Marketing automation

Marketing automation enables businesses to deliver timely, relevant, and personalized content to their audience — Increasing efficiency, improving customer relationships, and driving revenue growth.

---

Table of contents

1. What is marketing automation?
2. How does marketing automation work?
3. Does marketing automation replace CRM and email marketing?
4. Benefits of marketing automation
5. Examples of marketing automation
6. Is marketing automation hard to implement?
7. How much does marketing automation cost?
8. Popular marketing automation platforms
9. Marketing automation for small businesses
10. Summary

What is marketing automation?

Marketing automation refers to the use of technology platforms to automate and streamline various marketing tasks and processes. The goal is to enhance efficiency, optimize workflows, and deliver personalized experiences to customers or prospects.

Marketing automation typically involves using online software tools to automate mundane and repetitive tasks, gather data, analyze customer behavior, and execute targeted marketing campaigns.

How does marketing automation work?

As mentioned above, marketing automation performs a variety of functions to streamline and optimize marketing systems. Here’s an overview of how marketing automation works:

• Lead generation and capture: Marketing automation tools help attract and capture leads by creating and optimizing landing pages, forms, and pop-up messages. They can also track website visitors and gather information from them to build a database of potential customers.
• Lead nurturing: Once leads are captured, automation can nurture them through personalized email sequences — delivering relevant content based on their interests and behaviors. This helps move leads through the sales funnel and increases the likelihood of conversion.
• Segmentation: Automation tools enable the segmentation of leads and customers based on demographics, behaviors, preferences, and other criteria. This segmentation allows for targeted and personalized communication.
• Behavioral tracking: Marketing automation can track user behavior on websites and other digital platforms — providing insights into how individuals interact with content. This data can inform the creation of more relevant and timely marketing messages.
• Personalization: By utilizing customer data, marketing automation can personalize marketing messages, recommendations, and offers. This enhances the customer experience and increases engagement.
• Email marketing: Automation platforms manage and schedule email campaigns, including welcome emails, promotional emails, abandoned cart reminders, and more. They can also handle list management, subscriber preferences, and unsubscribe requests.
• Drip campaigns: Drip campaigns are a series of automated emails or messages sent to leads at predefined intervals. These campaigns help maintain consistent communication and engagement over time.
• Lead scoring and qualification: Marketing automation can assign scores to leads based on their behavior, engagement, and interactions with your brand. This scoring helps prioritize leads for sales teams, focusing efforts on those most likely to convert.
• Social media automation: Marketing automation tools can schedule and publish social media posts across various platforms, track engagement, and even respond to comments and messages automatically.
• Data analytics and reporting: Automation platforms can provide insights into campaign performance, audience engagement, conversion rates, and other key metrics. This data helps marketers refine their strategies and make informed decisions.
• Cross-channel integration: Many marketing automation tools allow integration with other systems, such as customer relationship management (CRM) software, ecommerce platforms, and analytics tools — creating a unified view of customer interactions.
• Workflow automation: Automation can help streamline routine internal processes by automating tasks like lead assignment, follow-ups, and data synchronization between different systems.

Overall, marketing automation enables businesses to deliver timely, relevant, and personalized content to their audience. This can help increase efficiency, improve customer relationships, and drive revenue growth. However, it’s important to use marketing automation strategically and thoughtfully to maintain a genuine connection with customers and prospects.

Does marketing automation replace CRM and email marketing?

While a marketing automation platform offers a wide range of features and capabilities, there are still distinct benefits to using both a customer relationship management (CRM) system and an email marketing platform.

First, lets review all three systems:

Marketing automation platform

• Manages complex workflows and automation sequences.
• Segments and targets leads based on behaviors and interactions.
• Provides lead scoring and tracking of user engagement.
• Enables personalized content delivery across multiple channels.
• Offers advanced analytics and reporting on campaign performance.

Customer relationship management (CRM) system

• Focuses on managing and tracking customer interactions and relationships.
• Provides a comprehensive view of customer data, history, and touchpoints.
• Facilitates sales pipeline management and lead-to-customer conversion.
• Helps sales teams manage customer communications and follow-ups.
• Supports customer support and post-purchase interactions.

Email marketing platform

• Specializes in managing and sending email campaigns.
• Offers email list management and segmentation.
• Provides email template design and customization.
• Tracks email open rates, click-through rates, and deliverability.
• May have specific tools for A/B testing and optimizing email content.

Here are some reasons why it’s beneficial to have all three systems:

• Specialization and focus: Each platform specializes in its own area of expertise. While marketing automation can handle complex workflows and segmentation, a dedicated CRM excels at managing customer relationships, and an email marketing platform is optimized for sending and tracking email campaigns.
• Integration: Many marketing automation platforms can integrate with CRM and email marketing systems, allowing for seamless data flow and a unified view of customer interactions. This integration ensures that all departments have access to the right information.
• Data integrity: A CRM system is essential for maintaining accurate and comprehensive customer data, which is crucial for sales, support, and long-term customer relationships.
• Efficiency: Using specialized platforms allows each team to work efficiently and effectively in their respective domains, resulting in better outcomes and improved customer experiences.
• Scalability: As your business grows, the individual systems can scale with your needs and accommodate the complexities of larger customer bases and more intricate marketing strategies.
• Flexibility and choice: Different businesses have unique requirements and preferences. By using separate systems, you have the flexibility to choose the best tools for your specific needs and integrate them as necessary.

While a marketing automation platform offers powerful capabilities, integrating it with a CRM and an email marketing platform can create a well-rounded and comprehensive approach to managing customer interactions, nurturing leads, and executing successful marketing campaigns.

Benefits of marketing automation

Marketing automation can offer a bunch of benefits to your business by streamlining processes, improving customer engagement, and driving growth. Here’s what marketing automation can do for your business:

• Efficiency and time savings: Marketing automation automatically executes repetitive tasks, such as sending emails, nurturing leads, and managing workflows. This frees up your team’s time, allowing them to focus on more strategic and creative aspects of marketing.
• Lead nurturing: Automation helps nurture leads with personalized and relevant content. Automated drip campaigns and targeted messaging can guide leads through your sales funnel, increasing the likelihood of conversions.
• Personalization: By using customer data, marketing automation enables you to create personalized experiences. This customization can lead to more engagement and better relationships with your audience.
• Segmentation: Marketing automation allows you to segment your audience based on various criteria. This segmentation enables you to send tailored messages to specific groups, improving the effectiveness of your campaigns.
• Lead scoring: You can assign scores to leads based on their interactions, helping your sales team prioritize and focus on leads that are more likely to convert.
• Multi-channel campaigns: Marketing automation can support campaigns across most channels, including email, social media, and more. This ensures consistent messaging and engagement across platforms.
• Improved customer experience: Automation allows you to send timely and relevant communications, enhancing the overall customer experience and fostering loyalty.
• Data-driven insights: Marketing automation provides analytics and reporting that offer insights into campaign performance, audience behavior, and conversion rates. These insights can guide your marketing strategy and decision-making.
• Closed-loop reporting: By integrating with CRM systems, automation can show how marketing campaigns contribute to sales and revenue — enabling you to measure ROI accurately.
• Scalability: As your business grows, marketing automation scales to handle larger audiences and more complex campaigns without a proportional increase in manual effort.
• Consistency: Automation ensures that your messaging is consistent and on-brand, regardless of the number of campaigns or channels you’re managing.
• Customer retention: Marketing automation can help you maintain and nurture existing customer relationships through targeted communications, loyalty programs, and personalized offers.
• Cross-selling and upselling: Automated campaigns can promote related products or services to existing customers, increasing revenue opportunities.
• Event and time-based marketing: You can set up automated campaigns triggered by specific events or time-based conditions, such as birthdays, anniversaries, or product renewals.
• Lead handoff to sales: Marketing automation can facilitate a seamless transition from marketing to sales, ensuring that leads are properly qualified and ready for follow-up.
• Competitive advantage: Implementing marketing automation effectively can give your business a competitive edge by delivering more timely, relevant, and personalized experiences than competitors who rely solely on manual processes.

While marketing automation offers significant advantages, it’s important to approach its implementation thoughtfully. Define your goals, develop a clear strategy, and ensure that automation enhances — rather than replaces — the human touch in your customer interactions.

Examples of marketing automation

The following examples showcase how marketing automation can streamline processes, deliver personalized experiences, and enhance customer engagement at various stages of the customer journey.

Welcome email series

When a new subscriber signs up for your newsletter, a marketing automation platform can automatically send a series of welcome emails over a set period. These emails can introduce your brand, provide valuable content, and encourage further engagement.

Abandoned cart recovery

If a customer adds items to their shopping cart but doesn’t complete the purchase, marketing automation can send a series of reminder emails with incentives or personalized recommendations to encourage them to finalize the transaction.

Drip campaigns

A lead nurturing campaign can be set up to send a series of educational and informative emails to new leads over time. As the leads engage with the content, the automation platform can adjust the subsequent messages based on their behavior.

Birthday and anniversary offers

Marketing automation can trigger personalized emails with special offers or discounts to customers on their birthdays or anniversaries of signing up.

Dynamic customization

Automation can dynamically personalize the content of an email based on the recipient’s preferences, behavior, or purchase history. For example, an ecommerce company might show personalized product recommendations.

Re-engagement campaigns

If subscribers haven’t engaged with your emails for a certain period, marketing automation can trigger a re-engagement campaign with targeted content to win back their interest.

Event registration and follow-up

For a webinar or event, automation can handle registration confirmation emails, reminders, and post-event follow-ups — streamlining the entire event communication process.

Social media scheduling and posting

Marketing automation tools can schedule and publish social media posts across various platforms, saving time and ensuring consistent messaging.

Post-purchase upsells

After a customer makes a purchase, marketing automation can send follow-up emails suggesting complementary or related products, potentially increasing the average order value.

Lead source tracking

Marketing automation can track where leads are coming from (social media, website, referral, etc) and adjust messaging accordingly.

Feedback and surveys

After a customer makes a purchase or interacts with your brand, automation can send surveys to gather feedback, helping you improve your products and services.

Note: Keep in mind that successful marketing automation requires careful planning, segmentation, and ongoing optimization to achieve the desired outcomes.

Is marketing automation hard to implement?

The difficulty of implementing marketing automation can vary depending on factors such as the complexity of your marketing processes, the size of your business, the level of integration required, and your team’s familiarity with marketing technology. Here are some considerations:

• Initial setup: Setting up marketing automation involves configuring workflows, triggers, email templates, and integrating the automation platform with other systems (such as CRM and email marketing tools). The complexity of this setup can impact the difficulty level.
• Strategy development: Before implementing marketing automation, you need a clear strategy outlining your goals, target audience, messaging, and desired outcomes. Developing a well-defined strategy can take time and careful planning.
• Data management: Marketing automation relies on accurate and organized data. If your data is fragmented or inconsistent, it may require effort to clean and structure it for effective use within the automation platform.
• Content creation: Marketing automation requires content for various stages of the customer journey. Creating compelling and relevant content, such as email copy and landing pages, can be a time-consuming process.
• Segmentation and personalization: Effective automation relies on proper segmentation and personalization. Defining audience segments and tailoring content can be challenging, but it’s crucial for delivering relevant messages.
• Integration challenges: Integrating marketing automation with existing systems (such as CRM, ecommerce platforms, and analytics tools) can sometimes present technical challenges that require expertise to overcome.
• Learning curve: Depending on the complexity of the automation platform, your team may need to learn how to use the software effectively. Training and familiarity with the platform’s features are essential.
• Testing and optimization: After implementation, continuous testing, monitoring, and optimization are necessary to ensure that your automation workflows are delivering the desired results.

Despite these potential challenges, many businesses find that the benefits of marketing automation far outweigh the initial difficulties. Once properly set up, marketing automation can significantly improve efficiency, lead generation, customer engagement, and overall marketing effectiveness.

How much does marketing automation cost?

Marketing automation usually doesn’t come cheap. As a very general guide, you’ll pay anywhere from $200 to $2,000 per month, depending on what platform you choose, and whether or not you’re getting help from a marketing agency.

Costs can vary widely based on several factors, including the size of your business, the complexity of your marketing needs, the features you require, and the specific features you choose. Here are some factors to consider when evaluating the cost of marketing automation:

• Platform subscription costs: Marketing automation platforms typically charge a subscription fee based on factors such as the number of contacts or leads you have, the level of features you need, the number of users, and the volume of emails or campaigns you plan to send.
• Features and functionality: Different platforms offer varying levels of features and capabilities. More advanced features such as lead scoring, advanced analytics, and multi-channel automation may come at a higher cost.
• Integration requirements: If you need to integrate the marketing automation platform with other systems, such as CRM or ecommerce platforms, there may be additional costs associated with integration services or third-party connectors.
• Training and support: Some platforms offer training resources, customer support, and consulting services at an additional cost. These services can help you maximize the value of your marketing automation investment.
• Customization: Customizing the platform to meet your specific business needs can incur extra costs, especially if you require specialized development or configurations.
• Scaling: As your business grows and your contact database expands, your subscription costs may increase. Be prepared for potential scalability costs.
• Implementation and onboarding: The time and effort required to set up and onboard your team to the new platform can affect costs.
• Total cost of ownership: Consider the total cost of ownership (TCO) — including both direct and indirect costs — over time. This includes ongoing subscription fees, personnel costs, and any additional tools or services you might need.
• Free and open-source options: Some marketing automation platforms offer free or open-source versions with limited features. While these options can reduce costs, they might have limitations in terms of functionality and support.
• ROI and value: It’s important to consider the potential return on investment (ROI) that marketing automation can deliver. If implemented effectively, marketing automation can lead to increased efficiency, better lead generation, and improved customer engagement, which can justify the costs.

To determine the cost of marketing automation for your business, you should:

1. Assess your current marketing needs and future growth plans.
2. Research and compare different marketing automation platforms to find one that meets your requirements.
3. Request pricing quotes and detailed information from platform providers.
4. Consider the scalability, flexibility, and value that each platform offers.
5. Calculate the potential ROI based on the benefits you expect to achieve.

Remember that while marketing automation can involve upfront costs, the benefits it provides in terms of time savings, improved customer relationships, and increased revenue can make it a valuable investment for your business.

Popular marketing automation platforms

There’s a bunch of marketing automation platforms that offer a range of features and capabilities. No big surprise, they also vary widely in cost and complexity. Here are some of the most popular and well-known platforms (in no particular order).

HubSpot

HubSpot offers an all-in-one inbound marketing and sales platform that includes marketing automation, CRM, email marketing, social media management, and more. It’s known for its user-friendly interface and comprehensive suite of tools.

Marketo (Adobe Marketo Engage)

Marketo is a robust marketing automation platform that provides features for lead management, email marketing, campaign management, and analytics. It’s often used by medium to large enterprises.

Pardot (Salesforce Pardot)

Pardot is a B2B marketing automation solution offered by Salesforce. It focuses on lead generation, nurturing, and sales alignment, and is tightly integrated with the Salesforce CRM.

Eloqua (Oracle Eloqua)

Eloqua is an enterprise-level marketing automation platform that offers features such as lead scoring, campaign management, dynamic content personalization, and advanced analytics.

ActiveCampaign

ActiveCampaign is known for its email marketing automation capabilities, as well as features for CRM, lead scoring, behavioral tracking, and marketing automation workflows.

Mailchimp

Originally known for email marketing, Mailchimp now offers marketing automation features, including audience segmentation, email workflows, and ecommerce integrations.

Keap

Formerly known as Infusionsoft, Keap is designed for small businesses and offers features for CRM, marketing automation, lead management, and ecommerce.

GetResponse

GetResponse provides email marketing, marketing automation, landing page creation, and webinar hosting, making it a comprehensive solution for online marketing.

Autopilot

Autopilot focuses on visual marketing automation workflows, making it easy to create and manage complex campaigns without coding.

Drip

Drip is known for its ecommerce automation capabilities, allowing businesses to create targeted campaigns for online stores.

Ontraport

Ontraport offers CRM, marketing automation, email marketing, and ecommerce features, primarily targeting small to medium-sized businesses.

SharpSpring

SharpSpring provides marketing automation, CRM, social media management, and analytics tools suitable for agencies and businesses of various sizes.

Campaign Monitor

Campaign Monitor offers email marketing automation and features for creating visually appealing email campaigns.

Act-On

Act-On provides marketing automation, lead nurturing, and CRM integration for businesses seeking a comprehensive solution.

Note: It’s important to evaluate these platforms based on your specific business needs, budget, technical requirements, and the level of support and training you require. Many platforms offer free trials, demos, and documentation to help you make an informed decision. Keep in mind that the best marketing automation platform for your business will depend on your unique goals and challenges.

Marketing automation for small businesses

Automation platforms can be suitable for many small businesses, but the choice should be made based on your specific needs, budget, and goals. While some marketing platforms are geared toward larger enterprises with complex marketing needs, there are options available that are well-suited for small businesses.

If you run a small business, here are some factors to consider:

• Budget: Some automation platforms can be expensive, especially those designed for larger businesses. However, there are also more affordable options and even free plans available for small businesses with limited resources.
• Features: Assess whether the platform offers the features you truly need. While larger businesses might require advanced functionality, small businesses may find that a simpler solution meets their needs without overwhelming them.
• Ease of use: Look for platforms with user-friendly interfaces and intuitive tools that don’t require a steep learning curve. Small businesses often have limited time and resources for extensive training.
• Scalability: Consider whether the platform can grow with your business. While you may be a small business now, you’ll want a solution that can accommodate your needs as you expand.
• Integration: Check if the platform can integrate with your existing tools or systems, such as your CRM or ecommerce platform.
• Support and resources: Look for platforms that offer good customer support, documentation, and resources to help you make the most of the platform.
• Customization: Determine if the platform allows you to tailor your marketing automation to your specific goals and audience, even if your business is small.
• ROI: Consider the potential return on investment. If the platform helps you save time, increase efficiency, and drive more targeted marketing efforts, it could be worth the cost.

Some marketing automation platforms that are suitable for small businesses include:

• HubSpot: HubSpot offers an all-in-one inbound marketing and sales platform that includes marketing automation, CRM, email marketing, social media management, and more. It’s known for its user-friendly interface and comprehensive suite of tools.
• Mailchimp: Offers marketing automation features and has a free plan for up to a certain number of contacts.
• GetResponse: Provides affordable automation tools along with email marketing features.
• ActiveCampaign: Known for its user-friendly interface and comprehensive features suitable for small businesses.
• Keap (formerly Infusionsoft): Offers features tailored to small businesses, including CRM and marketing automation.

Remember that the success of using a marketing automation platform for your small business depends on how well you understand your goals, your target audience, and your ability to use the platform effectively. It’s important to thoroughly research and test different platforms to find the one that aligns with your needs and helps you achieve your marketing objectives within your budget.

---

Summary

Marketing automation is a powerful technology that enables businesses to deliver timely, relevant, and personalized content to their audience.

Benefits of marketing automation include increased efficiency, better targeting, improved customer engagement, and more informed decision-making. It allows marketers to create more personalized and relevant experiences for their audience, ultimately leading to higher conversion rates and revenue growth.

However, it’s important to use marketing automation strategically and thoughtfully to maintain a genuine connection with customers and prospects. It requires careful planning and ongoing optimization to strike the right balance between automation and maintaining a human touch to ensure that communication remains authentic and meaningful.

Related

• Content marketing still works
• How to promote your website
• The truth about inbound marketing
• What is email marketing

Sources

• HubSpot
• Salesforce
• Search Engine Journal
• Wikipedia

Research

• Assisted by ChatGPT