Thursday, January 23, 2014

Is Marketing Automation Crossing the Chasm?

by Dan Freeman 
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Marketing automation enables marketers to generate, capture and synthesize a vast array of prospect and customer digital interactions with their web sites, landing pages, email campaigns, and social platforms, and to assess and take action on the most promising leads. Seems like a no brainer, but it's still a challenge to get companies to commit. In fact, our research has revealed that less than 1% of businesses use marketing automation software today.

In his book, Crossing the Chasm, Geoffrey Moore describes a technology lifecycle in which the adoption or acceptance of a new product or innovation proceeds according to the demographic and psychological characteristics of defined adopter groups. According to Moore’s model, the first group of people to use a new product is called "innovators," followed by "early adopters”.
The “chasm” is the crucial period during which a product is either adopted broadly, or remains part of a niche market. The “early majority” and “late majority” then adopt the product, followed by the last group, known as "laggards".
If this model is applied to marketing automation platforms, it becomes evident that, among large firms, Marketing automation has indeed crossed the chasm (we estimate a 20% adoption rate among companies with 500 or more employees).

By contrast, mid-sized firms are just now at the crossing while small firms (nearly 6 million of them!) are still in the innovators stage. This explains the growing number of marketing automation vendors seeking to gain a foothold into this market, as well as the substantial venture capital the sector has attracted.

Note also that the chasm is the steepest part of the growth curve, so gaining customers at this stage is critical for competitors in this space.

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Marketing Growth Strategies LLC has been engaged in research, analysis, lead generation, and client implementation in the Marketing Automation sector since 2009 and has recently revised its highly successful 2014 Marketing Automation eBook.

Are you a marketing automation vendor? Learn about the capturing up to 500 fresh Marketing Automation leads.

Considering implementing marketing automation? Download the 2014 Marketing Automation eBook.

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