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

How service heterogeneity is impacting engagement

Marketers have long known the importance of standardising products to assure quality and consistency. For services, however, standardisation is much more complex.

Dr Chris Baumann

Associate professor, Macquarie University

Kindness matters in business: why the nice guys finish first

A recent 1000-page Royal Commission report on misconduct in Australia’s financial sector revealed hair-raising stories of excessive commissions, rampant mis-selling and charges levied on the dead. So how do you stop a bank from misleading its customers?

Nick Liddell

Director of Consulting, The Clearing

Myer vs. David Jones: Do cyborgs win?

As two of Australia’s stalwart brands in Myer and David Jones continue their respective journeys through troubled waters, it heralds yet another sign of the shifting business environment and shift towards an experience economy.

Tom Uhlhorn

Founder and strategy director, Tiny CX

nice article

meripadhai

5 things marketers need to do to get better in buy in when presenting

Read more

International business is closely related to marketing or marketing activities carried out by the company. According to Gitman and McDani...

Eko Prasetyo Utomo X

Salesforce: The age of the marketing campaign is over

Read more

Back in 1968 Holden began an appeal to customers who have an interest in competition. It did this with the introduction of the HK GTS 32...

Ben Tate

Marketing professor: For Holden, brand nostalgia ain’t what it used to be

Read more

Your blog post is really good and informative. Thanks for taking time to provide us this useful information with us.Auto wrapping uaeADF ...

Yes Machinery

Image intelligence:10 must-see infographics for marketers

Read more

A debt of gratitude is in order for sharing this marvelous information.I have taken in numerous things from your post

digitech Classes

Lumen CMO strives to make the brand synonymous with anti-ageism

Read more

Latest Podcast

More podcasts

Sign in