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What is marketing automation and what are its benefits?

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Mar 29, 2023 11:27:20 AM
What is marketing automation and what are its benefits?

Automating processes is not a new topic, for years companies have been looking for ways to maximize their resources and marketing departments are no exception. Recent studies have shown how marketing automation has generated increases in sales productivity, the number of potential customers, and a significant increase in conversions, as it is used not only to automate processes, but also to restructure and quantify marketing campaigns and workflows.

Marketing automation has become so important for a company that wants to take their business to the next level that 63% of marketing specialists plan to increase their marketing automation budget this year. Its main benefits are the ability of this technology to save them time, energy, and even better, generate more revenue.

>>Importance of Process Automation in each Industry<<

Despite seeing the obvious advantages of automating marketing, many marketing specialists are hesitant to make the change or are unsure of the correct way to present the business case to decision-makers within their organization. Today, we will help you understand and convey the main benefits of marketing automation.

But first, let's make sure we all understand and are on the same page about what is and what is not marketing automation.

marketing automation_Hubspot

What is and what is not marketing automation?

Marketing automation is the process of making systems or processes happen automatically within software through sequences of actions based on predefined activation conditions. This software is recommended to be omnichannel so that it can consolidate, create, and automate a variety of related marketing initiatives. Likewise, the purpose of automation is to provide marketing specialists with a better understanding of their potential customers so that they can provide personalized, valuable content at the right time and through the appropriate channel, resulting in a conversion.

Marketing automation then allows for the automation of repetitive processes to provide (ironically) greater personalization, improve efficiency, increase key performance indicators, and generate more potential customers and higher revenue.

Many believe that automation focuses on emails, and while they play a very important role in marketing automation, they are only a small part of the set. Marketing automation has a variety of other use cases, such as lead generation, prospect scoring, paid advertising, customer relationship management (CRM), marketing analysis, social media planning, user onboarding, among others.

>>Continue selling in your CRM marketing, even when you are very busy<<

Now that we are clear, let's take a look at some benefits of marketing automation that will help you achieve your business objectives.

Benefits of Marketing Automation:

1. Time savings

Automating marketing activities allows the marketing department to be more efficient. With marketing automation, you can plan and schedule social media posts, create multiple campaigns to send scheduled personalized emails to any number of customers, set up automated responses on social media platforms like Facebook or on your website chat, publish a blog or create a landing page, all within the same software. This allows your team to focus on working on more strategic projects and have more time for creative work, such as planning and brainstorming for upcoming campaigns and projects.

>>5 ways to use CRM data for social media marketing<<

2. Marketing and sales alignment

Having aligned marketing and sales departments is essential for any organization, and automation software can help bridge the gap between the two. For example, with lead generation, your marketing team can offer higher quality leads to the sales department, and sales representatives can also work together on an automated lead scoring model. When a lead is qualified by marketing or meets the score, it becomes easier to transfer to sales, facilitating information visualization. Additionally, this shared information visualization leads to total transparency in the process.

3. Increased conversion rates

Marketing automation can also make your team more effective by tracking your leads and retargeting website visitors who do not convert, personalizing the information or site display to the visitor's needs or preferences. This is known as content marketing.

Benefits of Marketing Automation_HubSpot

4. Accurate reporting

Every action should be measured to be improved. Analyzing without having all the data can be a frustrating process, but with a platform that gathers all the information in one place, this process becomes easier. Having a clearer picture of a strategy will help you see the complications and friction points. With accurate and optimized reports, you can see where things are going wrong, but what can you analyze? Customers with low engagement in nurturing emails, the number of visitors on your site and which pages are being viewed last before leaving, and the views that social media posts are getting are some examples.

By monitoring all channels, you can analyze statistics and graphs from multiple campaigns and use this data to know which campaign worked better. You can also automatically organize and share these reports with other teams or team members.

5. Improving customer experience through personalized campaigns

Data is the new oil, you may have heard that phrase. The goal of any company is to turn leads into sales, and one of the best ways to do this is by providing each lead with relevant information based on their needs and interests. But how to do it? Obviously, by knowing what their needs and interests are through data.

The more data is stored in the marketing automation software through social media campaigns, forms, behaviors on your site, or purchases made, the more personalized content you can create. For example, if a person was reading an article on your site about changes in space decoration for 2023, you can create a nurturing email that invites them to a webinar on the latest trending furniture that your sales team is organizing.

Thanks to this data, your leads receive personalized messages, and if they continue in the process, they can be led to make a purchase and convert. Remember, consumers are looking for personalized experiences that make them feel special. This translates into subtle sales tactics that attract instead of pressure them to buy.

Finally, perhaps the most effective way to leverage personalization is with your most valuable asset: your existing customers. Start conducting cross-selling and/or upselling campaigns, share new products or services they may be interested in, or, if your business model permits it, provide a discounted renewal rate to ensure customer loyalty.

Utilize automation to segment your audience and send relevant messages to each of those segments. Use personalization at a larger scale to nurture leads.

Marketing automation brings many benefits, but as Uncle Ben said, with great power comes great responsibility. Managing and personalizing campaigns that suit consumer experiences is a serious commitment to collecting and understanding data before using it.

Automation can help businesses increase ROI, customer satisfaction, and overall growth. But misuse can lead to frustration if experiences are not properly personalized.

If done right, it's a win-win for everyone. Consumers receive exceptional customer experiences and businesses generate more engagement, leads, and revenue.

About this blog

Customer Experience Insights is a blog to share ideas, experiences and the vision of how to adopt better Customer Experiences in our organizations.

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