The Business Case for Marketing Automation

Metrics have fostered a lot of discussion with marketers in the last year or two. Those who have adopted marketing automation software have discovered the difference of using data to drive decisions that help them to realize higher returns on marketing investment as well as customer acquisition. A recent report by Aberdeen Group, Marketing Automation: A Strategic Guide for Optimizing End-to-End Marketing Activities, found that 67% of best in class companies report increases to annual revenues and 65% claim year-over-year increases to return on marketing investment. CSO Insights’ 2010 Lead Generation Optimization study found that only 37% of marketers using a lead generation management system say their efforts need improvement. That’s quite a difference when compared with 65% of marketers not using automation systems who said they needed improvement in this area.

With measurement such a hot topic, as well as one of the benefits of marketing automation technology, I thought it would be useful to review some of the top metrics marketers are using to prove the effectiveness of their marketing campaigns in driving overall company objectives.

  • Increase in the development of sales opportunities. DemandGen Report conducted research that identified a 20% increase in sales opportunities generated from leads that were nurtured in comparison to leads that were not.
  • Revenues and customer acquisition. Aberdeen Group found that best in class companies saw double their bid-to-win ratios on nurtured leads, plus a 47% higher average order value.
  • Sales Pursuit. Forrester Research finds that salespeople follow up on >75% of leads in 46% of firms where marketing has developed formal lead management processes.

In addition, marketing automation provides numerous ways to measure the components of marketing programs that contribute to the achievement of the metrics above. They include the ability to measure:

  • Growth to your marketing database in contacts and leads.
  • Propensity to buy based on lead scoring models.
  • Audience response to nurturing programs by market segment.
  • Leads returned to marketing by sales for re-engagement.
  • Campaign comparisons to validate market interests.
  • Passive vs. interactive response by leads. (e.g. reading content vs. registering for a webinar)

To demonstrate real world achievement of metrics that validate the importance of using marketing automation software in support of your marketing people, process and programs, here are a few documented results Manticore Technology customers have seen (these marketing automation case studies can be downloaded from our website)

  • 190% increase in conversions to closed deals.
  • 9.3% increase to revenue per sales rep.
  • 171% increase in qualified leads.
  • 30% reduction to length of sales cycle.
  • Breakeven ROI on marketing automation investment in two months.

What becomes obvious when assessing the research, the capabilities and real-world results is that marketers without the capability to automate their marketing programs are leaving a lot of money on the table. With the ability to gain true visibility into today’s customers, marketers can streamline the execution of campaigns while increasing relevance to drive higher interest and engagement.