What is Marketing Automation and Why Do You Need It?

August 07, 2018 / By Bruce McDuffee

Marketing automation isn’t as new as you may think. It started in the ’80s when software was used to print out the names and addresses on letters and mail that was sent out to consumers with coupons and newsletters. And it still is a mainstay in direct marketing.

The only difference is the concept of real-time communication, and the volume of data companies have on their users gathered from both digital and offline channels.

Taking the Personalization to the Higher Level
It offers many personalization options which are there to help you tailor experiences with the consumers. You can personalize your marketing campaigns to specific target audiences, to channel your communicating to, and even to the particular type of medium - from newsletters to chatbots.

It Saves a Lot of Time
When you have your marketing campaign planned out, you can schedule it ahead of time and track its development. It is a huge time saver and gives you more room to focus on other activities.

It’s Extremely Efficient
The processes are streamlined and automated which is a significant improvement compared to the traditionally manual model. It shortens the sales cycle and helps nurture leads. With fewer people to run the processes it lowers the maintenance costs as well.

Data Collection and Processing
Marketing automation enables you to gather a lot of data on your consumer behavior and give insight into what influences their buying decisions. It can help you tailor better experiences and lower the cost per customer acquisition. Combined with CRM integration, it does wonders for lead nurturing and customer lifetime value optimization.

It’s Most Effective for Multi-Channel Management
Having to manage several marketing distribution channels can lead to substantial budget leaks and poor targeting. With marketing automation and multi-channel distribution monitoring, you can improve your campaign efficiency. Other than that, it helps you decide on a single KPI (or a set of them) to easier communicate the performance to the stakeholders and shorten the decision cycle for business actions.

It Improves Customer Retention
For a company to grow, it needs to focus both on customer acquisition and retention. There needs to be a constant balancing act between these two. Even though the concept of acquiring new customers and exploring new markets is a lot more exciting, it costs far more than keeping the existing engaged in repeating its business with you. Marketing automation can help you in retaining customer engagement by providing valuable insight into their behavior patterns and anomalies, to adjust your customer retention strategy with less friction.

Marketing automation helps gather valuable insight into your customer acquisition and retention, greater control over marketing distribution and a clear view of your customer profile. The costs of marketing automation are getting lower each year, and with the advancements in NLP (natural language processing) and AI, we always keep moving the limits of what part of the marketing-to-sales cycle can we automate. Marketing automation helps us be in the “here and now” with our customers engaged in two-way communication.

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