Amid the second wave of COVID spikes, budget adjustments that reflect ongoing business realities will continue to play out. In the case of martech, Gartner research released this week suggests that budget cuts are looming, with 59 percent of marketing technology leaders expecting moderate to severe cuts. Moreover, 35 percent of respondents plan to overhaul their martech stacks.
Martech leaders face challenges when it comes to utilizing the full potential of their technology stacks, according to the survey, with cross-functional collaboration, a vast array of martech solutions and a lack of solid customer data cited as the most significant issues. Moreover, marketing organizations utilize just 58 percent of their martech stack’s capabilities, and 66 percent of respondents facing budget cuts have delayed a purchase on a previously-approved technology solution.
“Low levels of utilization present a real risk for marketing organizations, particularly in light of looming budget cuts or ones that have already hit,” said Ben Bloom, senior director analyst in Gartner’s Marketing practice in a press release. “Three quarters of marketing organizations that are facing budget cuts also struggle with utilization. That’s a real gut punch—one that demands attention to streamlining technology acquisition and improving usage.”
Suggestions on how to mitigate future budgetary cuts include the following:
*Implement regular audits of your martech stack in order to assess your team’s utilization of the technology, accelerating the adoption of new tools and eliminating those that are not used.
*Maintain a balance between an integrated-suite approach to martech and a best-in-breed approach in which vendors are required to compete for business.
*Tap into internal resources, such as IT departments or external agency partners, to overcome challenges of martech integration and utilization of new technologies.