Just 9% of CMOs reckon martech stack is working well

Retail marketing chiefs may have weathered the turbulence of the pandemic and the headwinds of economic volatility, but their legacy martech stacks are leaving gaps in their customer engagement capabilities, leaving potential revenue opportunities on the table.

That is according to new research from Wunderkind, entitled the “CMO State of the Union Report”, which reveals 94% of retail chief marketing officers regard the past two years as a critical turning point due to a combination of the pandemic, up-ended global supply chains, and a tumultuous economic environment.

However, despite these challenges, almost three-quarters (73%) say they were able to meet or exceed revenue projections during this period, and over half (55%) were able to increase their overall marketing spend.

Even so, while retail CMOs grasp the need to digitally transform their marketing capabilities – and fully acknowledge the role of their martech stacks building up first-party data and enhancing customer engagement – they could be missing out on revenue opportunities.

The report reveals that 96% of retail marketing leaders believe there is a gap in knowledge regarding their technology, while just 9% believe their tech strategy “greatly enables” their marketing performance.

Only 5% believe their marketing organisation uses their technology “extremely well”.

Moreover, three-fifths (60%) of CMOs admit that, while they are planning for life without cookies, they are not confident regarding how to turn this into a competitive advantage.

This lack of understanding links to the fact that, according to the report, nearly four-fifths (78%) believe they have a good customer experience strategy – but their customers do not agree.

Separate research of over 2,000 UK shoppers by Wunderkind has found that nearly two-thirds (62%) of consumers feel brands and retailers could do more to build one-to-one shopping experiences, while a similar number (61%) said they would be more likely to buy from a brand that personalised their engagement with them.

Wunderkind chief revenue officer Richard Jones commented: “CMOs are now at a crossroads. Innovation has to continue in order to communicate the right message, maintain consumer loyalty, boost revenue, and reach digital maturity.

“While legacy technology has helped brands begin to reshape their marketing strategies, it has also created seas of disparate data and tools that aren’t talking to each other – ultimately impeding brands from unlocking additional tangible revenue streams.”

However, help could soon be at hand. A separate report by digital marketing consultants ConsultMyApp recently revealed that three-quarters of marketing chiefs aim to increase their spend over the next 12 months, with customer marketing platforms, digital strategy and data integration at the top of the shopping list.

The study showed that marketing budgets are expected to increase on average 20% over the next year, despite almost half (44%) expecting the economic slump to have a negative impact on their business.