How Can Marketing Automation Save Money?
“Marketing automation” has become such a buzz phrase over recent years that most vendors try to incorporate the term into their pitch, and sometimes go as far as completely branding their business as marketing automation. In reality, there aren’t that many pure-play marketing automation companies out there in the industry. 100s of providers stake claim on marketing automation to be part of the buzz, which causes confusion in the marketplace. Companies have a hard time understanding marketing automation let alone how marketing automation can save money. In this post we provide a quantitative analysis to answer the question, how can marketing automation save money? We’ll also touch on our approach to marketing automation.
ROI of Marketing Automation Based on Functional Usage
You’ll see some fancy calculators to add up the ROI of marketing automation, but not many resources provide a ROI analysis based on functional areas. We did that for you and looked at what a typical company would spend after investing in a piece-milled software strategy. When you list out the category of tools that companies use to help drive revenue, the list typically includes sales efficiency tools, landing page designers, form designers, email marketing, automation, and a handful of other tools. The problem with buying all of these ad-hoc solutions is two-fold. First, they don’t all play nice together as disparate solutions. Second, your wallet gets pretty thin when you’re buying all these pieces separately. We decided to do a little analysis and tally up individual, best-in-breed solutions to see how much money would drain from your budget over a five year period if a company were to acquire all of these solutions standalone.
How Much Money Can Marketing Automation Save You?
Below you’ll find the assumptions we used, cost of individual solutions, and a ROI analysis at the end.
The bottom line: Lead Liaison can save your company $181,059 or 362%! What we didn’t include are the incremental costs for:
- Multiple learning curves
- Multiple resources required to manage each ad-hoc solution
Add those in and you could very well double the ROI from what we’ve reported above.
|At least 5 sales people|
|Up to 10,000 contacts|
|No more than 100 forms|
|No more than 25,000 unique visitors per month|
|Email frequency to database 2x per month|
|Use each software package for 5 years|
Cost of Individual Solutions:
|Tout App||$250||Team||Email for Sales|
|Blogging||$600||2 Posts Per Week, $75 per Blog||Marketing Content|
|$99||Business License / Gold||Web Forms|
|Unbounce||$99||Pro 99||Landing Pages|
|Mailchimp||$150||Growing business||Email Marketing|
|Opt-In Monster||$199||Pro||Engaging Popups|
Total Spend on Ad-Hoc Solutions:
ROI with Lead Liaison:
|AVERAGE ANNUAL SPEND with Lead Liaison||$10,000|
|LIFETIME SPEND with Lead Liaison||$50,000|
|ROI of Lead Liaison||362.12%|
|SAVINGS with Lead Liaison||$181,059|
Lead Liaison’s Philosophy
We’ve got a different philosophy about marketing automation here at Lead Liaison. We don’t hate marketing automation, we just hate how the term is overused, misused, and misunderstood. The truth is that marketing automation is not software, it’s a strategy. You can’t really buy marketing automation software, but you can buy software that helps execute your strategy, which should include automation. No software out-of-the-box is going to automate your marketing – that’s wishful thinking.
Choices are getting “clouded” too. Some companies like HubSpot try to be the all-in-one solution, and get your CRM business too. Unfortunately, or fortunately for some, HubSpot is morphing into an Oracle or Salesforce.com type of company, is now public – trying to satisfy Wall Street, and now trying to take all your sales and marketing dollars with the emphasis on their new CRM. Lead Liaison fits in between the all-in-ones and marketing automation providers with our Revenue Generation Software® platform optimized for mid-market companies. Our mission has always been to focus on automation that improves a company’s sales and marketing operations but more importantly, generates more revenue for our customers. We believe companies care about revenue, not just automating marketing. We’re CRM agnostic, offer professional-grade sales and marketing automation functionality at killer prices, and have the industry’s deepest integration with 3rd party solutions.