Marketing automation is thriving. More and more companies are jumping on board with this new technology, and it has a lot do with the positive ROI. The pool of business owners and CEO’s who feel they can do just fine without it is shrinking every year. In fact, 84% of companies are now either using Marketing Automation or plan to in the near future.
So what accounts for this great ROI on Marketing Automation. Here’re are few stats that will help better understand what marketing automation is and why Marketing Automation works. The largest reason for companies using Marketing Automaton is to increase revenue, but it’s not only about increasing sales. There’s the opportunity to gain more insight and better analytics.
Of course, in the end, its all about conversions. With better insight and improved analytics, Marketing Automation has helped companies increase their conversion rate by 53%, compared to a 9.3% increase for companies who don’t utilize Marketing Automation.
We recently discussed lead nurturing, a key element in Marketing Automation. A recent study shows that by utilizing lead nurturing in your overall marketing funnel, companies have created 50% more sales leads at 33% lower cost and a 20% increase in sales opportunities. Many marketers and businesses measure their Marketing Automation ROI based on lead scoring.
What Makes Measuring ROI on Marketing Automation Difficult
Before marketing automation, your marketing funnel was broken down into several key components. Those components were tools such as social media, email marketing, paid search, etc. While these tools are still an important part of digital marketing, in the past they were separate from each other, each serving its own purpose. However, Marketing Automation has connected all of these strategies into one seamless overall marketing plan.
Because of this, measuring your ROI on Marketing Automation is tricky because there’s so many variables to measure. So deciding on which variables are most important to your business is how you determine your ROI on Marketing Automation.
These variables can be measuring strategies such as lead scoring, conversions, nurture programs, etc. In the end, you just want to know that your investment on Marketing Automation is churning out positive results, so determine what metrics are most important and what you are trying to accomplish with your Marketing Automation. If you can do this, you’ll get a good picture of how well your Marketing Automation is performing.