India Inc. has been steadily increasing its investments in technology for marketing, and as many as 88% of surveyed enterprises confirmed boosting this over the next three years. However, the average allocation of marketing budgets to ManTech is only 15% as compared to the global average of 26%. Looks like this gap will be closed in the next three years, going by the projections of match providers – India will be a US$ 40 billion market by 2026.
Martech tools automate various marketing tasks such as email campaigns, social media scheduling, and lead nurturing. The resultant efficiency frees up the executive time for strategic planning and creative thinking. Many marketers today seamlessly execute multichannel marketing campaigns with consistent messaging across various platforms. While they have undoubtedly revolutionised the field, can they serve as the panacea for all marketing challenges?
Agreed, ManTech has delivered undeniable benefits to modern marketing efforts in several ways. Data analytics, and insights thereof, have helped marketers to make better decisions by understanding consumer behaviour, preferences, and trends. It has also helped in better segmentation and creating customised experiences for each segment, resulting in improved conversion rates and customer loyalty.
That doesn’t mean it always has worked wonders for companies. Take for instance the cases of Snapdeal, Oyo, Zomato, housing.com, and Makemytrip. All of them were early adapters of Martech and have not yet found the required results. Snapdeal ran into financial difficulties, Zomato could acquire customers but not get profitable ones, Oyo failed to deliver the quality hospitality their customers wanted, Housing.com faced leadership and operational difficulties, and Makemytrip could not convert insights into personalised customer experiences, and got merged with Ibibo Group.
Challenges galore
Clearly, there are many challenges. Many organisations use a multitude of Martech tools, which can lead to integration issues. Disconnected systems may hinder seamless data flow, resulting in incomplete insights and disjointed customer experiences.
Second, any technology, unless it is a rogue AI algorithm, needs human expertise for optimal utilisation of its features. Relying solely on technology without skilled professionals can lead to not only underutilisation and misinterpretation of data but also expensive failures.
Third, the complexity of some Martech platforms may pose a learning curve situation for marketing teams, potentially slowing down the implementation process and delaying results. This may explain the two examples above on non-delivery of results.
Lastly, in today’s growing concern for privacy, data protection becomes a focus area and regulations will soon be in place. The tech platforms will have to adhere to stringent privacy guidelines to avoid legal complications and protect consumer data.
Representational image. Photo: Unsplash/Scott Graham/Unsplash License.
Indeed, global brands like Netflix, Starbucks, and Amazon have achieved tremendous success with Martech by leveraging data analytics of viewing or browsing history, customising offerings for customer loyalty, and personalising experiences.
Marketing heads who have embraced tech tools for easing their work and getting better results enumerate additional reasons to predict even more coverage in the next couple of years:
Real-time insights: Data analytics allow marketers to monitor the performance of campaigns instantly. This agility enables quick adjustments based on actual results, and to build more impactful campaigns.
Customer journey mapping: Understanding the customer journey is vital for successful marketing and enterprises can map this by identifying touchpoints and opportunities for engagement and conversion.
Global reach: For enterprises with global aspirations, Martech transcends geographical boundaries. With the right tools, enterprises can reach international audiences, specific regions and languages.
Competitive advantage: As more enterprises join the bandwagon, those that effectively leverage these tools gain a competitive edge. By staying at the forefront of marketing technology trends, marketers can claim leadership.
Future readiness: The rapid evolution of Martech encourages enterprises to remain agile in their marketing strategies. Staying open to new technologies builds a culture of adaptability and readiness for future shifts.
All these numerous benefits are valid but there are certain problems within the marketing realm that Martech will not fully address. Here are some challenges you might struggle to solve:
Foremost is creativity/innovation. Tech can assist in automating processes, analysing data, and optimising campaigns, but it cannot replace the creative spark that drives innovative marketing solutions. The generation of fresh, creative ideas, and unique storytelling remains a human-driven endeavour that requires a deep understanding of culture, emotions, and new trends.
Building genuine, human-to-human relationships is something of a challenge for any technology. While it can facilitate communication, automation may lack the emotional depth required for establishing authentic connections, especially in industries where trust and personal rapport are paramount. This is a serious limitation. Similarly, in niche or emerging markets where data might be limited and customer behaviour is evolving, tech solutions cannot provide accurate insights. Understanding these markets will require nuanced human analysis that goes beyond the data points.
Yet another major issue is that tech can only analyse historical data to predict trends, but if there is a lack of data or non-relevant data, predictability suffers. Sudden and unforeseen market changes or disruptions are beyond tech scope. Rapid shifts such as global events or changes in consumer sentiment can be challenging for technology to understand. Martech can operate effectively within predefined parameters, and it cannot adapt to unexpected situations or outliers. Quick decision-making in response to novel circumstances requires human intuition.
Moral and ethical decision-making is a uniquely human trait that no tech tools can replicate – at least for now. Marketing at times involves ethical dilemmas that require human judgment and consideration of broader societal implications. As a related issue, understanding and responding to emotions is something that Martech lacks. Emotional intelligence plays a crucial role in marketing, especially in sectors where empathy and emotional resonance are pivotal.
Finally, creative problem solving that involves thinking outside the box and exploring unconventional solutions remains a domain where human minds excel – and not mere tech tools.
Martech is a powerful tool, but not a panacea – and won’t replace human marketers. Successful marketing strategies require a harmonious blend of Martech’s capabilities and human insight to address a wide range of challenges effectively.
Muneer is a Fortune-500 advisor, startup investor and co-founder of the non-profit Medici Institute for Innovation. He tweets @MuneerMuh.
