While they share underlying technology and often overlap, the primary role of each is clearly different. e-Marketing, through direct marketing email, is the lowest-cost method of lead generation. It is also the most efficient way to communicate with customers (newsletters, announcements, promotions). Marketing Automation extends and enhances e-marketing by using market intelligence to get to know your customer. It then automatically interacts with them electronically, providing them with information and incentives that move them toward your goal.
Read: "Marketing Automation Technology"

You meet potential customers through activities in many channels (to learn how you can achieve successful first interactions, please go to integrated campaigns). Historically, for many companies, hot leads get passed directly to sales and the rest gather dust in the CRM database. If you keep ownership of the "B" leads, you can use low-cost electronic "touches" to convert many of them into customers - which increases the ROI on your initial lead generation campaign and boosts revenues. You can store and manage these leads through your existing CRM, or keep them in a hosted database that can seamlessly integrate with your CRM. If you outsource your DB, then you don't have the hassle of interfacing with your internal IT or sales. And, it will be easier to execute automated marketing programs.
 Read : "Turn 'B' Leads Into Customers"

Every lead, from any channel, can be electronically tagged on the way to your database, so you'll know where it came from. Through real-time reporting that gives you detailed performance metrics and analysis, you can determine what activities give you the best ROI - and you can often test and adjust campaigns "on-the-fly."

You will achieve more successful interactions and close more deals if you provide them with information tailored to their specific needs. Using a marketing automation strategy called a "cascading campaign," you can prompt your customer to reveal more about who they are with each interaction, then use this information to shorten the sales cycle. Here's how it works:

When a customer gets to the initial registration page, they will see a simple form that is fast and easy to fill out. You get basic information that is enough to rank them as an "A" or "B" lead, and begin to discover their pain points. Now, the "cascading campaign" begins. When the customer hits "submit," they will be automatically fulfilled with personalized information, relevant to their specific need, and encouraged to take another action that will begin a cascading series of ongoing interactions that will move them toward a sale - or reveal them to be "dead." Without incurring the expense of making direct contact, you will have given them many levels of information and incentives. Since one of the main differences between "A" and "B" leads is their timeline to purchase, the cascading campaign can build a relationship that will payoff when the time is right for them to buy.

It's obvious that you spend a lot more to get a new customer than to get additional business from your existing customers. Yet many companies don't take full advantage of this revenue potential. By using electronic communications, you can inexpensively, cross-sell, up-sell, or sell upgrades. You can also build customer loyalty by providing personalized ongoing product information, support, training and more.

- Marketing automation will increase your sales conversion rates
- Marketing automation enhances the value of your CRM investment
- With marketing automation, you can match customer needs to product strengths
- Marketing automation increases customer lifetime value