As businesses face increasing pressure to optimize expenses and find ways to do more with less, their tech stacks have come under scrutiny. Marketing technology (martech) tools, which have grown from a small portion of
the budget to a significant piece of the pie in the last decade, are often the first to go under the microscope. But simply cutting back on tech spending isn't enough – businesses need to get more out of their current tech stack by consolidating or making more strategic use of existing tools.
Why all the fuss about optimizing martech stacks now? The answer is simple – many businesses are
wasting a significant portion of their budgets on redundant spending and underutilized capabilities. In fact, according to a recent study, the average company is wasting 35% of their budget on cloud and SaaS tools. So, what are the reasons behind this waste, and how can businesses get more value out of their tech stacks?
One reason for the waste is that businesses often don't know what they
don't know. Purchasing a tool to solve a specific problem at a certain point may lead to unintentional overlap and redundancy. Without expertise in the company's tech stack, employees may not know how to use existing tools to their fullest potential or how to replace apps they no longer need. To keep up with expanding tech stack capabilities, employees must continually learn about product updates, beta launches, and more.
For example, in early March, HubSpot announced a new tool that leverages AI functionality within their platform, useful for portal research, market research, writing copy, and more. By bringing together additional content creation and research tools, HubSpot is providing more value to their customers and reducing the need for redundant services.
Another
reason for waste is the perception that upgrading to a more functional version of a tool is too expensive. However, businesses should explore options and negotiate better deals with their vendors. Upgrading may pay for itself and then some if it leads to significant time savings and growth opportunities. For example, upgrading to the sales enterprise version of HubSpot can standardize information for the sales team and improve communication with leads who may have ghosted or gone
silent.
Disorganized buying processes and "grandfathered-in" systems can also lead to waste. It's easy to lose track of all the systems a business is paying for, especially without a consistent, organized process for buying new software. New leaders may not know what tools are being used or why, leading to unnecessary costs.
So, how can businesses get more value out of their tech stacks? Here are some tips:
Negotiate software contracts: Many software companies are willing to negotiate to keep customers and expand their usage within their platform. Consider working with a partner to help navigate the negotiation process and ensure the best deal
possible.
Invest in team training: Newer team members may not have the same grasp of a system that previous leaders did, so training and development can help. Individualized training may also uncover gaps the business wasn't aware of.
Consolidate tools: Larger platforms are buying
smaller ones to expand their offerings quickly. Many larger tools now offer functionality that does an "okay" job of other things once relegated to specific software. While not always as sophisticated as leading competitors, a unified system adds convenience and cost savings.
Cut seats, not just tools: Many SaaS companies charge per "seat" or user, so costs increase with each additional
employee on it – even if they're not using it. Look through platforms to see where the number of users can be downsized.
Bring in external resources: Consultants or external resources can help reduce in-house hiring and training costs for marketing and sales software. External experts often have fresh perspectives and can upskill existing teams, ensuring that businesses are continually
leveraging their investments efficiently.
In addition to the tips above, businesses can also benefit from regular audits of their tech stack to identify redundancies, overlaps, and underutilized tools. This can be done in-house or with the help of a third-party consultant. Regular audits can help businesses stay up-to-date with the latest features and capabilities of their tools and identify
areas where consolidation or upgrades can lead to cost savings and increased productivity.
It's also essential for businesses to have a clear understanding of their goals and objectives before investing in new martech tools. Investing in the latest tool without a clear strategy can lead to wasted resources and unnecessary costs. By defining specific objectives and evaluating the current tech
stack, businesses can identify gaps and prioritize investments that align with their goals.
Moreover, businesses should also prioritize security and data privacy when evaluating their tech stack. With increasing cybersecurity threats and data privacy regulations, it's crucial for businesses to invest in tools that protect their data and comply with regulations. Investing in secure and
compliant tools can also lead to cost savings in the long run by mitigating the risks associated with data breaches and non-compliance.