Recently, I’ve read articles detailing the recent and projected exponential growth of marketing automation. I’ve also seen quarterly press releases from marketing automation vendors that tout the addition of hundreds of customers. If we believe press clippings, it seems that marketing automation is poised for limitless growth. But is it really? Or is it just hype? Are we seeing a relatively new industry on the down slope?
I’m certainly not a doomsday kind of guy, but I think we have to take a look at some data beyond new customer acquisition so we can get a more accurate view of what’s happening in this space. Consider these statistics:
- Earlier this year, the Propelling Brands Blog stated, “Less than 25% of organizations that have implemented a [marketing automation platform] fully currently utilize its potential.”
- According to a recent study, 78% of marketers state that generating high-quality leads is still their biggest challenge.
- Various reports have between 70-90% of leads still being ignored and going to waste.
Wasn’t marketing automation supposed to fix these issues? Wasn’t it going to make generating quality leads easier? Wasn’t it going to be the savior for marketing departments, making marketing more effective and more efficient?
Let’s be honest. Historically, marketing has not had the level of status that other departments have had at B2B organizations. Only recently has marketing been seen as relevant to the B2B buyer. Traditionally, marketing has been seen as a cost center—and one of the first places to go for cutting expenses when budgets get trimmed. Today, with the help of marketing automation, marketers are convincing management that they are relevant, that they do drive sales, and that they do contribute to the bottom line. But if the stats are true and the effectiveness of marketing automation is not being realized, we (as marketers) are then back to being seen as a cost center. With this being the case, how much longer will CFOs continue to approve automation purchases? If the very marketers who are using these solutions are failing to demonstrate the value coupled with the increased financial scrutiny in companies today, this won’t continue much longer.
Don’t get me wrong. I am a huge proponent of marketing automation. But I believe that too many marketers have bought into the promise that the technology is the answer to their marketing and lead-generation problems. But that’s just not the case. Technology alone cannot solve the problems marketers face today. Today’s research is proving this out more and more.
To be successful and get the true value from a marketing automation investment it is imperative to make sure that solid process, people, and content are in place. Marketers must define and develop lead management and business processes—beyond just scoring and nurturing. They must have the right people who understand demand generation, lead management, and the role of technology. They must have relevant content that engages the buyer, allowing them to learn and move through the buying cycle. If these elements are not in place, marketing automation will eventually be a wasted investment, one that executives may stop approving for purchase, and an industry that could be slipping away.
Tags: B2B, b2bmarketing, Content, Content Marketing, demand generation, Lead Generation, lead management, Marketing Automation, marketing process
Hallelujah! It is refreshing to see someone willing to cut through the hype and say it like it is. Technology alone cannot fill the top of your funnel. Neither can you automate a dry pipeline. Marketing automation is certainly useful but must be paired with sound inbound marketing strategies and tactics. And that as you’ve correctly pointed out requires relevant content, processes and people who know how to use them to their fullest potential.
Great post Carlos, thanks for sharing your insights.
Carlos, I started writing a comment to your thoughtful and interesting article. It got too long, so I posted it as a response on my blog -> http://www.theinnovativemarketer.com/2010/12/marketing-automation-the-end-of-the-beginning-not-the-beginning-of-the-end.html
Thanks for kicking off an interesting discussion!
- Steve
This is a classic hype cycle issue. Marketing automation–properly applied–can improve lead nurturing, but simply blasting out emails is “checking the box” without really solving the problem.
Marketers need to keep the basics in mind–our goal is to educate the prospect so that *if* the prospect has a need our company can fulfill, the prospect thinks of us. That means writing content that educates and develops the relationship.
The tough part, as you note, is that VP Sales, CEOs, and Boards of Directors prefer to blast out their message and ask for the order, not realizing that doing so prematurely will mean certain failure.
Perfect post! Thanks for distinguishing reality from hype in this space. I’m a believer in MA but don’t think the way to promote the space is to say it is the end-all, be-all.
An unusually provocative piece on mprofs – glad to see it! Two comments i’d toss in to your very good analysis:
a) In my experience marketers, even with all the talk about “integrated” campaigns, still rely on different internal and external resources to build PR, web, offline, social media elements, etc. A goat rodeo is nearly impossible to automate.
b) Seems to me a focus on post-acquisition would be better served via automation (versus lead generation). You know the customers, their purchase(s), media preferences, triggers, etc. Yet 80% of the discussion on marketing automation seems to be about making banner ads that can “change on the fly” and such. Not good prioritization, in my humble….
Interesting post and replies. I would add, think long term. The problem isn’t with marketing automation. The problem is with marketers thinking it through and current development cost. Automation is just added leverage to the implementation of thinking and strategic development. I’m thinking a couple of decades. And marketers in 2030 will look back and just smile.
[...] execution and how to get it done, or said another way: Stop talking about it and just do it. I love this article by Carlos Hidalgo (Funnelholic all-time fave) on marketing automation. As Carlos mentions, in the case of marketing [...]
I agree that Marketing Automation isn’t the only answer of lead generation problem. Unfortunately, many marketers think so and M.A. become a wasted investment.
While I agree that if MA is just implemented without transformation of skills, content and processes, I don’t believe the end of an industry is in sight.
MA is a stepping stone for companies to change. I believe that Marketing teams that were successful in presenting their business case for transformation have just gotten started. They’ve up-leveled their stake in generating visibility into business impact.
They need to accelerate the journey to leveraging their investment and put their determination into the next stage. The goal of automation is also about transformation. I believe marketing will continue to evolve out of necessity.
I’ve had the privilege of working with many savvy marketing teams over the years. I’m looking forward to seeing where they take their investments.
Remember CRM/SFA (what a long journey)? But now, most people will share “they don’t know what they’d do without salesforce.com”. My take, “stay tuned” – but I’m an optimist.
As with any applied technology, implementing it is only part of the puzzle. For continued support in most organizations, marketers will also need to develop, track, and report performance indicators / metrics that show continual value contribution. Connecting marketing automation to the sales process is essential for capturing provable value.
[...] that they are struggling. If self teaching was effective, then we’d see way more that just 25% getting value from their marketing automation investment. We believe that the MAI will help improve on these statistics. The MAI will serve to help those [...]