Enterprise Marketing Automation

Introduction

Enterprise marketing automation is part of customer relationship management module. Enterprise marketing automation can also be an independent software installed by the company. The main function of the enterprise marketing automation module is to run different marketing programs in the organization. The enterprise marketing automation module also helps the given organization develop a business plan.

An enterprise feeds from the customer data which is maintained by the company. Therefore, the module helps the company to maintain, manage and filter customer-related information.

When a company decides to start a marketing campaign for a particular product than the enterprise marketing automation tool provides the company a short list of customer who could be interested in the product. This filtration of customer is done based on customer segmentation.

Customer Segmentation

Customer segmentation is an important parameter to consider when designing marketing campaigns. Customer segmentation technique splits the customer on various parameters. If the marketing campaign satisfies those customer parameters, then, enterprise marketing automation tool will provide their list.

Parameters considered for customer segmentation are as follows:

• Homogeneity within a particular customer segment.
• Heterogeneity across different industry and customer segment.
• Customer should respond in an identical manner to a particular marketing campaign.
• Customer should be reachable through the marketing campaign.
• Organization should be able to create a marketing strategy for the group.

Segmentation Strategy

An organization looks to target a particular segment for following reason:

• Organizations are better able to understand and satisfy needs of the customer.
• Organizations are able to generate higher profits through segmentation.
• Segmentation provides a great opportunity of growth.
• Segmentation can create a long and fruitful customer relationship.
• Segmentation can lead to higher market share.

However, to devise a successful segmentation strategy is difficult. Organizations typically run into challenges around selection of variables to define segment. There is also a difficulty in identifying correct algorithms for segmentation.

Components of Enterprise Marketing Automation

There are about five components of enterprise marketing automation. They are as follows:

1. Promotions: These are the activities undertaken by organization to increase their sales. Promotions can be categorized as cross selling or up selling. In cross selling, customers are offered similar products to one they have already bought. The aim of cross selling is to satisfy all the customer requirements. In up selling customer are offered expensive product as well as an upgrade to the existing products. Up selling is more profitable, and it is in top up of existing sale.

2. Event Based Marketing: This involves registering customers for seminar and in case web cast via the Internet. Companies look forward to sponsoring events and include their products as part of the marketing event.

3. Loyalty and Loyalty Programs: Loyalty is defined as continued commitment of a customer to a particular product, brand or organization. Customer tends to maintain their loyalty if companies provide value to them and/or it is much expensive to change product brand or organization.

4. Partner Management: It is a marketing campaign organization joins hands to promote their and partner’s products. This could also be referred to as joint promotion.

5. Response Management: This gives flexibility in marketing campaigns based upon the initial reaction from the customer. It is a response management in real time.

Authorship/Referencing - About the Author(s)

The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.