I have said many times that change is at the center of modern marketing activities. It is located in the center of the diagram of the four forces of The new rules for Marketing Technology & Operations because it is the dominant variable of our profession.
And what is the most common and concrete change in Martech? Why change Martech applications of course?
This well-known but not exactly quantified phenomenon was the motivation for Chris Elwell and Jennifer Cannon from MarTech Today to start a research study, Martech Replacement Survey 2020: What motivates marketers to change applications and vendors,
I imagine every Martech salesman sitting on the edge of his chair for him.
Here are some of the results that I noticed …
83% of marketers exchanged at least one marketing software application last year. It may have dropped one Martech provider instead of another (51% of the time). Or you can replace a home-made system with a commercial solution (the other 49%).
Honestly, I was surprised how often domestic systems were replaced. This is another reason for another in-depth study of how much local Martech – sometimes referred to as "dark Martech" because of its low industry visibility – is out there. The results of this replacement study suggest that the answer is: very much.
The three most likely applications that are being replaced, commercial or homemade?
- Marketing automation (21%)
- CRM (18%)
- Analytics / BI (18%)
But Why Do marketers exchange software?
The answers are different for commercial versus home-grown systems. For local Martech, the reasons are:
In almost half of the cases where local Martech was replaced, the motivation is to improve the functionality of a commercial SaaS application.
This seems to be a fundamental comparative advantage at work.
If a business wants to invest in developing its own software – and I think many will do so ("software eats the world") – it should be for skills and customer experiences that are truly unique to their business. You do not have to reinvent the wheel for popular Martech apps like CRM, CMS, email, and so on.)
For commercial packages from Martech providers, things look different:
It was a remarkably even tripartite split between better features, better / easier integration, and cost reduction.
The one who jumped me: better / easier integration, That was just as important – in some cases unique more important – as equipment and price. If an app does not integrate properly with your existing Martech stack, or if you do not have the freedom to expand it with new apps or even your own apps, switch.
For this reason, platform ecosystems are the main catalyst of the Second golden age of Martech, Marketers demand that providers solve this problem for them. Suppliers who do this lose market share from those who still pretend they are doing everything and are not working well with others.
What does this mean for Martech providers? Each of these categories offers Martech providers a potential entry point to dismiss an established operator,
Another intriguing discovery from this survey was how companies handled hiring new employees and retraining existing employees when switching from Martech apps:
In 67% of cases, new employees were hired as part of the transition to a new Martech solution. Actually, In 43% of the cases, a whole new team was hired, Whoa.
Now there are a few different possible causes for this correlation:
- The old team did not perform, so a new team arrived and the new team insisted on changing the Martech stack as part of the turnaround.
- The company chose a specific Martech app or platform – a decision at the executive level? – and they said they had to hire people who have proven experience with it to get it right.
What was there first: the team or the Martech app?
In any case, it is a little scary how much revenue this implies. If 83% of marketers rip and replace a Martech app each year, and 43% of the time, a new team for this app is created, this is a new Martech team – at least for this particular app – 36% of the time.
Admittedly, existing employees are being retrained 50% of the time – but only 24% of the time will be replaced by Martech employees who are retrained exclusively.
Honestly, I am surprised that there are no major investments in retraining. You can learn a new app. It is much harder to pass on the institutional marketing knowledge that serves as the context for these apps to new employees.
Back to the Gartner report I shared last month, which stated that "investing in training and qualifying existing Martech talents" is the main obstacle for marketers to reach their business goals.
Definitely worth it Download the full report for more insights.
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