What Is Marketing Automation (MA)? An Explanation of Basic Functions, Implementation Methods, and Keys to Successful Adoption

What Is MA?

MA is a tool designed to efficiently automate a company's marketing processes, supporting everything from lead acquisition and nurturing to sales promotion.

By automating communication with prospective customers, it enables the delivery of personalized content to target users, the provision of consistent brand messaging, and the strengthening of collaboration between sales and marketing teams.

As digital marketing has become mainstream and corporate activities have shifted online due to the COVID-19 pandemic, the number of companies adopting MA has increased rapidly.

Differences Between CRM and MA

While CRM is a tool that, like MA, possesses functions for managing customer information, there are differences in how they are used and their primary objectives.

What Is CRM (Customer Relationship Management)?

CRM is a system designed to strengthen relationships with customers and centrally manage customer information. It manages contact history and purchase history with the goal of providing more personalized services to customers.

Differences Between CRM and MA

MA focuses on the efficiency and automation of marketing activities and is primarily utilized by the marketing department. Conversely, CRM is mainly used by sales and customer support departments to manage customer information and focus on strengthening customer relationships. MA and CRM have a complementary relationship, and by integrating them, more comprehensive support for customers becomes possible.

Differences Between SFA and MA

Like MA, SFA is a tool that supports corporate activities. It is also beneficial to understand the differences between them.

What Is SFA (Sales Force Automation)?

SFA is a system designed to support sales activities, with the goal of streamlining sales processes and maximizing revenue. It supports sales task management, customer information management, and sales performance analysis.

Differences Between SFA and MA

MA primarily supports marketing activities, focusing on lead acquisition and nurturing. Conversely, SFA primarily supports sales activities, focusing on customer information management and the optimization of sales processes. By integrating MA and SFA, you can more effectively support the entire sales promotion process.

Benefits of MA

The main benefits of implementing MA are as follows:

Increased Efficiency

By automating marketing activities, you can significantly reduce the time and costs associated with manual tasks.

Improved Accuracy

You can collect and analyze user behavioral data to formulate more precise marketing strategies.

Personalization

Based on the interests and behavioral patterns of prospective customers, you can deliver personalized messages.

Increased Revenue

Through precise marketing activities driven by improved accuracy and personalization, it is possible to increase revenue and profit margins.

Challenges of MA

While there are benefits as mentioned above, there are also the following challenges:

Lack of Operational Skills

To operate MA, knowledge and skills in digital marketing are required. However, many companies lack such personnel.

Difficulty in Mastering

MA has many functions, which can make it difficult to master. It is important to determine which functions are necessary and prioritize them accordingly.

Lack of Lead Information Necessary to Leverage MA

A major role of MA is to register lead information, analyze which leads will lead to a contract, and nurture them; however, if the quantity or quality of lead information is insufficient, these functions cannot be utilized appropriately.

Understanding the benefits of MA while simultaneously resolving these challenges is the key to utilizing MA to achieve results.

Basic Functions of MA

The basic functions of MA include the following:

Lead Data Management

Accumulates information such as basic lead information, behavioral history, and status.

Lead Scoring and Nurturing

Quantifies the level of interest and purchase intent of leads, making it easier to convert leads into customers through appropriate information provision.

Email Marketing

Deploys automated email campaigns and sends personalized messages to customers at the optimal timing.

Website Tracking and Analysis

Collects information regarding the behavior and interests of site visitors to strengthen targeting and improve conversion rates.

Site Personalization

Provides personalized information by displaying different pages or pop-ups based on lead scores.

Form Creation and Management

Easily creates landing pages and registration forms to streamline lead collection and management.

Reporting Function

Aggregates and analyzes the results of implemented measures and creates reports from various perspectives.

How to Implement MA

MA is implemented through the following steps:

1. Clarification of Challenges

Before implementing an MA tool, it is important to clarify the challenges faced by the marketing department. Identify the issues and areas for improvement in current marketing activities and sales promotion processes, and clarify the challenges you wish to solve through MA implementation.

2. Tool Selection

Select an MA system with the mindset of "whether it is a tool that can solve the challenges identified in the first step." Consider whether it has the necessary functions to meet your needs, as well as scalability, ease of use, and price, and compare multiple tools. When selecting a tool, it is also advisable to consider integration with various other tools such as SFA, CRM, and corporate databases.

3. Design and Configuration During Implementation

During the implementation of an MA tool, perform tasks such as workflow and segmentation design, and lead data migration.

4. Data Preparation

Organize current lead information and determine the data to be input into the MA. Since lead information is prone to duplication, it is desirable to perform cleansing and deduplication at the time of implementation to input only accurate data. It is better if you can also consider operational methods that prevent duplication and data deficiencies as a plus-alpha.

In particular, regarding the client master, corporate information changes frequently and notation variations are likely to occur, so it is important to establish a system for maintenance.

Integrate Japan's Largest Corporate Database with MA ▶

5. Training

After implementation, provide appropriate training to relevant internal stakeholders. By understanding how to use the tool and its functions, and acquiring skills for MA utilization, efficient activities by the marketing team become possible.

Points for Achieving Operational Adoption of MA

MA will not lead to results just by implementing it. By operating it, aiming for adoption, and continuing to pursue new initiatives, it will lead to sales promotion and profit improvement for the entire company. The points for achieving operational adoption are as follows:

Effect Measurement and Improvement

It is important to periodically measure the results of MA utilization and improve measures. By performing objective evaluations based on data and correcting the direction of MA utilization, more effective marketing is realized.

Adoption and Evolution

Continuously perform application and improvement of MA, aiming for the penetration of MA throughout the organization. To achieve this, it is essential to create an environment where all staff recognize the usefulness of MA and actively utilize it. In addition, to respond to new challenges and objectives, continue to evolve and expand how MA is utilized, such as by introducing new functions and formulating new strategies.

Maintaining the Quantity and Quality of Leads

To use MA effectively, it is important to maintain a sufficient quantity and quality of leads. Continue measures to acquire leads so that they do not run dry. Also, to acquire high-quality leads, market analysis is necessary to find target users that match your company's products and services.

Results Obtained Through Integration of MA and Corporate Database

As mentioned earlier as a challenge, if the quantity or quality of registered leads is insufficient, MA cannot be fully utilized. There are multiple measures to increase the quantity and improve the quality of leads, one of which is "integration with a corporate database service."

What Is a Corporate Database Service?

A corporate database service is a service that provides various types of corporate data, such as basic corporate information, financial information, personnel information, and industry information. By utilizing this information, it becomes possible to understand the characteristics of target companies and deploy appropriate marketing activities.

Integrate Japan's Largest Corporate Database with MA ▶

Importance of Lead Data in MA

Lead data is an important element that determines the success of MA. MA is a tool for "collecting lead information, analyzing it, and connecting leads nurtured through personalization based on that analysis to the sales department." Therefore, if the accumulated lead information is not appropriate, the effectiveness of MA may be significantly reduced.

Benefits of Integrating MA and Corporate Database Service

By integrating MA and a corporate database service, you can register new markets that you have not yet approached or uncontacted customer segments as leads. Furthermore, you can nurture this lead information through MA functions and connect it to sales promotion.

Even for companies that have implemented MA but lack a sufficient quantity of leads, it becomes easier to achieve results by utilizing MA.

Marketing Automation (MA) is a tool that streamlines marketing activities and supports the entire process from lead acquisition to lead nurturing.

While it can be challenging to master, understanding the key points of implementation, operation, and common challenges will lead to high-level promotional activities. Let us correctly understand MA and elevate our marketing efforts to the next level.