Difference Between a Marketing Cloud and a Marketing Stack

A marketing stack takes a different architectural approach that allows organizations to assemble multiple specialized technologies around their commercial requirements. The stack can contain a customer relationship management (CRM), customer data platform, marketing automation system, content management system, analytics platform, advertising technology, personalization engine, experimentation tool, and customer engagement platform.

This model can give you the flexibility to choose best-of-breed capabilities. For a global retailer, for example, they might want to use one provider for customer information, another for experimentation, and another for mobile engagement, as each system is very specialized in what it does.

Technology selection, in this case, should be based upon enterprise architecture and not departmental choice for a stack to work well.

The right architecture is determined by strategic priorities; therefore, a business that is looking for a standardized approach to running its business in the global market might find consolidation to be more valuable, whereas a company that is looking for a differentiated approach in customer experience might find composability more valuable.

Prior to looking at particular features of the platforms, consider if the organization requires more rapid campaign execution and execution, higher conversion rates, lower customer acquisition costs, stronger retention, better personalization, better attribution, or reduced technology spend.

To calculate the total cost of ownership, calculate revenue contribution, customer lifetime value, campaign velocity, adoption, integration cost, data quality, licensing, administration, training, migration and maintenance.

A marketing cloud stack might be the better option for centralized data and standardized processes, integrated workflows, and enterprise scale, whereas a Marketing Stack might be better for specialized capabilities and technological flexibility, which can drive competitive advantage.

Develop a technology governance council with marketing, IT, data, cybersecurity, finance, procurement, and customer experience leaders to consider all platforms in terms of enterprise capabilities, business cases, integration needs, and measurable results.

Evaluate API, data portability, identity resolution, consent management, security controls, extensibility and integration standards before entering either architectural stance, bearing in mind that reliance on an API vendor for long-term use could limit future transformation.

2.6. Pursue Controlled Flexibility

Ensure that there is no over-ambitious fragmentation, but also be able to use specialist technologies where these can demonstrate value. When integration and specialization are needed, a core Marketing Cloud can be complemented with a few best-of-breed products in a hybrid model.

There are several mature marketing technology platforms available in the marketplace, but they should not be considered equivalent.

The platforms underscore the importance of considering technology based on operational needs, not branding. For B2B companies that have a complex sales cycle, CRM integration and account orchestration might be more of a priority.

Experience management and personalization can be a priority for a content-heavy enterprise.

The choice might be boiled down to a few executive factors.

• Choose a marketing cloud when integration is the priority. It is especially appealing when the organization wishes for standardization of processes, centralization of data, common governance, and coordinated journeys for customers.
• Use a marketing stack if specialization is a key strategic consideration. A composable architecture makes sense when the discrete capabilities are actually the ones that add a valuable distinction to the customer experience or marketing performance.
• When enterprise requirements are complex, select a hybrid architecture. A marketing cloud can be built as a foundation, and a specialist technology can be used in addition to those tools that provide clear competitive benefits for an organization.
• Don’t just consider the cost of the license; consider the total cost! The economics can be materially impacted by integration, administration, data engineering, training, migration, security, and vendor management.
• Prioritize interoperability. APIs, data portability, identity resolution, consent management, and integration standards should be considered prior to procurement.
• Develop an architecture governance process. Each new tool must have a clear business case, an owner who is accountable for the use, a pathway for integration, an assessment for security, and criteria for retirement.

The best approach is not always the one that uses the biggest platform or the most powerful tools. It’s about building a system that allows for moving customer data reliably, efficient marketing systems, and for leadership to tie technology investments to business performance.

The key difference between a marketing cloud and a marketing stack is the way the technology is used in the enterprise operating model. A cloud can offer you integration, governance, and scale, and a stack can offer you flexibility and specialized capability. Executives must consider architecture in terms of revenue goals, customer experience, data governance, total cost, and scalability; all of these elements are key to making the right decision. Instead of looking at technology in terms of features, leaders should consider the technology that provides sustainable business value and will support future growth.

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