Marketing automation can be useful in helping sales and marketing teams do their jobs more effectively so they can reach their goals.
What is marketing automation?
Marketing automation is the use of software to deliver personalized messages to customers and leads. The software allows you to create a dynamic series of messages to send to your contacts. The message a person receives is decided by factors you specify, like what their spending habits are, where they are in the buying process, and past interactions they’ve had with your site.
Delivering content that’s tailored to a person’s needs and interests helps build stronger relationships which, in turn, can help increase conversions and revenue. Marketing automation can help you accomplish all these things while streamlining your operations at the same time.
In the broad scope of things, marketing automation incorporates several different aspects of marketing and business development, including email marketing, content development, conversion rate optimization, and lead generation.
The benefits of using marketing automation
By far, one of the biggest benefits of marketing automation is that it used to sales and marketing teams work more quickly. People love personalized content; sending out personalized emails generates six times more revenue than sending non-personalized emails. But manually sending out customized messages to contacts simply isn’t practical. Marketing automation platforms handle the mundane and repetitive work that goes into delivering personalized content, giving sales and marketing professionals more time to focus on things that are more interesting and challenging.
Not only does marketing automation make it simple to deliver messages, it makes it easier to figure out where people are in the conversion process. Marketing automation programs generally have a lead scoring quality which helps users quickly identify which leads are the most sales-ready.
One of the most common reasons why businesses consider using marketing automation in the first place is because they want to improve their conversion rates and revenues. Marketing automation is a way to encourage customers to stay engaged longer, making it more likely they’ll stick around long efficient to convert. On average, companies that use marketing automation have 53% higher conversion rates and an annual revenue growth rate 3.1% higher compared to companies that don’t.
For products and services with longer conversion cycles, marketing automation can also used to speed up the process. In one example cited by VentureHarbour, Thomson Reuters was able to reduce their conversion time by 72% by using marketing automation software.
What applications are there for marketing automation?
While marketing automation has several different applications, email messaging and lead generation/nurturing are among the most common.
Yes, email is still relevant as a marketing tool. While it’s easy to say things like “Everybody’s on Facebook/Twitter/Instagram,” it’s simply not true. However, most Internet users do have at least one email address. Email inboxes also tend to move at a slower pace than social media feeds, giving you the best chance at making a direct connection with your contacts. There’s a multitude of ways marketing automation can be used with email:
- Welcome messages
- Product retargeting
- Abandoned cart reminders
- Personalized product recommendations
And that’s just to name a few.
Many companies use marketing automation to solicit feedback from their contacts, regardless if they’ve converted or not. Whether it’s by sending out surveys or asking people to send comments directly to them, the information they garner can be extremely precious in guiding changes that will help improve their revenues in the long run.
Given that personalized emails generate so much more revenue than non-personalized emails, marketing automation can be an impressive way to nurture your leads. According to Marketo, about 50% of leads in any system are not ready to buy and nearly 80% of all new leads will never become sales. With marketing automation, the goal is to give people something of value when they need it most so that they’re more likely to convert. Effective lead nurturing generates 50% more sales-ready leads at a 33% lower cost. Nurtured leads also tend to make larger purchases than non-nurtured leads.
Marketing automation platforms are also often commonly used to supervise social media campaigns, create landing pages, and conduct ongoing A/B testing.