Martech Trends 2021: 4 Key Shifts to Watch

A Period of Significant Expansion is Approaching

A substantial surge in growth is anticipated – an economic upswing unlike any seen before, expected to become fully realized later this year. This will bring with it considerable investments, company acquisitions, and an increase in customer bases.

However, a majority of technology firms and startups are currently not sufficiently equipped to take full advantage of the opportunities that are on the horizon.

Shifts in Tech Marketing for 2021

Here's an overview of how marketing within the technology sector will evolve – and the crucial information you need to effectively reach a wider audience and accelerate expansion throughout 2021.

The Importance of Differentiation

Standing out from the competition will be more critical than ever. Gaining visibility is already challenging, and it’s poised to become significantly harder as new businesses launch and investment funds and marketing budgets increase during the latter part of the year.

Most large organizations are returning budgets to pre-pandemic levels, though these investments will largely be postponed until the second half of the year.

This timing will create a more competitive landscape, potentially overshadowing any companies lacking a clear point of distinction.

Focusing on the Human Element

It’s vital for tech companies to remember the importance of the human aspect within the ecosystem. Technology has its limits, and it alone won't guarantee success in a competitive environment.

Marketing fundamentally revolves around people – your customers, your team, your partners, your investors, and the wider community.

Building a Strong Foundation

A deep understanding of your key stakeholders and how to leverage their support to establish a robust foundation is essential for achieving exponential growth.

Embracing Video and Experimentation

From a tactical perspective, the most successful tech companies will prioritize video and experimentation within their marketing strategies.

These two elements will be key to propelling them ahead of their competitors.

The Consequences of Inaction

Disregarding these forecasts, which are supported by concrete data, could prove damaging and even catastrophic.

Prepare for a year of accelerated growth opportunities in tech marketing – 2021 promises to be a transformative year.

The Necessity of Distinctiveness

The surge in technology companies and startups vying for prominence continues unabated. However, a significant number of these entities struggle to differentiate themselves, lacking a clear and persuasive value proposition. A review of websites belonging to both established and emerging tech firms reveals a commonality of jargon and abstract imagery, resulting in a homogenized landscape.

Success within the tech industry hinges on embracing a foundational principle of effective marketing: positioning.

The concept of positioning was popularized in the 1980s by Al Ries and Jack Trout, who authored “Positioning: The Battle For Your Mind.” Their work outlined a proven strategy for achieving visibility in a competitive market. As market saturation increases, businesses will increasingly recognize the importance of refining their positioning and concentrating their efforts to cut through the clutter.

Beyond Simple Comparisons

To gain attention and momentum, companies must define a position that is uniquely theirs. The practice of combining existing concepts – such as “Netflix for coding tutorials” – does not constitute genuine positioning; it represents a superficial and uninspired approach.

Identifying the ideal customer is paramount, rather than simply considering potential users. Concentrating on a specific market segment, seemingly counterintuitive, is often the most effective path to capturing a broader audience.

Stripe: A Case Study in Effective Positioning

Stripe serves as a prime example of successful positioning coupled with exceptional execution. While numerous payment processors already existed, Stripe strategically targeted a specific segment: developers facing the complexities of payment implementation.

By tailoring their communication to this group, Stripe established itself as “payments for developers.” Developers burdened with the challenging task of integrating payment processing quickly recognized Stripe as the most straightforward, efficient, and superior solution. This strategic decision played a pivotal role in Stripe’s growth into a $95 billion company and a leading U.S. startup.

Positioning extends beyond mere messaging; it necessitates delivering on the promised value. Stripe not only provided a streamlined, user-friendly experience for developers but also offered comprehensive documentation, detailed tutorials, and exceptional customer support.

Even today, Stripe’s customer support remains among the best globally, characterized by its highly skilled and technically proficient staff.

The Importance of Uniqueness

Despite overall market expansion, many companies will fail this year due to their inability to identify and secure a sustainable position within the marketplace. Conversely, those that can establish themselves as distinct, unique, and relevant are poised for substantial growth.

The Core of Marketing Lies in Human Connection, Not Just Technology

A significant number of businesses, including startups, are not hindered by technological limitations, but rather by deficiencies in their marketing strategies. Throughout the coming year, a growing number of organizations will recognize the critical importance of cultivating and strengthening connections with their target audiences.

This shift will be evident in three primary areas:

• An increased focus on recruiting personnel for roles centered around partnerships and business development.
• Strategic investments in influencers and advocates to stimulate expansion.
• A resurgence of in-person events as a means of generating visibility.

The establishment of robust strategic partnerships is vital for effective marketing. Without the appropriate network of contacts, alliances, or access points, companies will find it challenging to achieve substantial progress. Consequently, we anticipate a greater emphasis on developing roles specifically designed to forge and nurture these crucial partnerships, thereby unlocking access to new audiences, valuable resources, and expanding markets.

Influencers and advocates represent another valuable form of partnership that many organizations have previously underestimated. Successfully engaging and utilizing community members who possess extensive reach and established reputations will significantly accelerate customer acquisition and unlock further opportunities.

Gumroad, a platform enabling creators to monetize their content, exemplifies this approach. In late 2020, they introduced Gumroad University, a central resource offering case studies, materials, and interviews with successful users. These interviews frequently feature customers who are well-known personalities with substantial followings.

The enhanced credibility and broadened reach that Gumroad gains by showcasing these influencers and advocates is substantial, providing a key competitive advantage within a highly competitive market. We can expect to see more companies adopting similar strategies, leveraging influencers and customer advocates to forge mutually beneficial partnerships and drive cost-effective growth.

Perhaps most significantly, the global distribution of vaccines and the easing of restrictions within the U.S. will facilitate the return of in-person events. Conferences, workshops, and trade shows will once again become a prominent component of the marketing landscape. Organizations that have not yet hosted an in-person event will be eager to do so, while experienced event organizers will strive to elevate their offerings.

Prioritizing the maximization of engagement and conversion at these in-person events, alongside thorough contingency planning, will be a central focus throughout the year.

The Crucial Role of Experimentation in Deciphering Customer Actions

Last year brought unforeseen events, and further instability and unexpected developments are anticipated. As global economies recover and expand, a return to previous conditions is improbable. Leading technology organizations recognize that a dependable strategy for confronting and adapting to ambiguity lies in conducting experiments.

The principles of lean methodologies, agile development, and test-driven development are well-established within the technology sector, making experimentation and testing commonplace. The ability to confirm and validate choices prior to substantial commitments or investments yields a significant competitive benefit. However, not all organizations have integrated a “test and learn” methodology into their marketing strategies.

New Relic stands out as a pioneer in adopting a systematic approach to experimentation. Each visit to their online platform often reveals a different layout, reflecting their continuous testing of new designs and communication strategies regarding their platform’s value and applications. As uncertainty persists, an increasing number of businesses will emulate New Relic and incorporate experimentation into their marketing operations.

The financial impact of a single experiment can be substantial, potentially reaching $250,000 for a business, while the associated costs remain minimal. Consider the cumulative effect of consistently running experiments, mirroring New Relic’s approach. Therefore, I consistently advise my clients to adhere to the ABE principle: Always Be Experimenting. While not all experiments yield positive results, consistent experimentation empowers technology companies to question assumptions, validate theories, and uncover novel opportunities.

It’s important to remember that testing should extend beyond websites and marketing messages. Every facet of a business can derive advantages from testing and experimentation. Although many companies currently do not prioritize experimentation, 2021 marked a turning point, with organizations recognizing the potential and necessity of testing, particularly within their marketing efforts.

Benefits of a Testing Culture

• Challenges existing assumptions.
• Validates key hypotheses.
• Uncovers previously unknown opportunities.
• Provides a competitive advantage.
• Improves bottom-line results.

Experimentation is no longer a luxury, but a necessity for navigating the evolving business landscape. Companies that embrace a culture of continuous testing will be best positioned for success.

The Continuing Importance of Video in Marketing Strategies

Technology businesses often face challenges in conveying information with clarity and impact. While certain approaches, such as chatbots, initially showed potential, their sustained effectiveness has proven difficult to achieve. Conversely, video presents a significant avenue for companies to differentiate themselves and simultaneously attract and retain a larger audience, establishing its place as a crucial marketing component.

The widespread adoption of remote work following the events of 2020, coupled with the growing prominence of platforms like TikTok and YouTube Shorts, has dramatically increased the accessibility of video content. Increased exposure to video conferencing and short-form video formats has fostered greater comfort with on-camera presence and video-based communication.

This shift is particularly beneficial for marketing purposes. Establishing a personal connection and demonstrating concepts rather than simply describing them – often referred to as “show, don’t tell” – are areas where video excels compared to other media formats.

Consequently, a variety of new tools have emerged, designed to simplify the integration of video into marketing workflows. Platforms like VideoAsk, developed by Typeform, and BirdSeed enable websites to become more interactive and engaging through the use of videos featuring team members. It is anticipated that numerous tech companies will explore further applications of video this year, both for audience engagement and product integration.

Preparing for Significant Growth in the Latter Half of 2021

A substantial surge in growth is anticipated during the latter portion of 2021, representing a period of expansion not experienced recently. Technology businesses must proactively prepare and implement suitable strategies to refine their marketing efforts.

This preparation begins with establishing a distinct, robust, and sustainable market position. Upon this base, organizations should formulate a strategic framework that transcends purely technological considerations, prioritizing the connections that will drive advancement.

Video content will be a crucial component of any marketing strategy, though some ambiguity remains. Adopting an experimental mindset will empower tech companies to navigate this uncertainty through continuous learning, adaptation, and ultimately, success.

While the previous year presented unique challenges, the remainder of 2021 promises to be dynamic, eventful, and ultimately beneficial. Preparation is key to navigating the opportunities ahead.

Embrace the changes and position your company for success.