It’s easy to confuse the functionality of CRM and marketing automation software. Let’s define each, explore their benefits, and decide which solution is best for you. 

 

What Does CRM Software Do?

Customer Relationship Management (CRM) software tracks and organizes data about potential and current customers. This data is organized into accounts that showcase the entire customer journey.  

CRM solutions do more than just store customer data. More robust versions of this software can manage leads, opportunities, prospects, contacts, and customers. CRMs can also: 

• Help sales teams generate reports and dashboards to analyze data 
• Automate and optimize workflows to save time and keep the sales funnel operational 
• Enable teams to manage quotes, proposals, and other key documents attributed to specific accounts or broad campaigns 
• Create forecasts based on past data to anticipate future growth 

CRM software includes solutions for sales, marketing, and services, though it is most commonly used for sales purposes. Sales teams use CRMs like Microsoft Dynamics 365 CRM and Salesforce CRM to generate revenue and close deals. 

 

What Does Marketing Automation Software Do?

Marketing automation software controls lead-generating activities to save time for marketing teams. Because the software handles routine tasks like email sends, social posts, and other campaign responsibilities, teams can focus on evaluating campaign success and producing amazing content.  

This software is great for busy marketing teams in need of support. Marketing automation solutions can do the following:  

• Evaluate leads to determine which ones will enter the sales funnel 
• Help teams create and execute campaigns with full visibility at every step 
• Publish and post materials through channels like email, social media, and blogs 
• Provide robust analytics to study campaign success and the status of individual leads 

This software focuses on the top of the sales funnel by managing lead qualification. Marketing teams use marketing automation software like HubSpot Marketing Hub to generate and nurture leads. 

 

Which One Do I Need for My Business?

CRM and marketing automation solutions are built for specific areas of your business.  

CRM solutions like Microsoft Dynamics 365 and Salesforce are a good fit for businesses that need to streamline or organize the sales funnel more effectively. CRM’s vast management capabilities control every aspect of the sales process, from when a lead enters the funnel to closed deals and beyond. If your goal is to improve your relationships with prospects and current customers, you’ll want to invest in a CRM solution. 

Marketing automation software like HubSpot Marketing Hub is a good fit for marketing teams searching for ways to save time without sacrificing the quality of their campaigns. It manages several publication channels at once, allowing marketing teams to use one central hub for all their campaigns and related activities. If your goal is to automate marketing workflows and focus on lead generation, you should opt for marketing automation software.  

 

Can I Use CRM and Marketing Automation Software Together?

It’s common for mid-sized and large companies to integrate solutions used by different departments to eliminate data silos. Together, CRM and marketing automation solutions provide full visibility of the customer lifecycle. Plus, top CRMs like Microsoft Dynamics 365 and Salesforce boast strong integrations with HubSpot so that data syncs automatically and stays up to the minute. 

By aligning sales and marketing teams, you’ll be able to manage the sales cycle from beginning to end, drill down deep into leads, and use a combination of features. For instance, you can run email marketing campaigns for existing customers or adjust which milestones determine sales and marketing qualification for leads. 

Use the following chart to figure out which solution is best for you.