience. C-level executives are calling for a greater return from martech activities and investments. And the martech landscape is becoming more crowded and complex.
The problems marketers face today will only increase if they do not move towards an entirely new model for selection and management of marketing technology. A holistic, lifecycle model which facilitates getting the greatest return possible from martech investments.
“Successful martech selection and management must be anchored in business strategy with a clear value proposition,” says Jason Galloway, Chicago-based KPMG principal and U.S. Marketing Consulting practice lead. “It also needs to address martech’s rapid expansion and the interdependence of martech with the whole enterprise. That’s why we recommend a holistic model.”
This new model – founded on four principles – for sourcing and managing martech addresses the challenges of continuous technology change with the need for alignment with organizational goals.
Principle #1: Take a holistic marketing technology perspective
A holistic perspective puts a stronger focus on management across the technology lifecycle. It can help a marketing organization address the full solutions landscape, from improving usability and performance to identifying solutions that are underperforming. Marketers can look at their entire stack and understand the value it brings to the customer and the business.
Principle #2: Integrate marketing technology
Integrating the technology stack increases operational simplicity, which can create an overall better experience internally for the organization and externally for the customer. It can reduce the cost of ownership with open API connectivity and middleware. It can also reduce costs by extending capabilities to enable the software to do more – with web hooks, for example.
Principle #3 Establish new metrics
A new set of comprehensive KPIs, which measure business impact as well as platform efficiency and effectiveness, is needed. Specific KPIs will depend on the marketing technology solution and its objectives, but all martech metrics should include performance, activity, outcome and impact KPIs.
Principle #4: Establish cross-functional selection teams
Cross-functional teams are crucial in the process of design, selection, implementation and management of software. Not involving the right stakeholders, such as IT or procurement, to support in making informed decisions on software, can expose an organization to unnecessary risk and lead to lack of credibility for executive support and approval.
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