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Strategy conversations very rarely start with marketing automation, but they very often end there.
Through the strategic development process, as we design customer strategy that is based on
responding to customer interactions, we very quickly appreciate the need for an executional process
where the number of resources required does not rise linearly with the number of campaigns or
initiatives. The move from 10’s of executions per day to 100’s or 1000’s necessitates automation.
Theautomationofmarketingiscriticaltodeliveringthenecessaryscalabilitytosupportanymarketing
program that seeks to achieve more than last year’s activity plus a bit!
Literally speaking, marketing automation is a technology that automates repetitive and mundane
tasks in marketing processes. These might include, for example, marketing workflow and approvals,
planning and budgeting, campaign development, execution, measurement and analysis. It helps
marketers to increase their speed to market, liberates them from many operational tasks and gives
them more time to focus on marketing analysis and strategy. However, Marketing Automation is
not just about automating marketing tasks and processes - it is the foundation of transformational
marketing programs.
Is it only automating marketing?
Marketing Automation:
A Transformational Building Block
Marketing Automation is like the foundation of a house. If it is not well constructed, the house
you build on top will be unstable. Marketing Automation is the solid foundation you need in order
to execute your customer-centric strategies with precision and provides a scalable platform for
improving customer experience through multiple touch-points.
The underlying purpose of Marketing Automation is not simply to automate existing processes but
to use the migration to Marketing Automation to create transformational change to your marketing.
Work processes and strategic thinking need to synchronise with your Marketing Automation program
and this is likely to require changes to the way you approach customer targeting, how you initiate
customer conversations and adjust campaign specifications. It will also change the volume, frequency
and manner in which you launch campaigns. It is therefore evident that Marketing Automation is the
first step in the journey to transform your marketing into strategic database marketing.
Why should you care about Marketing Automation?

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Past research from the Aberdeen Group into planned technology among Top Performer’s over
a 12-24 month period shows the high importance of Marketing Automation.
Marketing Automation Tools / Applications
BI / Predictive Analytics Tools
Outsource Services: MSP, Agency, Consultancy
Call Centre / Service & Support
Data Warehouse / Data Mining
Enterprise Marketing Management
Web Analytics
Information Service Providers: External Lists
Customer Relationship Management
66
66
63
62
57
57
53
53
42
Technology Solution Area % selected
Marketing Automation capabilities
Marketing Automation drives transformational change to your marketing processes:
Analytics
Campaign ideas and development
Analytic capability is used as a forward-looking tool to predict the next action of customers based
on the customer’s behaviour rather than looking backward to statistical models that only show what
happened in the past. This shift alone will take you to the next level of campaign execution.
The old practice of outbound marketing was to launch large volume campaigns that bombarded
segmented groups. New generation customers however are repelled by this method of
‘communication’ and in any case, marketers struggle to execute campaigns in a timely manner.
Marketing Automation enables marketers to split up mega-campaigns into micro-campaigns that
are more effective, the work process consumes less time and marketers are able to stay ahead of
the game.
Figure 1: Planned Technology Investment

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Customer contact strategy
Marketing Automation has changed the nature of contact strategy from calendar-driven campaigns to
customer-initiated campaigns. The system is set-up with a series of rules to trigger appropriate actions.
Integrated checks and balances ensure that relevant content goes to the right individual at the right
time via their preferred channels. Customers should only be contacted when they are ready to opt into
marketing campaigns.
Customer engagement
Marketing Automation drives effective targeting, timing and customer relevance. It allows marketers
to detect changes in a customer’s status and to promptly engage in real-time marketing in response to
identifiedopportunities,i.e.triggers.ThisdistinguishesMarketingAutomationfrommanualexecutions.
What is in it for you?
Marketing Automation supports more effective engagement with customers and drives sales revenue
With Marketing Automation it is easy to see what is working for you and how well. You can measure
the sales opportunities sourced and the conversions influenced all the way through to the revenue
generated. According to Aberdeen group research last year with 106 companies using Marketing
Automation, the Best-in-Class companies realised a 67% current increase in annual revenue and 65%
year-over-year increase in Return on Marketing Investment (ROMI).
Free up resources
Marketing Automation potentially releases more resources that can be re-allocated to develop
strategy and conducting analysis, enabling you to do more at a lower cost.
Speed to market
The time span from development to execution is greatly reduced so that new campaigns in response
to specific circumstances or opportunities can be initiated and launched faster, gaining first mover
advantage.
Boost campaigns response rate to over 5%
Reduce average campaign design and testing time to four hours
Increase campaign volume to 300%
Time to production is less than three months
Tidbits from Unica Campaign implementation (Debitel Netherland case study):

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Operational efficiency
The increased efficiency, accuracy and reduction in human error also reduce risk exposure. Process
standardisation is inherent within automation, so Marketing Automation campaigns can run at lower
volumes, more frequently. This is because the costly set-up and labour intensive elements are built
into the automated processes once and then re-used with each similar campaign.
Improved campaign
A case study below indicates that companies achieving the highest performance in key metrics
like revenue, conversion and return on investments are more likely to use Marketing Automation
technology.
Case Study from ING
(Unica Campaign Management Solution Implementation)
Situation:
In the past two years, ING was struggling with its traditional Direct Marketing processes which
were found ineffective and generated low returns. To solve this situation, ING needed to create
more effective and productive marketing processes by adopting appropriate technology.
Outcome:
Higher response rates: the average response rate to a product offer is 60% higher than with
the traditional direct marketing campaigns
Faster to market: the campaign cycle time has fallen from 26 weeks to 4 weeks. This
makes it easier for marketers to take corrective action or to integrate lessons from one
campaign to the next
Lower direct marketing cost: thanks to the efficient automation program ING has reduced the
marketing cost by 35% per year
Solution:
After ING moved from Traditional Outbound to Personalised Inbound Marketing, ING is able to
initiatethecommunicationtothecustomersbysendingapersonalofferthroughtheirpreferred
channels based on the individual’s profile. Besides this, ING can predict the next logical action
of the customer based on transactional information and send out relevant messages in order
to stay in touch with the customer. Additionally, with an automation capability, ING can launch
the campaigns in a shorter period of time and meet the real-time needs of the customer.
The results of this new technology implementation are already impressive, even though ING has
not yet fully applied it at all bank branches.

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Requirements before kick starting Marketing Automation
Here are some steps to consider...
Define objectives: which marketing processes do you want to automate?
New mindset:
Technology is nothing without a suite of solid business processes behind it. You will need to specify
what you expect to accomplish, then the system needs to be set up according to your individual
requirements and goals.
An understanding and awareness of organisational resources at every level is vital. The broad reach
of Marketing Automation and the wide-spread changes to work procedures required throughout the
organisation have an impact on all resources, roles, and responsibilities. For example, the workforce
involved in Marketing Automation, both directly and indirectly, needs clear demarcation and
guidelines so that their respective roles are understood and agreed by all involved, hence ensuring
that each works cohesively with their peers. In effect everyone needs to cultivate a new collaborative
mindset.
The toolset can only perform to full potential if the skill set and expertise of the end users are equal
to the system. It is wise to review this at an early stage in case the necessary knowledge and skill
resources need to be acquired, either by training or recruitment. It is also important when selecting
vendors to fully explore the extent of training required, what they provide themselves and on what
terms and any additional training that may be necessary for other third parties toolsets employed
within the system.
Using the Marketing Automation toolset: training and experience are essential
Technology changes rapidly, so seeking additional support from external providers may be another
alternative worth considering. There is a wide range of vendors and consultants with extensive
experience in Marketing Automation who can assist you to find appropriate out-of-the-box software
or niche software as well as outsourcing providers who take on the responsibility for looking after
your system.
These are just a few of the issues you need to consider, but be assured that in the long run Marketing
Automation is not only worth it – it is essential!
Insource vs outsource

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In conclusion, Marketing Automation is not the single panacea or the one “solution” that
will resolve all of your database marketing issues. It is however the cornerstone and an essential
tool for developing the system you need to take advantage of future opportunities. Marketing
Automation places the customer’s needs centre stage and provides the relevant information needed
to navigate the buying process, which in turn helps customers to make informed buying decisions.
Satisfied buyers lead to long-term customer relationships and for marketers, that is the holy grail.
Marketing Automation clearly drives transformational change to all of your marketing processes and
it is the only way to compete in future. Your next strategy development discussion should therefore
start with Marketing Automation.
About Digital Alchemy
Digital Alchemy Limited (DA) is Asia Pacific’s leading Database Marketing Services Provider. DA’s
team of professionals are dedicated to working with clients to improve their marketing efficiency
and to capture latent customer value. Established in 2003 and operating in Sydney, Melbourne,
Auckland,Bangkok,HongKong,Nanjing,andSingapore,DAhasbeencontributingtothesuccessofan
expanding breadth of clients including leading companies in financial services, telecommunications,
motoring services, media and other industry sectors.
“This document has been prepared for the purpose of providing general information and should not be relied on in substitution for individual
professional advice. Copyright in this document is owned by Digital Alchemy Consulting Pty Limited, and except as permitted under the Copyright
Act 1968, no part of it may be reproduced by any process, electronic or otherwise, in any material form or transmitted to any other person or stored
electronically in any form without the prior written permission of Digital Alchemy Consulting Pty Limited.”

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Reference Cited
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Alexander Hesse (2009). “Case Study: ING delivers personalized product offers across channels in
real time”
<http://www.unica.com/documents/us/Unica_CaseStudy_ING_021910.pdf>
“Case Study : Debitel Netherlands Selects Unica to Increase Campaign Volume and Boost Response
Rates”
<http://www.unica.com/documents/us/Unica_CaseStudy_debitel_A4_072109.pdf>
“Marketing Automation as Part of Integrated LeadGen”
<http://ilgresults.com/marketing-automation-as-part-of-integrated-leadgen/>