Commentary

Tech Ramp-Up: Most Brands Swapped Their Systems In The Last Year

Email marketing has become top of mind for executives during the COVID-19 pandemic, judging by the number of companies that are replacing their tools.

Email distribution solutions were changed by 23% of companies -- second only to marketing automation platforms, which were swapped by 24%, according to the Martech Replacement Survey 2021, a recent study by Martech.

Email was tied with CRM. In contrast, only 6% of firms replaced email in 2019. 

Overall, 67% of the brands polled changed applications in the past year.

But it isn’t clear how much of an impact COVID-19 had — 48% said it was a factor in their decision to replace solutions in general. The remaining 52% did not. 

That makes it probably that some investments in new capabilities were planned prior to the pandemic. 

Other solution changes included:

  • Attribution/business intelligence — 19%
  • Analytics/business Intelligence — 17%
  • CMS — 17%
  • SEO tools — 16%
  • Virtual events/Webinar platform — 16%
  • Data management platform/customer data platform — 15%
  • Work and project management — 15%
  • Digital asset management — 12%
  • Ecommerce — 11%
  • Multi-function marketing suite — 10%
  • Customer journey orchestration/analytic — 9%
  • ABM — 5%
  • Identity resolution — 4%

Why did they want to change? Here’s why they sought to upgrade homegrown applications:

  • Better features from SaaS software — 53%
  • Too expensive to maintain — 16%
  • Management decided we’re not a software company — 12%
  • Outdated code — 12%
  • Other — 7%

Here are the results for those that replaced commercial applications:

  • Better features — 51%
  • Reduce expenses — 23%
  • Better/easier integration — 19%
  • Other — 8%

The reasons for changing commercial offerings were somewhat different in 2019:

  • Better features — 32%
  • Better/easier integration — 32%
  • Reduce expenses — 32%
  • Other — 5%

Drilling down, the study determined that data capabilities lead the reasons for switching:

  • Data centralization/data capabilities — 51%
  • Improved customer/digital experience — 42%
  • Integration capabilities/open API — 41%
  • Cost — 41%
  • Ability to actively measure ROI — 34%
  • Support — 31%
  • Security — 29%
  • Compliance — 23%

This year, upgrades were by marketing management in 39% of the cases, and by executive management in 30%. Only 12% were led by marketing operations, 11% by marketing staff, 8% by IT and 1% by sales. 

In 2019, 43% of the changes were driven by marketing management, 25% by executive management, 18% by marketing operations, 7% by IT and 6% by marketing staff.

How long did it take? The changes were under consideration for:

  • Less than a month — 7%
  • Two to three months — 36%
  • Three to six months — 33%
  • Six to 12 months — 18%
  • More than 12 months — 6%

These stats reflect a definite acceleration. In 2019, the upgrades were considered for:

  • Less than a month — 5%
  • Two to three months — 29%
  • Three to six months — 43%  
  • Six to 12 months — 19%
  • More than 12 months — 4%

Martech surveyed 374 marketers in April and May of this year. 

 

 

 

 

 

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