Marketing automation software is a growing field because it simplifies the modern marketing world and delivers high-quality leads, shorter sales cycles and increased customer lifetime value.
“Today there are more channels to market in, more types of marketing programs, more data available for buyer segmentation and higher expectations among your buyers and prospects,” says David Raab of Raab Associates, Inc. ”As a result, there’s an increasing need for a marketing automation solution to manage these challenges.”
That need and demand for an automation solution is being felt across the board, but still only 9 percent of small- and mid-sized businesses use automation software. As You Mon Tsang will discuss in his Vocus webinar, the small percentage of small- and mid-sized businesses using automation software is largely the product of myths. Many small- and mid-size businesses believe that automation requires a big budget or a specialist dedicated to the software.
Research from Software Advice backs up that sentiment. The Austin, Texas-based software advisor talked with a number of companies (896 unique interactions) about marketing automation solutions in the past year and more than 50 percent of them were in the small- to mid-size bracket.
The increasing interest from small- and mid-size companies isn’t the only fascinating fact Software Advice found. Other ones are noted in their data analysis “Marketing Automation Software BuyerView | 2014” and include:
- A majority (91 percent) of buyers is considering a marketing automation solution for the first time.
- Seventy-nine percent uses some sort of software to manage marketing; however, it is not an all-in-one solution and often is disjointed or disconnected from other marketing initiatives and tools.
- Forty-eight percent uses some sort of CRM software.
- Seven percent uses an email-marketing program such as iContact.
- Six percent uses proprietary software, that is, software designed and used by the company by and for itself.
- Twenty-one percent uses no software and instead relies on methods like pen and paper, spreadsheets, and one-off emails.Want to see how automation can work for you? Register for our free webinar with Vocus CMO You Mon Tsang now!
- The leading reason for wishing to purchase marketing automation software is a desire to improve lead management (40 percent).
- Another 30 percent expresses a need to automate responses, such as sending emails or other messages based on customer behavior.
- Lead nurturing, in keeping with the desire to improve lead management and automate responses, is the foremost concern (81 percent).
- Secondary and tertiary concerns are marketing analytics (70 percent) and lead scoring (64 percent).
- Email and drip marketing capabilities also are desired (a little over 40 percent in each category), reflecting companies’ desire to grow their leads and better communicate with them.
- Fifty percent of buyers have fewer than 50 employees while only 15 percent have 500 or more.
- Seventy-six percent generates under $50 million in revenue; roughly 18 percent generates $100 million or more.
- Of those large corporations (more than $100 million in annual revenue), 30 percent is looking to replace an existing solution.
As for what all that data means, it reveals that small- and mid-sized businesses are taking note of marketing automation. They may be leery of the software because it often is cumbersome and offers features they don’t need, but they’re still interested.
They desire to nurture their leads and to know what effect their marketing efforts have, and they realize that marketing automation software is the best way to achieve both goals.