The Viability of Marketing Automation for Startups

Automated marketing has been heavily utilized and touted by the tech industry for a few years. However, other business types have been much slower to adopt this retention and sales method. In fact, the non-tech penetration rate was only at 3 percent just two years ago. Small and mid-tier companies are still unlikely to have invested in marketing automation, especially if they are not in the technology sector.

So why are these companies not realizing the benefit of this revolution in marketing?

Cost is Often a Limiting Factor

Part of this reluctance to start using an automated process may be tied into unfamiliarity with how these programs work. It’s also just as likely that cost has been one of the biggest factors. Major marketing automation companies such as HubSpot and Salesforce Pardot offer a comprehensive list of options, but they are also way too expensive for the average startup or small business.

Even MailChimp comes with a sizable fee if you have a large database you wish to connect with, which has made it difficult for even tech startups to justify incorporating automation into their marketing strategy. After all, the biggest part of the viability of a product or service is how it impacts the bottom line. This means that the increase in sales that is produced by marketing automation has to be enough to offset the price involved. Otherwise, the best automation software in the world isn’t going to be worthwhile for a small business or startup.

An Affordable Automation Option

The good news is that marketing automation companies are beginning to pay more attention to the small and mid-tier market. For example, GetResponse is specifically reaching out to small and mid-sized businesses, and they have set their price point accordingly. This can drastically reduce the push point for viability, and it may finally render marketing automation affordable for startups in all industries.

As an added bonus, this particular automation company bills themselves as an all in one marketing platform due to the addition of features such as an auto responder, landing page builder and webinar tool. When you combine this with the proven success of email marketing, it appears that the time has come for smaller businesses to get serious about marketing automation.

Resulting Sales Increases

Industry statistics further illustrate the large potential that is presented by marketing automation. Larger companies have enjoyed an average per purchase sales increase of 47 percent when they nurture their leads through techniques such as automated emails. Personalizing those emails will boost conversion rates by 10 percent, and turning to marketing automation as a method for connecting with consumers leads to a staggering 451 percent improvement in qualified leads.

As you can see, marketing automation clearly works, even when companies only use it for email purposes. Adding on complementary online marketing techniques should enhance the viability of the overall process. Having said this, though, it is still critical for startups to find an option that is affordable and provides them with a larger gain than the expenses that they incur by going the automated route.

Organizing Your Data First for Best Results

Another major potential issue that startups need to contend with is learning how to properly utilize data and advanced marketing techniques. After all, if the data that you are feeding into the automation system is incorrect, missing or filled with typos, you are not going to get the type of return on investment (ROI) that is necessary to justify this marketing expense.

Therefore, it is imperative to take some time to clean up your data before you move forward.

Solving the Marketing Automation Puzzle

Additionally, relying merely on email automation can boost your bottom line, but it will not be as effective as harnessing the power of advanced options, including customer profiling and lead nurturing. Ultimately, a major piece of the marketing automation puzzle requires you to put enough time and energy into gathering accurate data and going beyond emails.

For most startups, this is a big task, but it can be made easier and more viable by connecting with a marketing automation company. As long as you don’t overspend and you maximize your automation, you should be able to get a viable ROI that has a noticeable impact on your profit margin.

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Written by:
Holly Chavez is a former engineer and current writer and entrepreneur. She enjoys writing informative articles about technology and is amazed at all the new inventions and strides that happen every day. Holly also cares about the environment and is involved with writing projects and activism that supports sustainability, Green living and lowering the carbon footprint.
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