CRM vs. Marketing Automation: What’s the Difference?

Shriya Sarang

29th Nov'22
CRM vs. Marketing Automation: What’s the Difference? | OpenGrowth

A recent study by Invespcro found that employing a marketing automation solution can boost sales productivity by up to 14.5% and save marketing costs by 12.2%. According to another HubSpot survey, more than 60% of leaders who are performing well utilize CRM to automate tasks, compared to 46% of leaders who are underperforming. Both CRM and MA have significant advantages. Many firms are confused about the distinction between CRM and marketing automation, even if the two forms of software continue to be excellent in their own fields. We're here to enlighten you on that.

Because both systems allow you to engage with clients and build relationships with them, many firms frequently mix up CRM and marketing automation solutions. The difference is in how each tool helps you meet particular client expectations and forge relationships with clients at different stages of the purchasing process.

Marketing automation software is typically marketing-focused, whereas a CRM is typically entirely sales-focused.

Consider these two devices:

Salesforce is one of the most widely used CRMs available right now. You may create a plan for managing your current and potential clients using this customer relationship management software. As a result, it is wholly sales-oriented.

Pardot is a marketing automation tool that enables companies to automate the customer journey and streamline email marketing campaigns. It focuses mostly on marketing.

 

What is a CRM?

 

crm

 

Software for managing client relationships acts as a database for all of your contacts' information. You can keep track of their contact details, past purchases, sales encounters and chats, messages with your business, and more in this location.

The administration of customer connections throughout the customer's lifecycle is facilitated by a CRM solution, to put it simply. To give customers individualized communications based on where they are in their relationship with your company, you might, for instance, centrally store client information and divide the customer base into several lists (or stages in the sales pipeline).

Businesses benefit from CRMs because they enable them to get the most out of one-on-one interactions. It's all a part of the sales process, which involves providing the customer with a tailored experience to assist lead them to the bottom of the funnel.

56% of businesses now use CRM software, according to Capterra, one of the largest review platforms for software.

 

Benefits of using a CRM

 

If used properly, a CRM can benefit your team in a meaningful, quantifiable way. Here are a few advantages of employing a CRM that can make your decision-making process a little bit simpler if you're looking for one.

  • Alignment of sales and marketing. The alignment of sales and marketing may benefit from a CRM. Both departments will benefit from having a clearer picture of the customer's sales funnel a consequence, which will speed up the closing process.

  • Increased cooperation Since your CRM records conversations, interactions, needs, notes, and contact information, team cooperation is facilitated. Additionally, if it's cloud-based, it'll always be current, and your teammates will have easy access to the information they need to make decisions.

  • Communications that are specifically aimed at the correct consumer journey step. You can offer customers tailored communications to encourage conversion based on where they are in the sales funnel.

  • Individual communications Customers' interactions can be much more tailored thanks to the ability to maintain comprehensive information about them. More relevant, targeted messages and outreach will be possible to create as you continue to gather data and insights about your audience, market, and industry – in both manual and automated campaigns.

 

What is software for marketing automation?

 

You may use successfully and automatically market with marketing automation software across a variety of internet channels, including email, SMS, and social media.

Segmentation, data management, and campaign management are made easier for marketers. It gives advertisers the ability to provide campaigns that are personalized, data-driven, in real-time, and that are more effective and productive.

Marketing automation technologies enable you to speed up and automate marketing procedures throughout your entire organization in addition to customer messaging.

Typically, workflows (or automation) are constructed as a series of processes employing triggers and actions in marketing automation. Say, "Do this when this occurs."

Any marketing automation software's main objective is to automate mundane marketing operations and minimize the need for human labor.

Although it is a broad definition, that is only because the subject is also broad. Technically speaking, marketing automation software refers to any program or tool that eliminates any portion of the human element from a marketing procedure.

Indications that marketing automation solutions are necessary:

The following are some key indicators that you require one or more marketing automation technologies.

1. Your contact list has grown to be too large to manage manually.

Each and every marketing automation product out there aims to eliminate needless human labor. Additionally, if you manage your client list manually in Google Sheets, Excel, or another location, it will inevitably grow too large for manual management, much like a CRM.

2. Not enough leads are being converted into clients.

If your consumer base is too tiny, on the other hand, you might want to consider investing in some marketing automation technologies. Every company's lifeboat is its customer base. You don't have a business if you don't have any clients.

The goal of marketing automation software is to make it easier for you to communicate with and convert fresh leads into paying clients.

3. You must simplify your procedures.

Small teams that are overworked and unevenly distributed among multiple areas of responsibility are typical in small businesses. Although sales, customer service, and business expansion are crucial, marketing is frequently seen as a shared responsibility. Because of this, marketing initiatives frequently fail or are completely given up.

Using a marketing automation solution has advantages.

We must comprehend the advantages of using anything automated in order to comprehend the advantages of employing a marketing automation solution. Consider the effects of automation. It automates an activity that is generally time-consuming and tedious, so you may concentrate on other important and worthwhile activities.

With the help of automation tools, numerous sectors have undergone revolutions. For instance, automotive production has advanced to the point that they can now construct an entire car from the ground up in a couple of hours utilizing automated equipment.

 

How to integrate your CRM with your marketing automation software

 

The simple answer is yes if you're still questioning whether you require both a CRM and a marketing automation platform after reading this. I.

Is there a way to get your CRM and marketing automation solution to work well together after all? There are ways to accomplish this; thus the answer to that query is also yes.

 

CRM and marketing automation integration boost corporate productivity and customer satisfaction, which raises the return on investment.

Most importantly, combining their skills allows them to maximize each of their benefits. Combining them enables you to

 

  • Calculate lead scores

  • to create better connections with your prospects

  • Obtain analytical information and monitor changes in sales.

  • Permit sales representatives to view lead journeys.

  • Easily and consistently interact with leads.

  • Process of seamless integration

Read more about the importance of smart UX Design in CRM.

We at OpenGrowth, are committed to keeping you updated with the best content on the latest trendy topics from any major field. Also, both your feedback and suggestions are valuable to us. So, do share them in the comment section below.

Writing has been my natural get-away and peace-place. Eventually, I have been drawn to the depths of the world of writing with numerous topics which have fascinated me through time like -
- Business and Finance
- Professional Communication and Skill Development

Through writing, I hope to find the bigger and better purpose of our lives beyond the work-life bitter banter and truly feel worth living in every breath.

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