Are you a fan of the door-to-door salesman? What do you do if some stranger comes knocking while you’re in the middle of a meal or your favorite TV show …Ignore them? Most people do. What about annoying telemarketers that intrude on your dinner conversation? That’s what traditional outbound marketing is all about. Outbound marketing, also aptly named interruption marketing, attempts to approach people with no demonstrated interest in a product or service and reel them in. This type of marketing abruptly bursts into people’s lives uninvited and includes radio commercials, TV commercials, direct mail, telemarketing, door-to-door, spam or e-mail blasts, and even networking. It is also often ignored, just like the salesman.
Times Have Changed
Best-selling New York Times business author Daniel Pink who recently wrote To Sell is Human points out that this predatory approach to selling is quickly becoming outdated. He believes that sales has changed more in the past 10 years than it did in the last century, and most of this is due to the internet. Many adept marketers and business professionals have taken note of the same, and realize that the predatory approach is slowly being phased out of our culture. Most of us these days have a radar for aggressive sales tactics and don’t appreciate being hunted down like dogs. So, what is taking the place of these outdated, bothersome sales tactics? That would be inbound marketing, or inbound demand generation.
Rather than wasting time with trying to convince uninterested parties to take a second glance at your product or service, inbound marketing draws people who are already somewhat interested in your business, and they have the choice as to whether they want to listen to what you have to say or not. Creating inbound demand generation involves blogging, social media, SEO, and targeted emails. Does this really work? Companies that practice inbound marketing and marketing research institutes emphatically say that yes, it works even better than the old approach, and it’s less expensive to top it off.
Average cost per lead and cost per customer are lower with inbound marketing than with outbound –about 61% less according to the Search Engine Journal. Inbound marketing also generates more qualified leads through blogging and SEO:
What Do Professional Marketers Think?
The majority of CEOs and marketing executives are devoting more of their marketing budgets each year to inbound marketing. 2013 budgets for inbound were around 50% higher than that of the previous year. Almost every marketer realizes that SEO is a valuable aspect of inbound, with about 54% of clicks going to the first search result of search queries. Apart from SEO, 60% of marketers dedicate at least 6 hours per week to social media. Interaction on social media platforms produces 2X more leads on average than trade shows, telemarketing, direct mail, and even PPC. Companies report that social takes more time than blogging and email marketing, but most of them are putting aside the resources to do it for obvious reasons. Marketers also enjoy the fact that inbound marketing efforts are far easier to measure than traditional outbound efforts.
Customers Prefer Inbound Marketing over Traditional Advertising
On the side of the customer, 82% say that they enjoy reading relevant content from a brand. Over 70% would rather learn about a company or product by reading an article rather than seeing an ad. Wouldn’t you? Through inbound marketing, potential clients and current clients are able to learn about a company on their own time instead of having it shoved in their face, and they can explore products that revolve around their interests.
Switching over to a mostly inbound marketing system can be difficult and time consuming, but it’s definitely worth the effort. If you don’t rank on the first page of search results, or you’re not blogging or bothering with other inbound tactics, you’re missing out on a lot of traffic, leads, and revenue. Most companies can’t do it all on their own and get outside help from professionals. Drop us a line or give us a call to learn more about getting leads to come to you, not the other way around.
*Data from the chart above compiled from Hubspot, The Houston Chronicle, & Smart Insights.
*Data throughout compiled by Hubspot unless otherwise indicated.