67% of SMB Marketers Face the Problem of App Sprawl
Supporting employee preferences and staying innovative are key factors contributing to app redundancies.
- Marketers use various tools as part of their martech stack and continue to add more. This can lead to app sprawl, resulting in various problems.
- So, how many SMBs face app sprawl, what contributes to app redundancies, and what problems do SMBs face?
- Here are a few findings from Capterra’s latest study and tips to address app sprawl.
Marketers use several tools and technologies in their marketing stack today to achieve their objectives and deliver results. And they continue to invest in more tools every year. According to Chief Marketing Technologist, the martech landscape has 11,038 solutions this year, an 11% increase from last year. This implies there is a growing demand for martech solutions. To add to this, technologies like generative AI are transforming marketing. All that said, the sheer number of tools and technologies can lead to app sprawl, resulting in drained budgets, lower productivity, and sunk time. Further, navigating multiple tools is challenging for small and medium businesses (SMBs).
So, how many SMBs struggle with app sprawl, and what problems arise from software redundancies? Capterra recently conducted a study to find the answers. Following are a few findings from the study and tips on combating app sprawl in your organization.
Employee Preferences Are Key Contributors to App Redundancies
The study found that about 67% of respondents face the problem of app sprawl. About 93% of SMB marketers said their organizations have between one to 20 software accounts. And regarding the apps used for marketing, 87% said their organizations have between one to ten apps. And with the hype around generative AI, more tools and apps may be added to the marketing stack.
So, if organizations already have so many tools, why do they invest in new ones? The most common reason is that they want to support employee preferences. For example, while one team may strongly prefer HubSpot for email marketing, another may prefer Mailchimp. Sometimes, employee preferences outweigh the actual need, meaning marketers may partly drive app sprawl.
A few other reasons for app redundancies include staying innovative (47%), being flexible at working (44%) and staying on par with competitors (39%).
See more: How Companies Can Manage IT Tool Sprawl
Advertising and Promotions Are Top Functions Where Companies Have Redundant Apps
Small and medium enterprises believe that 40% of marketing applications in their organizations are used sparingly. And according to the study, several overlapping or unused features plague marketing tool and app investments.
According to the study, on average, 51% of apps used for marketing are redundant. This means unnecessary costs for companies. A few marketing functions where organizations have redundant apps are listed below. It was found that advertising and promotions were the top functions where organizations have redundant apps. This is followed by social media or influencer marketing and email marketing.
Top marketing function where companies have redundant software apps
Source: Capterra’s 2023 Marketing App Sprawl Survey
App Sprawl Leads To Spending Too Much Time Learning New Tech
App sprawl leads to several problems in the organization, including drained budgets, lower productivity, and even security challenges. According to the study, the top challenges marketers faced due to app sprawl are:
1. Sunk time in learning new technology (46%)
With several apps available for different purposes, marketers must spend too much time familiarizing themselves with new features, interfaces, and capabilities, leading to a loss of valuable time.
One way to combat this is for organizations to invest in continuous tech training instead of buying new apps. This sets up marketing teams for success and equips more users to use already available tools. A good first step is to outline the top skills organizations need to develop on their teams.
2. Inefficiencies due to the time spent switching between apps (41%)
A disjointed workflow makes it challenging for marketers to stay organized or track activity between the tools. In fact, switching between apps can increase the time required to complete day-to-day tasks, leading to reduced productivity.
If using multiple apps affects employee productivity, companies should consider consolidating workflows into a centralized app or seek out apps that offer integrations with other tools.
3. Too many unused features (40%)
Most apps have several features marketers may not need, leading to overlapping or cluttered capabilities throughout an organization. This can also confuse marketers as they are unsure which tools to use for a particular task. About 45% of respondents said redundant apps didn’t positively impact tech ROI, and 19% said it even decreased it.
To prevent overlapping of features, companies should establish a baseline of tools. Auditing can be a good starting point to identify how tech investments align with organizational objectives. A few questions that can help prepare include:
- What tools and technologies is the marketing team using?
- Who is using each tool, and at what cost?
- What outcomes do you expect the technology to deliver?
4. Inconsistent accessibility between apps (35%)
A few tools and apps may have different user levels or access credentials that may lead to frustration or wasted time navigating for a busy marketer.
Companies and marketers should work with their IT teams to ensure consistent accessibility levels. The IT team can also implement app management tools that enable them to monitor app usage and ensure new tools are evaluated before their adoption.
Too Many Stakeholders Are Involved When It Comes To Retiring Apps
Most SMB marketers (84%) said their organizations conduct regular software audits. Yet, 27% of SMB marketers said they are still unaware of which apps are owned or used in their organizations. Further, about 33% said their organizations don’t have plans to consolidate applications or aren’t sure if their organizations plan to do it.
So, what is contributing to issues with adding, removing, or consolidating apps?
For starters, too many employees can request software applications. Only 34% of respondents actively limit non-IT employees’ ability to adopt new tools without approval. Further, 45% said that any employee in the organization could request their IT department to add new tools.
Secondly, too many stakeholders are involved when removing applications. In fact, 50% said they need to consult with various business units to remove apps that are not being used anymore. Even when decisions are made to remove the apps, only 26% of respondents said their organizations formally cancel the payments or services to the vendor.
See more: 4 Practical Ways to Tackle SaaS Sprawl Effectively
Tips To Address App Sprawl
Here are a few simple tips to address the problem of app sprawl.
- Train: Companies should invest in continuous technical training to help their marketing teams make the best use of tools and applications they have already invested in.
- Consolidate: Instead of investing in new apps to achieve one particular function, consider investing in multi-functional software suites. About 37% of the respondents said their organizations replaced standalone software with multi-functional software suites.
- Integrate: Even if you plan to invest in standalone software, look for those that can be integrated with other tools. Before investing in new software, thoroughly research the tool’s integration capabilities or support.
- Conduct regular audits: Conduct regular app audits to gain a holistic view of the adoption and usage of the software. Depending on that, you can retire the rarely or never used software.
By reducing the software they use and the number of stakeholders involved in decision-making, marketers can reduce unnecessary spending, improve productivity, and make their daily operations more streamlined.
What steps have you taken to address marketing app sprawl in your organization? Share with us on LinkedIn, Twitter, or Facebook. We’d love to hear from you!
Image source: Shutterstock
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