A full quarter of companies that adopt marketing automation boost revenue between 30 and 49 percent, according to a new study by RazorSocial’s Ian Cleary. Another 20 percent of companies see revenue jump between 15 and 29 percent.

But significant errors in system selection can lead to negative ROI — and dissatisfaction.

Respondents in the study

Above: Respondents in the study

Image Credit: Ian Cleary

“Picking the wrong tool, not assigning the right resources, and not managing the initial and ongoing implementation can lead to reduced or even non-existent ROI,” Cleary says. “Almost half of those who have implemented marketing automation are not sure, months or years later, whether the time, energy, and money to do marketing automation has been worth it.”

That’s a striking dichotomy: significant ROI on the one hand, and seemingly inexplicable unhappiness with results on the other hand. Other researchers have reported similar confusing results.

From VentureBeat
Customers don’t just get irritated when you screw up cross-channel personalization. They jump ship. Find out how to save your bacon on this free research-based webinar with Insight’s Andrew Jones.

One cause is confounding variables, according to Cleary.

Cleary’s report is available on VB Intel:
How to dramatically increase revenue with marketing automation tools

The reason is that most companies implement a marketing automation system when they are either in a state of growth, expecting growth, or planning for growth. So your sales might be increasing anyway, making it harder to determine what actually caused the growth.

“Your automation tool may help you increase revenue more quickly, but all revenue increases may not be attributable to marketing automation exclusively,” Cleary says.

Correlation may not conclusively indicate causation, but the connection between marketing automation and growth is strong. The most common result, achieved by just over a third of firms, is that companies adopting marketing automation increased revenue modestly, between five to 10 percent. Over 10 percent saw a massive 50-74 percent increase, however, and almost 20 percent experienced greater than a 75 percent increase in revenue.

Almost 150 companies using marketing automation participated in the study.

As Cleary’s research shows, however, there’s a lot of room to grow. Companies that select the wrong system don’t see the results that they want, and about 60 percent of companies that adopt marketing automation are not sure if they’ve picked the right solution.

One key, Cleary says, is a step that many companies skimp on: investing in the implementation.

“Without a plan, with target dates to achieve each stage, the implementation will drag on, and this will cost you money,” he writes in the report.


More information:

Salesforce, the Customer Success Platform and world's #1 CRM, empowers companies to connect with their customers in a whole new way. The company’s platform and application services include: Salesforce Sales Cloud, the world's #1 sale... read more »

Eloqua, a wholly-owned subsidiary of Oracle, is the leading provider of modern marketing automation and revenue performance management software that helps ensure every component of marketing works harder and more efficiently to drive r... read more »

Marketo (NASDAQ: MKTO) provides the leading marketing software for companies of all sizes to build and sustain engaging customer relationships. Spanning today’s digital, social, mobile and offline channels, Marketo’s® customer eng... read more »

Salesforce Pardot accelerates pipeline and drives sales with B2B marketing automation.... read more »

Act-On was created to empower small and mid-sized businesses to effectively market online at a fraction of the effort and cost incurred by larger enterprises. Little beyond email marketing existed to serve small marketing teams until A... read more »

HubSpot is the world’s leading inbound marketing and sales platform. Since 2006, HubSpot has been on a mission to make the world more inbound. Today, over 10,000 customers in 65 countries use HubSpot’s software, services, and suppo... read more »

Powered by VBProfiles