Marketing automation


Marketing automation refers to software platforms and technologies designed for marketing departments and organizations to automate repetitive tasks and consolidate multi-channel interactions, tracking and web analytics, lead scoring, campaign management and reporting into one system. It often integrates with customer relationship management and customer data platform software.

Overview

Marketing automation tracks top-of-funnel activities to drive prospects to sales. This is contrasted with CRM, which manages information about the prospect and their position in the sales cycle.
The use of marketing automation makes processes that would otherwise have been performed manually much more efficient and makes new processes possible. Marketing Automation can be defined as a process where technology is used to automate several repetitive tasks that are undertaken on a regular basis in a marketing campaign.
Marketing Automation platforms allow marketers to automate and simplify client communication by managing complex omnichannel marketing strategies with a single tool. Marketing Automation assists greatly in areas like Lead Generation, Segmentation, Lead nurturing and lead scoring, Relationship marketing, Cross-sell and upsell, Retention, and Marketing ROI measurement. Effective marketing automation tools leverage data from a separate or integrated CRM to understand customer impact and preferences.
There are three categories of marketing automation software:
;Marketing intelligence: Uses tracking codes in social media, email, and webpages to track the behavior of anyone interested in a product or service to gain a measure of intent. It can record which social media group or thread they followed, which link was clicked on in an email or which search term was used to access a website. Multiple link analysis can then track buyer behavior - following links and multiple threads related to product A, but not B will show an interest only in A. This allows more accurately targeted response and the development of a nurturing program specifically targeted towards their interest and vertical market. This allows businesses to more efficiently and effectively reach target consumers who show, through their internet history behavior, that they will be interested in the company's products. Due to its interactive nature, this has been described as Marketing Automation 2.0.
;Marketing automation: Has a focus on moving leads from the top of the marketing funnel through to becoming sales-ready leads at the bottom of the funnel. Prospects are scored, based on their activities, and receive targeted content and messaging, thus nurturing them from first interest through to sale. Commonly used in business-to-business, business-to-government, or longer sales cycle business-to-consumer sales cycles, Marketing Automation involves multiple areas of marketing and is really the marriage of email marketing technology coupled with a structured sales process.
Advertising Automation
'''Advanced workflow automation'''

Effects of GDPR on marketing automation

As of 25 May 2018 the General Data Protection Regulation came into effect in the EU, this has had a large impact on the way marketing teams and organizations can manage their consumer data. Any organization using marketing automation tracking is required to ask consent from the consumer as well as provide transparency on how the data will be processed.

California Consumer Privacy Act (CCPA)

Similarly, the California Consumer Privacy Act, which took effect on January 1, 2020, introduced strict data privacy laws for residents of California. The CCPA grants consumers the right to:
Know what personal data is collected, the purpose of collection, and with whom it is shared.
Opt-out of the sale of their personal information.
The CCPA's impact on marketing automation includes:
Data Transparency: Marketers must provide clear disclosures about data collection practices.
Consent Management: Systems must allow consumers to opt-out of data collection and processing.
Data Security: Enhanced security measures are required to protect consumer data from breaches.

Global Trend Towards Data Privacy

These regulations reflect a global trend towards stronger data privacy laws influencing marketing automation by:
Necessitating Compliance Features: Automation tools now often include compliance management features.
Altering Data Strategies: Marketers are shifting towards first-party data and emphasizing data stewardship.
Impacting Personalization: Balancing personalization with privacy requires more sophisticated data handling.

Impact of marketing automation on consumers

Consumers are directly impacted by marketing automation. Consumers provide data for companies, and companies use algorithms to determine products and services to market towards the consumer. The products and services are personalized based on the collected data for each individual. The use of marketing automation is interpreted as an efficient customer experience while others interpret a loss of autonomy for the consumer.

Functionality

Marketing automation solutions provide three key functions:
Campaign and customer analysis help craft the right offers and learn from information gathered from past campaigns.
Campaign management oversees all communication with customers across multiple channels, tracks their responses, and reports results.
Data warehousing pulls customer information together from different systems and channels.

Examples of automation

After a user visits a merchant's website and navigates away, an automated email can be triggered to be sent out that user. They can be reminded of an abandoned shopping cart, a subscription that is about to expire, or be welcomed if they are a new customer. Coupons and messages can be tailored based on past purchases.
Software can also automate the creation of product landing pages and chatbots for customer support.

Market size

According to Gartner, the B2B automation market was valued at $2.1 billion in 2020 and more than $2.74 billion in 2021. Gartner identified the following vendors as B2B marketing automation platform leaders as of August 2021:
Adobe
Creatio
HubSpot
Oracle
Salesforce

History