We Have Lift Off: Marketing Automation is Taking Off!

Houston, Houston, we have lift off!!! Marketing automation is taking off. David Cummings wrote a nice article on his blog the other day about the coming wave of marketing automation adoption. The post clearly lays out the opportunity for marketing automation vendors like Lead Liaison. More importantly, businesses have a great opportunity to bring new technology in house to improve efficiency and drive revenue, faster. David identifies the gap in companies using CRM systems but not marketing automation systems. He references the following figures for CRM usage:

  • Salesforce.com: ~140,000
  • SugarCRM: ~10,000
  • Microsoft Dynamics CRM: ~40,000
  • Netsuite: ~13,000
  • Total: ~200,000 companies
David points out that 9,000 of these companies also use a marketing automation system. That’s a 4.5% penetration rate, leaving 95.% of companies not using marketing automation. In David Cummings post he only considers the opportunity for companies using a CRM. Believe it or not, but many of Lead Liaison’s customers don’t use a CRM at all. Looking at some numbers provided by a leading analyst in the space, David Raab, we see these figures are consistent with those reported by David Cummings; however, David Raab uses a broader scope to segment all businesses in the US with more than $5M in revenue into three categories, small to mid-size, large and enterprise companies and look at installs/adoption across each segment:

By looking at this data we see only 6% of all businesses more than $5M in revenue use marketing automation. The lowest penetrated space is the $5M to $20M range. Only 9% of all companies $20M to $500M use marketing automation. About one out of every three enterprises use marketing automation. Assuming an average selling price (ASP) of $10K for small to mid-size companies and $30K for large businesses, that leaves $4.4B in total available market (TAM) for marketing automation vendors. We’re excited about the growth opportunity here at Lead Liaison and look forward to having all of our new customers take our marketing automation platform to the next level.

If you’d like to see a demo of Lead Liaison’s marketing automation system for your business contact us!