According to Wildfire, martech spending (as a percentage ofbudget) is down by 10% from 2018. That's despite plans to increase it – whatdoes this mean?
As marketers, we need to master the art of building abusiness case for new marketing tech. Otherwise, we’ll get left in the dust bythe brands making the right calls.
But no need to worry – in this quick 101, we'll cover thebasics of building a business case for martech. Let's go!
What is a business case?
A business case is a formal justification for business decisions. It typically involves identifying the problem or opportunity you are trying to address, evaluating alternatives, and presenting the best alternative with its key benefits. The goal of a business case is to provide data-driven recommendations for making decisions.
Why do you need a business case?
Businesses make decisions for various reasons: to improve the bottom line, solve an issue, innovate, achieve world dominance, etc.Getting all stakeholders on board with your decision is vital if you want to implement it successfully.
That's where a business case comes into play – it will help you present your point of view and sell everyone else on your idea. Having a formal business case that:
- Describes the problem being solved by your initiative,
- Why your proposed solution makes sense,
- What its key benefits are...
... Can go a long way. Business cases assist managers atevery level in communicating the rationale behind business decisions.
The general structure of a business case
Typically, a business case has a few stages:
- Introduce or define the problem or opportunity.
- Outline your goals accordingly.
- Propose a solution to the problem (or a way to capitalize on the opportunity), complete with KPIs and deadlines.
- Rationalize and justify your proposal with cost-benefitanalyses, ROI projections, industry comparisons, etc.
Let's go a little deeper into how you can apply this to marketing technology business cases.
How to build a business case for marketing technology
Here's how you can go about making your own business case for marketing technology:
Define the problem or opportunity that you want to solve.
Here are some ways to go about this:
What is the underlying issue forcing you to look at new ways of working? Is it revenue, marketing bottlenecks, engagement, retention, efficiency, customer experience, etc? How big is this problem (in dollars and cents)? Why do you need a solution?
Why your solution over others? Don’t get us wrong, you’re the best – but that’s unfortunately not enough. Have no doubt – there are plenty of solutions out there already. What makes your proposed approach better than what's currently being done?
You have two options here:
- You can base it on data from existing products.
- Or, if none exist, create an RFP and gather data from the market.
Make sure that you understand existing trends, especially if your case will be based on data. You can also use free tools like Google Trends to determine which marketing technology is getting more popular over time.
What alternatives do you have for solving this problem?
Are there any other ways to address this issue instead ofinvesting in new technologies or business processes? List them all here.
What are the benefits or disadvantages of each? Which one do you recommend the most? It's good practice to include between three and five –one of them should even describe what happens if you do nothing, aka a benchmark option.
Considering the alternatives shows that you've genuinely thought out your solution – the result is a stronger case.
What are the milestones for successful solution delivery?
If you're building a sales enablement program, then definingKPIs around qualified leads would be good. Or maybe average sales cycle length with time-to-close being shorter. Whatever it is, map out clear milestones so there is no ambiguity on measuring success.
What are the key benefits of the company integrating marketing technology?
The goal here is to map your solution's benefits directly to the problems or challenges. Why not find out how much money it will save/make for your company?
Here are some examples of what that might look like:
- Will automation reduce the resources required to keep up with trends in digital marketing?
- Will using data science improve targeting and see better results from ad spending?
- How many more qualified leads can be delivered per month thanks to an automated solution that targets the right people at the right time via different channels (email, SMS, chatbots)?
- How about conversion rates – how much revenue can be generated per user by automating some part of your customer flow (registration, browsing your site, adding products to cart)?
What is the ROI for the company?
Don't worry if you're building a new business case – at one point, someone else had to ask these questions too. In general, you'll want to focus on operational and performance improvements. For a full breakdown, you can follow Forrester's Total Economic Impact model.
A good business case for marketing tech will also address why specific KPIs are important (usually revenue or cost-effectiveness). For example: "we will deliver x% more leads via email campaigns" or"y% less time spent creating content."
Maybe there's no clear link between what you're trying to achieve and the dollars. If that's the case, make sure that dollars are still an important consideration for this project.
What is the ROI for our customers?
Take customer experience into account when estimating the return on investment (if they like your product more because of something you added, then it's worth investing in). Some example questions to guide your case:
- What percentage of customers were retained as a result of using marketing automation or other predictive analytics tools?
- Did people spend more money on retention ads due to better knowledge of their audience (thanks to the data-driven approach)?
- How much more likely are they to share their experience on social media?
Align your business case with the company or industry's biggest challenges.
Every industry has different problems that need solving –your firm is no different. For example, "lack of automation in marketingefforts" is a problem many firms face.
Grounding your case in broader industry issues will helpyour stakeholders see the scale of the problem. Think about all the stumblingblocks standing between your company and success, then show how this projectwill help get rid of them.
What are the risks associated with NOT investing inmarketing technology?
We touched on this a little bit when talking about alternatives, but like Nolan’s Inception, it deserves a sequel. The best way toshow value is by pointing out the risks of not investing in new technologies or processes – for example:
- Losing leads or wasting money due to outdated tactics.
- Lack of qualified leads, which might lead to lost deals and opportunities.
- Inconsistency between various marketing efforts (each department is doing its own thing with no coordination).
Start Maximizing Your Martech Investments Today
As marketers, we know how the right tools can amplify our efforts, optimize our marketing strategy, and save money. That's why it's crucial we understand how to communicate a tool's importance to the right stakeholders.
If you need help optimizing your martech stack – or even expanding it – Portage Labs can help your business reach its full potential.Contact us today! For more guides on marketing and technology, read our blog.
Frequently Asked Questions
What is martech?
Martech is a broad term designating any tool, service, ortechnology used in marketing. It can include software applications andplatforms that enable marketers to plan, manage and automate customer journeysacross multiple channels, from email communications to sales support chatbots.
What should be included in a business case?
A business case should be a clear and simple description of how your company will benefit from implementing a particular technology or solution. A good business case incorporates the following:
- What is the problem you're trying to solve?
- What methods have you tried so far?
- Which strategies were successful, which ones weren't?
- Which KPIs are essential for this project's success?
- How much will it cost?
- When do you expect to see results?
- How exactly will new technologies help achieve those results?
- Is there any risk associated with not investing in new technologies or processes – why is that a problem for your company if it does happen, what would be the consequences, etc.?
What is a martech stack?
A martech stack is a term used to describe the various technologies and services a company uses to execute its marketing strategy. Atypical martech stack will include a mix of software applications, platforms, and services that enable marketers to oversee and manage customer journeys across different channels.
