Marketing automation is big news in business because it helps reduce costs of communication.

It’s simple, machines do things more efficiently than human beings.

So what’s actually meant by marketing automation?

Communicating can be a costly exercise. When you consider call centres and what it takes to run a call centre. Many businesses have off shored call centres to try to reduce cost. In many businesses this has been criticised as people don’t feel like they get a personal touch.

Personalisation of communication is at the heart of quality information exchange.

Communication has success critical features that, when handled correctly, improve quality, success and efficiency. In turn this reduces cost.

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• Timing of contact
• Relevance of content
• Information Exchange

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Reducing the cost of running a call centre and sales operation.

For a business that has 35 teleappointers making outbound sales calls 9-5, 5 days a week. It would also take a sales team of 15 on the road to sit appointments generated by the outbound team.

This business has access to databases of thousands of businesses around the UK. Each teleappointer makes c.100 calls a day generating 2 appointments each. This means 70 appointments a day are being booked. Of these appointments, around 50% drop out and there is a sales conversion of 25% of sat appointments.

With these kinds of stats it doesn’t take a genius to work out that the sales value of wins needs to be 5 figures upwards to satisfy the wages demand, let alone the commissions and operational costs.

This kind of wastage in sales is undesirable but all too common.

The benefits of marketing automation in sales.

So going on the figures above, the outbound sales team are hitting 3500 contacts a day to deliver 70 appointments. One intelligent e-shot with open and click through notifications would provide enough information to determine warm prospects at the time they are most likely to take a call.

Based on an open rate of 25% and a click through rate of 20%, this activity would generate 175 warm leads, requiring 2 teleappointers to work through. This may provide sufficient leads to convert to 70 appointments. Thats would provide a reduction in cost of 90%.

What’s the cost of marketing automation?

There are 3 major considerations when setting up marketing automation.

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• Data
  If you’ve already got plenty of data, you’re onto a winner. Data can be costly dependent on how targeted your audience.
• Content
  If you’re already have tons of content and produce tons of content, you’re in a stronger position than those who do not.
• Complexity
  The simpler your processes, the less they cost to set up. As you add complexity, programming and testing become more arduous.

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Where should you start with marketing automation?

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1. Gain the assistance of providers who done it before.
2. Set out your objectives.
3. Determine your budget for phase 1.
4. Agree Milestones and KPI’s with your team.
5. Set out a realistic timeline.

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Marketing automation is quickly becoming a need of any business that wishes to communicate regularly with any group of recipients. Whether it be new business, existing clients or simply news subscribers, marketing automation is one of the most effective methods of keeping costs of mass communication to a minimum.

By Ryan Mullins