What is Marketing Technology? Its benefits for eCommerce Businesses?Reading Time: 3 minutes
Marketing technologies have become a must for every eCommerce business now.
As per the recent stats by Gartner, technology would remain the largest proportion of marketing budgets (26.2%), compared to media (24.8%), in-house labor (24.5%), and agencies (23.7%). All because of the increasing cost of customer acquisition and retention.
With the changing consumer buying behavior during the pandemic, it has become difficult for online retailers to understand their customers. Their spending has decreased, and so are their priorities. And, to keep pace with the speed they’re getting changed, only marketing technologies seem to be a savior.
What is a Marketing Technology?
Marketing Technology, also known as MarTech, is defined as the list of software and tools that simplify the way marketing is implemented to achieve the marketing goals or objectives.
Ecommerce brands such as Nike, Zulily, Spotify, Netflix, Myntra, and more have already invested in marketing technologies. Why?
You would want to learn what benefits these marketing technologies provide due to which almost all medium to large-sized eCommerce businesses has started investing in the same. Here they’re –
7 Benefits of Marketing Technologies in eCommerce
1. Know customers better
Knowing your customers better is one of the biggest benefits of marketing technologies.
Most marketing technologies help eCommerce brands identify the right potential buyers.
Until the time brands utilized such technologies, it was challenging to understand the real buyers, who are most likely to buy, whom to target, how to target, their preferences, expectations, and more.
With marketing technologies in place, brands can segment and target their audience better to bring conversions faster.
2. Fulfill buyers’ expectations
42% of the US internet users find comfort in nonhuman customer service interactions. When you know who your target audience are and what they expect from you, you can take the relevant measures to fulfill them.
Check out what B2B buyers expect from B2B eCommerce businesses- (Our video from Instagram)
Similarly, marketing technologies help you identify your buyers’ expectations and even fulfill them the right way at the right time.
3. Win consumer trust
Around 80% of Netflix subscribers trust and watch the videos recommended by this video streaming platform, says Todd Yellin, Netflix’s vice president of product innovation.
Trust is not easy to grab in this highly competitive era where every business strives to deliver the best of the customer experience.
With technologies bringing brilliant data, winning customer trust has become possible.
4. Serve customers better
Whenever businesses plan to invest in anything, they look at increasing sales/revenue, boosting productivity, and improving brand visibility.
Ecommerce businesses can increase their sales if they can improve their customers’ pre-buying, buying, and post-buying experience. And, marketing technologies bring data, speed, and productivity to do the same.
If you look at the following data, most people (of different age) are comfortable with nonhuman customer service interactions.
So, investing in marketing technologies becomes a must here.
After all, the sole purpose of using marketing technologies is to enhance customer service and experience.
5. Increase sales
One of the direct benefits of improving customer experience is boosting sales. Now you know that marketing technologies help you identify your real buyers, their expectations, and more.
This means you know how to market your products, on which platforms, and with what kind of message. That’s how you can nail your marketing strategy, achieve your goals, and boost sales.
6. Boost ROI on advertising
Improving ROI on advertising is one of the top concerns advertisers have while running paid campaigns.
When asked the 35 global advertising experts how one can improve the ROI on remarketing advertising campaigns, most of them shared tips on better audience targeting.
So, if you target the right audience with the right messaging, you experience the highest ROI. And that’s what a few marketing technologies are best at.
7. Improve in cost per acquisition (CPA)
Any eCommerce business owner expects to improve their cost per acquisition, one of the top ways to measure eCommerce success, to boost profits.
An improved CPA means customers trust your brand, and hence, you don’t need to invest too much to acquire customers
Marketing technologies help you take every step towards delivering a better customer experience and build a reputation in the market. Remember, when it’s the Apple brand, it sells for itself.
Invest in Marketing Technologies Now to Improve Consumer Experiences
Not every marketing technology is meant for every eCommerce business. Based on your business and future goals, you need to select the right eCommerce marketing technologies.
Either you can talk to your eCommerce marketing consultants before choosing because marketing technologies come with a considerable cost and it’s necessary to evaluate the estimated ROI before investing in the same.