Marketing Innovation vs. Marketing Technology
A lot of people think Innovation = Technology. In that, if we're going to innovate within our marketing strategy, we need a new technology stack.
But that's not necessarily true.
First of all, let's start with a definition of Innovation. I really like this definition from Innolytics.net:
Innovation is a process by which a domain, a product, or a service is renewed and brought up to date by applying new processes, introducing new techniques, or establishing successful ideas to create new value. The creation of value is a defining characteristic of innovation.
Hmm...see that part about "the creation of value"?
Also...notice how the word "technology" isn't even included?
Now, of course, you can find lots of definitions that DO include technology, so that's not so much the point. But it IS interesting to note that this is about a PROCESS, and an on-going process at that; NOT about the purchase of technology 💡
So today, let's explore the SPLIT between Marketing Innovation and Marketing Technology...mostly to ensure we're NOT assuming they are the SAME thing.
Marketing Innovation - Creating New Value
Using the definition above, Marketing Innovation can be defined as:
A process by which a marketing system is renewed and brought up to date by applying new processes, introducing new techniques, or establishing successful ideas to create new value.
Let's start at the end, with the concept of NEW VALUE.
What's New Value from a Marketing Perspective?
Well, if we explore classic Marketing KPI's, we might be looking at something like:
Higher Clickthrough Rates / Conversion Rates / Engagement Rates
Lower Customer Acquisition Cost / Bounce Rates / Cost Per Lead
Greater Return on Investment / Customer Lifetime Value / Higher NPS
Personally, I love to look at Active Conversations.
So, what does it look like to create New Value when it comes to Active Conversations?
Simple...MORE Active Conversations.
If we know our innovation GOAL is to create more Active Conversations, we can measure whether or not we have more Active Conversations and then KEEP innovating until we find a way where that becomes true.
Marketing Innovation - Trying NEW Things
Then taking it one step back in the definition, we come to "applying new processes / introducing new techniques".
Yeah, notice how it says NEW? That doesn't mean using the same techniques over and over again, even when they don't work any more (which companies don't want to admit out loud, but are TOTALLY doing).
Now, this doesn't mean that you have to throw away everything you have. I mean, if you really LOVE Tradeshows, then you can keep going to Tradeshows. But there ARE opportunities to innovation HOW you do Tradeshows. After all, maybe there's something you learned from a recent retail experience that you could bring to your booth experience? Or maybe there's something your engineers do that could influence connections on an Exhibit floor?
The point is to think OUTSIDE the box. And test things.
Some will work. Some won't. Which is the nature of true innovation.
Marketing Innovation - Process of Renewal
Innovation, as mentioned before, isn't about reaching an endpoint. It's about a mindset of staying up-to-date, that influences a PROCESS of staying up to date.
And the process is no good without the mindset, because people won't work it.
I think a lot of companies have created amazing solutions by being innovative a the beginning. At the creation stage. But that doesn't mean a culture of innovation or a process for innovation are in place.
And if you're NOT seeing new ideas from your team in a consistent way, ideas that can make things better (whether that's the product/service you sell OR just how to improve their jobs), you DON'T have a culture of innovation (even if "innovation" is a value on your wall).
This is a PEOPLE thing.
People execute processes. People think new things. People create value. This is all a people exercise...which is WHY tech leaves you in the lurch when it comes to true innovation.
Marketing Tech - Creating Value?
Now, let's look at this definition assuming we're JUST assuming the tech stack will create the impact.
So, if we're looking at some standard pieces of Marketing Tech - I'm thinking along the lines of CRM's, Social Media Management Tools, Email Automation, AI, Chatbots, Content Creation Platforms (including video), Omni-Channel Communication Platforms, I could go on and on...
Let's simplify it again and choose one...how about Email Automation, since most companies seem to have that these days.
So, we get the platform. It doesn't immediately create value because we need to DO something with it before it can do that.
So, I create a Welcome Email funnel. (That's where you all started, right?)
And because it's up to the system to generate the value, I'll use a pre-fab template (that wasn't actually created to tell my story).
Now I get to send out a bunch of emails to all my new sign-ups!
Oh, but wait, how do I get people to want to sign up?
That's not the platform's job though.
Hmm, so, where does that value come in?
Oh, it comes from the PEOPLE thinking about how to provide value to their unique customers?
Sure the tech stack can SUPPORT that, but without the input, the output doesn't exist.
Marketing Tech - New Things?
Sure, when you purchase a new did of technology it might be new to YOU, but it's not something that's new to everyone.
Looking at email marketing again (sorry to pick on you, it can be done right, but that comes down to the execution)...
People have been receiving automated emails since, I don't know, the late 90's?
And if you're using the pre-fab templates in any given system...
Don't you think other people are using them too?
How many times have you scrolled past or deleted an email without reading it? Now compare that to how many times you've stopped and read an email from a company you have no relationship with?
Yeah, the data is there. In your own experience.
By nature, it's NOT a new thing.
Now, you CAN use it in a new way. But NOT if you're using a pre-defined template or pre-defined funnel. It might make it seem easy, but what's actually happening is you're actively putting yourself into a sameness box which doesn't allow you to stand out. And THAT'S a Marketing No-No.
Marketing Tech - Process of Renewal?
So, now we have our email marketing platform. We have our welcome funnel.
And we just let it run.
We have industry average open rates. We have industry average bounce rates. We have industry average clickthrough rates.
And we just let it run.
Does this sound like a process of renewal to you?
It doesn't to me.
Technology loves to promote the "set it and forget it" mindset.
That we need to try ONCE and then we never need to try again.
But that's NOT an innovation mindset.
That's a minimum viable, check-the-marketing-box activity.
Which is why people get industry average results.
We've been programmed to think this is fine.
Average is fine.
But "fine" never filled anyone's funnel.
Marketing Innovation + Marketing Tech
It is possible to bring these two things together to create a super strong marketing effort, but Marketing Tech can NOT do it alone.
If your current marketing funnel isn't working, a piece of technology isn't going to solve the problem. No matter what the sales person tells you.
It might actually make the problem WORSE.
It all comes down to how your team is USING the technology. Which comes from the Marketing Innovation side of the equation.
Which is only created through INTENTION.
Intention, Time and Energy focused on Innovative Thinking is what creates innovation. Which is what allows you to use your tech stack in a meaningful way.
So, have you created the intention to truly innovate?
Are you creating Time for innovation?
Are you putting Energy into innovation?
If you're not ready to do THAT, you can expect your Marketing Tech to just be another cost in your budget that doesn't generate ROI.
If you're ready for some TRUE Marketing Innovation, let's chat :)
