Why Inbound Marketing Is More Cost-Effective Than Outbound Marketing
Every day, people drive buy billboards without looking up or toss out mailers without reading the headlines. We don't have time to riffle through traditional, outbound marketing methods anymore. Instead, we expect the answers we need to show up when we need them.
That's where inbound marketing steps in.
Inbound marketing efforts cost 62% less than leads from outbound marketing efforts. Why?
For starters, inbound marketing efforts are adapted for the modern buyer. Most people head online to complete their own research before they decide to shop.
Outbound strategies, on the other hand, are intrusive and not timed with the buyer in mind.
Keep reading to learn why inbound marketing is more cost-effective (and overall more effective) than traditional outbound marketing.
What is Inbound Marketing?
Before we can determine why inbound marketing is cheaper, it helps to understand the difference between inbound and outbound.
Inbound marketing helps you bring potential customers to your business who are already actively shopping. With inbound marketing, you can appear in front of consumers who already have an interest in your product or service. Instead of wasting time generating that initial interest, you can spend more time marketing your business.
In other words, inbound marketing is better aligned with the buyer's journey than outbound marketing.
Think of all the time, effort, and money you could save. Inbound marketing leads come to you. That means you don't have to waste time and money trying to pitch your product or service.
Instead, inbound marketing leads already want a product or service like yours. You only need to convince them that your brand offers the best option.
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The Buyer's Journey
The buyer's journey is one of the reasons why inbound marketing works better than outbound marketing. The journey starts with the Awareness stage. During this point, the consumer has a problem they want to solve.
As the consumer researches their problem, they enter the Consideration stage. Here, they begin to make a list of potential solutions. By using inbound marketing strategies, you can become one of those solutions.
Finally, the consumer enters the Decision stage. They narrow down the products or services and decide which to purchase.
While the consumer is experiencing the buyer's journey, you have an opportunity to impact their Decision. For example, you can use a number of inbound marketing tactics, including:
Search engine optimization (SEO)
Search engine optimization allows you to leverage the keywords consumers are searching. Then, you can optimize your content so your website appears on search engines like Google when someone searches for those keywords. As with any inbound marketing strategy, SEO allows you to appear in front of consumers during their journey.
With inbound marketing, you can become more focused on how you market your brand. You can also specifically target who you're marketing to. Narrowing your focus will help you create a more effective marketing message.
As a result, you're more likely to connect with the people likely to become a paying customer.
What is Outbound Marketing?
Unlike inbound marketing, outbound marketing doesn't take the buyer's journey into account. Instead, outbound marketing tries to reach as many people as possible. These tactics don't consider if the consumer is actively searching.
In other words, outbound marketing takes a blanketed approach.
This can cause you to waste valuable time and money.
A few outbound tactics include:
Instead of wasting time and money on outbound, you can use inbound marketing for a higher ROI.
What are the Benefits of Inbound Marketing?
Inbound marketing meets consumers where they're already spending their time: online. In fact, 75% of mobile users conduct a search to get a better idea of what to buy. Those same Google users end up visiting a store within 24 hours of their search.
With inbound marketing strategies such as search engine optimization, you can get in front of customers while they're eager to shop.
Here are a few more benefits of inbound marketing. By developing an inbound strategy, you can reach more people who are likely to become customers.
As a result, inbound marketing will improve your ROI, making it a more cost-effective option.
1. Inbound is Easy to Measure
You don't want to waste your time and money on strategies that aren't working. With commercials and flyers, you can't measure success. How do you know which tactics are leading to sales?
Inbound marketing tactics provide you full transparency. You can track the progress of your campaigns using metrics like impressions, clickthrough rate, and conversion rate. Then, you can determine which tactics are working.
Meanwhile, you can improve the tactics that aren't working to help you increase sales.
With outbound marketing, there's no way to tell which tactics are failing. This could cause you to waste money on a futile tactic.
2. Inbound Strategies are Cheaper
How much do you spend on flyers, billboards, and magazine ads every year? They're not cheap. Inbound strategies, on the other hand, are!
There are a few exceptions, but as a whole, inbound marketing tactics are more cost-effective. At the same time, they're more likely to generate sales, allowing you to improve your ROI.
3. It's Not Intrusive
Outbound techniques interrupt the buyer. No one wants a cold call during dinner or a commercial interrupting their favorite show.
Inbound marketing tactics appeal to the consumer's interests. They also fit seamlessly alongside organic material. Instead of interrupting consumers, inbound tactics offer help when it's needed most.
4. Builds Brand Trust
Your inbound marketing blog can help you provide customers with entertaining, helpful content. In time, people will learn to trust your brand to help them make an informed decision. That brand trust can turn into brand loyalty.
When customers are loyal to you, you can save money by retaining repeat customers. As a result, you're generating more revenue without spending money to attract new customers to your business.
5. It's the Future
Inbound marketing strategies are built for the long-term. The SEO work you do today could help you attract customers for years. With inbound marketing, you can lower costs now and generate results for years to come.
Inbound vs Outbound: Why Inbound Marketing is the More Cost-Effective Option
Here's why inbound marketing is more cost-effective than outbound marketing: it works. By developing an inbound strategy, you can attract, delight, and retain your customers. As a result, you're spending less on your marketing tactics, making more, and ultimately building your business!
Looking for more cost-effective online marketing tips? Check out the Digital Marketing section of the Bootstrap Business blog today.