To state the obvious, marketing technology (or martech) plays a pivotal role in driving business growth. However, many organizations find themselves facing an unexpected challenge: legacy SaaS investments that soak up resources without driving revenue. In fact, 51% of decision-makers report an inability to scale critical services when required due to legacy software.
A successful martech stack is crucial for a business to drive efficiency, scalability, and revenue. But with so many tools available, it’s challenging to determine which ones are essential and how to evaluate them effectively. Here’s what to do.
What are the key components of a martech stack?
Regardless of your goals, there are a few pieces of software that are foundational to any good martech stack.
“Beyond your website, you’ll need a solid email service provider (ESP), a customer relationship management system (CRM)—although some ESPs will cover the basic needs of a CRM—and a content management system (CMS),” says Trey Jackson, Director of Product and Customer Marketing at Wunderkind. “These tools will give you the ability to communicate with customers, store customer data, and create seamless experiences. Invest in making sure these foundations are robust.”
Key components of a martech stack include:
- Email service provider (ESP): ESPs are important, as 59% of customers say they are influenced by email to make purchases. An ESP allows marketers to manage and execute email marketing campaigns and offer features such as email automation, list management, personalization, and analytics.
- Customer relationship management (CRM) system: A CRM system enables one-to-one marketing campaigns, lead management, and customer segmentation. It’s a one-stop-shop for customer management.
- Content management system (CMS): Content is king. A platform that enables multiple users to publish content and build out your site is essential to success. A CMS allows you to optimize, publish, and manage your content.
“Once those key pieces are in place, you can start to add best-in-class technologies that fill in gaps beyond what your current solutions can provide,” Jackson says. “Get your basics down, max them out, then build on that with new providers.”
Additional tech stack components should include:
- Customer data platform (CDP): A CDP is a powerful tool for collecting, unifying, and activating customer data from various sources. It will help you better understand your customers so you can optimize your marketing messages.
- Marketing automation platform: A marketing automation platform enables marketers to automate repetitive tasks, nurture leads, and deliver personalized messages at scale. 71% of customers expect personalization, so there’s no such thing as making your customers feel too special.
- Advertising and retargeting platforms: These allow marketers to create and manage ad campaigns across various channels, target specific audiences, and track campaign performance.
- Search engine optimization (SEO) tools: SEO tools assist in optimizing website content for search engines, improving organic search visibility and rankings. SEO has always been a staple for retailers, and even in a changing landscape, its advantage is still clear: higher rankings mean more traffic, which means more conversions.
Define your objectives
Once you have your foundational software taken care of, define your marketing objectives and align them with your overall business goals. Determine what outcomes you want to achieve, such as increasing lead generation, improving customer engagement, or enhancing conversion rates.
Once your outcomes are defined, you can match your needs to each tech solution. This will help you create a unique martech stack suited to your business, and evaluate tools that specifically address your needs.
Assess integration capabilities
This is important. Evaluate how well the tools in your martech stack integrate with each other and your existing infrastructure. Seamless integration is crucial for efficient data flow and automation.
Consider factors such as API (application programming interface) capabilities, compatibility with your CRM system, and the ability to sync data across platforms. Choose tools that can integrate smoothly to avoid data silos and streamline your marketing processes.
“If you’re a SaaS company, recognize that there are certain things you cannot build and your own technology can never do,” Jackson explains. “Choosing the best third-party tech provider to generate the most revenue will put you in good stead.”
Consider scalability and pricing
If you outgrow your legacy SaaS, don’t fight it. Scalability is a huge component of a successful martech stack—as your business grows, your technology needs to grow with it.
Evaluate the pricing models of each tool, including any additional costs for extra features or increased usage. Then determine whether the pricing structure aligns with your budget and projected growth.
Don’t forget to research the reputation and track record of the vendors providing the tools in your martech stack. Look for vendors with a proven history of providing excellent customer support, regular updates, and ongoing development. Customer reviews and testimonials can provide valuable insights into the vendor’s reliability and commitment to customer success.
Get the most out of your martech stack
Your tech shouldn’t weigh you down. If it isn’t driving performance or revenue at scale, then it’s time to hit the drawing boards.
“Marketers should keep a pulse on the capabilities of their different technologies,” Jackson says. “See how they perform and which solutions can take you further. Once you have your own first-party data, you can benchmark against it when looking for new providers.”Want to find out how Wunderkind fits into your tech stack? Not only do we unlock a new performance marketing channel for you, but we also guarantee revenue. Take a look.