Ruder Finn has been working in partnership with Brand Republic to conduct research among marketers into whether their involvement in technology buying decisions has and will increase, and what their views are on the existing marketing messages that they see emanating from technology providers. The resulting report, “Technology for Marketers: Are you Engaging Effectively?”, makes interesting reading for technology companies and marketers alike, particularly those looking to target decision makers in the marketing department.
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Technology for Marketers: Are you Engaging Effectively?
1. 1 Technology For Marketers: Are You Engaging Effectively?
EXPERT REPORT
Technology
For Marketers:
Are You Engaging Effectively?
In partnership with:
2. 2 Technology For Marketers: Are You Engaging Effectively?
In partnership with:
Expert Report
Executive summary
Last year Gartner predicted that
by 2017 CMOs would have bigger
technology budgets than CIOs. The
prediction sparked a lot of debate
among IT decision-makers and has
been widely challenged. Regardless of
this, what cannot be disputed is that
the line between marketing and IT is
becoming increasingly blurred.
The consumerisation of technology
is cited by many as the reason behind
technology moving out of the server
room and into the boardroom and, as
we all become more tech savvy, we
are certainly demanding more – both
as employees and as consumers. In
2016 it is predicted that there will
be one tablet for every eight people
on the planet and in the last year
alone there has been a 50 per cent
increase in the amount of website
traffic coming from smartphones
and tablets. We are all increasingly
comfortable shopping, socialising and
consuming content online across an
ever increasing number of different
devices and, in a significant shift from
where we were ten or even five years
ago, these days it is consumers who
are leading the way when it comes to
technology adoption.
So as we all move onto digital
channels so do the businesses
that we interact with and, when it
comes to technology spend, IT that
helps companies engage with their
customers more effectively become
a priority. A recent survey from
Accenture suggested that in the
next three years companies will be
spending 50 per cent more on digital
and mobile technology and 50% less
on traditional infrastructure projects.
So what does this mean to technology
providers and consultancies when it
comes to their own marketing? There
is clearly a need for them to be able to
reach new audiences within marketing
departments if they want to hit the
new breed of IT decision-maker but
how effective are they in doing this?
Ruder Finn together with Brand
Republic has conducted research
among marketing decision-makers in
medium to large enterprises to find
out how well they feel IT companies
are doing when it comes to marketing
their services to a marketing
audience. This report outlines the
key findings and looks at what IT
service providers and consultancies
need to do to reach this increasingly
influential group.
I http://www.forbes.com/sites/
lisaarthur/2012/02/08/five-years-from-
now-cmos-will-spend-more-on-it-than-
cios-do/
II http://www.cisco.com/c/en/us/solutions/
collateral/service-provider/visual-
networking-index-vni/white_paper_c11-
520862.html
3. 3 Technology For Marketers: Are You Engaging Effectively?
In partnership with:
Expert Report
Technology decisions and the
Marketing department
While traditional views of the relationship
between marketing and technology teams
paint a picture of a siloed approach to business
strategy, these departments are now starting
to integrate when it comes to purchasing
decisions; only 20 per cent of respondents felt
that marketing and comms teams were not
closely involved in tech purchasing decisions.
It also seems that this integrated approach is
becoming more mainstream. When asked if
marketing teams were more or less involved in
technology purchasing decisions than twelve
months ago, 46 per cent felt this was a steady
involvement, with 44.5 per cent indicating that
their teams were more involved than ever.
The role of marketing teams
in the future of technology
purchasing decisions will
continue its significant shift,
with 43 per cent of respondents
highlighting that involvement
will continue to progress over
the next twelve months.
MARKETEROPINION Bob Mulhern, Managing Director, Open Door Solutions
CMOs used to be able
to focus primarily on
being creative, but
in today’s marketing
environment they now
need to be proficient
in finance as well as be
technologically savvy.
The advent of marketing technology has fuelled
this latest trend and there is now almost a need
for a key technologist and financial specialist
under the CMO umbrella. The onslaught of
technological advances that marketers must
now consider means the CMO’s job is becoming
more and more difficult and has led to some to
hire chief technologists within the marketing
department.
CMOs need to ensure that they proactively
manage application fragmentation in order
not to create downstream information silos.
This will only further exacerbate existing
organization silos. Technology companies need
to focus on problems which the marketers are
currently targeting, otherwise their messages
get ignored because of the sheer volume vendor
outreach.
One answer for technology companies is
to try to reach different contacts within
the organisation and tailor their marketing
messages accordingly. It’s no good just trying
to speak to the CMO alone, you need to connect
with middle managers and execs and even the
CFO – if the business case resonates, to get it
on the CMOs radar and to enlist key influencers
in a decision to purchase. They must then focus
on showing the business case with real-world
examples of how the technology has been used
successfully.
Do you believe your marketing and comms department
is more or less involved than it was 12 months ago?
To what extent is
your marketing
and comms
department
involved in
technology
buying decisions?
Which of
following
would yo
your exp
dealing w
technolo
compani
To what extent is your marketing and comms department involved in
technology buying decisions? To
tec
ca
To
To a
Do you believe your marketing and comms department is more
or less involved than it was 12 months ago?
To some
extent
46%
8%
Not a
all
45%
To a great
extent
1%
To a limited
extent
21%
Very involved –
we are the decision
makers on many
technology
purchases
28%
Involved – we
have a strong
influence on many
technology
purchases
31%
Somewhat
involved – we
influence decision
making from
time to time
18%
decision
making from
time to time
3%
Never
Which of the
following statem
would you say re
your experience
dealing with
technology
companies?
To what extent is your marketing and comms department involved in
technology buying decisions? To what e
technolog
campaign
To a great
To some
To a limited
No
Do you believe your marketing and comms department is more
or less involved than it was 12 months ago?
To some
extent
46%
8%
Not a
all
45%
To a great
extent
1%
To a limited
extent
21%
Very involved –
we are the decision
makers on many
technology
purchases
28%
Involved – we
have a strong
influence on many
technology
purchases
31%
Somewhat
involved – we
influence decision
making from
time to time
18%
decision
making from
time to time
3%
Never
4. 4 Technology For Marketers: Are You Engaging Effectively?
In partnership with:
Expert Report
The importance of this shift
is highlighted by the change
in perception technology has
undergone within the marketing
department. Many marketers
now see technology as a key
component for the successful
implementation of marketing
and communications campaigns,
with many now looking to
technology to enhance their
traditional techniques – almost
87 per cent of respondents
indicated that they were now
proactively using marketing
technologies to influence and
transform marketing campaigns.
When it comes to the types of
technology playing a crucial role
in marketing and communication
campaigns, it’s no surprise to see
that technology benefits overall
communication – whether it’s within
a team or with consumers directly –
come out on top.
■■ Communications and collaboration
technologies top the list with 68.5
per cent of respondents purchasing
this type of technology
■■ This is closely followed by CRM
technologies (59 per cent of
respondents), highlighting the need
for technology to help improve
communications and relationship
building with important audiences
■■ Managing data is also crucial
for marketing departments –
55 per cent of respondents
indicated that database technology
was a key technology purchase for
the marketing teams
■■ Surprisingly, hardware and financial
technology are at the bottom of
the priority list when it comes to
marketers – less than 30 per cent
of respondents have a role in the
purchasing of this technology
To what extent are you
proactively using marketing
technologies to influence and
transform your marketing
campaigns?
Which of the
following statements
would you say reflect
your experience of
dealing with
technology
companies?
Language is
too technical /
uses jargon
The marketing
is good and
well-tailored to
a marketing
audience
The
messages
are usually
well-
personalise
52%
30%
46%
6%
artment involved in
To what extent are you proactively using marketing
technologies to influence and transform your marketing
campaigns?
To a great extent
To some extent
To a limited extent
Not at all
38%
49%
10%
3%
ms department is more
months ago?
To some
extent
46%
45%
To a great
extent
d –
sion
any
y
28%
Involved – we
have a strong
influence on many
technology
purchases
16%
Messaging is
too focused on
a technology rather
than business/
marketing
audience
Technology
companies don’t
seem to understand
the challenges
a marketer
faces
MARKETEROPINION Rav Atwal, Head of Marketing, IMGROUP
Previously, the
technology requirements
of the CMO were
minimal, and they
were reliant upon their
IT teams to source
appropriate tools.
Now, as the technology
evolves, the requirements for CMOs are
becoming more complex. Ultimately, they just
want to understand their customers better;
who they are, their behaviour, their challenges,
their opinions. This information is more
accessible now than ever before, as technology
solutions become more sophisticated, and
as social media becomes more prolific.
Additionally, marketing budgets are under
increasing scrutiny, and CMOs are under more
pressure to demonstrate a high return on
marketing investment. To do this, they need
the right tools in place to help them measure
effectiveness and consistently track ROI.
“As a technology solution provider, it is crucial
to focus on the challenges the CMO is facing
and how we can help address them, not the
features of the technology. Any suitable
technology solution should seamlessly
integrate within existing processes, and provide
information that will empower the CMO to
make the right decisions.
5. 5 Technology For Marketers: Are You Engaging Effectively?
In partnership with:
Expert Report
Marketing effectiveness in technology
The overwhelming opinion of the marketing
landscape is that technology companies as a
whole do not market themselves effectively
to a non-technical audience with 56 per
cent of respondents holding this view. In an
increasingly crowded technology market with
companies of all sizes competing against each
other, the major challenge for technology
companies is to cut through the noise and
properly engage and influence their target
audiences.
It seems however, that this negative view
of technology marketing may stem from a
disconnect or lack of understanding between
the technology providers themselves and
the marketers they are targeting. Survey
respondents were asked to identify a series
of statements that they felt reflected their
experience of dealing with technology
companies. More than half (52 per cent)
said that messaging they had encountered
is too focused on a technology rather than a
business and marketing audience. In addition,
46 per cent said that the language they had
encountered was too technical / uses jargon
and 30 per cent felt that technology companies
don’t seem to understand the challenges a
marketer faces.
Which of the following
statements would you say
reflect your experience of
dealing with technology
companies?
MARKETEROPINION Mike Altendorf, Entrepreneur, investor, mentor, author and executive
As a non-exec and
investor for a number
of companies in the
technology sector I have
seen a marked increase
in the involvement
of marketing in the
decision-making process.
This is important for a number of reasons.
Firstly marketing teams speak a totally different
language and technology companies need to
adapt the way they communicate accordingly.
Secondly, marketing directors and CMOs think
of their budgets in terms of OpEx not CapEx so
anything that is going to require a significant
up-front investment (with technology
traditionally has) won’t appeal. Therefore
it’s not just about how companies sell their
products but also how they structure them.
The big issue for technology companies is that
the involvement of marketing means they
no longer have anyone between themselves
and the business. Historically, the business
decides what it wants to do and the tech
team puts together the technology strategy
to deliver it. Only once that is set do supplier
become involved. These days is not uncommon
for marketing teams to leapfrog internal IT
and go direct to the supplier so they have to
understand the business goals, create the
strategy and deliver the solution.
Ot
Which of the
following statements
would you say reflect
your experience of
dealing with
technology
companies?
Language is
too technical /
uses jargon
The marketing
is good and
well-tailored to
a marketing
audience
The
messages
are usually
well-
personalised
Other
52%
30%
46%
6% 6%
more
e
t
%
16%
Messaging is
too focused on
a technology rather
than business/
marketing
audience
Technology
companies don’t
seem to understand
the challenges
a marketer
faces
6. 6 Technology For Marketers: Are You Engaging Effectively?
In partnership with:
Expert Report
There are some guidelines that
technology companies can follow to
ensure their messages better meet
the needs of the marketers they
are targeting however, the most
frequently identified improvements
that could be made to technology
marketing were as follows:
■■ Provide clearer, simpler definitions
with no jargon
■■ Giving real case studies with
details of return on investment
■■ Using demonstrations, imagery or
video content more
■■ Focus on the user experience
and the business benefits of
the technology rather than the
technology itself
However, there is hope within this
negative outlook for technology
companies with 16 per cent of
respondents feeling that technology
marketing they have seen is good
and well-tailored to a marketing
audience, and a further 6 per
cent receiving messages that are
usually well-personalised. Perhaps
unsurprisingly, global technology
brands, with their large marketing
budgets and extensive departments,
are considered most effective in their
marketing – Apple and Google were
most frequently identified among the
respondents as particularly effective
in their marketing over the last twelve
months. However, two marketing
software companies, Hubspot and
Marketo also featured frequently as
examples to follow.
The proliferation of social media
channels both as a consumer and
business vehicle over the last few
years has evidently opened minds
more to marketing
communications through these
channels, which is good news for
technology companies. Email is
unsurprisingly the most popular
channel to receive technology
marketing communications with
89 per cent of respondents happy
to receive communications in this
way. However, 32 per cent said that
they were also happy to receive
communications through social
media, making it the second most
preferred channel.
Over which channels do you prefer to receive technology
marketing communications?
Phone
Email
Social media
Mobile channel
Direct mail
Online advertising
Other
using marketing
sform your marketing
3%
89%
32%
7%
23%
23%
3%
Over which channels
do you prefer to receive
technology marketing
communications?
7. 7 Technology For Marketers: Are You Engaging Effectively?
In partnership with:
Expert Report
Conclusion
There is no doubting that the
influence on technology purchasing
decisions of the CMO, and indeed
the entire marketing department,
has been and is still increasing
quickly. Experts have identified a
marked increase in the involvement
of marketing in the decision-making
process and even in some cases
seeing the marketing team bypass IT
to go direct to the supplier. Alongside
this growth in power, this research
also identifies a blurring of the lines
between marketing and technology
teams, with a more integrated
approach to purchasing decisions
increasingly being adopted.
In addition, these findings suggest
that this shift in power and influence
is driven by the fact that technology
is now a crucial component to
enhance marketing techniques and
implement successful campaigns
with clear return on investment.
Consumer expectations are now for
a personalised approach and as a
result, the main focus for marketers
is on understanding their customers
better. However, one thing is crystal
clear – marketers as a whole feel that
many technology companies fail to
market themselves effectively to a
non-technical audience.
Given the increased propensity for
marketers to control purchasing
decisions and even go to suppliers
directly, there are some key
considerations that technology
companies should take away here:
■■ They should focus on problems
which the marketers are currently
targeting
■■ They must clearly communicate
the marketing business benefits of
their products
■■ To ensure they connect with
marketers on a level they can
identify with, they should steer
clear of jargon, show case studies
and proof points and focus on
the user experience and business
benefits
There’s no denying that the gap
between marketing and technology
is now being bridged, but what
technology companies must now
try to address is the disconnect
between varying technologies
and the perception of importance.
Collaboration and communication
is a key priority for the marketing
department, but with more emphasis
being placed on the smooth running
of campaigns, and the subsequent
budgets and ROI attached to
these methods, there is a need to
broaden the appeal of technology to
marketers. As a result, technology
companies must ensure their
communications are better tailored
for the marketing audiences they
are trying to reach, and, if necessary
engage a third party that can advise
on the best approach.
MARKETEROPINION Trenton Moss, CEO, Founder Commercial Director at Webcredible
“Today’s connected
consumer or business
person is subjected to
so much noise, that
understanding is the
key to engagement.
Technology companies
must realise that no matter how technical
their product, they are still selling to people
and people make decisions on relationships –
marketing in this arena is now much more than
awareness and sales.
“Being part of a user experience agency, I
see how we help our customers by creating
insight-led personas and user journeys to
inform digital design and strategy. Technology
businesses should be taking the same approach
to designing their products as well as how
they choose to communicate with the market.
Understanding the drivers and needs of your
clients will help your products and business to
be more successful.
“With the growth of digital and cross-platform
targets the role of the marketer has changed
over the past decade so the marketing
department is increasingly influential in buying
decisions. This means that the people buying
technology may not be as knowledgeable about
the finer details as previously.
“Technology companies must therefore look to
communicate how their products fit in with the
marketers’ role, looking at the diverse business
challenges they face – it is important for
technology companies to educate and support
customers and prospects, a key ingredient to
long-term engagement.”
8. 8 Technology For Marketers: Are You Engaging Effectively?
In partnership with:
Expert Report
Research methodology
The research surveyed 229 marketers on their views on involvement in
technology buying decisions and the marketing messages of technology
companies, between January and March 2014.
About Ruder Finn
Ruder Finn is a leading independent communications agency with more
than 65 years’ experience. With offices in New York, San Francisco,
Washington DC, Boston, London, Paris, Basel, Beijing, Hong Kong,
Shanghai, Singapore and Guangzhou, the agency employs over 400 of
the leading public relations professionals in the world.
The London office serves as the European Headquarters, employing 40
consultants across 4 divisions: Corporate Technology, Healthcare,
Public Affairs and Digital.
Contact
Emma Sinden, Head of Corporate Technology, Ruder Finn
E: esinden@ruderfinn.co.uk
T: 020 7438 3050