What is Marketing Automation and how does it work?

What is Marketing Automation and how does it work?
What is Marketing Automation and how does it work?

Marketing Automation Whitepaper

What is it and how does our solution work?

What is Marketing Automation?"

Marketing automation is software that enables companies to automate repetitive marketing activities and target customers and prospects personally at any point in their customer journey. It helps marketing and sales departments save time in the lead process, better tailor campaigns to target audiences and make communications consistent.

From the initial introduction to the customer retention stage, Marketing Automation ensures that messages, offers and follow-ups are sent automatically at the right time and through the right channel.

In this article, we'll take you step-by-step through the key components of Marketing Automation.

The tools within marketing automation software

There is a lot of marketing technology on the market. The comparing platforms is important, because the capabilities vary from platform to platform. Some software stems from CRM systems, which offers advantages in data integration but can be less flexible. Other solutions are simpler and suitable for smaller organizations, while larger companies often need a platform that can grow with them. The main features within marketing automation are:

E-mail campaigns
With advanced e-mail marketing automation, you can set up automated e-mail flows that respond to behavior, needs or interests. Think welcome emails, reminders or personalized offers. Emails can be sent based on a schedule or automatically triggered by a specific customer action. Connecting multiple flows together creates a complete customer journey workflow.

Lead scoring
With lead scoring, you assign points to actions, such as opening an email, visiting a product page or filling out a contact form. Based on this real-time data, you'll know which leads are ready to be contacted by sales and can prioritize follow-up.

Lead nurturing
With lead nurturing you can guide leads step-by-step through their buying process. By tailoring this follow-up to the lead's behavior and interests, the communication remains relevant and personal. In this way, leads grow naturally towards a purchase decision, while the process is largely automatic.

CRM integration
Connecting marketing automation to a CRM system creates one integrated overview of customer data, interactions and campaigns. This allows marketing and sales to work from the same information and better manage the entire customer journey.

Dynamic content and personalization
Based on all available data, you can dynamically or manually personalize content. Communication in emails, websites and advertisements automatically matches customer behavior and interests. Through smart segmentation, companies can redefine what message is most relevant to each customer or prospect every moment.

Omnichannel communication
Marketing automation goes beyond email alone. You can reach customers through multiple channels, such as social media, personalized ads, text messages, app messages or web push notifications. This omnichannel marketing approach ensures that all channels are aligned, resulting in a unified brand experience throughout the customer journey.

What are the benefits of marketing automation?

Marketing automation contributes to more effective marketing and better customer relationships in several ways. By combining data and technology, companies can better understand customers, communicate in a more targeted way and continuously improve their marketing activities. Here are the key benefits.

Efficiency and time savings
Automation takes a lot of repetitive work off your hands. Repetitive tasks happen automatically, making campaigns more consistent and less prone to error. This leaves more time to work on growth and quality.

More targeted lead follow-up
Leads are automatically followed up with relevant content that matches needs. Potential customers receive the right information at the right time, guiding them step by step towards a purchase decision. This not only increases engagement, but also the conversion rate.

Customer Retention
In your customer data, all kinds of signals arrive (real-time). From order systems, customer service notes, web visits to store (checkout) information. The proper registration and follow-up of an order, a complaint and the follow-up offer are overcome with Marketing Automation. More retention at upsell also simply means less pressure on generating new customers.

Personalized communication at scale
By using customer data smartly, companies can send personalized messages to large groups of customers without extra work. Each recipient gets content that matches their preferences, behavior or stage in the customer journey. This makes communication feel personal, while the process is fully automated.

Better insights
Marketing automation provides comprehensive reports on behavior, performance and results. By analyzing that data, companies can see which campaigns are performing best and where improvements can be made. That makes it easier to make decisions based on facts rather than feelings.

Close collaboration between marketing and sales
When both teams work with the same up-to-date data, lead transfer is much more efficient. Marketing can clearly identify which leads are ready for follow-up, while sales has better insight into potential customers' interests and behavior. This creates more trust, less miscommunication and higher conversions.

How does marketing automation work?

Marketing automation works by bringing together data, triggers and workflows. A trigger is an action taken by a user, such as opening an e-mail or clicking on a link. A workflow is the series of steps that follow automatically, such as sending a follow-up email or adjusting a lead score.

Suppose someone views a product on the Web site. That visit can automatically trigger an email with additional information or an offer that matches the customer's interest. Thus, marketing automation responds directly to behavior and provides relevant communication.

The operation of marketing automation consists of four steps:

1. Data collection
The software continuously collects information about the customer and interactions through various channels such as email, websites, social media and events. All these data combine to form a complete picture of the customer and their stage in the customer journey.

2. Segmentation of target groups
With the collected data, customers are automatically divided into groups with similar characteristics or interests. Thus, each target group receives messages appropriate to their situation, from first encounter to repeat purchase.

3. Automatic communication flows
As soon as a customer shows interest or performs a specific action, a series of messages or actions are automatically triggered. This could be an e-mail with additional information, a reminder about a product or an invitation to an event. In this way, communication moves with the customer's behavior.

4. Analyze and optimize
The results of campaigns are continuously measured and analyzed. By looking at behavior and performance, communications can be increasingly aligned with what customers expect and value.

Practice example:

Suppose someone downloads a white paper on data integration. From that moment, several triggers and workflows are automatically activated:

  • Trigger 1: the download of the white paper

Workflow: the visitor immediately receives an e-mail with a thank-you message and a link to additional articles on the same topic.

  • Trigger 2: the e-mail is opened or a link is clicked

Workflow: the system registers interest and automatically schedules a follow-up e-mail with in-depth information or a customer case.
Workflow Ternair

  • Trigger 3:a few days after the download

Workflow: the visitor receives an invitation to a webinar on data integration, tailored to the interest previously expressed.

  • Trigger 4: the visitor signs up for the webinar

Workflow: this person's profile is automatically enriched with new data and the sales team receives a notification to contact them for further follow-up.

Step plan to get started with marketing automation

A successful start with marketing automation requires a clear strategy. By working step by step, you lay a solid foundation and prevent automation from becoming a stand-alone project. To help you get off to a good start, we have developed a practical step-by-step plan that guides you from orientation to selection:

  1. Determine goals and KPIs
    Start by formulating concrete goals. Do you want to generate more leads, improve customer retention or improve the customer experience? Involve your key stakeholders in the process. Then set measurable KPIs to these goals, such as the number of new contacts per month or the percentage of returning customers.

  2. Customer data collection and integration
    Bring all relevant customer data together in one central location. Consider data from your website, CRM, email and social media. Make sure the data is current and complete so that segmentation works reliably later.

  3. Prepare content and campaigns
    Make sure you have valuable content that fits the different stages of the customer journey. Consider inspirational articles for new visitors, product information for exploratory customers and service messages for existing relationships. Create a content calendar in advance so you know which messages to deploy at what time.

  4. Develop workflows
    Design scenarios that are automatically triggered by customer behavior. For example: a newsletter subscription leads to a welcome email, a click on a product to a follow-up message. Start with one simple flow and then expand incrementally so that each customer segment has its own workflow.

  5. Test and optimize
    Analyze how your campaigns are performing and try different variants. Small changes in subject lines, timing or content can have a big impact on results. Use data from your reports to inform improvements instead of working by feel.

  6. Scale up
    When the initial workflows are working well, you can expand further. Add new channels, refine your segmentation and integrate more data to make the customer journey even more personalized. Regularly review whether the automation still fits the organization's goals.

Our approach to marketing automation

Ternair develops marketing automation software that helps organizations bring all communication channels and customer data together in one environment. Thanks to years of experience, Ternair supports companies in the implementation of marketing automation and the optimal use of data within the customer journey.

In addition, Ternair's Marketing Automation Specialists provide training and guidance so that teams can independently and effectively use the software in their daily marketing activities.

FAQ

Frequently asked questions about Marketing Automation

What is the difference between marketing automation and email marketing?

E-mail marketing focuses on single campaigns, while marketing automation automates entire processes that respond to behavior and interests.

Is marketing automation also suitable for small businesses?

Yes, even smaller organizations can benefit from automation. By starting small, you can quickly save time and send more relevant communications.

How do I choose the right marketing automation software?

Pay attention to ease of use, integration capabilities and scalability. The best choice depends on your goals and available data.

What is the ROI (return on investment) of marketing automation?

Marketing automation delivers returns in three areas: increased revenue, increased efficiency and improved customer retention. On average, companies realize 10-30% more revenue per customer, run up to 5 times as many campaigns with the same capacity and increase customer retention by 5-10%. The biggest gain is in smarter use of customer data for more relevant communications. If you want to know what this could mean for your organization, check out our whitepaper on the business case for marketing automation.

How long does it take to implement marketing automation?

Depending on the size of the organization, implementation usually takes several weeks to months. A step-by-step approach works best.

What does a Marketing Automation tool cost?

The cost depends on the size of your organization, the number of customers, data sources and users. For small businesses, prices start around €50 per month, while larger organizations pay between €3,000 and €30,000 per month for advanced solutions with multiple channels and integrations.

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Marketing Automation: what is it and how does our solution work

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