What is the ROI on Sales and Marketing Automation?
“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.”
~ Bill Gates
One of the biggest challenges facing marketers has always been how to quantify and measure the results of their marketing efforts.
Some marketing efforts are easier to monitor than others. For instance, in social media you can qualify impressions, likes, followers, retweets. In email marketing, you can monitor open and click-through rates, unsubscribes etc. But, your company doesn’t get paid for impressions. You get paid when you make sales. So when it comes to marketing automation, a process that involves a number of different tactics and techniques, how do you qualify success? How do you measure ROI?
The answer is quite simple, measure the overall campaign effectiveness.
Instead of trying to allocate results to a specific activity, look at the bigger picture and see whether the combination of tactics you’ve employed in a specific automation campaign have worked. Most businesses nowadays, have longer sales cycles that require a few different interactions over a period of time for a lead to convert. That’s why it is much more sensible to judge the effectiveness of the entire campaign instead of the success of the separate elements.
What the researchers have found?
Most research on Sales and Marketing Automation indicates that after implementing an automation system, the average company experiences an increase in revenue by 77% and 53% higher conversion rates. Moreover, companies who’ve adopted automation enjoy higher return on their marketing buck and 451% increase in qualified leads. (Source: The Annuitas Group).
Further research conducted by The Lenskold Group found a reoccurring trend that companies that use marketing automation are more likely to report faster growth than non-automated businesses.
What business owners have found?
There are many examples of small businesses that have grown using automation. Here is one of them:
Meet Paper Styles, a wedding invitations design company. In the relatively saturated wedding market, this small company was struggling to compete until they discovered sales and marketing automation.
They would use landing pages to capture emails, which would then help identify which stage of the buying process the brides or grooms men would be. Once Paper Styles knew the particular stage, they move the prospect to the appropriate automated sequence that would help them transition through the sales funnel faster. Along the way they would add additional channels of communications other than email, such as SMS and phone calls until at the end the lead was ready to place an order. The results? Paper Styles’ open rates increased by 244%, email click rates by 161%, and their revenue per mailing increased by 330% without actually adding any additional costs.
Sales and Marketing Automation is an entirely different approach
You see, sales and marketing automation is unlike the traditional marketing approach we were all used to before. Back in the day we would send an email, post a social update, write a blog post etc. The different parts of our marketing didn’t really talk to each other, let alone work together.
With automation however, every business has the power and potential to nurture leads using a more personalized, synchronized and tailored approach. Similarly to the design company example above, you cannot send out marketing messages ad-hoc hoping that customers would react to them all the same.
With automation, you have CRM, email marketing, sms marketing, lead nurturing, content and group tasks all working simultaneously for a smooth and all rounded marketing approach. The software allows for a seamless workflow that is diverse all the while personal to the particular lead.
The fact is, marketing automation connects multiple touch points and marketing channels including social, email, and content marketing. One of the core goals of marketing automation is to nurture prospects for the long-term, which mean focusing on goals beyond direct sales. Nobody wants a one-off customer when you can instead gain a client and keep them for life!
Best part of all? Sales and Marketing Automation could be used and in fact is used by all sizes of businesses in an array of different industries.
What are you experiences with automation? How do you measure success and ROI on sales and marketing automation?