Consider these stats:
Inbound marketing costs 62% less per lead than traditional outbound marketing. Source: Mashable)
Marketers allocate 34% of their overall budgets to inbound tactics – 11% more than they dedicate to outbound strategies, like banners, direct mail and more.(Source: Impact)
The dynamics of marketing and consumer engagement is rapidly changing. We marketers refrain from using an interruptive push strategy with our clients and rather focus on adopting a strategic interactive pull strategy with them. Traditional outbound marketing is marketer-centric and adopts old school techniques of cold calls, direct marketing and mass advertising.
Inbound marketing is customer-centric and is the process of offering helpful information through relevant content, which helps in “getting found”. It utilizes tactics like email marketing, blogs, social media and paid advertising to gain prospect’s attention and slowly guiding them to become brand evangelists!
But, why so much hype about inbound marketing? Let’s dig deeper into how inbound marketing is helping Marketers survive the battlefront- prospect attention and retention!
Traditional Outbound Marketing- Gaining your prospect’s attention in this cluttered marketplace is a tough job. With traditional marketing tactics- TV, radio ads, billboards etc, marketers are more likely to be left guessing if their message is impacting their prospects. This means that the success of this technique largely depends on whether your prospect cares to reach out to you when the need arises.
Inbound Marketing- Inbound marketing on the other hand is about offering helpful solutions to your prospect’s problems. It is permission-based marketing and hence it engages with the prospect tactfully at the time when she/he is ready to interact with you. Offering useful information helps the prospect move deeper into the sales funnel and finally become a paying customer.
Traditional Outbound Marketing- Traditional outbound marketing spend heavily on mass mediums like TV, radio, newspapers, hoarding etc to generate a prospect’s interest. The messaging is generic and reaches out to irrelevant audience as well due to its wide distribution. It may generate impressions but the odds of generating relevant traffic are relatively low.
Inbound Marketing- Inbound marketing crafts unique messaging tailor-made for its buyer persona. It is personalized and hence, strikes a chord with the prospect to generate interest. While we may not get thousand of impressions as in traditional marketing, but we definitely get relevant audience who are genuinely interested in purchase.
Quality lead Generation
Traditional Outbound Marketing- Traditional outbound marketing functions on a “shotgun approach”- shoot the message to as many potential leads as possible and hope for a response from them. While, you may reach out to a large number of prospects but the conversion rates are usually low and the cost per lead is high.
Inbound Marketing- Generating leads through inbound marketing is a step-by-step approach of offering useful information to your target audience and guiding them gradually through the buyer’s journey. It involves offering helpful guides, ebooks, blogs etc in exchange of their contact information. You can then assess whether the visitor is a qualified lead or not and then take necessary action.
Traditional Outbound Marketing- Monitoring the performance of a traditional outbound campaign is a tedious task. It is based on the impressions achieved and doesn’t project conversion rates accurately. Also, the results are displayed at the end of the campaign, thus, leaving very little or no scope for campaign teaks.
Inbound Marketing- With inbound marketing, you have access to a variety of tools which will help you track and analyze your campaigns. Tools like Hubspot, Google Analytics offer an extensive scope of real time tracking, analysis and campaign changes. This will enable you to understand which campaign is working for you and encourage necessary action.
Traditional Outbound Marketing- There are testing measures to calculate ROI in traditional outbound marketing like focus groups but sadly they are not very accurate. It becomes more like doing a guesswork based on past averages and impressions. So, you will never really know how much ROI you achieved for a particular campaign.
Inbound Marketing- Inbound marketing adopts intelligent techniques of tracking and analyzing your campaigns in real time. This enables you to test and monitor the campaigns consistently to improve ROI. Blog views, click rates, blog subscribers, ebook downloads etc which signify the success or failure of a campaign , thus, indicating ROI.
All done and said, let’s not forget that traditional outbound marketing is the stepping stone for all forms of marketing- remember the good old days in the pre-internet era? But now, consumers are more informed and aware than ever before. Inbound marketing is creating a radical shift in the way marketers and consumers connect and enables your customer to make well informed purchase decisions.
Ready to take the Inbound leap? Get on a No-Obligation Call with us!