Although marketers wanted to save on costs, better features led to the replacement of 2021 technologies

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In the 2019 MarTech Replacement Survey, we saw a mix of in-house, legacy, and superseded business solutions. But in 2021, we saw a big change. This year, when we launched this survey to help us understand how the pandemic has affected marketing technology purchases, we found that more than half of those surveyed said they moved from one trading platform to another. On the other hand, about 30% have moved from a commercial or existing home solution to another home solution. The IT and DevOps teams that manage these platforms therefore always have a role to play.

But in an era of tight budgets, it wasn’t primarily cost that drove these decisions. Whether local or commercial applications are replaced, the functionality outweighs the cost. In each case, over 50% said the replacement was motivated by better functionality, although around 41% cited cost as the reason for migrating solutions. Over 70% were replacing a solution that had been in place for one to five years. The peak period for replacement (3-5 years) remained the same as in our 2019 survey.

We delved into the factors that mattered most to the substitutes. Since multiple choice responses were allowed, the cost was much greater. Obviously, respondents were prepared to cite cost as important characteristics as well as more substantial characteristics. For better or worse, compliance and security were somewhat low on the list.

Marketers wanted better data capabilities

Significantly, cost reduction was two closely related factors: centralization of data / data capabilities (number one at 51%) and the ability to deliver an enhanced customer / digital experience (in second place at 42%) . It’s hard to deliver the latter unless you’re on top of the former. Additionally, 41% cited open integration / API capabilities because people don’t want to acquire new silos.

Related: Automation, email, CRM among the main marketing tools replaced in the last year

It is difficult to compare in detail the factors driving the change, as the 2019 question was not multiple-choice, but interestingly, compliance was number one (22%). possibly indicating that brands were still adapting to GDPR.

In 2019, cost ranked precisely alongside functionality and integration capabilities as a reason for replacing commercial applications. It is difficult to compare in detail the factors driving the change, as the 2019 question was not multiple choice, but interestingly, compliance was number one (22%), possibly indicating that brands were still adapting to the GDPR.

A graph showing the features marketers expect from their marketing technology platforms.

Replacement case: Negotiating price reductions

The marketing operations and sales teams of the personal experience gifts platform Alyce were looking for data enrichment for B2B sales. Their platform focuses on delivering corporate gifts that expand B2B relationships, and in order to reach their own target, they needed to increase their business data with a new vendor.

“We were using enrichment primarily based on industry and employee size,” said Kanako Tone, marketing operations manager at Alyce. “Employee size tends to be wrong, especially for companies with less than 1,000 employees. They tend to be different from what some public sources say.

Alyce used ZoomInfo for corporate data, and they continue to use it for some data needs. For data enrichment, they considered LinkedIn Sales Insights and LinkedIn Sales Navigator. They also looked at another data enrichment vendor that offered Alyce a significantly lower price than LinkedIn.

“We were about to go with the other vendor, but we went back to the LinkedIn sales rep first and they lowered their prices,” Tone said.

There were other characteristics that were attractive to Alyce’s B2B marketing and sales teams. For example, LinkedIn data enrichment includes the number of employees in a particular organization who are part of the marketing team.

“For marketing teams that have 20 people versus those that have five, the way we should target those teams is completely different,” Tone said. Ultimately, Alyce found the data to support his nuanced B2B strategy by encouraging vendors to compete for lower prices.

About the Author

Kim Davis is the Editorial Director of MarTech. Born in London, but New Yorker for more than two decades, Kim started covering enterprise software ten years ago. His experience spans SaaS for the enterprise, city planning based on digital advertising data and SaaS applications, digital technology and data in the marketing space. He first wrote about marketing technology as the publisher of The Hub of Haymarket, a dedicated marketing technology website, which later became a channel on the established direct marketing brand DMN. Kim joined DMN proper in 2016, as Editor-in-Chief, becoming Editor-in-Chief, then Editor-in-Chief, a position he held until January 2020. Prior to working in tech journalism, Kim was an editor in deputy chief of a hyper-local New York Times newspaper. site, The Local: East Village, and previously worked as an editor for a college publication and as a music journalist. He has written hundreds of New York restaurant reviews for a personal blog and has been an occasional guest contributor to Eater.


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