As a start-up, knowing where to focus your time, energy, and perhaps more importantly - your money, when it comes to marketing campaigns is an important, yet complicated step.
Deciding your business’ marketing strategy before you execute anything can really save you a lot of all three of those things - which is how we determind success. According to Coschedule, marketers who document their strategy are 538% more likely to report success.
Every business needs a marketing strategy, but should you opt for inbound or outbound marketing? There are a lot of ways to advertise your product, so we’re here to show you what you need to know about the two most common types.
Inbound Marketing & Outbound Marketing Defined
Inbound marketing is a marketing methodology that aims to attract customers through organic means like blogs, opt-in email lists, videos, thought leadership posts among many other options. Customers find content through organic means because they’re genuinely interested in learning more about the brand - and when they’re coming to you already interested, your salespeople can find this a much easier lead to work with.
Outbound marketing is focused on pushing messages to prospects - and is what people often think of when they hear the term “sales”.. Some popular examples include sponsored video ads, direct mail campaigns, pop-ups, billboards, and print ads. The company sends its messages to consumers as opposed to the customer seeking them out.
Software Advice illustrates this pretty darn well:
The cost of inbound vs outbound marketing?
Many start-ups are primarily focused on lead generation, because - well, they’re starting up, and most companies don’t have a huge base of people who want what they’ve got right out of the gate.
In our post about customer acquisiton cost per industry, we reported that 65% of businesses consider lead generation as their biggest marketing challenge - so concentrating your energies in the form of marketing that makes the most sense for your business model, and keeps that CAC down is a great goal to have.
But should you pick inbound or outbound marketing? Some stats to back our case:
DemandMetric had some really interesting stats about inbound marketing, but our favourite was that it costs 62% less per lead. That’s a whopping difference when you’re talking ROI and bootstrapped budgets.
A study by HubSpot also found that the average cost per lead for outbound-focused businesses was $364 per lead which is significantly lower than inbound marketing’s cost at $135 per lead.
Hubspot also found that 75% of marketers who used inbound marketing strategies believed it was effective, while, only 62% of businesses that focused on outbound marketing felt the same.
53% of marketers also believed that inbound marketing leads to a higher ROI.
Not surprisingly, inbound marketing is cheaper because it’s customer-driven - there’s no need to interrupt a customer’s activity to get attention. As we mentioned above, when a client is coming to you, half the job of selling them on what you have to do is already done - all you have to do is seal the deal.
You create compelling content and sit back to watch the traffic, and the sales roll in.
As you can see, we have a definite preference for an inbound marketing strategy, but it’s backed up by the data - inbound marketing costs you less and has better value for your business. That being said, both have a place in your marketing arsenal - so consider a blended approach as well. If you’re not sure how that would work for your business, definitely book a call with us and we can walk you through it!
Until next time, friends.
Article written by Monique Danao