One of the perennial criticisms of the martech landscape is that “most of these solutions all do the exact same issue.” Ship an e-mail. Render a internet webpage. Assess some info. This criticism has grown louder in proportion to the growth of the landscape.
With an ever more exasperated tone, persons talk to, for illustration, “What’s the point of hundreds of CRMs or advertising and marketing automation equipment? They’re all just storing the identical purchaser fields and mail merging them into campaigns.”
I have normally had two opposite responses to that accusation.
To start with, I get a minimal defensive and say, “Hey, there are real innovations that happen in martech all the time. For instance, you just can’t search at a product like DALL-E 2, that magically generates photos from any description you can specific in words, and not take pleasure in that, wow, this genuinely is a little something new below the sun.”
But not all innovations in martech are that outstanding. Coming up with the 1st few reverse ETL equipment to very easily (re)hydrate data into your app stack from your details warehouses was super practical. But it wasn’t worthy of a headline in The New York Occasions.
So, my fallback reaction is to admit, “Yeah, I guess you’re appropriate. All email marketing equipment kinda do the exact same point. But, hey, on the vibrant facet, that form of commoditized level of competition among suppliers must be terrific for you as a marketer. Guidelines of economics: it should push down your cost.”
That often mollified these critics, who mainly just wanted me to acquiesce to their intestine-amount belief that the martech landscape was all sound and fury signifying practically nothing. But it didn’t sit properly with me. It didn’t appear to explain the sheer volume of variations of goods in martech types nor the huge total of mental money that saved staying invested in them.
3-Tier Architectures: Details, Decisions, Supply
Let us begin by recognizing that most software follows a pattern of three tiers or layers:
- Data — at the base: data stored in a database
- Presentation — at the leading: what appears on the display screen to people
- Enterprise Logic — in the middle: decisions and move concerning the other two levels
David Raab, the inventor of the CDP category, mapped these to three levels of knowledge, decisions, and shipping. (I wrote an article previous yr riffing on that product referred to as Info, Decisioning, Shipping and delivery & Style to distinguish CDPs from cloud details warehouses, CDWs.)
But these a few layers are not equal in scale or complexity.
The facts layer appears intuitive as the most straightforward layer. If you’re speaking about purchaser documents, this kind of as in CRM, there are typically a finite variety of fields becoming saved. And the most vital fields are often the similar: title, firm, title, email, phone amount, handle, etcetera.
Of class, all client facts isn’t totally that homogenized. Diverse corporations acquire diverse information about buys, purchaser behaviors, demographic, firmographics, technographics, and so on. There can be relational information connecting those shoppers with campaigns, plan, and companions.
Having said that, the amount and dispersion of variation is modest. In other words, the information layer is rather vulnerable to commoditization.
What about the presentation or shipping layer? Most individuals — specially UX gurus — would say there’s a ton more scale and complexity right here. It’s everything that anyone sees or hears!
Intuitively, there is huge variation in presentation. Some interfaces are beautiful other folks are unpleasant. Some exhibit you accurately what you want, wherever you want it many others are a sizzling mess that your eyes painfully bushwhack by to uncover the 1 thing you were basically on the lookout for.
So presentation is an location of differentiation, not commoditization, proper?
Forgive me for receiving a bit philosophical below, but have faith in me, there is a significant stage to it.
The specialized layer of presentation is truly rather constrained. There are only so numerous pixels, of so many hues, that you can set on a display. I’m not chatting about what individuals pixels symbolize — that’s anything distinctive, which we’ll get to in a instant. The uncooked pixels and their popular designs veer in the direction of commodities.
For that issue, if we expand past just “presentation” to address other facets of “delivery” — how that presentation truly comes in entrance of somebody — that’s fairly commoditized too. The HTTPS protocol for world wide web webpages. The SMTP protocol for e mail. The SMPP protocol for textual content messages. These are not just commodities, they are specifications.
Now prior to designers start sending me anatomically unflattering wireframes of in which I can adhere this submit, enable me speedily abide by up that style and UX are incredibly complicated and crucial aspects of products and solutions and ordeals that offer remarkable possibility for differentiation. (Appear, I even place it in bold!)
But the magic and mastery of style and UX is not in the shipping. It is in the choices about what to deliver — when, in which, how, to whom.
It is the decisions in UX that produce differentiation.
Conclusions Are the Wellspring of Differentiation
Most of application is decisioning. All those recommendations managing as a result of processors choosing if this, then that, millions of occasions for every moment. The vast majority of code in apps is “business logic”, a broad ocean concerning the seabed of common facts and the somewhat thin waves of presentation sent on the surface area.
The scale of the choices layer in software is massive. I’ve drawn it as 80%, relative to 10% for information and 10% for shipping, in my diagram. But it’s almost certainly nearer to 98% vs. 1% and 1% in most purposes.
It is also elaborate. And I indicate “complex” in the scientific feeling of lots of interacting areas — and not just isolated within just that 1 program alone. The selections just one program application would make are impacted by the decisions other linked application apps make. In a stack of dozens of applications, hundreds of data sources, and thousands or millions of consumers, all feeding unique inputs into a program’s conclusion-producing, you have an astronomical set of possibilities.
It is in this elaborate surroundings wherever various software program apps bring to bear distinct algorithms, frameworks, workflows, and products to make choices in distinctive approaches.
There are a few critical points about this choices layer:
- It is the most significant part of what composes a application app.
- Collectively, there is a close to infinite quantity of unique feasible selections.
- These conclusions can have considerable, product impression on business enterprise results.
The previous point should be self-apparent. Enterprises compete on the choices they make. If you don’t believe you can make unique — much better — selections than your competition, you ought to most likely consider a occupation as a hermetic monk. (Ironically, a incredibly differentiated choice to make.)
The selections layer in program is a massive canvas for differentiation. And with its likely influence on outcomes, it is a huge canvas for significant differentiation.
Nearly no two software applications — at the very least apps of any considerable sizing — are the identical.
Martech: Commoditized and Differentiated
When you glance at the superior-level types of the martech landscape, these kinds of as a huge bucket for CRM, with hundreds of logos, it’s truthful to say that, sure, in some wide feeling, all people applications are the exact. They are all for client romance management.
You could also rightfully say that the knowledge stored in those people CRMs are frequently really related much too. As are the shipping channels in which they serve up presentation to staff again-stage and prospects front-stage. By means of those lenses, they are commoditized products and solutions.
But the gigantic mass of decisions in every single of these distinct CRMs varies tremendously.
Expend some time working with HubSpot (disclosure: in which I do the job), Microsoft Dynamics, and Salesforce, and you will appreciate just how distinct these CRMs are. Definitely for your experience as a person. But from the myriad of things that lead to differentiated expertise for you in those people CRMs springs a fount of diverse company selections and purchaser interactions.
Is 1 certainly greater than the many others? (I’ll resist my particular bias in answering that.) Given the large adoption of all three, you have to conclude that the solution to that dilemma is various for different companies.
(Yes, it’s a meta-determination to make your mind up which decisions bundled in a CRM system you prefer, to support you make improved choices for your clients, to then assist them make greater choices in their corporations, and so on. Turtles all the way down? Nope, it is selections all the way down.)
And it’s not just individuals a few CRMs. It is the hundreds of some others. Every single a single made by different people today bringing diverse tips, philosophies, frameworks, and implementation choices to the substantial variety of choices embedded in their product. All of which ripple into discrepancies for how your small business will basically function in zillions of very small ways… but which mixture into not-so-little variances.
Much more colloquially, this is identified as opinionated software program.
Now, not all individuals discrepancies will be superior types. It is a Darwinian market place for guaranteed. Some CRM platforms will thrive many others will go extinct. New CRM startups will sprout with new variants. Above time, there may be far more or less. But there’s house for distinctive CRMs with distinct choice levels to legitimately exist, as very long as each just one has a buyer foundation — even if, or it’s possible specially if, it’s a specialized niche — who desire the special choices of that seller.
This dynamic is present throughout all groups in martech.
Incremental Innovation Is Nevertheless Innovation
Now, are the distinctions in the selections layer involving two martech goods in the very same category breakthrough, leap-frogging improvements?
Admittedly, most of the time, no. They are more frequently “incremental innovation” — acquiring much better techniques to do anything, not so significantly building entirely new somethings. But it would be a mistake to disdain, “Pffft, which is only incremental innovation.”
Incremental innovation is even now innovation. It can meaningfully differentiate just one vendor from an additional and produce fantastic added benefits to their buyers.
This why martech has 10,000 merchandise that all kinda do the exact same thing — but not really.