How an Inbound Marketing Strategy Can Help Your Business Succeed

A business world that is teeming with competition puts pressure on companies to be proactive about standing apart. Marketing is a key component of the success of a business, but there are many different techniques that can be used to get the word out about a company. Inbound and outbound marketing are both touted as effective techniques for encouraging interested consumers to become customers. Inbound marketing is a highly effective method of generating high-quality leads.

Defining Inbound and Outbound Marketing

The first step to understanding how inbound marketing excels over outbound marketing is having a clear definition of each of these techniques.

Inbound marketing is a technique that aims to speak directly to potential customers to encourage them to learn more about the business. This goal is achieved through blog posts, social media activity, search engine optimization (SEO) and carefully designed websites. Companies strive to actively attract potential customers by engaging them with inbound marketing.

Outbound marketing is a method of sending out a message to everyone without directly engaging with potential customers. Commercials, magazine ads and flyers are all used in an outbound marketing strategy. This technique does not involve engaging with people who have an interest in the product or service offered by the company. Advertisements are sent to everyone in hopes that the target market will see the ad.

Key Differences Between Inbound and Outbound Marketing

The next step in understanding the benefits of inbound marketing as opposed to outbound marketing is determining the differences between the two. Here are two key differences that make inbound marketing beneficial for businesses.

  • Inbound marketing focuses on engaging directly with leads in order to encourage them to make a purchase. Outbound marketing is a cold type of advertising that is not concerned with interacting with people.
  • Outbound marketing uses a blanket technique to reach as many people as possible. Inbound marketing starts with defining buyer personas to determine how to speak directly to people who are likely to become customers.

Reasons To Opt For an Inbound Marketing Strategy

Companies that are still unsure about the benefits of inbound marketing as opposed to outbound marketing should read through these benefits.

  • Inbound marketing offers a high return on investment (ROI). The earning potential offered by this marketing technique is tied to its targeted efforts. Companies get to know the target market before launching a marketing campaign, and marketing efforts specifically engage interested leads.
  • Inbound marketing costs less in the long run. Outbound marketing aims to reach as many people as possible without distinguishing between real leads and uninterested individuals. Advertising to the masses means that more ads have to be be produced and distributed, so the costs of outbound marketing often spiral out of control.
  • High-quality leads are able to find what they need with inbound marketing. Inbound marketing is akin to leading a hungry person to his favorite restaurant. Outbound marketing is more like leading a horse to water.
  • Using an inbound marketing technique helps companies cut through the constant barrage of irrelevant advertisements. It is estimated that the average person sees over 2,000 outbound advertisements a day, and these ads are often ignored.

Companies currently divide their marketing efforts between inbound marketing and outbound marketing by dedicating approximately 90 percent of their time and money to outbound marketing techniques and 10 percent to inbound marketing strategies. This is a ratio that smart businesses need to change in order to succeed. Inbound marketing is the key to ongoing success in a world of customers who demand an interactive customer service experience.