Wed, Mar 28, 2012
Software may be the best thing you’ve never heard of. It’s a sales and marketing engine that’s loaded with fuel, ready for the ride of its life. Now is the right time and right environment for marketing technology to step up. In this article we cover why there’s a red hot market for marketing platforms like Lead Liaison
’s and a huge opportunity for marketers to continue to reap rewards of these emerging solutions for years to come.
Three primary events are lighting fire to the space:
• Marketing budgets are on the rise
• The technology is extremely disruptive
• Data is finally easily accessible and abundant
Firstly, marketing budgets are on the rise. According to Gartner, In 2011 B2B marketing budgets
as a percentage of revenue were three times higher than IT budgets. Gartner reported marketing budgets at 10 percent relative to IT budgets at 3.6 percent. In 2012 marketing budgets will grow faster than IT budgets according to Gartner. IT budgets will grow 4.7 percent, all marketing budgets are predicted to grow 9 percent and high tech marketing budgets are expected to increase 11 percent. Looking five years out:
By 2017, a CMO will spend more on IT than the CIO.
Laura McLellanGartner Group
Secondly, Revenue Generation Software is a disruptive technology. It forces companies to think about what matters most – revenue – and how they generate and measure performance around it. It gets companies to think about the transformation of a sales cycle into a revenue cycle. It brings sales, marketing and executive teams together to map out their processes for driving revenue. Marketing platforms that drive and measure revenue are here to stay.
Thirdly, marketing data is growing at a rapid pace. Compounded by changes in buying behavior – sales and marketing is forced to change the way they traditionally operated to better interact with data and prospects. As marketing databases grow there’s an opportunity for better transparency and usability of that data. CRMs make good use of data for sales people by acting as a system of record for the pipeline and the funnel; however, there is no equivalent for marketing. A layer of technology around marketing data helps to analyze data and create automated processes. With Revenue Generation Software businesses can finally leverage data for the benefit of driving marketing insights and measuring downstream prospect/client activities against their marketing spend.
Here’s a snippet from Ajay Agarwal, managing director at Bain Capital Ventures’, that highlights four primary causes of data growth. Ajay talks about how the web is a catalyst for the availability of data which fosters the perfect environment for marketers to leverage software as a service (SaaS) solutions like Lead Liaison.
Primary Causes of Marketing Data Growth - Ajay Agarwal
As more and more businesses across all sectors of the economy move to the web, this kind of data — and a massive amount of it — is finally available.
• A web business can mine thousands of signals from its prospects based on the hundreds of actions a consumer might make on a website (checking a price, looking at an image, reading a review, typing in a detailed search query, etc.).
• The holy grail of closed loop marketing is finally here. With sophisticated technology and analytics
, marketers can link spending on customer acquisition directly to a set of downstream customer actions — whether those actions take place on the web, on a mobile device or in a physical location.
• Consumers with smartphones are conveying their intent while scanning QR codes, downloading mobile coupons or simply walking into a store with their location-aware device.
• Social networks are providing a new source of demographic data that, combined with Facebook’s Open Graph, offer marketers a new treasure trove of information.
Ajay further explains, “I am excited about this next wave in enterprise technology. Marketing will finally emerge from the backwater and will give rise to several multi-billion dollar companies.”
Want to learn more about this explosive marketing technology and why Revenue Generation Software is red hot? Please, let us tell you
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1) Five Years From Now, CMOs Will Spend More on IT Than CIOs Do
2) Marketing is the next big money sector in technology
3) Marketing Automation Getting VC Attention