Faulty Martech Stack Causing Businesses to Lose Customers
A new Intermedia Global (IMG) survey says 24% of senior marketers in mid-sized UK companies lost customers due to martech stack failures over the past year. Nearly all respondents (97%) reported technology-related issues affecting customers, while almost 93% cited problems with AI-powered tools.
Karla Wentworth, IMG’s Chief Strategy Officer, warns that poorly implemented martech can “erode the customer experience and threaten the entire brand.”
As per the study:
- 24% of CMOs have lost customers over the past year due to poor martech, and 40% have had customer complaints
- 93% have had customer-facing errors due to AI tools – 48% have had more than one
- 32% of brands’ tech issues originated with the marketing department
- Email marketing and marketing automation vendors are the most likely to be seen as actively unhelpful.
A faulty martech stack leads to customer loss and reputation damage
Marketing technology is becoming a double-edged sword for businesses. The IMG study reveals that 24% of senior marketers lost customers in the past year due to marketing technology failures. The survey was carried out by marketing optimisation and transformation specialists Intermedia Global Ltd (IMG). The survey of 250 C-Suite professionals in mid-sized UK companies (£100 million–£500 million revenue) also found:
- 25% have faced negative publicity due to martech error.
- 40% have had to deal with customer complaints.
- 34% have faced delays in a campaign.
- 19% reported damage to client relationships.
Also, 97% of CMOs have had some martech issue in the past year, leading to a negative outcome with their customers or business partners. In most cases, the issues stem from poor implementation, disconnected systems, and insufficient support, not the technology itself.
AI tools can worsen marketing technology failures
AI tools, while meant to improve efficiency, often compound problems. Almost 19 out of 20 CMOs (93%) reported customer-facing issues caused, at least in part, by AI-powered martech tools. Of these, 48% said incidents occurred more than once.
Karla Wentworth, IMG’s Chief Strategy Officer, commented:
“A badly-thought-out martech stack isn’t just a problem for the marketing and IT teams – it’s an existential threat to the entire brand. Ineffective targeting, error-filled communications, and poor automation are causing brands to haemorrhage customers. Marketers who spend their days talking about improving the customer experience actually see it eroded by their own technology platforms.”
She added, “And unfortunately, all too often the shiny new AI tools are just making things worse, especially if they’ve been bolted onto an outdated legacy stack that’s not up to the challenge or if they were installed in a rush. In many cases, martech is causing problems rather than solving them. It’s often just too complex now, with too many tools and systems trying (and failing) to work together. Marketing teams aren’t tech support experts, but they’re expected to be.”
“I keep hearing the same thing: marketers are exhausted, frustrated, and overwhelmed. But it doesn’t have to be this way. Marketers don’t need more tools; they need the right ones working properly, with clear data and solid processes behind them.”
The research also examined the origins of technical issues affecting customers. A third (33%) of respondents traced problems to the IT department, while almost as many (32%) blamed marketing itself, the two areas most closely tied to the martech stack.
Compounding the challenge, relationships with technology vendors offer little relief. Across categories, from data analytics to CRM to website optimization, fewer than 30% of vendors were considered generally helpful by senior marketers. Email marketing and marketing automation providers fared worst, with 29% and 28% of respondents, respectively, labeling them actively unhelpful.
Wentworth concluded: “When marketing technology is failing customers, it’s failing the entire brand. CMOs are clearly unimpressed with most of the vendors they deal with, while customers are unimpressed with the results. If marketing departments are spending all their time troubleshooting their tech because they can’t rely on the vendors, where is the time for creativity and innovation?”
The study highlights a growing imperative for businesses: the need to streamline, optimize, and properly implement marketing technology to protect customer relationships and brand reputation.
Martech stack challenges and what CTOs can learn
For CTOs, the findings are clear: simply adding more AI tools or software to a bloated martech stack can backfire. Effective oversight requires:
- Streamlined, integrated systems
- Clear processes for deployment and testing
- Close collaboration between IT and marketing teams
- Vendor accountability
In brief
A recent survey by Intermedia Global (IMG) finds that 24% of CMOs in mid-sized UK companies lost customers over the past year due to faulty martech stacks. Nearly all respondents (97%) reported technology-related issues affecting customers, while 93% cited problems caused by AI-powered tools, 48% of which occurred more than once.
