IT is gaining relevance in the marketing department as the CMOs are pressed to understand their customers and their behaviors to strengthen the relationship between the customer and the brand.
FREMONT, CA: Industries are experiencing massive transformations due to technology enhancements and data explosion. Companies are constantly eyeing to devise new ways to leverage such data sets. The marketing department is expected to provide a more enriched interaction between their respective customers and businesses. However, the fact is that they are still treading their way to the present challenges.
According to a study, one-third of marketing’s budget is spent on technology. However, from that 33 percent, 28 percent of the marketing technology budget is allocated to operations. It might be confusing to some as to why the marketers are investing so much on technology enablement for their department. The reason is that they do not have a choice.
The practitioners need to have technology at their disposal to execute in today’s modern marketing environment. Technology has become the cornerstone for the marketing department as the chief marketing officers are pressed to understand their customers and their behaviors to strengthen the relationship between the customer and the brand. Thus, the marketing technology stack is quite ambiguous. Here are the major components of the marketing technology stack:
First can be the system of records. The marketers should invest in a variety of ways to collect the consumer’s information. It can be in the form of data management platforms (DMP), customer relationship management (CRM) systems, and other marketing automation solutions. As per the Gartner research, the main applications that the businesses are trying to resolve relates to the customer, which includes sales, marketing, and customer service initiatives.
The second component is more complex. It’s because to take gather this customer information and putting it in to use requires the marketers a suite of point solutions to execute on marketing’s efforts. Since marketers are constantly behind the best-in-breed product, it means that stack continues to expand to fit departmental needs. It’s not rare to have a marketing organization utilizing more than 20 systems to accomplish its tasks. The main aspect that requires attention is that each one of the point solutions has its user interface, which assists analysts in understanding whether the marketing department’s efforts are floundering or succeeding. However, in case the marketers have more than 20 source systems, putting together this information can be challenging.
The underlying assumption, in such a case, is that the team knows which information it wishes to bring together, and can decipher what just noise is and what is of utmost essence. Though the pieces of the stack can be connected natively, it doesn’t imply that they are connected for the purpose of data analysis. Thus gaining the maximum out of such information requires combining various data points. In this way, marketers can also understand how their efforts are impacting customers on a micro-level. However, it is not an easy task even with the current technology and tools to bring together such data sets. That’s the reason why many of the marketers still rely on impractical solutions such as forcing as much data into Microsoft Excel spreadsheets as possible. The pain of manually gathering data points into complex Excel documents is another story. Thus it is more important than ever for the marketers and IT to work together.