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Marketing Automation Definition

What Is Marketing Automation?

Marketing Automation a subset of customer relationship management (CRM) that focuses on the definition, scheduling, segmentation and tracking of marketing campaigns. The use of marketing automation makes processes that would otherwise have been performed manually much more efficient and makes new processes possible.

Marketing automation reduces repetitive tasks associated with the marketing process. There are two tasks, among many, for which the software resolves: customer segmentation and campaign management. Marketers use such factors as sex, age, and education to divide and classify customers. Performing this task is called customer segmentation. This makes it easy for marketers to create a target population and measure the efficiency of allocated resources. On the other hand, marketers also use the software to inform potential customers of business products and services. By employing an email management campaign, marketers send pre-formatted messages about products to a list of email contacts. Marketing Automation Software has become the best solution for developing email marketing and sales campaigns and driving revenue.

The Benefits of Marketing Automation

Companies with Marketing Automation…

  • 107% better lead conversion rate
  • 40% greater average deal size
  • 20% higher team attainment of quota
  • 17% better forecast accuracy
  • Source: Aberdeen Group, “Marketing Automation 101: Ensuring Early Success with the Basics;  Maturing Your Deployment for long-term ROI”, June 2010

Marketing Automation Revenue Impact

Marketing Automation Software may be used in any one of the following ways:

  • To develop and implement an email marketing campaign
  • To automate repetitive business tasks
  • To create a database for present and potential customers
  • To employ a web-based customer relationship management (CRM) campaign
  • To use within a small business environment
  • To develop an automated campaign to increase business sales

Marketers use marketing automation to create new ways of appealing to customers by tracking and monitoring the progress of the marketing campaign. The software displays information statistically and graphically. It monitors the first time customers view a product and when those same customers convert and purchase the product. This data provides marketers with information on which marketing campaigns are the most effective.

Marketers use marketing automation to create profiles and analyze customer-specific data. For example, with CRM web-based software, marketers analyze customer retention statistics, track potential clients, develop a transactions history, and monitor web performance and customer behavior. This type of software makes it easier for companies and marketers to reach a wider audience.

Marketers use marketing automation software to measure the open rate. This allows them to track when customers open and/or delete an email promotion. Marketers can also personalize email marketing campaigns with the software. They can place their names and company logos in the body of the message. Doing this typically increases the conversion rate.

Here is an interesting article on the differences between CRM and marketing automation.

Timeline of Marketing Automation Vendors

Timeline of Marketing Automation Vendors – Courtesy of The Effective Marketer