Traditionally to generate leads, sales used tactics such as attending networking events, purchasing database lists to build their pipeline, cold calling or blanket email campaigns to the masses. Otherwise known as a spray and pray approach, focusing on quantity and not. This method is known as outbound marketing.
Fast forward to today, look at the way the approach to marketing practices has evolved largely due to the influences of technology, we’ve adapted to a more inbound approach. This means that we are relying less on traditional marketing channels to reach us, and taking a more proactive, and somewhat empowered approach to finding the information we want, on our own.
How inbound marketing generates new sales
To generate new sales, a company must:
- Create brand awareness
- Impulse conversions
- Close sales
- Maintain existing clients
Often, marketers earn user attention by “disrupting.” The key here to forcefully place a brand in front of a potential customer, then such person would be interested in buying. This is one of the outbound marketing examples.
But is this disruptive and aggressive form of marketing the most efficient way of generating loyal clients? According to HubSpot, a lot of marketers (more than 45%) mentioned that inbound marketing is their main source of lead generation while outbound is only 22%. And that’s not all; HubSpot even summarized that 46% of marketers stated that inbound marketing gave a higher ROI, while only 12% reported outbound did.
Such numbers show a growing trend in customer response. The common outbound marketing tactics just don’t produce the revenue they once did. Now consumers are more interested in useful and interesting content, that brands are offering.
All this shows that nowadays consumers are more interested to respond positively to the inbound approach. The consumer will most likely be willing to become a customer If a brand can build a relationship through relevant content.
We are living and breathing this new way of marketing, which is termed inbound marketing
This is a fundamental shift in the way we do business today in this high-tech, information-driven world.
What is inbound marketing? It is essentially a marketing strategy focused on attracting, educating and empowering customers to access the relevant information that helps and guides them until they are ready to purchase from you.
In order to understand how inbound marketing works, you need to identify the four stages of a customer journey. Or what VevaMEDIA refer to as, The Funnel.
- Awareness – This is the initial stage where your customer recognises they have pain points. So, they conduct high-level research to identify what they need or what pain they are experiencing.
- Interest – The second stage is where your customer gains a greater interest by researching their options, discovering various solutions on offer and analysing all these options simultaneously.
- Decision – Is the third stage of the funnel and the customer has finally googled their hearts out and racked their brains enough that they are ready to make a decision on the most attractive offer for them and make the final decision on who they will choose to purchase from.
- Action – The last or final stage in the funnel, and the most important one. This is where you see the generated lead become a conversion. The customer has made the decision to purchase your products or services and onboard with your brand.
As you can see it is imperative that at each stage of the customer journey you create relevant and remarkable content that is tailored. This means you will support the buyer in understanding their problems and help them recognise how your business product or service offering can fit their needs. This is the inbound way you can easily build trust and create a love for your brand with the audience. It is creating content within the context of the customer journey.
In essence, adopting and an inbound marketing strategy will help with:
- Lead generation and nurturing
- Brand awareness
- Cost reduction
- Educate prospects about your brand, your product or service
- Speed up the overall sales process
Inbound Marketing vs Outbound Marketing
You can understand the differences between inbound and outbound marketing by looking at the name. Inbound marketing concentrates on bringing potential customers in, while outbound marketing is about outwardly promoting a business’s offering. This type of marketing focused on earning attention, while outbound usually involves purchasing it.
Inbound marketing uses owned and earned media to engage potential customers in creative approaches.
- Earned media is that what you earn after your hard work. It may include coverage in newspapers and magazines. Online, it’s things such as coverage on news sites, mentions on social media also included in here, same as conversations in online forums, and different online reviews. You almost don’t have control over earned media, it’s more like a reward for your inbound marketing campaign efforts.
- Owned media based on those channels that a company has control over. For example, your website, YouTube channel or blog, also different pages in social media created by you. You can choose what to publish and when.
In the meanwhile, outbound marketing is usually associated with paid media. This could be common offline advertising, paid emails, PPC and display advertising.
Paid media also covers social media advertising, for example, YouTube advertising or Facebook promotion.
Although typically affiliated with outbound marketing, it’s worth remarking that social media advertising is often an efficient way to increase the performance of inbound marketing campaigns. Advertising on YouTube, for example, allows you to promote your video content and target your audience, no matter how niche it might be.
Video is a powerful inbound marketing medium
There are various videos that suit each stage of the funnel. As the video is quickly becoming the preferred way for buyers to collect information about the products and services in which they are interested, your sales team must have a solid understanding of the video data and engagement history of the audience it is targeting. They will also need to develop the skills to translate video metrics into action as part of their sales prospecting strategy.
The goal of inbound marketing is simple. It should provide sales with the knowledge of precisely knowing when the buyer is ready for a sales call. And exactly what the initial sales conversation should be about. There is no need to have scripts or think a one size fits all approach is enough. This simply will not work. With inbound marketing, the sales conversation is customized, thoughtful and most importantly helpful to the buyer. Need to know more about this powerful method of marketing using videos, contact VevaMEDIA now.