Inbound Marketing Effectiveness vs Outbound Marketing Effectiveness are measures every company should consider when planning its marketing efforts. In some cases, it may benefit an organization to use a combination of both inbound and outbound marketing.
What is Inbound Marketing vs. Outbound Marketing?
Inbound marketing is the development of content designed to educate potential customers through a process that engages them and ultimately invites them to reach out to an organization. In other words, Inbound Marketing uses activities that bring potential customers in, rather than marketers having to go out to get prospects' attention.
Outbound marketing, on the other hand, often involves cold calling and direct advertising. Both can be effective depending on what type of sales and marketing funnel an organization wishes to build, but in 2015 many companies are finding that Inbound Marketing is more effective at attracting customers to a company and building new relationships.
Did you know that, according to a CEB (Corporate Executive Board) study, "57% of a typical purchase decision is made before a customer even talks to a supplier?" This means that inbound marketing will effectively draw those customers who have already made their purchasing decisions, whereas outbound marketing, in this case, is more like a dog barking up the wrong tree.
Why is Inbound Marketing Most Profitable?
Using Inbound marketing and creating content designed to engage and educate, will reinforce a customer's decision to buy because the customer can enter into the conversation at the appropriate stage of the funnel. With outbound marketing, the marketer attempts to drive the identification of the appropriate stage and might lose the customer along the way.
According to an article on Customer Think, "Traditional channels like direct mail, email marketing, trade shows, and promotional marketing still perform in predictable ways." The author, Ian Michiels, Principal and CEO of Gleanster Research, explains that while outbound marketing effectiveness has been on the decline, its predictability still makes it worth pursuit.
Tracking a potential customer's journey through the buying process is easy when you can track efforts such as outbound calls with a powerful CRM (Customer Relationship Management software). Inbound marketing draws more potential customers, but they can be trickier to track and ultimately hook, which is why using both types of marketing may benefit an organization rather than siding with one over the other 100% of the time.
However, there is no denying the rise of inbound marketing. At Alternative Advertising, we have staff that is Inbound Marketing Certified from Hubspot, we also use Greenrope automated marketing tools for our clients and we've been in the promotional product business for too many years to count. To learn more about how to engage your potential customers, please contact us.