Coined by Hubspot, the term inbound marketing is now popular in digital marketing. It refers to the modern forms of marketing, which major on customer attraction, conversion, closing, and delight. Before the introduction of inbound marketing, outbound marketing strategies reigned. Advertisers worked day and night to better their marketing services. But still, the risks were eminent.
To fully understand the difference, let’s look at a detailed explanation.
Inbound Marketing is the form of marketing that focuses on attracting customers towards your company and product. It is achieved by creating content that aligns to the customers’ needs, interests, and desires. The main goal is to drive traffic to your website, convince them to buy, and follow up to keep a close relationship.
The main mediums for inbound marketing include blog posts, social media, opt-in emails, SEO, and influencer marketing. These are the most effective means of drawing in customers, delighting them with content, and keeping them engaged.
Outbound Marketing, on the other hand, is interruption-based marketing, where adverts are placed in crowded places or mediums with large followers. The goal converts a small percentage into sales by studying the demographics and care planning. Outbound marketing works best in crowded places. The small percentage of conversions normally help raise more profit than investment.
The main mediums for outbound marketing include display Ads, billboards, telemarketer scripts, magazines, and TV and Radio commercials. According to AWAI, these work for the long-term goal, which is getting your customers to remember the product when a problem occurs. The key to success is having easy to remember slogans, speaking to the people’s desire, and consistency.
Here are some key specs of using inbound marketing over outbound marketing
Inbound Marketing focuses on creating Valuable Content.
In the golden days, people bought products to try out their specifications. After reading an advertisement in a magazine, gazette, or viewing it on TV, they would then approach the company to purchase and try the products. There was no way of confirming the performance of the product unless from referrals.
After the introduction of inbound marketing, customers can familiarize themselves with the products before making a purchase. They have the opportunity to read blog posts, emails, and even contacting customer care before making a buying decision. These have helped customers access the right products at little or no risks involved.
Two-way Communication compared to One-way Communication
Inbound marketing allows marketers to speak with their audience directly. They can engage in constructive communication by receiving emails, comments on the blog and social media posts, and also direct messages on social media.
Outbound marketing only provides a one-way form of communication. The message is passed directly from the marketer to the audience without consent for their opinions, ideas, or even scepticism. This makes it difficult to send the right message and build trust with the customer. In fact, when the adverts become consistent, many opt to shut them off and avoid the companies.
Higher Conversion Rate and Lower Customer Acquisition Cost
According to Hubspot, the number of customers acquired on companies with a blog section is typically higher than companies with single product pages and no content. The research shows that 77% of B2C companies have at one time acquired a customer from Facebook. This is an indication that customers prefer to be sold by a “human”, not through a TV ad.
The cost of customer acquisition in inbound marketing is also typically lower than in outbound marketing. It’s possible to acquire new customers without investing a dime in an advertisement, while in outbound marketing, the higher the number of advertisements, the higher the returns.
Although there are many benefits of inbound marketing, the reduced costs of investments, the trust built, and the ability to understand your customers are the main elements that should push you to take that route of action. With the right inbound marketing strategies, it is easy to earn and garner consistent customers for a long duration.
It is also wise to note that the cost of attaining a new customer is higher than the cost of retaining an existing customer. Therefore, delighting the existing customers with educative and engaging content is a must for a successful business.
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