The 3 Big Challenges Marketers Face When Building a Marketing Tech Arsenal

Brain, computer technology

It’s household knowledge that digital technology is continuously disrupting the practice of marketing. New tools mean new capabilities to reach and engage with potential customers in new ways. An expanding number of platforms and devices makes the prospect of providing seamless customer experiences an ever more difficult task. Meanwhile more technologies dictate that marketing tech stack integrations are becoming more complex. Yet nimble and savvy marketing tech adoption is one of the key factors for staying competitive in any market, today and in the foreseeable future.

That’s not all to scare anyone. But it’s worth taking stock of the fact that marketers have a tall order in front of them when it comes to evaluating and implementing new digital marketing technologies.

There are a combination of factors that make marketing tech adoption difficult. The sheer volume of potential solutions means that sorting through the noise and finding those tools that are relevant to your business objectives is a time suck. That’s certainly a big one, but an undue amount of time has been spent in blog posts and at industry conferences shocking marketers with intricate vendor-scapes while other challenges may go overlooked.

In this post, we’ll evaluate some of the common hurdles marketers face when it comes to adopting and implementing new technologies and consider some ways they can overcome those hurdles. With a better understanding of exactly what the challenges are, in future posts we’ll dig further into developing a process for optimizing your tech stack and explore some of the key business objectives marketers are trying to address with technology in 2018.

Editor’s Note: This blog post marks the launch of FUSE Digital Marketing, a weekly newsletter (subscribe here) and annual VIP executive summit (learn more here) that explore the strategic adoption of marketing technologies. Both aim to dissect the modern martech stack and explore how the right technologies can enable marketers to achieve business objectives.

Challenge #1: Omnichannel Customer Experiences Are Complicated by Content, Data & Technology

The vast array of devices and platforms where customer touchpoints occur mean that the need for marketers to provide seamless, omnichannel customer experiences is both more important and more challenging than ever. Doing so requires a well-oiled technology stack optimized for cross-platform data integration, 360° customer views, and AI-based automation that drives engaging content and offers.

But let’s dig a little deeper and uncover what’s at play when it comes to omnichannel marketing. Just how important is omnichannel marketing to marketers and what’s holding them back?

In the research report Omnichannel Marketing: The Key to Unlocking a Powerful Customer Experience, Target Marketing asked marketers how important providing an omnichannel experience is in their industry. 74% of marketers said it was important, fairly important or very important. The research also revealed that most marketers are not confident in their ability to deliver omnichannel experiences: 48% feel their company provides customers and prospects an “average” omnichannel experience, while only 33% say it’s “good” or “very good.”

Beyond lack of budget, which is considered the number one challenge, marketers see omnichannel marketing as fundamentally a technology problem, with “accessing data across channels” and “recognizing a customer on different channels or devices” as high-ranking challenges they face in this effort. When asked what they are doing to improve omnichannel customer experience, marketers’ top two priorities are “improving integration of existing technology systems” and “investing in new tools and technology.”

 

To address omnichannel challenges, marketers are “improving integration of existing technology systems” and “investing in new tools and technology.”

 

To be fair, the quote-unquote “omnichannel customer experience” is not just a marketing objective — it’s the objective of anyone trying to provide consistent experiences across digital platforms and understand how audiences move and behave across those platforms. For years it’s been an objective (and thorn in the side) of publishing and media companies, which have large-scale audience and butter their bread by cultivating very granular information about these audiences.

The comparison to the media business can also be useful because it speaks to why omnichannel customer experiences have become simultaneously more difficult and more of an imperative. If omnichannel can be boiled down to two fundamental principles, those are experience and data.

First let’s look at experience: With content as a major form of currency in the brand-customer relationship, the customer experience extends much further up the funnel today than in days past. It’s the reason why content marketing expert Robert Rose argues that marketers should be focusing on audience, and not customer conversion, when developing a content marketing strategy and supporting technologies.

Sticking with publisher analogy, the introduction of content can be both a gift and a curse: A gift because “audience” interactions with content reveal valuable granular data about buying interests and intentions, which can drive coveted personalization efforts that yield higher conversions. A curse because connecting behavioral data to an individual across platforms is no easy task.

It’s no surprise then that we’re seeing a lot of interest in identity management, journey tracking, and anti-journey-hijacking solutions to keep track of users, as well as tools like CDPs that enable a 360-degree view of known users and the ability to develop user profiles enriched by behavioral data. Analytics tools that extract further insights, especially AI-driven predictive capabilities, will continue their growth in popularity.

Of course, limitations on data-driven marketing like GDPR will alter the data exchange between brands and consumers, namely by raising the threshold for that exchange. GDPR will simply accelerate the need for “owned” audiences that marketers have permission to communicate with (often earned by providing content), some of which will become your customers. And though painful at first, GDPR will actually play in favor of some marketers’ high-level concerns about brand safety and ad fraud when the brand-consumer relationship is much more transparent and explicit for all parties.

Challenge #2: Organizational Bureaucracy & Shadow MarTech

Unfortunately, developing a 360-degree view of customers from the topmost part of the funnel down to the purchase and onward isn’t just a technological challenge. It’s a deeply organizational challenge.

Marketers face a couple internal headwinds when it comes to technology adoption — such as the lack of understanding by senior management or lack of talent to apply martech — but perhaps the strongest is bureaucracy.

At many large companies, web technologies are part of gigantic enterprise systems that tend to be rigid and/or slowed by bureaucracy. Getting a WordPress site approved through corporate IT can be a nightmare. Especially when it comes to providing cutting edge customer experiences, marketers need to be super agile — able to stand up a blog, digital magazine, or microsite in short order — to respond the market or experiment with ideas without huge investments and long lead times.

Many marketers are forced to rely on their organization’s IT system and watch the nimble upstarts pass them by. Or they’re going rogue and creating what is often called a “shadow IT stack” or “shadow martech stack.”

Whether by design or by necessity, we know that martech purchasing happens across organizations. Target Marketing’s 2017 report The Marketing Tech Buying Process revealed that although brands are buying more marketing technology than ever, it’s often with minimal input from other departments. 64% of marketing technology purchases are made by individuals or single teams. Fewer than 50% of purchasers conduct formal requirements assessments. And the IT department is only involved in the marketing technology purchasing process 53% of the time.

One of the downsides of this fragmented martech buying approach is that the organization doesn’t reap the full benefit it would if the marketing stack and all its rich data was fully integrated with enterprise systems. Think of all the data points revealed through social media interactions, behavioral website data, email preferences – all of which can be used to track and cultivate consumers through the sales funnel and then continue engagement. And the existence of shadow martech stacks means companies aren’t seeing the optimal ROI, and as a result more likely to stifle future martech investments.

The Layered Approach to Marketing Tech Adoption

The layered approach to your content marketing tecnology stack.
Robert Rose advises a “layered approach” to the technology that powers content marketing in order to prioritize flexibility in the piece that must be more responsive to the customers, and formal input in the pieces that must integrate with other IT systems.

 

First off, marketers need to make the case and executives outside the marketing function need to recognize that marketing tech should be better integrated into enterprise systems without stifling the agility and flexibility that martech requires. Cross departmental communication and collaboration that might not have previously occurred are a necessity, but even more important, is a joined mission and strategy between marketing and IT.

To this end, Robert Rose suggests a “layered approach” to martech adoption. First, consider which parts of the tech stack need to be most flexible and require less dependability. These are the technologies that shouldn’t require as rigorous vetting nor be considered long-term, foundational technologies. “Content-driven experiences are today’s media buys: Flexible, lightweight and even disposable,” said Rose in his keynote at the FUSE Digital Marketing summit (then called FUSE Enterprise).

On the other hand, consider which parts of the tech stack need to be more thoroughly thought-out and approved, such as core data management technology that needs to be scalable, dependable and standardized, and fit into your company’s IT infrastructure. These need to be done methodically, involve all the stakeholders, and will likely be picked by the IT department, not marketers (though hopefully with apt input).

Challenge #3: Developing Tech Expertise

Another core challenge to martech adoption, and the closest to home, is that marketers themselves need a great understanding of the many technologies they could use and how they work together. However, being a technology expert is a relatively new competency for marketers and one that many may not have or are working to develop.  At the very least, marketers haven’t been preparing to be technologists their entire careers. “Being current on technology and able to put it into place with the right business processes to use effectively is now as important to the marketer as it is to someone in the IT department,” says Target Marketing editor-in-chief Thorin McGee. Or if not being a technology expert themselves, knowing enough to understand the underlying business objectives of a given tech tool and having a collaborative relationship with the technology department is a must for marketing executives today.

Once a technology is purchased, the common lament is that the tool is grossly underused. The Target Marketing Omnichannel report found that not enough marketers are investing in personnel or training to support their tech acquisitions. According to McGee, “This is evident both in the quantifiable questions, as well as the open response queries.  Marketers repeatedly cite lack of skilled personnel as an issue. Without proper training and know-how, the tools are not going to help. Invest in your people.”

Marketers should build more training into their martech strategies as well as implement more formalized processes (like Rose’s layered approach above), to ensure greater collaboration among key stakeholders and greater ROI for their tech investments.

In subsequent posts we’ll further explore processes for focusing your martech adoption strategy and look at specific business objectives marketers are keen to address with technology. Sign up for the weekly FUSE Digital Marketing newsletter to keep up on the latest martech insights.

Author: Denis Wilson

Denis Wilson was previously content director for Target Marketing, Publishing Executive, and Book Business, as well as the FUSE Media and BRAND United summits. In this role, he analyzed and reported on the fundamental changes affecting the media and marketing industries and aimed to serve content-driven businesses with practical and strategic insight. As a writer, Denis’ work has been published by Fast Company, Rolling Stone, Fortune, and The New York Times.

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