Most businesses use some type of automated marketing. Whether it’s for emails, social media, or website actions, automated marketing just makes sense, especially when you consider how automated marketing can increase revenue and improve accountability for sales and marketing. But the costs can add up quickly. So, how can you reduce your automated marketing spend? Let’s dive in.
The Cost of Automated Marketing
While automated marketing is a great way to promote your business, it’s not cheap. At one point, the automated marketing industry was worth about $500 million, but between the increasing number of businesses using automated marketing and the rising costs, the market is growing rapidly and is expected to be worth around $7 billion by 2023. It’s also estimated that large businesses devote 3-5% of their marketing budget to automated marketing, while smaller businesses typically dedicate 7% of their marketing budget to an automated system.
One of the biggest expenses business face when it comes to their automated marketing program is the cost of the subscription, which can range from a few hundred dollars to several thousand dollars each month.
Factors that influence automated marketing subscription costs include:
- The size of your marketing database
- The degree of functionality in each piece of automated marketing
- If you’re working with a vendor that charges additional fees for things like insight into the CRM system
Reduce the Cost of Automated Marketing with Careful Vendor Selection
When you’re exploring ways to reduce the overall cost of your automated marketing, the first factor you should consider is your automated marketing platform. Take some time and really look at what you’re paying for. Most platforms charge for the type of automated marketing used and the size of the marketing database, but it’s not uncommon for automated marketing vendors to charge extra for add-ons, some of which you’re probably not using.
It’s also wise to occasionally evaluate whether or not the automated marketing platform you’re using is right for you. Just because it was a good fit for your automated marketing program when you first signed up, doesn’t mean it still is. Your business is constantly evolving, which means your automated marketing needs are doing the same. Consider the following:
- Does your current vendor meet your current automated marketing needs?
- Are there other vendors that are better suited to your business’s current needs?
- Will another vendor give you a better subscription price without reducing the quality of service?
Reduce Marketing Costs With Validity Connect
As a marketer, here’s one thing you likely haven’t considered is driving up your marketing costs – your data. Inaccurate, duplicate, incomplete, and unverified data is increasing your marketing spend and negatively impacting your campaign performance. Thankfully, there’s Validity Connect, the tool you didn’t know you needed – until now. Successful sales and marketing campaigns rely on being able to connect with the right people, using the right message, at the right time. Validity Connect combines the #1 global data quality tool with a high-performance suite of solutions to put a data integrity powerhouse at your fingertips, giving you the confidence that your database is free of duplicates and inaccurate or missing data elements, and that email addresses and lists have been verified as real contacts. Investing in high-quality data gathering tools is one of the quickest ways to reduce automated marketing costs.
Contact us to schedule a Validity Connect demonstration. And if you’re curious to learn more about reducing your marketing spend and improving lead quality, listen and watch our on-demand webinar now.