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Exploring the Business Impact of Marketing Technology Integration

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Overview

Without question, marketers are at the apex of digital evolution as organizations are rallying around technology as key component of their overall strategy. Functional marketing silos are being imploded and tightly connected for improved customer lifecycle management, omni-channel marketing, integration, workflow and use of critical data using advanced marketing automation platforms.

However, marketers are challenged to improve the economics and value of random and disparate marketing cloud investments across multiple platforms and solution areas. Proliferating marketing technology applications, digital engagement channels and customer-driven interfaces are spawning vast volumes of data and insight, which need to be integrated and unified across diverse silos and ever-growing digital data stacks without investing heavily in back-office data warehousing projects.

The first and perhaps most critical step to establishing a long-lasting digital strategy is to develop a fully integrated, cloud-based infrastructure that allows for flexibility and meets key goals for the business. Chief marketers are in need of consultation, guidance and direction when it comes to helping them specify, implement and adopt digital marketing technologies, strategies, practices and solutions.

They are challenged to staff and resource digital marketing programs, integrate offline and online campaigns, as well as unify disparate marketing functions, data sources and go-to-market processes. More importantly, they have to be effective at making a business case to management on how digital marketing technology investment and migration will drive business performance, increase customer lifetime value and retention, and create more adept and adaptive organizations.

Just 9 percent of more than 200 global marketers surveyed by the CMO Council in its “Integrate to Accelerate Digital Marketing Effectiveness” study say they have a highly evolved digital marketing model with a proven and clear path of evolution. This compares to 36 percent who report a random embrace of marketing point solutions (many cloud-based) that are not well integrated or unified.

According to 63 percent of respondents, management’s interest in digital marketing migration has much to do with its potential to increase marketing performance and ROI through more efficient digital media channels and better customer engagement. In addition, 49 percent of marketers believe management is also responding to the preference of customers for digital media consumption and live, on-demand interaction with brands and companies.

What’s Driving Deployment?

Determining the optimal way to go to market has never been more challenging. A multitude of 
new media channels and online/mobile avenues of market access are fragmenting media buys. Channels of distribution are multiplying, requiring broader, more diverse and customized marketing support. Sophisticated customer information gathering and database marketing techniques are seeing big shifts of marketing resources into areas that allow for improved behavioral targeting and personalization to optimize response and revenue potential. 


Market pace and velocity require more efficient and intimate online customer engagement, quicker product uptake and viral affirmation through social and shared interest networks, as well as greater prominence and cost-effective prospect acquisition through websites and contextual search optimization, web content delivery and pervasive mobile connectivity with customers. 


Today’s marketing planning process requires better data integration and analytics, more 
accurate forecasting and predictive modeling, higher levels of marketing group participation and accountability, and the deployment of closed-loop campaign performance dashboards. This will be driven by a wider embrace of marketing automation platforms, processes, continuous business activity monitoring and intelligence-gathering across all customer touch points, interactions and transactions.

Customer expectation in the digitally driven world demands targeted, relevant and meaningful engagements at every turn. As more customers consider defection from brands because the information, content, services, promotions and engagements lack relevance and resonance, marketers must look to data-driven strategies that deliver the right message to the right customer at the right time—and in the right channel. Marketing must forge and reinforce the ties between technology, customer data and the customer experience.

Marketing Cloud Convergence and Consolidation

A review of customer data-centric software listed on Capterra indicates more than 3,000 marketing technology products, platforms and point solutions across some 30 application areas. These include email marketing, website monitoring and analytics, CRM, social media monitoring, social networking, web data extraction, customer experience/loyalty/satisfaction, search marketing, social media marketing, campaign execution, lead management, mobile marketing, contact centers, customer feedback, display advertising, affiliate marketing, personalization, shopping, instant chat, etc.

Marketing automation system revenue topped $750 million in 2013, a 50-percent increase over the $500 million reported in 2012, according to Raab Associates Inc., a marketing automation research and consulting firm. The 2012 revenue total represented a 61.5 percent increase over $325 million reported in 2011. While a major consolidation of this fragmented, sprawling market is underway, many new innovative products are still coming to market.

One year after its $871 million acquisition of Vienna, Virginia-based Eloqua, Oracle purchased marketing automation platform provider Responsys for $1.5 billion in December 2013. To further expand its cloud-based marketing software portfolio, Oracle bought Corente in January 2014 and social media/web content distribution software provider Compendium in October 2013.

Other acquisition hungry software vendors, such as Adobe, Salesforce, IBM, SAP, Microsoft and Teradata, are stitching together and rolling up many different point solution providers to create suites of offerings. But the challenge of easily unifying multiple data streams collected by these diverse applications (and third-party data services) remains challenging without the use of powerful marketing middleware to collectivize and create a richer, 360-degree view of the customer.

Crack the Code on How to Lighten the Load

The CMO Council will lead a targeted outreach effort to engage its members in qualitative and quantitative conversations around the economics and benefits of unifying marketing technologies and data. This will result in a credible body of knowledge that will amplify the need for chief marketers to be more strategic in their acquisition and utilization of marketing technologies. It will generate key data points that underscore the financial, business and customer relationship value of strategically focusing and integrating marketing technology solutions. It will audit and assess the degree to which chief marketers are engaged in marketing technology acquisition and planning. And it will shine a light on the performance gains made by early adopters and best practice leaders.

Learn

Facts & Stats

Through 2015, 85 percent of Fortune 500 organizations will be unable to exploit big data for competitive advantage. Gartner

A recent study found that almost one-fifth of companies adopting marketing automation systems boost revenue by 75 percent or more. Venture Beat

Just over two-thirds of businesses are planning to increase investment in digital marketing technology in 2014. Econsultancy

An additional 31% believe their digital marketing spend will exceed traditional this year (15%) or next (16%), while only 14% feel that the shift will not take place in the foreseeable future (11%) or ever (3%).  Marketing Charts

Just over two-thirds (70%) of businesses are planning to increase investment in digital marketing technology in 2014, according to a new report from Econsultancy and Responsys. Econsultancy

CRM takes the top spot when it comes to technology investment, with half (49%) of companies surveyed planning to spend more in this area (up by 4% in the last 12 months). Econsultancy

61% of marketers "expect to increase the proportion of technology spend versus marketing communication/program spend." Adage

 [According to the Integrated Marketing Survey 2013, it revealed] that more than 9 out of 10 brands' marketing departments have been working closer with IT to achieve marketing goals in the past two years. ClickZ

23 percent of [brands' marketing departments] use a mix of external providers; 20 percent turn to a combination of in-house and external service providers to manage their channels. This indicates that more than 40 percent of brands haven't yet embraced integrated digital marketing. ClickZ

[According to State of Integrated Marketing Report 2013, it} finds that even among companies spending more than $5MM per year on marketing, only about 20% have baseline data skills. The DMA

Interviews

KARLY WANG

Senior Vice President of SMB Database Marketing

Wells Fargo

Wells Fargo is a leader in international banking, investment, mortgage, insurance, and consumer and commercial financial services. Ranked fourth in as... Read On

STEVEN BUSHONG

Senior Vice President of Marketing Operations

Disney ABC Television Group

Disney ABC Television Group (DABC) broadcasts television shows to tens of millions of people every day across the U.S. and is a part of The Walt Disne... Read On

Read

Studies & White Papers

Strategic Planning for Big Data: Getting It Right Forrester

Integrated Marketing Playbook Ignition One

Articles

August 2014 -Big Data: What Information, if You Had It, Would Change the Way You Run Your Business? - Gartner

August 2014 - What Does Your Digital Marketing Technology Stack Look Like? - Business2Community

August 2014 - It's not digital marketing; but marketing in a world that's digital: Suresh Vittal - Business-Standard     

July 2014 - The Next Big Thing In Modern Marketing: Data As A Service - Forbes

July 2014 - Why marketers risk confusing technology with strategy - Marketing Magazine

April 2014 - Making Sense of Data: What Marketers Can Do - AdAge

April 2014 - Gartner Survey Reveals Digital Marketing Budgets Will Increase By 10 Percent in 2014 - Gartner

April 2014 - Digital marketing is now reappropriating the sales budget - Chiermartec

March 2014 - Making Sense of Big Data in Search Marketing - SearchEngineWatch.com

February 2014 - Digital marketers plan to invest in CRM, analytics and email in 2014 - E-consultancy LLC

October 2013 - The 6 latest trends in marketing technology - imediaconnection  

January 2013 - B2B Marketing Budgets Set to Rise 6% in 2014: Forrester - Advertising Age

August 2014 Compare Marketing Automation Systems Software Advice

2014 The 20 Most Popular Marketing Automation Software Solutions Capterra

2014 Marketing Automation Software Guide Marketing Automation Software Guide

2014 Marketing Automation Software Marketing Automation Software Guide - About

2014 Marketing Automation Times’ List of Marketing Automation Companies Marketing Automation Times

2014 21 Digital Marketing Trends & Predictions for 2015 Top Rank Blog

June 2013 Seven top challenges to integrated marketing Econsultancy

November 2013 Technology, Integration & Disparate Data Top Marketing Challenges [Study] ClickZ

July 2103 Challenges to the State of Integrated Marketing The DMA

February 2014 Marketing Tech Integration Remains a Challenge Chief Marketer

2014 INTEGRATED MARKETING: Navigating the multichannel maze b2bmarketing

Books

Program Themes

  • Technology Spend
  • MarTech Trends
  • Technology Budget