Expectation vs. Reality: The State of Marketing Automation Adoption and Usage SURVEY REPORT Europes leading marketing automation consultancy clever-touchThe State of Marketing Automation 2 Executive Summary 3 Introduction 4 Expectation vs. Reality of Marketing Automation 5Business Reasons behind Marketing Automation 6Benefits across the Business 8Usage Vs. Perceived Usage 10Challenges & Barriers to Success 12 War for Talent 14The ROI of Marketing 15Campaign Management & Career 18 Sales and Marketing Alignment 20Accountability and Alignment 21Dashboarding, Reporting & Sales Intelligence 22Service Provider or Respected Change Agent? 23 Investing in or Predicting the Future? 24Building out the Stack 25The Growing Importance of Marketing Automation 26Advancing Platform Usage 27Inhouse, Outsource or a Hybrid approach? 28 Conclusions & Key Takeaways 29 About CleverTouch 31 Appendices 32 ContentsThe State of Marketing Automation 3 Executive Summary However, there is a positive outlook for Marketing Automation in the growing sophistication of adoption and usage across the industry. Many organisations recognise that to reach the next level of complexity, they need external support to maximise their investment. This is reflected in the fact that marketing spend on Marketing Automation is set to increase in 2019a sure sign that it is deeply, and permanently, embedded in marketing strategies and operations, across the world. This research, conducted to assess and analyse the state of Marketing Automation adoption and usage across the UK, EMEA and US, has found underlying challenges facing senior Marketers globally - challenges in the reality of implementation, in the search for skills and talent and in aligning sales and marketing teams. Whilst the need for and adoption of Marketing Automation is high across the industry, there is a prevalent gap between what businesses expect and the reality of what can be delivered. Whilst Marketing Automation is here to stay, underlying challenges exist across all regions around skills development and talent management.The results reveal a positive outlook for Marketing Automation, in the growing sophistication of adoption and usage across the industry. But whilst adoption is high across all regions, there are common challenges still to be addressed. An over reliance on vendors, underestimating the level of training needed and unforeseen requirements are just some of the reasons why deployments have been less successful than they otherwise might have been. Whilst challenges remain, the outlook is positive and there are plenty of opportunities for businesses to take their Marketing Automation to the next level. From platform selection to stakeholder buy-in, talent management to technical deployment, Marketing teams have a lot to think about when it comes to adopting - and using - Marketing Automation within their organisation. How does the reality of adoption compare across the US, UK and EMEA? Is there a shortage of skills and talent when it comes to introducing and managing these platforms? Can Marketing Automation really be the answer in bringing sales and marketing teams closer together? With an ever-growing list of services and products available, its more important than ever to make the right decision when it comes to marketing technology. CleverTouch Marketing, Europes leading marketing technology consultancy and services provider, decided to find out. CleverTouch commissioned an independent survey of 200 CMOs, Marketing Directors and Heads of Marketing, from leading SME and enterprise businesses to understand their adoption and use of Marketing Automation. Of the survey sample, 50 respondents were based in the UK, 50 in the US and 100 in EMEA. CleverTouch Marketings research found that 80% already had Marketing Automation in place and were using at least one of the following software programs: HubSpot, Marketo, Eloqua, Pardot, SharpSpring or Act-On. The remaining 20% did not have Marketing Automation in place but were interested in introducing it into their business. The State of Marketing Automation 4 Introduction Were seeing a growing sophistication in the adoption and usage of Marketing Automation. But there are still challenges to be addressed.To understand the different opinions of those that have Marketing Automation and those that are looking to implement the technology, CleverTouchs survey asked respondents to explain the business reasons for adopting Marketing Automation, the biggest benefits (or perceived benefits) and how they are (or are planning to) use Marketing Automation in their business. This was supported by questions on campaign delivery and proving ROI. CleverTouchs research highlights the contrast between the expectation and reality of Marketing Automation adoption and implementation. Expectation vs. Reality of Marketing Automation The State of Marketing Automation 5The top 3 reasons for implementing Marketing Automation were to drive new insight and intelligence, content management and customer journey mapping and change management and the re-invention of marketing. Similarly, 27% of respondents chose to implement Marketing Automation for improved information management and intelligent routing and increased business efficiency. 33% of respondents in EMEA were persuaded by the ability to drive new insight and intelligence, compared to only 18% of respondents in the UK. Significantly, less than half of enterprise businesses cited content management and customer journey mapping as their main reason for implementation. The results show that whilst there is no number- one reason for adoption, organisations are looking to Marketing Automation to solve several challenges across the businessnot just in the marketing department. Of the organisations that did implement Marketing Automation, most were in a state of positive change, looking to drive new insight and improve efficiency across the business. To drive new insight and intelligence For content management and customer journey mapping Change management and the re-invention of marketing What were the main business reasons for implementing Marketing Automation? (Asked to respondents who currently use Marketing Automation) 28% 28% 28% 27% 27% To drive new insight and intelligence For content management and customer journey mapping For change management and the re-invention of marketing For improved information management and intelligent routing For increased business efficiency 30 25 20 15 10 5 0 The State of Marketing Automation 6 3 top reasons for implementing Marketing Automation: Expectation vs. Reality of Marketing Automation Business Reasons behind Marketing Automation 33% 28% 28% 28% 23% For Sales and Marketing realignment To improve the customer experience For improved information management and intelligent routing For increased business efficiecy For better dashboards and reporting 35 30 25 20 15 10 5 0 A third of respondents who did not have Marketing Automation identified sales and marketing realignment as the main reason theyd want to implement the technology in the future. This was closely followed by those looking to improve the customer experience, information management and intelligent routing and for increased business efficiency. Just over a fifth (23%) of respondents said that they were looking for better dashboards and reporting. The USA are four times more likely to implement Marketing Automation to drive sales and marketing alignment than EMEA, with 60% of respondents focused on this, compared to only 15% in EMEA. This indicates that, in the US, Marketing Automation is perceived and used as a tool for lead generation and sales enablement. In comparison to the UK who envision it as a tool to drive business efficiency and intelligent engagement. Businesses who have not yet implemented Marketing Automation cite sales and marketing realignment as the key driver for adoption. In comparison, businesses looking back retrospectively cite a variety of reasons but see realignment as the least important reason for adoption. Could this be down to how the platform is used compared to its perceived use before purchase? A lack of stakeholder buy-in from the sales team? Or could it be that the problem has been solved, and looking back, its no longer seen as an issue? is 4 times more likely to implement Marketing Automation to drive sales and marketing alignment. (Asked to respondents that did not have Marketing Automation in place at the time of the survey ) What are the main business reasons for implementing Marketing Automation in the future? The State of Marketing Automation 7 USA Expectation vs. Reality of Marketing Automation Business Reasons behind Marketing Automation Around 31% of respondents said that the biggest benefits of implementing Marketing Automation are: The ability to prove ROI of marketing Marketing has generated more sales leads Improved data quality and compliance Comparatively, less than 30% found that Marketing Automation generated better quality sales leads and faster lead conversion and sales cycles. Interestingly, the realignment of sales and marketing was cited as the third biggest benefit, despite being the least important reason for implementing Marketing Automation in the first place. In the UK, 45% are most pleased with their ability to prove the ROI of marketing, but in EMEA this is figure is just 26%. Around 2 in 5 enterprise businesses found the biggest benefit of Marketing Automation to be the generation of sales leads. Its clear that the biggest benefit is in the ability to take meaningful insight from new and existing data and use that to a) prove the ROI of marketing activity and B) provide sales with intelligence that can help bring the two departments together. (Asked to respondents who currently use Marketing Automation ) What have been the biggest benefits of implementing Marketing Automation? 31% 31% 31% We can now prove the ROI of marketing Marketing has generated more sales leads Improved data quality and compliance 35 30 25 20 15 10 5 0 Marketing has generated better quality sales leads Faster lead conversion and sales cycles Sales and marketing are now closer aligned Improvememnt in customer engagement Marketing has been able to provide more insightful reporting 29% 29% 27% 27% 26% 35 30 25 20 15 10 5 0 21% 20% 19% The marketing department is now more efficient Weve been able to exceed marketing objectives Were able to show pipeline contribution 35 30 25 20 15 10 5 0 The State of Marketing Automation 8 TIER 1 TIER 2 TIER 3 Expectation vs. Reality of Marketing Automation Benefits across the Business 38% 30% 30% 30% 28% Greater customer engagement More sales leads More insightful reporting Prove the ROI of marketing Ability to show pipeline contribution 40 35 30 25 20 15 10 5 0 Looking at the results, respondents who did not have Marketing Automation predicted the biggest benefits would be: Greater customer engagement (38%) More sales leads, more insightful reporting, prove the ROI of Marketing (30%) Ability to show pipeline contribution (28%) Over half of UK-based businesses agreed that the biggest perceived benefit is greater customer engagement compared to just 20% of organisations in the US. Today, businesses are looking to allocate spend to building “meaningful customer engagement” yet changes in consumer behaviour towards more selective and secure yet social brand engagement leaves many businesses baffled as to how they can create a truly honest connection with their customers. Marketers who have not yet implemented Marketing Automation can mistakenly look to customer engagement as the answer to their issues, without truly understanding what successfully drive a customer engagement program. This is the perfect example of how the perception of Marketing Automation can vastly differ from its true benefits. All too often, businesses are unaware of the full extent of what Marketing Automation can deliver. This can lead to under-planning for deployment and means the platform may not be utilised to its full potential. (Asked to respondents that did not have Marketing Automation in place at the time of the survey ) What are your biggest perceived benefits to implementing Marketing Automation? The State of Marketing Automation 9 ACTUAL BENEFITS 1 Prove the ROI of Marketing 2 More Sales Leads Generated 3 Improved Data Quality & Compliance PERCEIVED BENEFITS 1 Greater Customer Engagement 2 More Sales Leads Generated 3 More Insightful Reporting Actual Benefits vs Perceived Benefits of Implementing Marketing Automation Expectation vs. Reality of Marketing Automation Benefits across the Business Today, 44% of respondents are using Marketing Automation for lead generation, 42% for lead nurture campaigns, 41% for account-based marketing and 36% for opt-in and compliance. Notably, 48% of respondents in the UK and 45% in EMEA are using Marketing Automation for lead generation, compared to only 40% of respondents in the US. 44% 42% 41% 36% 34% For lead generation For lead nuturing campaigns For Account based marketing For opt-in and compliance For lead routing 45 40 35 30 25 20 15 10 5 0 (Asked to respondents who currently use Marketing Automation ) How are you using Marketing Automation today? The State of Marketing Automation 10 Less than half (44%) of Marketers are using Marketing Automation just for lead generation. 44% Expectation vs. Reality of Marketing Automation Usage Vs. Perceived Usage 45% of respondents who do not have Marketing Automation will be using it to track multi-channel activity and a surprising 40% are interested in utilising it as a one-off email tool. Interestingly, only 34% of organisations with Marketing Automation are using it to track multi-channel activity. In the UK, a significant 60% will be using Marketing Automation to track multi-channel activity, yet this figure is only at 20% in the US. These results highlight the dated misconception of Marketing Automation as an email tool, rather than a technology for intelligent engagement and business change. Whats more, it shows the huge potential for organisations to upskill within the business and build a deeper understanding of the strategy behind the tech. It also highlights the opportunity with external partners to develop sophisticated multi-touch campaigns, embed data-driven processes and even introduce new tech-driven strategies like Account-Based Marketing. (Asked to respondents that did not have Marketing Aut