What is Marketing Automation? Can It Improve My Business?
What is Marketing Automation? In today’s digital marketing industry, marketing automation is an essential tool for modern marketers. You may have read about it online, or have heard that one of your competitors – who are doing better than you, by the way – is using it. You may have even tried it a couple of times, but the truth is, most marketers are still oblivious to it and what it can do for your business. So to educate the population of marketers who are still oblivious to the concept of automated marketing, this article will go back to the very basics and explain what is marketing automation.
What is marketing automation all about and why should marketers like you be interested in it? The answer is pretty simple: Marketers who use marketing automation tools tend to outperform other marketers that don’t. That’s the very reason why a lot of marketers are now transitioning to automated marketing.
The Reality of Marketing Automation
However, since its growth, marketing automation is evolving into an international jargon where marketers seek out marketing automation software with the firm belief that every digital marketing tool being utilized for growth, including the ones needed for lead generation, will just roll up under the roof of marketing automation. This misinterpretation leaves a lot of marketers with complex tools that will automate their middle-of-the-funnel, however, with no solution towards producing new leads to nurture.
The result will feature marketers beginning to buy lists of email addresses to develop, rather than generating inbound leads of their own. Though this fallback option might be a quick answer, it’s not a long-term solution either. It also does not establish the grounds for a longer and healthier relationship with your business and its potential customers in the future. Going back to our plant metaphor, we can compare this to using artificial enhancers or chemical fertilizers to make your plant develop and grow faster than the usual. It may seem like a good way to quickly fix a problem; however, it doesn’t set you and your business up for the future. So while we can agree that it is the easier path, it doesn’t help you out and get you ready for long-term success.
The Solid Facts
According to recent surveys conducted by American technology and services company, the Aberdeen Group, top-performing marketers are 67% more likely to use a marketing automation platform to boost their business online. 87% of household firms are also using the technology. Overall, industry-leading marketers are currently providing more to the sales pipeline, with a total of 57% of sales-accepted leads being converted to the sales-qualified funnel.
As a whole, these companies are seeing a 14% overall growth in total marketing revenue. These numbers alone can already conclude that marketing automation is indeed becoming more of a household necessity for any marketer who is looking to make a considerable leap and boost their business online. Now that we’ve got that out of the way let’s now proceed to know what exactly is marketing automation.
What is Marketing Automation?
Marketing automation is a concept where instead of manually managing your marketing tasks and workflows, you automate it instead to make operations more efficient, increasing revenue and marketing growth. Now keep in mind that while the idea is an absolute genius, it really won’t matter much without the software platform that you will be using to make the concept of marketing automation a reality.
Having a marketing automation platform will enable you to streamline, automate, and measure all of the marketing tasks and workflows automatically. Say goodbye to manually monitoring your marketing workflows; all of them can now be automated for your convenience.
That’s the simplest and most straightforward definition of marketing automation. However, what workflows are we talking about, exactly? Here are some of the fields that marketing automation will help you do more effectively:
- Email Marketing
- Lead Generation
- Lead Nurturing & Scoring
- Lead Retention
- Measuring ROI
- Landing Page Creation
- Web Personalization
- Cross-channel Marketing
All of these strategies are essential to our online marketing. However, without a capable tool or equipment, they can be complicated to accomplish. When your business starts growing, there will come the point at which you or your marketing team can no longer monitor and manage one-on-one connections with your customers using manual tools. When this happens, marketing automation can come off as a convenient tool.
What is the ideal Scenario for Marketing Automation?
Despite not being the simplest marketing action to execute and pull off, marketing automation is still very much doable and effective in any business setting. We can compare this method to someone growing a plant. There are many requirements and activities that you need to do: you need rich & healthy soil, the appropriate seeds, and the right amount of light and water to nourish those seeds into fully grown plants.
As you can see, it isn’t foolproof, but it’s not impossible either. Just like growing a plant, productive marketing automation seeks to nurture its leads well enough to generate actual paying customers, which is the output of all the hard work that the marketers put into it.
Why do some Marketing Automation Campaign Fall Short?
A marketing automation campaign can fall short if there is no top-of-the-funnel foundation in place to help middle-of-the-funnel strategies. A majority of marketers, as of the current trend, are already investing in automated marketing even before they establish the grounds for progressive lead nurturing campaigns to flourish and prosper. Once a marketing automation falls short, it won’t have the components needed for productive lead nurturing until they both have a consistent flow of leads succeeding their funnel.
Another reason why Marketing Automation tends to fail is that a lot of marketers with no strategies for inbound lead generation are spending their time trying to figure out how to take the small portion of the market in their database, as leads are squeezing out of them a lot more. While these businesses are doing that, other competing companies are also trying to figure out how to generate more out of the 99% of the industry that is out there in the open.
Does your business have what it takes to generate all the potential leads needed to reach your target revenue in your database? Or maybe yet, are you getting a fair share of what is available on the market in the first place?
What are the Marketing Automation Trade-offs?
As you can see, even if your marketing automation campaign is currently brimming with quality leads, how successful will your marketing automation campaign be will be determined whether you either have effectively automated all your leads into returning customers, or you’re just beginning to deteriorate because you weren’t able to pull it through. Even if a company has already given enough attention towards the marketing resources needed to master marketing automation, many marketers will still end up unhappy, without having sufficient leads to work with.
It will also open possibilities of irrelevantly spammy automated messages. Understanding that having a consistent number of leads is now a requirement for any company leaning towards purchasing lists of contacts to develop with automation marketing.
The corresponding consequences of buying lists, however, are pretty hefty, as this spammy method produces an incredibly meager ROI rate. Along with the penalties of purchasing these lists, mailing spontaneous emails to your target audience without them even asking will lead to a low engagement value and will hurt your IP address and overall reputation, not to mention reducing your email delivery rates as well.
When do you really need Marketing Automation?
So you’re now aware of what marketing automation can do and how important it can be to your business, the next question is, when do you really need marketing automation? To help you, here’s a set of questions to give you an idea of what marketing automation can do for you. Answer them honestly relating your own business:
- Can you identify, monitor, and engage with individual buyers online?
- Can you create a list of customers manually and segment them based on the likelihood to buy?
- Can you measure the revenue contribution of each person in your marketing campaigns?
- Are you filtering leads based on the interest and engagement levels?
- Are you able to do every marketing operation without going crazy?
If the majority of your answers is NO, then you are in dire need of marketing automation.
You Still Hold Your Own Fate
All of these are good indications that marketing automation can work for your company. The solution is to understand that marketing automation actually does not do the marketing duties for you. Instead, it can help your successful marketing efforts scale up even more. So, at the end of the day, your success still lies in how you properly handle your business and your marketing automation campaign.
With all that’s been said, what is marketing automation? It’s the official hub of modern-day marketing. It allows you to scale your campaigns to new heights, reach potential prospects more effectively, acquire better-quality leads, and raise overall ROI. So if you haven’t transitioned towards marketing automation, and you’re currently struggling with managing your marketing campaigns, then, by all means, go for it. Don’t have a CRM Singapore software yet? Contact us now! We’ll be glad to walk you through the benefits of using Infusionsoft CRM and how it can help your business.