SMBs Struggle with Wasted Martech Investments: Report Reveals Causes & Consequences

Recent findings from Capterra’s report have spotlighted the pervasive issue of redundant marketing technology (martech) investments among small and medium-sized businesses (SMBs). The alarming revelation that such companies are spending approximately $43,500 per annum on seldom-used martech has industry experts demanding urgent attention to prevent further losses.

Redundant martech has snowballed into a complex problem responsible for financial waste, degraded performance, and decreased focus in marketing activities. Multiple tools chasing diverse goals have distorted marketers’ efforts, ultimately harming the efficiency and efficacy of their campaigns.

To further understand the extent of the situation, the report highlights a domino effect impacting marketers in various ways:

1. A staggering 46% spend excessive time learning new technologies.
2. 41% reveal inefficiencies due to time-consuming app-switching.
3. Workflow confusion proliferates, with 40% admitting it stems from unused features.
4. Access issues plague 35%, as they encounter difficulties with credentials or user levels.

The result? A worrying 63% of marketers surveyed proclaim that redundant tech either has no impact or, worse, actively decreases their company’s technology ROI.

With such startling figures, it’s crucial to examine the root causes of redundancy:

1. Employee preferences dictate 51% of decisions, often leading to irregular adoptions.
2. Pursuit of innovation accounts for 47% of software additions.
3. A desire for flexible work processes drives 44% of choices.
4. Keeping pace with competitors tips the scale for 39% of SMBs.

Adding and subtracting software has become an intricate tug-of-war for SMBs, with 34% of marketers reporting limited employee ability to adopt new software without approval. In contrast, 45% state that any employee can request IT departments to add new apps.

While adding software to the list can be relatively simple, subtracting proves more challenging. A surprising 84% of businesses conduct regular software audits, but face hurdles when attempting to remove unwanted software. Deliberations with other business units and agreement from internal stakeholders are necessary for 50% and 39% of cases, respectively. Furthermore, a hefty 66% claim it takes anywhere from four months to a full year to fully remove an application, and merely 26% follow through with cancellation of services and payments to software providers.

This jet stream of redundant martech in SMBs has led to considerable negative consequences. Solutions do exist, but implementing them requires initiative and discipline from companies. Instituting strict guidelines and approval processes for software adoption, identifying and discontinuing underutilized apps, and fostering a coordinated approach to digital marketing efforts can all mitigate the risk of wasted martech investments.

In conclusion, the sobering findings from Capterra’s report demand the attention of SMBs to remedy the costly problem of redundant martech. By recognizing the causes, understanding the implications, and employing preventive measures, these businesses can optimize their technology ROI and enhance overall marketing performance.