A clear understanding of the problem you are trying to solve leads to a more success implementation of marketing technology, says McKinsey and Company.
According to the management consultants, the best-performing companies are investing in martech thoughtfully and working more closely with IT in a more agile way.
- Take our Which-50 reader survey and go into the draw for a chance to win a pair of Sony H.ear Bluetooth headphones or 1 of 5 Google Daydream VR headsets
In a paper called Meet Your New MOM (Marketing Operating Model) the authors Jason Heller and Kelsey Robinson argue an operating model underpinned by technology has a clear impact on revenue.
The authors draw on a survey conducted by the Association of National Advertisers in October 2016 of 220 CMOs and marketing leaders.
The research found 73 per cent of top-performing companies—those whose revenue generation outperforms the market—have increased their martech spending an average of 16 per cent in the past year.
“In our experience, marketing leaders who have a well-defined sense of the problem they want to solve or the opportunity they want to exploit get a better return on their technology investments,” the authors write.
Highlighting the importance of focusing a company’s technology spend on its unique goals, 49 per cent of companies that outperform the market feel they have the tech tools they need, compared with only 16 percent of their poorer-performing peers.
“Overall, martech—or, more specifically, how it’s implemented—still has a long way to go until it provides the value it promises,” the authors write.
“From the survey, we found that the top focus of martech is in informing marketing strategies (63 per cent) but then there’s a steep drop off. The next-highest area of focus is in using automation to execute and manage campaigns (41 per cent), or to upgrade customer-relationship management (37 per cent),” the authors write.
Technology needs to underpin a new marketing operating model (MOM), which is made up of three parts:
- Integrating consumer data: Collecting data isn’t the problem, using it to form a complete and accurate customer profile is.
- Decision making: “Scoring” customers allows marketers to prioritise which messages, offers and experiences are directed to which customer.
- Distribution platforms: Marketing-technology platforms are the last mile of the process, says McKinsey. The software integrates the customer scores and use them as triggers to deliver the right message to the right person across all addressable channels. They also produce the metrics required to determine success.
A close working relationship with IT is critical, the consultants argued. However, only 45 per cent of the executives surveyed, however, say marketing and IT are not working together at their companies in any significant way. In the overwhelming majority of cases, marketing is still reliant on IT to implement and configure its technology, whether systems are used on premise or in the cloud.