Poorly implemented marketing technology is directly harming customer relationships, according to new data. Almost one in four CMOs (24%) admit they lost customers in the past year due to martech-related errors — with AI tools and automation systems named among the top culprits.
The findings come from Intermedia Global (IMG), a UK-based marketing transformation firm, which surveyed 250 C-suite professionals responsible for martech in mid-sized enterprises. The research highlights widespread operational and reputational risk: 97% of respondents reported a martech failure that negatively affected customer or partner relations in the last 12 months.
“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,” said Karla Wentworth, IMG’s chief strategy officer.
“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,” Wentworth added. “Marketers don’t need more tools — they need the right ones working properly, with clear data and solid processes behind them.”
Customer-facing errors were a common pain point, particularly in relation to AI. Ninety-three percent of CMOs reported AI-driven mishaps, with 48% saying such issues had happened more than once. Poor integration with legacy systems and rushed deployments were highlighted as key drivers.
Email marketing and marketing automation vendors came under particular scrutiny. Almost one-third of CMOs described these providers as actively unhelpful, citing a lack of support and poor system usability.
Responsibility for martech breakdowns was broadly split between internal teams. A third of respondents blamed the IT department, while 32% pointed to marketing — the two teams most involved in selecting and managing marketing technology.
“Marketers who spend their days talking about improving the customer experience are actually seeing it eroded by their own technology platforms,” said Wentworth. “And unfortunately, all too often the shiny new AI tools are just making things worse.”
The study also revealed that 40% of businesses had received customer complaints due to martech failures, while a quarter had experienced negative publicity. Nineteen percent saw client relationships impacted, and 34% had to delay campaigns.
Despite the growing complexity of martech ecosystems, IMG’s research suggests many vendors are falling short on service. Across all martech categories — including CRM, data analytics, and website optimisation — fewer than 30% of vendors were rated as generally helpful.
Wentworth concluded: “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?”
