Is MarTech The New FinTech?
The inaugural MarTech conference took place in August 2014, and the second one concluded this past week in San Francisco. In less than 12 months this space seems to be evolving very rapidly. Jonathan Sills categorized how some of the powerful MarTech companies are fueling the commonly featured tech unicorns. Interestingly though, these MarTech companies primarily focus on the online channel, missing out on purchasing data from different commerce mediums such as brick and mortar retailers. Ajay Agarwal from BCV published an article stating, “We will see the first $5 billion-plus marketing tech company emerge over the next four years.” Neeraj Agrawal detailed how valuations outside of the top VC markets have amassed $22B in global value creation. The role of the CMO is changing and transitioning to Chief Marketing Technologist (CMT) — this shift in title suggests a deeper emphasis on technology/data. These are just a few examples of how quickly MarTech is growing.
Independently, FinTech has been evolving at the same pace. Alberto Jimenez identified three trends in mobile payments, asserting the customer experience is not going to remain pinned at the transaction level — the power will shift to before & after the transaction. Indicating how personalized marketing will drive increased (customer lifetime) value for both the consumer and business. Patricia Nakache and Phil Carter from Trinity Ventures illustrated the power of multi-channel commerce and how mobile payments will be the monetization link between these relationships.
It’s evident that technology is disrupting both Marketing and Finance, with a strong indication each are independently attempting to capture transactional data from multiple channels to be used for maximizing the customer experience, as consumers aggressively become more fluid between mediums of commerce.
Are these two spaces of technology going after the same data? Or, is it safe to assume MarTech is actually version 2.0 of FinTech, with the ability to layer marketing automation on top of multi-channel purchasing data driven by FinTech companies. Sills’ positioning of tech unicorns riding the rails of MarTech companies may actually be pivoting to MarTech companies becoming the next unicorns — enhancing the stack by deeply personalizing marketing on top of mobile payment data.
With these two technologies combined, the consumer experience will be driven off of connected commerce. A platform that is agnostic to payment method, commerce channel, or device. An intelligent full-stack platform “wallet” which allows for complete end-to-end purchasing fluidity of physical goods inside of retail stores, online transactions, and digital goods. With the right media partnerships, consumers will be given the ability to purchase items real-time from TV shows directly from their intelligent wallet. This platform delivers the best personalized marketing experience to consumers, while brands build the ultimate loyalty programs based on inter-commerce purchases in order to maximize lifetime value.