Over three quarters (77%) of decision-maker level marketers in the UK have developed or are developing homemade technologies, according to new research.
The study, from Mailjet, indicates that despite its popularity, more than half (52%) of marketers admit that working with homemade solutions is vastly more time consuming than outsourcing to a third party – losing a third of the week to usage. As new processes and tools are implemented, there is also a greater need for marketers to identify gaps in knowledge, with 38% admitting they are still looking for the right skills within the team.
The research also found:
· The most commonly used homebuilt technologies in the UK are advertising tools (77%), team and project management tools (76%) and email marketing solutions (73%)
· Trust is fundamental regardless of where technology comes from, whilst 51% of marketers highlighted data privacy and security as a threat for out-sourcing, it was also cited as the second biggest risk to homebuilt tools as well.
The study spoke to 600 marketing decision-makers across the UK, US and France, unveiling the key deciding factors that marketing and IT professionals consider when choosing to build in-house or procure a third-party solution.
Among the most commonly used homebuilt technologies in the UK are advertising tools (77%), team and project management tools (76%) and email marketing solutions (73%).
Cost versus productivity
When considering whether to use a homebuilt or a third-party solution, over a quarter of UK marketers (27%) said cost was perceived to be the biggest risk to using third-party technology, closely followed by data security (21%) and reliability (10%).
However, over half (52%) of respondents working with homemade marketing tools expressed that it was more time consuming than using third-party technology they’d used before – with an average of a third of marketers’ time lost to using the technology – suggesting that while it might be perceived to be cheaper, homebuilt solutions can also be a more unproductive option.
The data also points to a talent shortage to use and maintain infrastructure, as 38% of respondents admit they are still looking for the right skills within the team. With new processes and tools being applied to the business, marketing decision-makers have to identify the gaps in knowledge and find the right talent to set themselves up for success.
Judy Boniface-Chang, CMO, Mailjet commented, “Deciding whether or not to trust your homebuilt solution to manage your marketing capabilities, or procure a third-party provider to reduce the workload on the team, are key considerations. Finding the right technology partner with the necessary expertise and ongoing consulting capabilities can often reduce the financial and resource cost of an already stretched team.”
Data’s deciding role
The research also revealed concerns regarding data privacy and security. Whilst 51% of marketers said data security was a barrier to using third-party solutions, it was also cited as the second biggest risk to homebuilt tools, second only to cost. Marketers are wary of outsourcing functions to avoid potential data issues; however, companies are not completely trusting of their in-built technology.
Given that respondents are building their own infrastructure, such as Marketing Email, User Data & Analytics and Customer Relationship Management, which all store high volumes of data, this supports the need for companies to make data security a priority within their organisations, or work with third-party providers that can offer the highest levels of privacy and security for their data.
Judy Boniface-Chang concluded, “Maintaining an infrastructure that protects businesses’ data properly can be a full time job. Not to mention keeping up with the ever evolving laws and practices that have to be monitored and followed diligently. Data privacy and security has to be a top priority for businesses in a post GDPR world, but also the safe storage of confidential customer information.”
“Choosing the right external provider that can maintain state of the art security and privacy practices will also add an additional level of data protection and reassurance for companies that may not have the right skills and resources to provide the highest standards in-house”.
Mailjet surveyed 600 marketing decision makers across the UK, France and US in September 2019 to identify the barriers businesses face when implementing homemade versus procured technology solution strategy with Market Research Company Savanta.