Market automation reaches tipping point with CMOs: Ovum

Ovum Digital Marketing and Connected Customer practice claims broken CRM promises and hype from technology vendors had left CMOs sceptical about initial adoption

Marketing automation is reaching a tipping point that will see it become more readily adopted across organisations, according to new research from Ovum’s Digital Marketing and Connected Customer practice.

Ovum’s senior digital marketing analyst, Gerry Brown, said the need to more effectively and efficiently attract and retain customers is driving organisations to seek tools for automating marketing functions, and the market has now achieved sufficient successful implementations to give later adopters greater confidence.

“People are seeing that marketing and customer orientation are becoming increasingly important, and executive boards are much more likely to sign off deals for marketing automation,” Brown claimed.

To date, however, he said technology suppliers have been their own worst enemy, with many rebadging what are effectively sales lead management systems as marketing automation tools.

“It has confused the marketplace and in some ways has slowed the growth,” Brown said. “Return on investment of using some of these tools is very substantial, so there is no reason why there shouldn’t be much greater wholesale adoption.

“But marketing departments as a whole have been sceptical of the hype associated with marketing automation and have held off when they should have been investing.”

In some instances, the broken promises of CRM implementations have also caused CMOs to be cautious regarding which suppliers they spend their money with.

“CRM was used as a tool to beat sales people over the head with when they weren’t hitting their targets, rather than helping them understand customer needs and the quality of the relationship and how they should pull the right levers to deliver strategic profitable deals for the organisation,” Brown said.

Suppliers such as Marketo, Eloqua and Responsys now have sufficient implementations where they can demonstrate dramatic gains in customer acquisition to assuage the fears of CMOs.

“The main thing in marketing now is the need for speed – to respond in real time to changing customer needs and be able to exploit spikes in demand as they occur,” he said. “Using a system like Eloqua means you can see very clearly the impact of marketing campaigns and the level of marketing influence within campaigns.”

Despite this, Brown warned many organisations will still need to invest significant resources in cleaning up their databases before marketing automation will prove effective, and added many are still sufficiently immature as to need specialist skills to extract value.

“The tools are very competent but they don’t have all the controls that an enterprise IT system would have, so you need to have someone who is a super power user in charge,” Brown said.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Why you can’t afford to fail at CX in 2019

In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.

Damian Kernahan

Founder and CEO, Proto Partners

Natural born leaders

Many business and marketing managers progressing to leadership positions face evolving their focus from operational matters to strategic decision making and planning.

Jean-Luc Ambrosi

Author, marketer

Using artificial intelligence to surprise your customers

​We have expected artificial intelligence (AI) will become part of our everyday lives for quite some time.

Katja Forbes

Founder and chief, sfyte

Just printed out this Brad Howarth screed to read tomorrow. I need a good laugh once in a while. Or maybe shed some manly-man tears at th...

Larry A Singleton

What a diversity agenda has done for Kellogg's staff and innovation engagement

Read more

Morons. PC Nazis infiltrating and subverting every level in our lives.These scum have destroyed our education system.Read FrontPage Magaz...

Larry A Singleton

What a diversity agenda has done for Kellogg's staff and innovation engagement

Read more

It is an accepted fact that in the present times the mass makes use of digital marketing more often and are more and more enlightened wit...

Digital Marketing Course in Ja

Why RMIT is partnering with Adobe for digital marketing learning

Read more

If men were really the dominating brutes that feminist make them out to be ,then women really would be second class citizens. Without th...

aaron

Analysis: Gillette's latest ad only proves why brands standing for positive change is vital

Read more

In 2019 Augmented Reality plays a vital role in marketing campaign its new way to engaged user with digital content. Try Augmented Realit...

hill william

Predictions: 9 digital marketing trends for 2019

Read more

Latest Podcast

More podcasts

Sign in