In the last few years, a new term emerged in the world of the business called a “marketing stack,” which is actually short for Marketing technology stack. Companies are heavily investing in this technology because it has a direct impact on the business, in both long term and short term.
Moreover, enabling customer satisfaction at every touchpoint requires immense understanding and knowledge of consumer behavior. Read on to find out what marketing stacks are and why they B2B businesses are so heavily investing in it.
Meaning of marketing technology stack
Right from analytics to business development, each process involves marketing as a major element. It is a known fact that this element can make or break a business.
A marketing technology stack necessarily refers to all the tools used by a marketer to achieve the end means. In simple words, any marketing tool you use belongs to a marketing technology stack- such as email marketing platforms, social media, analytics, CRM software, and others, to name a few. These tools are used to increase productivity, operating efficiency, generate revenue, teamwork business development, and reporting capabilities of a workforce.
According to Ascend2, only 9% of the marketers and agencies use the right marketing tools for their business.
The rise of the Market technology stack
According to MarketingLand, 150 companies made their way towards marketing technology in the year 2011. The numbers grew to 4000 in the year 2016.
The reason for such a high increase in the number of businesses using marketing stacks is that consumers these days look for personalized content and offers that are best suited to their needs. They want to be individually recognized by a business when they address it as one entity. Long gone are the days when marketers would send the same newsletter to all returning and potential customers.
Moreover, according to Gartner, companies will invest more in marketing technology stacks than on IT in the near future, driving home the fact that this is not just another fad or a trend that would fade away.
Why should you invest in a Marketing Technology Stack?
1. Competitive advantage
A marketing technology stack provides you with a competitive edge over other businesses in terms of understanding consumer behavior, what your customers are looking for, and how you can provide it to them. A competitive advantage is what every company aims at in today’s highly competitive world, and a marketing technology stack will give you just that.
2. Omnichannel marketing experience
The omnichannel marketing experience is the future. Customers want to be able to move from one device to another in a smooth fashion and without any hassles. To make this happen, you need the best tools which are available in your marketing stack.
Advertising is an important factor that you need to take into consideration when you invest in a marketing technology stack. You need to decide which of the following tools you want to invest in –
- Affiliate advertising
- Display advertising
- Native advertising
When you invest in the right advertising tools, your conversion rates are bound to shoot up.
4. Social media
Everyone is hooked on social media these days, and that is why it is the easiest and the most efficient way to reach out to a large number of the target audience. Not just that, when you invest in social media, fortunately, there are a lot of tools to help you with scheduling, reporting, advertising, customer reviews, employee advocacy, and others.
5. Market intelligence
Market intelligence refers to an umbrella term that comprises of tools that your business requires to provide, organize, and manage the data to run the sales and marketing programs. B2B data companies heavily invest in market intelligence.
These tools help you create buyer personas and provide you with information regarding how they interact with your products, what they expect, and how you can reach out to them in a better manner.
6. Search Engine Optimization
Marketers know how important it is to drive traffic to their websites. Search Engine Optimization or SEO has turned into a major element in marketing. SEO best practices aim at creating visibility for your website by improving its ranking on Google. It comes with a lot of challenges; however, there are many marketing tools that would help you with that.
7. Campaign Optimization
Campaign Optimization comes under lead generation. This refers to fine-tuning your ad that is now running based on the impact it has on your customers.
Campaign optimization is probably one of the most important parts of successful marketing, so it is advisable that you choose your tools carefully before investing in one.
8. Email Marketing
Even to this day, Email marketing remains one of the most impactful tools of marketing. Despite the advent of other technologies, this one, by far, remains the most efficient. Regardless of whether you are a small business or a big company, this is a must-have.
These five stats will tell you why investing in the marketing technology stack is the right choice.
- According to a survey by Conductor, 50 to 65% of marketing executives will invest more in marketing technology in the next year.
- The source also reports that 6-6.2 billion dollars were invested in them in the last three months of 2014 alone.
- Scott Brinker reports that marketing automation companies increased from 51 to 83 between 2014-2015.
- 75% of marketers reported an increase in conversions when they used interactive content, Votion reported.
- As per Ascend2, 87% of marketers reported a growth in marketing performance when they adopted marketing technology stacks.
What are the major marketing technology stack components?
1. Content Management Systems (CMS)
Content Management Systems comprise a technology that helps run your blogs and websites. A major example of this is WordPress, which runs about 30% of all the websites and blogs on the internet.
These systems are great for non-technical individuals and companies to maintain and manage a site without coding programs.
Customer Relationship Management (CRM)
Customer Relationship Management is the key to success in any business. Tools such as HubSpot will help you manage customer relationships while providing valuable customer insights. You can also keep track of the pipeline activities through CRM tools.
Social media has become pivotal due to reasons such as greater target audience reach. However, businesses these days use social media platforms such as Facebook, Twitter, LinkedIn, and others to launch their PPC campaigns.
Email marketing is far more effective than social media marketing and remains the most efficient tool to this day. Large companies might require complex solutions like Infusionsoft, while small companies can invest in tools such as MailChimp. Analyze your requirements before you invest in email marketing, as it is pivotal to the organization.
Most technologies in this area drive search engine marketing, retargeting, display ads on various websites, and campaign tracking. Despite the availability of different technologies in this category, the most common and popular ones are Facebook Power Editor, Bing Ads, and Google AdWords.
Conversion technology uses various tools to convert potential customers into leads. Your options include platforms such as Unbounce and Crazy Egg. This technology helps you reduce the bounce rate on your website by tracking how a visitor interacts with your website, and if the bounce rate is higher, they help you analyze why and implement the necessary changes.
This technology includes tools such as Trello, Slack, Asana, and Jira. It helps teams communicate with each other and efficiently manage projects.
Search Engine Optimization (SEO)
Search Engine Optimization technology aims at driving traffic to your website through organic keyword searches. It increases the visibility of your site by bringing it to the first page on a Google search.
The most popular platform for web analytics is Google Analytics. This technology helps you understand the behavior of visitors and is critical in understanding how they interact with each page on your website, what drove the traffic to your page, and other such insights.
Due to the constant change and growth in the marketing landscape, new technology is required to help marketers understand the changing expectations, desires, and needs of their customers. In order to generate leads and retain old customers, new platforms and techniques are necessary to keep the customers engaged.
Needless to say, marketing technology stacks are here to stay. They will empower a greater height of understanding consumer behavior and getting a message across to the target audience.
- In the near future, businesses are expected to invest more in marketing technology stacks than on any other department, even higher than Information Technology.
- Tools such as social media, Search Engine Optimization (SEO) tools, and advertising tools will help maximize your profits and reduce cost.
- A small investment in the marketing technology stack will give you higher returns, without a doubt.
- Ensure that you keep your marketing stack in check; otherwise, it could go out of control.