What is Marketing Automation and How Does It Increase Profit

Brands that use cross-channel marketing achieve a retention rate of 89%. This is why companies are expanding their communication channels to cover more customer touchpoints. However, this also increases the workload for marketers and the amount of data that needs to be processed.

IT technologies solve this problem by enabling marketing automation. This approach reduces the burden on marketers and enhances the effectiveness of promotional efforts.

In this article, we will explore what marketing automation is, why it is necessary, how it works, and what role CDP plays in this process.

What is marketing automation

Marketing and sales automation is a strategy based on the use of IT tools to perform routine tasks. Such technologies help reduce the burden on employees, speed up processes, and enhance the effectiveness of audience interactions.

Automated systems take over tasks that require significant time investment, allowing specialists to focus on more complex and strategically important aspects of the business.

For which areas marketing automation can be applied:

Collection and analysis of customer information. Data is collected from websites, social media, and other sources, then analyzed and presented to marketers in a convenient and visual report format.

Audience segmentation. The marketing automation system uses the collected data to identify separate customer groups for targeted marketing and personalization.

Want to learn everything about audience segmentation? Read the article.

Email, push, SMS, and messenger campaigns. The marketing automation platform integrates with different promotion channels, allowing messages to be sent from a single source.

Website management. There is an automated system for website promotion that handles SEO. Other tools manage dynamic elements on web resources, such as pop-ups, ads, and more.

Advertising campaign automation. In digital marketing, the customer journey can be fully automated. For example, a user clicks on an ad, lands in a chatbot, or receives a message in a messenger based on the contact information they've provided. Then, the message sequence engages them and guides them toward making a purchase.

Automation is also applied to advertising campaigns, including launching targeted and contextual ads. Modern systems can suggest optimal audience options and self-learn to improve efficiency.

Content publication. Automation systems allow you to plan and publish content on social media according to a schedule. Some tools can even automatically generate advertising creatives, partially replacing the work of a designer.

How automation increases marketing efficiency

According to forecasts, the marketing automation market will exceed 11 billion dollars by 2030, significantly higher than the 2024 figure. This growth is driven by the fact that automated processes improve marketing and overall business efficiency by optimizing customer interactions and reducing operational costs.

What are the benefits of marketing automation?

Time savings. When routine tasks are automated, marketers have more time and resources for strategic planning and analytics. Specialists are no longer overloaded with operational work, allowing them to work more productively, objectively assess results, and generate new ideas for business development.

Faster marketing processes. Automating email campaigns and other communications allows you to set up a promotional campaign once, and then only make adjustments. This eliminates the need to manually send messages to each customer, which saves time and enhances the effectiveness of audience engagement.

When using a customer data platform (CDP), the collection of customer data is significantly sped up, and human error is eliminated.

Implementation of comprehensive strategies. Automation enables an omnichannel marketing strategy — seamless communication with customers through integrated channels. This makes interactions more convenient and personalized while ensuring a more consistent customer journey. As a result, the likelihood of conversion increases, as users receive a cohesive experience at every touchpoint with the brand.

Personalized marketing. Modern automation systems collect and analyze vast amounts of customer data, allowing businesses to create tailored offers. For example, a customer data platform (CDP) aggregates information about purchases, website activity, and interactions within a company's app. The system then analyzes this data to generate the most relevant offers. This approach enhances user engagement and increases conversion rates.

For more details on personalization, read the article: "4 Сustomer Segmentation Models for Content Personalization in 2024".

Faster communication. Automation enables instant responses to user inquiries, significantly improving the customer experience. Chatbots, automated email campaigns, and other tools help quickly address questions, reduce wait times, and engage the audience in meaningful interactions.

Transparency and process integration within the company. Automated systems consolidate user data, allowing businesses to track marketing and sales performance in real time. Analytics help identify weak points in the sales funnel, determine where audiences drop off, and pinpoint opportunities for growth. This leads to better collaboration between teams and improved overall business efficiency.

Data-driven approach. Marketing campaigns are built on data analysis and insights from previous strategies, making them more manageable and predictable. Using data allows businesses to optimize budgets, personalize communications, and adjust strategies in real time.

Why marketing automation increases profitability

Automation fundamentally transforms marketing and sales processes, directly impacting conversion rates. Personalization, fast customer interactions, enhanced user experience, and data-driven campaigns ultimately drive business revenue.

Statistics show that 80% of professionals using marketing automation have reported an increase in lead generation, while 77% have seen a rise in conversions. This means that the investment in automation not only pays off but also leads to business growth.

How to implement marketing automation

To successfully implement marketing automation, follow these key steps:

1. Set clear goals. Define measurable KPIs, such as conversion growth, increased sales, or cost reduction.

2. Analyze your target audience. Segment customers to understand their needs and the most effective communication channels.

3. Create a customer journey map (CJM). Identify stages that can be automated.

4. Choose the right software. Decide whether to use an existing solution or develop a custom one.

5. Implement the system. Configure processes in IT tools and integrate them with internal systems and channels.

6. Develop a content strategy. Adapt marketing campaigns for automation.

7. Analyze and optimize. Continuously track performance and adjust the strategy accordingly.

How marketing automation tools work

The choice of a marketing automation system depends on a company's scale, budget, goals, and tasks. These can include CRM, CDP, email marketing services, analytics tools, and other solutions with different functionalities and capabilities.

Let’s explore which processes can be automated using one comprehensive solution — Altcraft CDP Platform.

Customer data collection, analytics, and management. The platform enables businesses to collect, analyze, and manage customer data in a single interface while ensuring high security and protection. A user profile accumulates detailed information about customer actions from various sources. The accuracy and volume of data allow for precise audience segmentation, leading to more effective engagement.

Personalized messaging. Altcraft CDP leverages customer data to personalize messages, ensuring that each user receives a tailored offer or a unique promo code. The content automatically adapts to individual interests, increasing engagement and conversion rates.

The platform supports all types of messaging, including complex email sequences and fully automated advertising campaigns.

Advanced analytics. Reports are generated in real time, with customizable sales funnels. The platform enables cohort segmentation, grouping users based on specific actions, and analyzing marketing campaign performance.

Omnichannel marketing. Altcraft CDP integrates with multiple communication channels, enabling a seamless omnichannel marketing strategy. Businesses can send messages via email, SMS, push notifications, and messengers, ensuring smooth and consistent customer interactions.

Summary

Marketing automation is the use of digital tools to handle routine tasks. It replaces manual work in messaging, analytics, data collection, promotion, and even sales.

Automated processes streamline workflows, save time, and enhance customer experience. They enable the implementation of complex strategies, personalized offers, campaign control, and operational transparency. As a result, automation not only boosts profits but also ensures a return on investment.