introduction
A couple of years ago, I had an experience with the launch of a cold-calling campaign by a marketing manager I worked with. After countless thousands of calls were made, my friend ended up being quite disappointed with the outcome. In contrast to that, I had previously published a single blog post that continued to provide prospects with inquiries every week for several months after publishing. Zeroing in on the differences between the two situations raises the important question of whether you should pursue getting new customers to buy from you or whether you should allow them to come to you for your product.
This question forms the core of all modern marketing. Inbound and outbound marketing are both two different types of methodologies for reaching target audiences, establishing a brand’s image, and achieving growth. By choosing one of the two methodologies and not understanding how they work, you run the risk of wasting money and hitting a roadblock to growth.
This article will compare inbound versus outbound marketing by looking at how inbound and outbound marketing each brings in customers, overall cost-effectiveness, trustworthiness, and how to determine whether inbound, outbound, or a combination of both types of marketing will work best for your overall company goals.
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- The Difference Between Inbound and Outbound Marketing
There is one difference between inbound and outbound marketing–who starts the conversation?
On the one hand, the goal of inbound marketing is to pull customers in.
Inbound marketing entails providing attractive content and experiences for existing customers who are looking for solutions. Inbound marketing engages consumers at their current state; it does not interrupt them.
There are many different inbound marketing tactics:
- Blogging or articles that have been optimized for search engine optimization
- Social media content
- Email newsletters
- Webinars, guides, eBooks
Example:
There are companies that offer software and create a long blog post titled “how to manage remote teams.” This would be found on a Google search by an interested manager, who would read the blog, and eventually sign up for a free trial.
Inbound marketing works because it is in line with today’s buying behaviour. Today, most people will research before making a purchase. They will read reviews and compare choices before deciding to purchase from a brand that can demonstrate education about the product instead of forcing it on them.
On the other hand, the goal of outbound marketing is to send messages out to the market.
With outbound marketing, brands actively send messages to large groups of consumers, regardless of whether or not they are looking for products.
There are many different outbound marketing tactics:
- Television and radio
- Cold calls and cold emails
- Display advertising and billboards
- Direct mail campaigns
Example:
A retailer showing television commercials during prime time to promote a seasonal sale.
- Pricing, Reliability, and Lifetime Return on Investment in Marketing
The other key distinction between inbound marketing and outbound marketing is how the two types of marketing deal with both the costs and the credibility of a brand over time.
Cost-Efficient and Return On Investment
When comparing inbound vs. outbound marketing, inbound usually has higher initial costs, but greater long-term returns.
Content (ex. blogs, videos, pdfs/guides) will continue to create leads after they have been created.
SEO (Search Engine Optimization)-based traffic will lead to fewer people needing to use paid advertisements.
- Over time, Cost Per Lead is subject to decline.
- Conversely, outbound marketing generally has to have ongoing costs.
- Once an ad campaign has been exhausted, they are no longer producing leads.
- Cold outreach from outbound marketing must be done repeatedly to create any results.
- As competition increases for leads, the expense increases as well.
Real Life Examples:
A multitude of research studies have shown that in terms of cost revenues, inbound leads cost significantly less than do outbound leads over the long-term, especially for B2B (Business to Business) advertising. Outbound may have very rapid return on your investment; however, inbound generates compounded value.
Test & Brand Reputation
Trust in marketing today is a currency, therefore inbound marketing will help to establish trust in a more organic manner than will outbound marketing.
Inbound Marketing:
- Establishes businesses as experts and resources.
- Increases trust by educating prior to sale.
- Encourages unsolicited participation.
Outbound Marketing:
- Can have the experience of being intrusive if you are not targeting the correct audience.
- Outbound marketing will often have the challenge of decreasing attention spans amoung potential customers.
- Outbound Marketing has the risk of being ignored or eliminated (ex. ad blindness/spam filters).
However, even though outbound marketing can help establish trust in a manner that is different than would an inbound marketing campaign; very large, name brand companies utilize aired commercials to help enhance their overall brand image.
- Pricing, Reliability, and Lifetime Return on Investment in Marketing
The other key distinction between inbound marketing and outbound marketing is how the two types of marketing deal with both the costs and the credibility of a brand over time.
Cost-Efficient and Return On Investment
When comparing inbound vs. outbound marketing, inbound usually has higher initial costs, but greater long-term returns.
Content (ex. blogs, videos, pdfs/guides) will continue to create leads after they have been created.
SEO (Search Engine Optimization)-based traffic will lead to fewer people needing to use paid advertisements.
Over time, Cost Per Lead is subject to decline.
Conversely, outbound marketing generally has to have ongoing costs.
Once an ad campaign has been exhausted, they are no longer producing leads.
Cold outreach from outbound marketing must be done repeatedly to create any results.
As competition increases for leads, the expense increases as well.
Real Life Examples:
A multitude of research studies have shown that in terms of cost revenues, inbound leads cost significantly less than do outbound leads over the long-term, especially for B2B (Business to Business) advertising. Outbound may have very rapid return on your investment; however, inbound generates compounded value.
Test & Brand Reputation
Trust in marketing today is a currency, therefore inbound marketing will help to establish trust in a more organic manner than will outbound marketing.
Inbound Marketing:
Establishes businesses as experts and resources.
Increases trust by educating prior to sale.
Encourages unsolicited participation.
Outbound Marketing:
Can have the experience of being intrusive if you are not targeting the correct audience.
Outbound marketing will often have the challenge of decreasing attention spans amoung potential customers.
Outbound Marketing has the risk of being ignored or eliminated (ex. ad blindness/spam filters).
However, even though outbound marketing can help establish trust in a manner that is different than would an inbound marketing campaign; very large, name brand companies utilize aired commercials to help enhance their overall brand image.
- Pricing, Reliability, and Lifetime Return on Investment in Marketing
The other key distinction between inbound marketing and outbound marketing is how the two types of marketing deal with both the costs and the credibility of a brand over time.
Cost-Efficient and Return On Investment
When comparing inbound vs. outbound marketing, inbound usually has higher initial costs, but greater long-term returns.
Content (ex. blogs, videos, pdfs/guides) will continue to create leads after they have been created.
SEO (Search Engine Optimization)-based traffic will lead to fewer people needing to use paid advertisements.
Over time, Cost Per Lead is subject to decline.
Conversely, outbound marketing generally has to have ongoing costs.
Once an ad campaign has been exhausted, they are no longer producing leads.
Cold outreach from outbound marketing must be done repeatedly to create any results.
As competition increases for leads, the expense increases as well.
Real Life Examples:
A multitude of research studies have shown that in terms of cost revenues, inbound leads cost significantly less than do outbound leads over the long-term, especially for B2B (Business to Business) advertising. Outbound may have very rapid return on your investment; however, inbound generates compounded value.
Test & Brand Reputation
Trust in marketing today is a currency, therefore inbound marketing will help to establish trust in a more organic manner than will outbound marketing.
Inbound Marketing:
Establishes businesses as experts and resources.
Increases trust by educating prior to sale.
Encourages unsolicited participation.
Outbound Marketing:
Can have the experience of being intrusive if you are not targeting the correct audience.
Outbound marketing will often have the challenge of decreasing attention spans amoung potential customers.
Outbound Marketing has the risk of being ignored or eliminated (ex. ad blindness/spam filters).
However, even though outbound marketing can help establish trust in a manner that is different than would an inbound marketing campaign; very large, name brand companies utilize aired commercials to help enhance their overall brand image.
- Selecting the Most Appropriate Marketing Strategy for Your Brand
The optimal marketing strategy for your brand is determined by context not trends.
Why Use Inbound Marketing?
For your business to use inbound marketing, it needs to:
- Sell complex or high-consideration products;
- Have an audience that researches extensively prior to purchase;
- Aim for long-term sustainable growth; and
- Position itself as a thought leader in the industry.
A consulting firm uses case studies, white papers, and SEO content to build their authority; by the time potential clients contact them for advice, they have already established credibility with the firm.
The substance of inbound marketing is seen most clearly in B2B marketing, professional services, SaaS (Software as a Service), and education-focused industries.
When Should You Use Outbound Marketing?
For your business to succeed through the use of outbound marketing, the following must exist:
- You require rapid exposure and immediate results;
- You are launching a new product or entering a new market;
- Your target audience is broad and less motivated by search; and
- Your primary goal is to develop brand recognition.
For instance, a newly established consumer brand could generate excitement using paid social media advertising and influencer partnerships.
Outbound marketing continues to have an impact in consumer marketing, retail, events, and large-scale campaigns.
The Hybrid Approach Combining Inbound and Outbound Marketing
Most successful marketing strategies will use a blend of both inbound and outbound methods. Successful brands utilize a blend of both types of strategy:
Outbound ads can create inbound web traffic, allowing for integrated and seamless customer journeys.
calculation
Inbound and outbound are not opposing forces; they’re different methods of achieving something; both have advantages in their own right. Inbound provides customers with value via quality content, as well as establishing long-lasting relationships. Outbound allows you to engage a broad base of customers quickly, enabling you to create large numbers of conquests quickly and assist with growth potential through mass communication.
When determining which path to take, you should consider your specific objectives, how your target audience behaves, how much you are willing to invest and when you must see results. Most companies will find that a balanced approach is best. Use inbound marketing to increase your influence over time while employing outbound marketing wisely to produce quicker results.
Take Action
Perform an audit on your current marketing plan. Identify areas where you could enhance trust via inbound marketing and prescribe outbound marketing methods that would enable you to maximize outreach. Companies that are winning do not necessarily have an “inbound” or “outbound” mentality; instead, they have developed a marketing system that integrates both inbound and outbound strategies.