Marketing technology is eating the traditional tech budget

Last week we introduced the basic building blocks of Systems of Engagement and here we continue with the first item in the stack: Marketing Technology.

It's commonly known that nowadays in the most successful companies marketeers have eaten the technologists budget. What that means is that its more important to drive company with the front office than back office. In recent years everything has become connected and people live with an "always on" mindset which creates a huge opportunity for all companies. First to understand customers better, second to engage in new ways and third influence through new channels and new ways.

So, what does it really mean when analysts are saying that amount of data is increasing exponentially? According to IDC:

"90 % of the worlds data has been created

in the last two years"

Where does that all data come from? Part of the answer is laying in our pockets - mobile phones create massive streams of data. The phone itself for the telcos, and all the apps we allow to access our information like; location, contacts, what we do with the app and so on is the humongous source for the data. Other sources of data are the equipment that are communicating with the Internet. So everything we do and everything that is doing something with us is creating that data - thats why there is so much of it.

It's good to understand this when we talk about marketing technology. Marketing technology is trying to make sense of all of that data to enhance customer understanding, engagement level and at the end influencing customer buying decisions. This explains why companies are investing more to marketing technology as a front office than the traditional back office. Back office gets investments only when necessary, front office when there is a potential to increase business performance.

What are then these marketing technologies companies are using to enhance their business? Take a look the picture below and try to make sense of those...

Picture is from http://chiefmartec.com/2016/03/marketing-technology-landscape-supergraphic-2016/ and descibes the challenge

Picture is from http://chiefmartec.com/2016/03/marketing-technology-landscape-supergraphic-2016/ and descibes the challenge

Despite the huge and increasing number of different applications to manage customers digital journey, we think that with the following stack of different marketing technology categories, any company can start their journey.

 

The above three categories have always been more or less a core part of the fundamentals of marketing. In this digital age, and from the point of view we started this blog post, all of these above mentioned categories just need to be deployed to the digital space where your customer is moving.

Compared to traditional marketing, the digital era allows for full transparency with analytics. This means that companies can gradually learn what works best and what does not. Todays marketing is a never-ending learning loop based on data. With these categories you will find ways to start capturing the data that your customers are leaving to the digital space as their footprint.

By continuously learning while doing you'll enhance your customer understanding,  increase engagement levels and also influence important conversions so that you drive better business results.

What do you think, are these the essential categories of marketing technology or is something missing? 

Advertising & Promotion
- Search and Social Marketing, Video Advertising, Display and Programmatic Advertising

Content & Experience
- Email Marketing, Mobile Apps, Campaign Management, CMS, Web experience management

Social & Relationship
- Webinars Management, ABM Tools, Social Media Marketing and Monitoring, Chat, Feedback

Written by: Sami Lampinen