Why using Marketing Automation?
It all begins with a search on the web. The search leads to the company webpage. On the company webpage the buyer will learn more about your product to be able to compare with competitors.
“60% of a modern purchase process happen online and by 2020, 85% of the purchase process will happen online without any human interaction.”
– Gartner Research
It does not matter if it starts with a phone call, a personal meeting, a search on Google, a recommendation or an e-mail. There will be digital interactions with your business. This paper is about the two words that are on every progressive marketer’s lips this year: Marketing automation. Here we explain the reasons to get in to it and how you make it work for you.
What to do?
As in any business, you need to be able to attract the potential buyers that are searching for your product or service. A good SEO strategy will help you getting impressions. Buyers will click on the first results that appeal and now you have your first encounter with your lead. First impression is about design and your message to appeal and confirm your lead came to the right place. Your lead will open several competitors sites as well. This is why you should pay attention to make your site easy and simple to navigate. It is all about helping your customer to buy your product.
Call to action is important to qualify your leads interest. Put your self in the customers seat and design your call to actions with your customers interests in mind. Offer material to download. Make the content attractive and valuable for your lead. Now it is getting about building a personal relationship built on trust and position yourself as a thought leader. We are building long term relationships. We have to adjust to our leads purchase pace and nurture them in their individual way.
This is an illustration of how this first conversion from an anonymous lead convert to a known individual:
Working with a proper marketing automation strategy involves traffic to your company website, conversion from an anonymous lead through content and information exchange. To receive valuable content from you your visitor have to give you their basic info like an e-mail adress.
Now you can use the e-mail to send the content they requested. Follow up with a personal e-mail or a sales call. Make sure you have an aligned strategy for sales and marketing. It is important you agree on what a qualified lead is and when it goes from marketing and nurturing to sales. The marketing automation tool is measuring and processing this for you. The tool is a bridge between marketing and sales.
“Marketing automation drives a 14.5% increase in sales productivity and a 12.2% reduction in marketing overhead.”
– Nucleus Research, 2012
After a sale you want to strengthen your relationship with your customer. The marketing automation tool allows you to maintain and develop your relationship with your customers to cross sell and up-sell to them in the future. But first you have to maintain the relationship and strengthen it. For this we advise you to align this issue with your customer service department to integrate them into the marketing automation efforts.
The data you collect about your customers will open new business opportunities if you know how to monitor and create rules for how the data should be processed.
We sugest you to pick a small team responsible for a marketing automation pilot project. Start with teaming up marketing and sales. Make it simple and measure results on the pilot before doing any heavy integration with CRM systems. Work with landing pages before making major changes to your webpage. Choose an isolated business area to try it on and measure the results. The results will speak for the initiative to integrate and how you should do it.
This is probably the greatest tool for creating revenues you will ever implement this decade and it will bring you the best ROI ever experienced.
“75% of companies using marketing automation see ROI within 12 months, 44% within 6 months.”
– Focus Research, 2013
ROI calculation example
Let us assume you have 10 000 visitors to your web page in a month. Then let’s assume 1% of your visitors convert to actual leads. That gives us 1 000 people that actually fill a form to get a product sheet from us or in touch with us. They get in to our CRM and they automatically get the info they requested. Some will open and read the document and reinforce their relationship trough further contact and request more info indicating interest and reediness for a contact with sales.
“Companies that invest in marketing automation solutions see 70% faster sales cycle times, and 54% improvement in quota achievement.”
– Bulldog Solutions, 2013
Some will open and forget. With marketing automation we can nurture the lagging leads and avoid loosing them. We will track the slower leads and contact them when they are mature enough for sales. Until then they are just enrolled in our marketing automation program and sales are using their time carefully and effective on hot qualified leads. The bigger sales organisation you have the more time you will save and gain more advantage of shorten your sales cycles.
It is very important we position us as value creating our leads minds. This requires a content strategy for inbound marketing. The best content will get viral and shared by your audience. Position you as a thought leader in your business area. We call it give to get.
“If you have more money than brains, you should focus on outbound marketing. If you have more brains than money, you should focus on inbound marketing.”
– Guy Kawasaki
Now back to the calculation and let us further assume that a deal is worth 2 000 €.
We put it into our formula:
Traffic: 10 000
Conversion to lead: 1%
Value: 2 000 €
Result: 200 000 €
Now we have an overview of what to do next. Using this formula helps us see where to put an effort to improve our revenue. We need to consider where to start optimising. More traffic, better conversion or higher business value. More traffic is possible to buy, or achieve by higher engagement. Conversion is a lot about interaction design and content strategy. Business value is about price, packages, churn, cross and up selling. Marketing automation support optimisation in all steps.
What would happen if you could increase your traffic with 2 000 visitors, to 12 000 visitors and/or increase your conversion 2%, to 3% leads of 12 000, and up or cross sell to your existing customers improving your business value with another 500 €?
The new result:
Traffic: 12 000
Conversion to lead: 3%
Value: 2 500 €
Result: 900 000 €
Increase: 700 000 € (450%)
We strongly recommend you to focus on one step at a time. You might not do the optimal optimisation by trying to improve all the steps at the same time. Do one at a time and measure. Make your decisions on the first step that will get you to the best impact by as little efforts as possible. Measure your result. Optimise until you reach your goal and then investigate what your next step in optimising your business should be. Remember. Our environment are constantly changing from day to day and to be agile is proven to be the best strategy of our time right now. Just watch the fastest growing companies and see your self.
“25% of B2B Fortune 500 companies are already using marketing automation, along with 76% of the worlds largest SaaS companies.”
– Pardot, 2013
A modern and successful company knows the importance of keeping the salesforce engaged and this tool will help your marketing department to get closer to sales and gain a much stronger revenue role.
“77% of CMOs at top performing companies indicate that their most compelling reason for implementing marketing automation is to increase revenue.”
– Gleanster, 2013
Imagine the effect on the sales team if the sales team can start each day with a sale.
- How many sales hours would you save if you could provide sales with sorted lists with qualified leads?
- How would your sales team preform if they started each day with a sale because they call the right lead at the right time?
- How much more fun would it be to work for an organisation that provide qualified hot leads assigned to an individual sales representative?
“84% of top-performing companies are already using or plan to start using marketing automation before 2015.”
– Gleanster, 2012
No more cold calls
Imagine to start each call with:
Sales rep: “Hello (leads name), its (sales representatives name). Did you got the e-mail from me the day before yesterday?”
Lead: “Yes, I did!”
Thanks to the tracking in marketing automation the sales representative already know the answer will be “Yes” because we can see that this person is a sorted qualified lead on the criteria OPEN + CLICK. That means we also know the answer to the next question because we see that the lead found the content interesting enough to click to get to the landing page and browse to read more about the offer, collecting points and gaining purchase temperature in our marketing automation system.
Sales rep: “Great! Did you find it interesting?”
Lead: “Yes I did. It said something about… Can you tell me more about…
Sales rep: Yes…
We can be personal because the e-mail sent instead of doing cold calls. The e-mail is personal addressing by name and sent to a chosen segment assigned to the sales representative. This result in a personal warm and relevant call to someone that is for sure interested and we can be comfortable that this lead knows our company, our service and will recognise the sales representatives name.
The result is beter work conditions for sales representatives in companies that choose to implement marketing automation and shorter sales cycles. The marketing and sales department align closer to each other and marketing is responsible to generate the best possible leads to sale. The sales department do only call the ready leads from top down on the sorted list and the leads will appreciate the relevant calls much more than ever experienced before while sales are saving time and efforts not making the unappreciated calls.
This picture explains a simple campaign design:
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