In Part 1 of this series, we looked at the state of play, the market, and the growth of marketing automation in 2015.
In Part 2, we’re going to take a look at the impact (measurable gains) of marketing automation on adopters. How many more qualified leads are passed on to sales? By what percentage do sales increase? How much more time do adopters have to focus on other things, like content marketing?
We’ll also look at the challenges facing adopters and non-adopters today, and what they want most out of their marketing automation software.
Impact
It’s the bottom of the ninth and the crowd is silent. The game is tied. Everyone’s favorite home team slugger, M.A., is at bat. Is he going to knock it out of the ballpark?
Let’s pause for a moment and look at his numbers from the last few seasons. What do the sabermetrics of marketing automation have to say?
Let’s start with his batting average:
1. 58% of top-performing companies (those in which marketing contributes over 50% of the sales pipeline) have adopted marketing automation. (Forrester Research, 2013)
2. 79% of top-performing companies have been using marketing automation for more than two years. (Gleanster, 2013)
3. 78% of high-performing marketers say that marketing automation software is responsible for improving revenue. (The Lenskold and Pedowitz Groups, 2013)
4. 75% of companies using marketing automation see ROI within 12 months, 44% see it within 6 months. (Focus Research, 2013)
5. Specifically, companies that automate lead management see a 10% or greater increase in revenue in 6-9 months. (Gartner Research, 2013)
6. Companies that invest in marketing automation solutions see 70% faster sales cycle times, and 54% improvement in quota achievement. (Bulldog Solutions, 2013)
7. Marketing automation drives a 14.5% increase in sales productivity and a 12.2% reduction in marketing overhead. (Nucleus Research, 2014)
8. B2B marketers who implement marketing automation increase sales by 10%. (Forrester Research, 2014)
9. B2C marketers who take advantage of automation – which includes everything from cart abandonment programs to birthday emails – have seen conversion rates as high as 50%. (eMarketer, 2013)
It’s clear that marketing automation is performing as expected. A 10% increase in sales for B2B marketers and as much as 50% for B2C marketers is nothing to sneeze at. But perhaps the most impressive stat is the 6 to 12 month window for ROI. A flat 10% increase in revenue between 6 to 9 months will make anyone a fan.
So, we know he can bat. That’s good. But can he throw the ball, too?
10. Marketing automation users report 3x more leads passed to sales after one month. (Marketo, 2013)
11. Companies that excel at lead nurturing generate 50% more sales-ready leads at 33% lower cost. (Forrester Research, 2013)
12. Businesses that use marketing automation to nurture prospects experience a 451% increase in qualified leads. (The Annuitas Group, 2013)
13. Nurtured leads produce, on average, a 20% increase in sales opportunities versus non-nurtured leads. (DemandGen Report, 2014)
14. 47% of nurtured leads make larger purchases than non-nurtured leads. (The Annuitas Group, 2013)
It’s reassuring that marketing automation in 2015 is doing exactly what marketers want: nurturing leads and converting them into customers. Which means an increase in all-around revenue.
And we can all be certain that sales is a lot happier for it. Qualified leads are like perfect throws, while unqualified leads are just poor teamwork.
Here’s a question: Since M.A. is so good at bat and on the field, is he making his entire team better?
15. The advantages of time freed up by marketing automation are many. (The Lenskold and Pedowitz Groups, 2013)
- 54% of companies with marketing automation capture intelligence for the sales team, compared to 25% of companies without marketing automation.
- 49% of companies with marketing automation customize content to the Buyer Journey stages, compared to 21% without.
- 59% of companies with marketing automation are able to use intelligent targeting to trigger content, compared to 17% without.
- 45% of companies with marketing automation regularly repurpose content for efficiency, compared to 28% without.
Turns out he does make the rest of the team better, too. Is there anything he can’t do?
Challenges
Is marketing automation going to hit home runs in 2015? Absolutely. But not all the bases are loaded. The crowd is excited, yet not everyone’s a diehard fan.
As a reminder (of stats mentioned in Part 1 of this series), 44% of B2B buyers did not know what marketing automation was in 2012, and it’s likely that number hasn’t shifted drastically in 2015. Additionally, only 8% of organizations used marketing automation to nurture existing customers in 2014. Most surprisingly, only 3% of non-tech companies have adopted any kind of marketing automation software at all.
Marketing automation may be doing well this season, but he still has a long way to go before the big leagues.
It’s not all on him, though. Team management could do better at managing their talent.
16. 64% of CMOs have no formal process to manage their marketing automation. (The Annuitas Group, 2013)
17. 85% of B2B marketers using marketing automation platforms in 2014 feel that they’re not using them to their full potential. (Sirius Decisions, 2014)
18. 54% marketers who have not yet implemented marketing automation cite lack of budget as a major obstacle preventing implementation. (Regalix, 2014)
It doesn’t take an expert to see that management isn’t leveraging their talent as effectively as they could be. Fortunately, management is aware of its shortcomings and wants to run the team more effectively.
19. CEOs and Business Owners are 25% more likely to be involved in a marketing automation software purchase than other business software purchases. (Capterra, 2013)
Box Score
In 2015, marketing automation will probably knock it out of the ballpark, but not every time he’s at bat. He performs beyond expectations with home-field advantage (tech, B2C), but his nerves get frayed on the road (non-tech, B2B). And as exciting as his homers are (conversion), his ground game is what’s gotten everyone talking (lead qualification and nurturing).
All in all, it should be a pretty exciting season.
