Inbound vs Outbound Marketing

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Inbound vs Outbound Marketing

Inbound or Outbound - What's Best for You?

"Inbound marketing." "Outbound marketing."

In recent years these two buzzwords have been tossed around quite a bit in the business world. With so much internet hype and positioning for new "inbound marketing" products and service offerings, it's understandable if you're already biased to believe that "inbound" is blooming effortlessly like a field of wildflowers while "outbound" is going the way of the brontosaurus.

Let's get a little perspective on the battle between inbound vs outbound marketing and examine how they aren't necessarily opposing concepts but how both can play a role in an effective marketing plan.

A Tale of Two Marketing Methodologies

Before we get into the defining characteristics of the "inbound" vs. "outbound" approaches to marketing, let's briefly summarize what they mean:

Outbound Marketing
Tactics that involve "pushing" your message to an audience, sometimes called "interruption marketing." Examples include:

  • Advertising – both Traditional (print, TV, radio, billboards) and Digital (online display ads and "retargeting" ads, or real-world digital displays)
  • Direct mail
  • Trade shows
  • Public relations
  • Cold-calling / Telemarketing
  • Unsolicited, paid emails (i.e. you pay for the use of someone else's list)
  • Website popups

Inbound Marketing
A term coined by Hubspot (which sells a Marketing Automation solution). Tactics involve more of a "pull" strategy where you share useful content to establish trust with an audience in order to organically attract them to your product or service when they're ready to engage with you. Sometimes called "permission marketing." Examples include:

  • SEO ("Search Engine Optimization") and SEM ("search engine marketing")
  • Content Marketing—blogging, video, e-books, case studies etc.
  • Social Media marketing
  • Email marketing
  • Marketing Automation "lead nurturing"

Let's look at the characteristics of each approach.

 

7 Differences Between Inbound and Outbound Marketing

There are 7 areas of difference between inbound and outbound marketing—which way does your business lean in each area?

(1) Communication

  • Inbound communicates where there is "permission", i.e. when information is requested by the prospective customer.
  • Outbound "pushes" information out to the marketplace in hopes it will reach prospective customers.

(2) Audience / Type of Traffic

  • Inbound gets unpaid "organic" traffic.
  • Outbound gets traffic via paid channels.

(3) Medium

  • Inbound relies on "content" to establish trust and authority in order to attract prospects.
  • Outbound uses advertising as the sales driver.

(4) Orientation

  • Inbound has an "educational" orientation, focusing in helpful, useful content to address a pain point or need.
  • Outbound has a "promotional" orientation, focusing on pricing, offers and product features.

(5) Depth of Field

  • Inbound thinks "long term" with a lead nurturing strategy.
  • Outbound thinks "now" with reliance on the strength and urgency of a sales pitch.

(6) Objective

  • Inbound aims to engage and retain—a more purely "marketing" approach. (Ultimately, of course, sales is the objective.)
  • Outbound aims to maximize transaction velocity—a more purely "operational" approach.

(7) Relationship

  • The Inbound relationship originates with the prospect, saying "I'm here for you."
  • Outbound originates with the seller, saying "Here I am."

The following handy infographic sums it up:

inbound and outbound marketing approaches

 

Pros and Cons

Looking at the list of differences between the two approaches, you might think "inbound" is the clear winner—the very future of all marketing. After all, it looks like it has none of that pushy "sales-y" thing, and it gets its traffic organically by being helpful.

While that's all true, proponents of inbound marketing may be pushing the concept a bit too far. It's not the easy cure-all to your marketing challenges, and it's not suitable for every organization.

Don't get us wrong. We love inbound marketing. We also love outbound marketing. There are pros and cons to each approach. And good execution of either approach requires a significant investment of resources—whether in terms of time and effort or financial.

 

Inbound Marketing Pros and Cons

If your organization is suited for an Inbound strategy, think of Inbound Marketing as a long-term investment. You won't see an immediate return on your investment, but consistent care and feeding of an inbound program will yield long-term, sustainable results and a superior ROI to an Outbound strategy.

Pros include:

  • Low cost-per-lead / customer acquisition cost - rather than spend budget on advertising, quality content is the attraction to leads or customers, and that has no ad cost associated with it; your cost-per-lead or customer acquisition cost will be minimal. According to Hubspot, Inbound is 62% less expensive than outbound.
  • Builds customer loyalty and trust / thought-leadership - the idea is to maintain a continual conversation with your customers and prospects. For B2B businesses, "thought leadership" is vital to establish trust. According to the Custom Content Council, 61% of customers are more likely to purchase from a company that tailors its content to the customer's needs.
  • Greater customer lifetime value - a successful inbound strategy will keep your brand "top-of-mind" with consumers, resulting in a long-term relationship with repeat sales and upsell opportunities.
  • Boosts brand visibility - A continual stream of valuable content is an effective way to establish and boost brand visibility.
  • More successful at reaching younger demographics - as an internet-based approach, inbound is more effective at reaching younger demographics.
  • Superior ability to target customers and track audience reach and ROI - customers can be targeted—even "hyper-targeted" down to the individual level—and ROI on inbound efforts can be easily tracked even using "off-the-shelf" analytics platforms like Google Analytics.

 

Cons include:

  • Results are not instant - key aspects of an inbound strategy, such as SEO and content creation, take several months or longer to execute and show tangible results.
  • Requires significant investment in quality content creation - it's not at all enough to post a blog and post to your social media pages. Success requires a diversity of content to respond to the prospect or customer at every step of their purchase journey.
  • Requires investment in marketing automation system to aid execution and ROI measurement - once leads arrive, you need to do something with them. Responding to prospects and customers at various steps through the sales funnel requires an automated system to execute this at scale.
  • Not as effective as Outbound for high-ticket offers
  • More successful at reaching younger demographics - as an internet-based approach, inbound is more effective at reaching younger demographics.
  • Requires truly valuable and unique content - regurgitating what everyone else puts out will not yield results; there is enough clutter in the market from companies executing a so-called inbound campaign by pushing the same tired content.

 

Outbound Marketing Pros and Cons

For organizations with higher marketing budgets, an Outbound approach can work very well, particularly as an Inbound strategy is getting off the ground in those cases where Inbound is also appropriate.

Pros include:

  • Quick results - rather than wait for an inbound strategy to take shape and for website traffic to reach "critical mass," outbound tactics yield instant traffic.
  • Effective at reaching older demographics
  • More effective than Inbound for high-ticket offers
  • Older audiences are more comfortable with Outbound tactics - while some people may be reluctant to submit their personal information into an inbound lead form for subsequent follow-up before they can receive offer details, they may be more comfortable with an advertisement leading them to the offer details.
  • Boosts brand visibility - Outbound is effective at quickly providing broad brand visibility, which is especially useful for more "mass-market" products or services as opposed to those suited to a more tailored audience. You'll reach a broader range of consumers than just those interested in your product or service.
  • Some tactics are a MUST for B2B organizations - tactics like trade show presence and seminars are considered essentials in some industries.

 

Cons include:

  • Expensive - Outbound campaigns can be expensive to execute compared to inbound.
  • Tracking audience reach and ROI can be challenging - accurately attributing sales to an outbound campaign can be difficult, requiring the use of promo codes and dedicated phone lines in some cases.
  • Less effective at targeting audiences - most forms of outbound marketing lack sophisticated means of targeting specific audiences; however this is less of an issue with some digital forms of outbound marketing, like online retargeting ads and display ad networks.
  • People have begun to "tune-out" outbound tactics - ad blockers, "banner blindness", ignoring that "junk mail" and just changing the TV channel are just some of the ways outbound tactics have been made ineffective. Millennials in particular have become adept at filtering ad messages.

 

How Inbound and Outbound Overlap

For many organizations, inbound and outbound strategies can co-exist. When they do, there are common ways they overlap.

For example, "outbound" channels (such as digital ads) can also serve as effective ways to draw attention to useful "inbound" content (such as case studies) in the effort to establish a relationship with your audience. The interaction would look something like this graphic:

using outbound marketing channels to draw attention to inbound marketing content

 

Likewise, you might want to use outbound "retargeting ads" to stay top-of-mind with website visitors attracted by useful "inbound" content (such as a guest blog post). Here's a simple visual of this strategy:

outbound marketing retargeting ads to draw attention to inbound marketing content.

 

Even old-school outbound tactics like print ads and direct mail will benefit from a bit of inbound smarts. Here's a graphic of this strategy:

Outbound marketing print ads and direct mail with an inbound marketing approach.

 

Omnichannel Approach

In the end, whether your marketing plan calls for an inbound or outbound approach (or both) is entirely dependent on what works for your business. Typically, the most effective approach is one which blends the two into an "omnichannel" marketing strategy.

According to Google, 90% of those who own multiple devices switch between them three times per day on average to complete a task. And 213 million adults in the US access the internet using 4 devices on average.

Consumers are more connected than ever before. They are interacting with brands anytime, anywhere, and they have more control over the buying process across physical and digital channels.

The objective of an omnichannel strategy is to identify the individual consumer at each interaction touchpoint and provide them with a relevant, seamless customer experience.

Why is this important? Omnichannel consumers are more valuable.

2017 Harvard Business Review study of 46,000 shoppers revealed that omnichannel consumer spent 4% more on every in-store shopping occasion and 10% more online. And the more channels a shopper used, the more valuable they became; those who used 4+ channels across their purchase journey spent 9% in-store on average.

The biggest challenges in an omnichannel strategy are (a) stitching the customer experience together across channels and (b) determining how to weigh the contribution of each channel to measure the ROI for the final transaction ("attribution").

For example, a consumer may first engage with the brand by clicking a Google paid search ad using a mobile device. Later they may research various products on the company's website using a desktop computer. Two days later, they might make their purchase in a physical store, and that evening they might share about their experience via social media.

"Stitching" the user experience together across these various channels requires a means of identifying the same user across channels. Combining tracking technology with dynamic content and offers unique to the individual customer is one way of accomplishing this. For example:

stitching together the omnichannel marketing data

 

But the question remains: at what point did the consumer decide to purchase? To what channel do we attribute the sale? Aside from obviously requiring the ability to "stitch" the chain of user interaction from one channel to another, how you wish to split each channel's contribution to the final sale is a business decision. You'll need a "holistic" system spanning from initial interaction to point-of-sale to effectively track to this multi-channel attribution model.

Finally, implementation of an omnichannel strategy is difficult for organizations that operate in a "siloed" way—where marketing, sales, product development and operations don't work in coordination with one another. Departments needs to be working in concert, coordinating initiatives with executive buy-in.

 

NOW THAT YOU KNOW MORE ABOUT INBOUND AND OUTBOUND MARKETING...

It's a complicated subject with many moving parts. Having a high-level understanding of the elements involved is useful, but you might need help creating and executing a marketing plan. We're here for you! Brass Ring Consulting Group provides world-class Marketing services. Contact us today for a free consultation!

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Google Analytics is a web analytics service offered by Google that tracks and reports website traffic. Google uses the data collected to track and monitor the use of our Service. This data is shared with other Google services. Google may use the collected data to contextualize and personalize the ads of its own advertising network.

You can opt-out of having made your activity on the Service available to Google Analytics by installing the Google Analytics opt-out browser add-on – https://tools.google.com/dlpage/gaoptout. The add-on prevents the Google Analytics JavaScript (ga.js, analytics.js and dc.js) from sharing information with Google Analytics about visits activity.

For more information on the privacy practices of Google, please visit the Google Privacy & Terms web page: https://policies.google.com/privacy?hl=en

  • Heap Analytics

Heap Analytics is a behavioral web analytics service offered by Heap Inc. that collects information on what users are doing on the website, including but not limited to what webpages they visit, what users click on, where those users are located, what browser or platform those users are using, and many other forms of behavioral or personal data. This data is not shared with any other services.

You can opt-out of having made your activity on the Service available to Heap Analytics by installing an ad blocker add-on to your browser.

For more information on the privacy practices of Heap, please visit the Heap Privacy Policy page: https://heapanalytics.com/privacy

BEHAVIORAL REMARKETING AND PROSPECTING

Brass Ring Group, LLC uses advertising platforms and remarketing services to advertise on third party websites to you before and after you visited our Service. We and our third-party vendors use cookies to inform, optimize and serve ads based on your general interests and your past visits to our Service.

  • Google Ads

Google Ads marketing service is provided by Google Inc.

You can opt-out of Google Analytics for Display Advertising and customize the Google Display Network ads by visiting the Google Ads Settings page: http://www.google.com/settings/ads

Google also recommends installing the Google Analytics Opt-out Browser Add-on – https://tools.google.com/dlpage/gaoptout – for your web browser. Google Analytics Opt-out Browser Add-on provides visitors with the ability to prevent their data from being collected and used by Google Analytics.

For more information on the privacy practices of Google, please visit the Google Privacy & Terms web page: https://policies.google.com/privacy?hl=en

  • Bing Ads

Bing Ads marketing service is provided by Microsoft Inc.

You can opt-out of Bing Ads interest-based ads by following their instructions: https://advertise.bingads.microsoft.com/en-us/resources/policies/personalized-ads

You can learn more about the privacy practices and policies of Microsoft by visiting their Privacy Policy page: https://privacy.microsoft.com/en-us/PrivacyStatement

  • Twitter

Twitter advertising service is provided by Twitter Inc.

You can opt-out from Twitter’s interest-based ads by following their instructions: https://support.twitter.com/articles/20170405

You can learn more about the privacy practices and policies of Twitter by visiting their Privacy Policy page: https://twitter.com/privacy

  • Facebook

Facebook advertising service is provided by Facebook Inc.

You can learn more about interest-based advertising from Facebook by visiting this page: https://www.facebook.com/help/164968693837950

To opt-out from Facebook’s interest-based ads, follow these instructions from Facebook: https://www.facebook.com/help/568137493302217

Facebook adheres to the Self-Regulatory Principles for Online Behavioral Advertising established by the Digital Advertising Alliance. You can also opt-out from Facebook and other participating companies through the Digital Advertising Alliance in the USA http://www.aboutads.info/choices/, the Digital Advertising Alliance of Canada in Canada http://youradchoices.ca/ or the European Interactive Digital Advertising Alliance in Europe http://www.youronlinechoices.eu/, or opt-out using your mobile device settings.

For more information on the privacy practices of Facebook, please visit Facebook’s Data Policy: https://www.facebook.com/privacy/explanation

  • AdRoll

AdRoll marketing service is provided by Semantic Sugar, Inc.

You can opt-out of AdRoll remarketing by visiting this AdRoll Advertising Preferences web page: http://info.evidon.com/pub_info/573?v=1&nt=1&nw=false

For more information on the privacy practices of AdRoll, please visit the AdRoll Privacy Policy web page: http://www.adroll.com/about/privacy

When visitors use our Services, AdRoll may place cookies on their browsers for targeted adverting purposes. Data collected may include IP addresses, cookie identifiers, website activity, and a “hashed” (unrecognizable) representation of any email addresses you enter into our website forms, used only for the purpose of serving relevant ad content to you across multiple devices.

 

Comments

When visitors leave comments on the website we collect the data shown in the comments form, and also the visitor’s IP address and browser user agent string to help spam detection.

An anonymized string created from your email address (also called a hash) may be provided to the Gravatar service to see if you are using it. The Gravatar service privacy policy is available here: https://automattic.com/privacy/. After approval of your comment, your profile picture is visible to the public in the context of your comment.

Embedded Content From Other Websites

Articles on this site may include embedded content (e.g. videos, images, articles, etc.). Embedded content from other websites behaves in the exact same way as if the visitor has visited the other website.

These websites may collect data about you, use cookies, embed additional third-party tracking, and monitor your interaction with that embedded content, including tracking your interaction with the embedded content if you have an account and are logged in to that website.

Links to Other Sites

Our Service may contain links to other sites that are not operated by us. If you click a third-party link, you will be directed to that third party’s site. We strongly advise you to review the Privacy Policy of every site you visit.

We have no control over and assume no responsibility for the content, privacy policies or practices of any third-party sites or services.

Children’s Privacy

Our Service does not address anyone under the age of 18 (“Children”).

We do not knowingly collect personally identifiable information from anyone under the age of 18. If you are a parent or guardian and you are aware that your Child has provided us with Personal Data, please contact us. If we become aware that we have collected Personal Data from children without verification of parental consent, we take steps to remove that information from our servers.

Changes to This Privacy Policy

We may update our Privacy Policy from time to time. We will notify you of any changes by posting the new Privacy Policy on this page.

We will let you know via email and/or a prominent notice on our Service, prior to the change becoming effective and update the “effective date” at the top of this Privacy Policy.

You are advised to review this Privacy Policy periodically for any changes. Changes to this Privacy Policy are effective when they are posted on this page.

Contact Us

If you have any questions about this Privacy Policy, please contact us:

  • By email: [email protected]
  • By visiting this page on our website: https://www.brassringconsult.com/#contact-us
  • By phone: 323.850.1812
  • By mail: Brass Ring Group, LLC, 1968 S Coast Hwy Suite 5007, Laguna Beach, CA 92651, United States