Given that the Australian budget is showing a surplus at present, you’d think that the nation’s economy was booming. However, the federal budget has been bloated by increased mining revenues and a sustained rebound in the price of iron ore and coal, while the economy is currently struggling amid a collapsing housing market and the lowest wage growth on record.
This is creating a challenging climate for Australian businesses, who must adopt a proactive approach to increasing their efficiency and reducing costs. One way in which they can achieve this is by embracing the “Martech” concept, which melds marketing and technology to accomplish their objectives more effectively.
But what exactly is martech, and how can it help your business? Let’s take a look.
What is Martech?
In simple terms, martech is described as the blending of marketing and technology through technology-led processes.
Now, it can be argued that digital marketing is the trail-blazer for this concept, as this is technology-based, evolutionary and underpinned entirely by innovation. The term extends beyond this, however, as it can also be applied to major initiatives and tools that harness cutting-edge technologies to drive successful and cost-effective campaigns.
Martech usually requires businesses to partner with specialist third-party providers, as this enables them to leverage high-tech solutions and marketing automation tools that provide incremental benefits over a sustained period of time.
How can Martech Help your Business?
Ultimately, the upside of leveraging martech throughout your business is that its streamlines marketing operations and optimises profitability.
This is best embodied by marketing automation, which uses technology to improve efficiency and minimise the risk posed by human error. By utilising marketing automation software, you can create a large volume intuitive and trigger-based campaigns while simultaneously reducing labour and staffing costs.
At the same time, automated cross and up-sells can immediately boost your average customer’s lifetime value. This translates into higher profit margins and a superior ROI over time, and this arguably represents the Holy Grail for marketers across all industries.
Artificial intelligence (AI) is another martech application,and one that’s already changing the way in which brands market themselves across numerous digital channels. More specifically, brands are using AI software to develop a deeper understanding of customer behaviour and spending patterns, in order to intuitively tailor their marketing campaigns and boost their subsequent profit margins.
On a fundamental level, AI collates, organises and analyses huge data sets in a fraction of the time that it would take human marketers, while also delivering more accurate and detailed insights. These can subsequently be used to build more complete customer profiles and enhance the user experience available to consumers.
The Last Word
Given the different elements to contemporary marketing campaigns and the increased reliance on advanced technology and software, it’s little wonder that martech has become such a prominent concept in recent times.
Martech is also driving the need for sustained collaboration between businesses and technology providers, as this is crucial if brands are to apply different technologies in a safe, efficient and cost-effective manner.
As a result, media companies and brands should also consider their legal requirements and liaise with expert service providers like DWF Law when entering into contracts with third parties.
At the same time, they should consider the risks that are associated with the melding of marketing and technology, particularly in terms of an over-reliance on specific software programs.