How Modern Marketing Data Stack Can Help Marketers

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While accessing vast data is challenging for some, the real challenge lies in making sense of the data. A modern marketing data stack helps address these challenges by offering a robust architecture that is future-proof, scalable, and fine-tuned for analytics.

Data analytics is one of the cornerstones of growth for marketers. Disorganized systems often lead to data silos and prevent marketers from seeking a unified view and rendering meaningful insights. So, with growing data, having a streamlined data stack becomes essential.

As per a recent report by Hubspot, “2024 The State of Marketing Report,

State of Marketing

Brands must improve the quality of their marketing analytics by translating data towards achieving overall marketing efficiency, that too, cost-effectively. All this can be done by adopting a modern data stack (MDS).

A modern marketing data stack consists of tools and tech. They work together to gather, store, and analyze marketing data. It enables marketers to optimize their marketing campaigns and improve overall performance.

What are the Benefits of a Modern Marketing Data Stack? 

Data Storage Centralization

One of the advantages of a modern marketing data stack is centralized data storage. Traditionally, data was stored in multiple silos. This made it challenging to seek a complete nature of customer behavior and marketing performance.

MDS for marketing gathers data in a centralized database or data warehouse, making it easy to access and analyze data at one location. It gives a detailed view of their marketing activities, making identifying trends, patterns, and insights easy.

Better Marketing Automation

Modern marketing data stacks help automate marketing processes, saving time and resources. For example, email marketing and social media automation tools allow marketers to send the right messages to customers at the right time. While this enhances efficiency and consistency, automating marketing processes also boosts customer experience.

Enhanced Collaboration

MDS for marketing facilitates coordination between marketing teams and other departments. They can work together to improve customer experience and drive revenue by sharing insights. It also allows a more holistic marketing approach, where all the departments work together to reach common goals.

Improved Marketing Attribution and Customer Segmentation

Modern marketing data stacks help track customer journeys across different channels and devices. This makes determining which channels are most effective easy. It also helps marketers optimize their marketing mix and assign budgets more effectively.

Similarly, it allows marketers to segment customers and tailor their messages and campaigns to target specific groups, boosting engagement, loyalty, and revenue.

Advanced Analytics 

Modern marketing data stacks offer advanced analytics tools that help marketers analyze and identify patterns, trends, and insights. These tools help predict customer behavior and campaign performance and optimize marketing campaigns for better results.

Improved ROI

MDS for marketing offers various benefits, but the most significant one is improved ROI. By gathering and analyzing data in real-time, marketers can optimize their marketing campaigns and identify the top-performing campaigns.

Moreover, these stacks enable marketers to tailor their marketing messages based on customer behavior. This can improve customer engagement and loyalty. By optimizing their marketing campaigns, brands can increase their ROI and generate more revenue.

Data integration

In the past, marketers had to manually enter data or export it from different sources to combine it. While this was a time-consuming process, it was also prone to error.

With an MDS, data integration is automated, enabling marketers to integrate data from various sources, such as CRM systems and email automation platforms. This way, they can understand their customer’s behavior and preferences to make informed decisions.

What are the Challenges when Implementing a Modern Data Stack? 

Data Silos

As per a recent report by XPLM, “2023 Industry Study,”

  • 36% and 40% of the respondents have admitted that data silos have hindered or “somewhat” hindered cross-departmental data exchange, respectively.
  • 35% and 39% of the respondents say data silos have weakened or “somewhat” weakened their innovative strength/competitiveness, respectively.

One of the key challenges when implementing a modern marketing data stack is addressing data silos. Data silos can result in data being stored in different formats and different locations, making it hard to integrate and explore.

Solution:

To address data silos in a marketing data stack, it is essential to ensure that data is collected and stored uniformly. This involves ensuring that data is integrated and standardized across the company.

By doing so, marketers can more easily explore and analyze the data, leading to better insights and more effective campaigns. Also, a centralized data platform can help streamline data management and make it easier for marketers to access the data when needed.

Data Quality and Technical Expertise 

Bad data quality can lead to inaccurate analysis and decision-making. Marketers must have clear data quality standards and protocols. They must also implement measures to ensure data accuracy and completeness.

Also, the implementation of a modern marketing data stack requires expertise. This includes details of data storage, processing, and analysis tools.

Solution:

Marketers should establish clear data quality standards and protocols to address data quality issues. This can include regular data audits, data cleaning processes, and the implementation of data validation rules.

It’s also essential to ensure that data is accurate and complete by regularly monitoring and verifying it. Furthermore, marketers would need additional staff or must train the current staff to ensure successful implementation and management of the tech stack.

Privacy and Budget Constraints 

As per a recent report by Ontrust, “State of Data Privacy and Trust in Marketing 2024,”

  • 67% of the respondents reported that marketing and data policies are fully aligned, which is promising.
  • Most companies (63%) understand that customers are increasingly concerned about data protection and seek greater control.
  • Managing data consent and privacy leads to better-quality customer data.
  • It also means a greater ability to measure campaign effectiveness for 71% of marketers.

Gathering and storing customer data comes with privacy and security risks. At the same time, implementing an MDS for marketing can be costly, especially when using high-end tools. So, carefully evaluating budget constraints to determine which tools suit the needs is vital.

Solution:

One possible solution to address privacy and security is to implement strong data encryption and access controls. Conduct regular security audits and staff training to ensure their data handling practices are current and aligned with industry standards.

As for the cost of implementing an MDS for marketing, opt for a cost-effective solution that still offers robust features. It’s important to carefully evaluate the needs and goals before investing in any tool and to consider the long-term benefits and ROI.

How to Choose a Suitable MDS for Marketing?

Integration with Current Tools 

A report by Hubspot also states that-

  • 1 in 4 marketers say their marketing data is fully integrated with their tools.
  • 59% of marketers say the tools they use are interconnected.

When choosing an MDS, marketers must consider how well it integrates with the current tools. For instance, if marketers use Microsoft as the CRM system, the data stack must integrate with Microsoft.

Scalability and Ease of Use 

With the growing business, data also grows. So, choosing an MDS that can scale with the business and handle vast data is essential. Moreover, marketing teams will use the MDS regularly, so choose a simple tool with a user interface.

Cost and Customization

MDS’ costs can vary greatly, so choosing a tool that fits the budget is essential. However, remember that cheaper options may not have all the features, while costlier options may have unneeded features.

Different marketing teams have different needs and goals. So, choose an MDS that can be easily tailored to meet specific needs.

Security, Support, and Training

When handling sensitive customer data, ensuring data security becomes of utmost importance. Thus, choosing an MDS that prioritizes security and has tight measures to protect the data is crucial.

Moreover, selecting an MDS that offers extensive support and training is equally important. This ensures the marketing team can effectively use the tools and tech to achieve the marketing goals.

Conclusion

A modern marketing data stack is crucial for marketers to efficiently gather, store, and analyze marketing data. By implementing it, brands can enhance collaboration, improve marketing automation, and gain insights into customer behavior and preferences. But, addressing data silos remains a significant challenge in implementing a modern marketing data stack.

Nonetheless, the benefits of a modern marketing data stack, such as advanced analytics, data integration, and improved ROI, make it a worthwhile investment for any brand looking to optimize its marketing performance and boost ROI.

Apoorva Kasam
Apoorva Kasam
Apoorva Kasam is a Global News Correspondent with OnDot Media. She has done her master's in Bioinformatics and has 18 months of experience in clinical and preclinical data management. She is a content-writing enthusiast, and this is her first stint writing articles on business technology. She specializes in marketing technology. Her ideal and digestible writing style displays the current trends, efficiencies, challenges, and relevant mitigation strategies businesses can look forward to. She is looking forward to exploring more technology insights in-depth.

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