Top Trends in Marketing Automation Software

9876

4321

Ten Marketing Automation Software Trends to Consider

When selecting new software, you have an excellent opportunity to leapfrog to the next generation of technology and best practices. Consider the latest technology trends and developments, and then dramatically improve your effectiveness.

Here are the top ten trends to consider:

WEB-BASED SOFTWARE AS A SERVICE (SAAS)

SUBSCRIPTION-BASED SOFTWARE PRICING

105

INTEGRATION OF SOCIAL MEDIA AND MARKETING AUTOMATION

INBOUND MARKETING MEETS MARKETING AUTOMATION

DOWN-TOP APPROACH TO LEADGENERATION

INTEGRATION OF SALES AND MARKETING TEAMS

SOPHISTICATED REPORTING FOR IMPROVED BUSINESS INTELLIGENCE

ENHANCED SUPPORT FOR CORE MARKETING OPERATIONS

BUYER EMPOWERMENT IN AN INCREASINGLY COMPLEX B2B SALE

CONTENT IS KING

Web-based, SaaS marketing automation systems have gained in popularity in the last few years. Meanwhile, established Windows-based systems are now frequently being hosted by the software vendor. Marketing teams are finding that the advantages of the web-based model help them execute more effectively and deal with fewer IT headaches.

There are five major reasons why web-based software for marketing automation is gaining traction: • Faster, easier set-up of the system• A lower cost to get started• Easy-to-use browser-based user interfaces• Simplified integration with other websites• Access anywhere, by anyone with permission

YOUR

OFFICE

DATA

CENTER

WWW

1Web-Based, Software-as-a-Service (SaaS)

WEB-BASED SOFTWARE

Traditionally, software was sold through a perpetual license; that is, pay upfront to own the software, and then pay 15% to 20% of that amount each year to receive support and upgrades.

With the advent of the SaaS model, more and more vendors are selling subscriptions. Effectively, customers are renting the software, rather than buying it. Support, upgrades and ancillary fees are all bundled into a monthly or annual subscription. In marketing automation, the subscription amount is typically based on the size of your organization and the number of users.

Buyers appreciate the lower upfront costs and pay-as-you go flexibility. Keep in mind that the total lifetime subscription costs are often comparable to traditional perpetual licenses.

COMPARING THE MODELS

2Subscription-Based Pricing

Perpetual License

Subscription Model

Upfront costs Large Small

Recurring costs Small Medium

BenefitsYou own the

software outright

Cancel with lower sunk

costs

DrawbacksLess flexibility

to cancel -sunk costs

Recurring fees add up over time

In their latest product releases, major marketing automation vendors have introduced tools to improve marketers’ use of social media. While no standard approach has yet emerged, each tool helps put marketers closer to their prospects.

Some vendors are capitalizing on the open sharing of information over forums such as Twitter and LinkedIn. Their tools capture information from these sites and add it to a lead’s activity history. Other vendor tools provide another touch point for marketers to reach leads. Campaigns can be executed over these social networks and tracked within the system.

Buyers are no longer seeking information solely from the company. They have built extensive networks on these social sites, and that is where they go for information. With social media integration, marketers now have a way to tap into those networks.

3Integration of Social Media and Marketing Automation

EXAMPLE SOCIAL MEDIA APPfrom the Optify system

The goals of inbound marketing include getting found by prospects, generating web traffic, and converting that traffic into customers. However, in a complex B2B selling environment, more is needed to close that sale.

In an environment where buyer interactions are anything but linear (think Atari’s Pong), how are marketers supposed to track which prospects have gone past the stage of interest and are truly engaged in the buying process? Marketing automation takes over with lead nurturing.

Lead nurturing delivers appropriate messages, emails, and industry information that has been personalized for the customer. These efforts build a relationship between vendor and buyer, designed to drive interaction with sales only when the lead is ready. Thus, inbound interest turns into sales readiness.

4Inbound Marketing Meets Marketing Automation

Lead Nurturing from the Marketo system

In the past, demand generation has typically taken a top-down approach: pour as many leads as possible into the sales and marketing funnel and cross your fingers that most turn into qualified prospects. This approach makes it difficult to set goals since there is no real way to measure efforts or guarantee results.

Companies are beginning to take a reverse approach, focusing on revenue goals and the conversion metrics required to meet those goals. Starting with budget allotment and resources, companies can measure sales and marketing to meet their needs.

For example, a company with a $5 million sales goal and a $20,000 average sale can estimate that they will need 250 conversions to meet their goal.

Marketing automation enables companies to assess conversion rates at different levels of the funnel. From there, the company can then estimate the percentage of inquiries that must convert to qualified leads, then into opportunities, and finally closed deals. This quantifiable approach helps marketers form a plan of execution that will deliver the most highly qualified leads for meeting revenue goals.

Companies are beginning to take a reverse approach, focusing on revenue goals...“

5Down-Top Approach to Lead Generation

The traditional sales-marketing relationship has been slightly disjointed. Leads are often funneled to sales without any preparation or indicators as to sales readiness. With marketing automation software, sales and marketing efforts are aligned to ensure that sales reps are working with sales-ready leads.

Marketing automation software provides:• Shared common language• Alignment of sales and marketing goals• Lead nurturing capabilities• Automated sales alerts for qualified leads • Tracking of leads through entire sales cycle

This unites sales and marketing as one team. Marketing works on building relationships with and qualifying incoming leads so that sales can focus their efforts on the prospects with the highest chance of conversion.

Marketing initiatives (Organic search, campaigns, trade shows, social media,

telemarketing, advertising, events)

Lead nurturing (whitepapers, case studies, drip marketing)

Trial, demonstration

Quote, pricing, contract

Order

6Integration of Sales and Marketing Teams

Lead scoring (demographics, BANT, etc.)

B2B SALES FUNNEL

SA

LES

MA

RK

ETIN

G

Marketing initiatives are necessary for reaching potential and existing customers, but without a way to measure results against the efforts, they are useless. The traditional method of manual data tracking was fine, but cumbersome and with questionable results.

Marketing automation software provides sophisticated reporting and analytics tools that measure the performance of marketing initiatives. Managers can see what campaigns and channels are driving the most leads, and measure the cost and revenue of those initiatives.

This information helps managers decide how to allocate the marketing budget, as well as redefine and adjust processes to achieve greater ROI. It also enables the marketing team to show revenue contribution to the organization as a whole, which can affect future direction of the company and its products.

7Sophisticated Reporting for Improved Business Intelligence

REPORTING AND ANALYTICS from the Eloqua system

If you can count your marketing initiatives and activities on one hand, chances are you are not doing much to help improve business. Marketing automation vendors realize that companies need more than just a campaign builder to be truly effective. They need a system that enables them to reach their customers at as many touch points as possible.

A good number of marketing automation software systems out there provide additional applications and tools to enhance core marketing operations. Some examples include:• Email and online marketing tools• HTML-rich website and landing page builders• Social media integration • Customizable survey builders• Built-in forms to generate marketing leads• Modules for reporting and analytics• Campaign calendar tools• Budget tracking and management

8Enhanced Support for Core Marketing Operations

SURVEY BUILDINGfrom the Beanstalk Data system

The trend toward buyer empowerment has changed several core philosophies and best practices in the B2B marketing world. With online information at their fingertips, buyers are in control and marketers have to work harder to get their attention.

Here are a few shifts that savvy marketers are recognizing and adjusting to.• Desired content vs. marketing jargon: Marketers are forced to produce relevant, interesting content instead of the traditional brochures and other collateral.• Dialog vs. monolog: Potential buyers now seek two-way communication with vendors instead of blindly consuming marketing speak. Forums, wikis and social networks support this.• Producing relationships vs. producing sales: Marketing campaigns are becoming increasingly long-term, with a focus on building a relationship with a customer rather than just converting a sale.

9Buyer Empowerment in an Increasingly Complex B2B Sale

SOCIAL MEDIA INTEGRATIONfrom the Optify system

Today’s marketers are dealing with an environment that has been dubbed “Customer 2.0.” Buyers don’t want to engage with sales until they understand the market and feel confident that your product meets their needs. This means that marketers have to deliver excellent content to win the attention of this new type of buyer.

Marketing automation software provides tools to deliver highly relevant, focused content to leads. Systems can tailor campaigns and content based on a number of factors including their industry segment, company size, job title, location in the sales cycle, and online behavior.

By focusing on the right information needs of the buyer, marketers are in a much better position to succeed with Customer 2.0.

ORIGINAL CONTENT IS MORE VALUABLE THAN MARKETING JARGON!

10Content is King

Jumpstart Your Software Search

Tell us about your software needs

Our experts tap their brains & research

We send you the perfect “short list”

123

GET A FREE

FastStart ConsultationSoftware Advice - the website and the people behind it - is dedicated to helping businesses find the right software for their organization. Our expertise, in-depth research and easy-to-use website are made available free through the sponsorship of hundreds of software vendors.

Our FastStart Consultations will jump start your software search, saving you weeks of research. A 15-minute phone conversation will get you headed in the right direction and there is no obligation.

“We couldn't afford to overspend on new software. After talking with the guys at Software Advice, I had confidence that my short list included the right software at the right price. It's great to have a service such as yours for people in my position.”

- Daniel YemmTurnkey Services

Click toLEARN MORE

Or call 1-800-918-2764