Incoming-Outgoing

A Practical Example of Outbound vs Inbound Marketing You Can Use

Incoming-OutgoingBefore we get started with a real life example of outbound vs inbound marketing, let’s recap.

As previously discussed on the blog, inbound marketing refers to a gentler approach to marketing that essentially pulls the customer towards you. With inbound marketing, the customer finds you.

Outbound marketing is a more interruptive form of marketing (typically traditional marketing) where you find the customer.

In today’s digital landscape, and with the changing perceptions of customers, inbound marketing is the form of marketing more and more organisations are leaning towards. There is definitely still room for an integrated approach to marketing by utilising both inbound and outbound tactics, however.

Inbound Marketing Tactics

(For additional information on each marketing tactic, click on the one of interest to learn more).

Outbound Marketing Tactics

  • Direct Mail
  • Commercials(TV or radio)
  • Newspapers
  • Print Media (billboards, magazines, publication advertisements)

A Real Life Example

For a real life example of outbound vs inbound marketing, we’ll use a real estate agent who is new to selling residential real estate and walk him through each process.

This agent has never sold property before and is trying to get as many listings as possible. He might use the following outbound marketing techniques:

  • Cold calls to people whose homes are listed for sale by other agents, but haven’t sold yet or to people in his target area
  • Ads in the local newspaper
  • Flyers in mailboxes or a direct mail campaign in hopes that interested people will call him
  • Radio ads on the local radio station

This strategy is a strategy that’s been employed for years, and some might argue that it’s worked form them in the past, why wouldn’t it work now? It’s not a bad strategy and it’s been a good strategy for real estate agents in the past, but this is completely interruptive, direct, and 100% outbound marketing.

Understanding that the landscape of marketing is changing, here is what a real estate agent who uses an inbound marketing approach might do:

  • Create an easy-to-navigate, simple website where he can share his real estate story, mention his service offerings, and list his contact details.
  • Blog consistently(once a week or a few times a month) and share posts that talk about common questions he receives, tips for home buyers and sellers, and other helpful information for those on, or embarking on, a real estate journey.
  • Share and promote his content on social media, and stay active in social media groups and on his own Facebook page by answering questions and interacting with people.
  • Build his subscriber list and increase his leads by offering a quality piece of free downloadable content (that resonates with buyers and sellers) on his website in exchange for visitors’ contact details. An example of this type of content might be: 10 important things to look for when hiring a real estate agent or tips to successfully navigate the home selling or home buying process or simple tips to increase the value of your home.

This approach is completely inbound, values-first driven, and informative. It’s helpful and positions the agent so the customer can find him.

Which approach would lead you to pick up the phone and call or send an email to this agent? Would you speak to the interruptive, “salesy” guy or the knowledgeable and helpful real estate agent who has already provided you with a great deal of value?

When you first provide your potential customers with value, it places them in a position to naturally want to reciprocate by helping you in return. This is what we know of as the law of reciprocity.

Are you still clinging to your outbound marketing techniques, because inbound marketing seems too new or too overwhelming to begin?  Here are some more statistics about the decrease in outbound marketing effectiveness:

  • Outbound marketing budgets are being cut annually and many are only a quarter or less than overall marketing spend.
  • 69% of marketers are now reporting that valuable content is superior to direct mail and PR campaigns in terms of results.
  • Blog posts influence purchasing decisions 63% more of the time than advertisements in magazines.

 

This may all sound great, but now you might be wondering how to make the transition. How do you possibly go from focusing on outbound marketing—which you may have done most of your career—to inbound marketing?

The transition starts with the journey of the buyer.

The Journey of the Buyer

The journey of the buyer details the stages a buyer or potential buyer goes through when he has a problem and needs a solution to that problem.

The buyer (or seller) will move from awareness to consideration to decision.

Awareness

Awareness occurs when the buyer becomes aware that he has a problem, but doesn’t know what the solution is.

For example, a buyer may want to sell his home, but not know what it’s worth. He may conduct a Google search for comparable sales in his neighbourhood.

The real estate agent who is already focused on inbound marketing will be one step ahead of him—he has already posted a blog post with comparables tailored to that particular neighbourhood. The agent promoted it well on social media and ensured it was SEO-friendly, and the buyer lands on the article via his search.

Next, the buyer enters his email address in exchange for a free guide on what to do to increase the value of his home. This is inbound marketing at its finest for lead generation.

Consideration

Once a buyer has identified the solution to his problem, he now has to consider which solution provider to choose to solve the problem.

For example, the buyer is now ready to consider his choices. But, wait! He’s already been receiving regular emails from a real estate agent who knows his stuff, is very helpful, and offers a free valuation. He already knows where he’s going to go first.

Decision

In the decision stage, the buyer decides upon one provider who he is confident can solve his problem.

For example, the buyer is ready to make a decision, but it’s no longer one he really needs to think about. All the helpful information and expert advice this buyer has received from the inbound marketing salesperson makes it easy to make a decision. He chooses him.

This real estate agent now has a client. Both the client and agent are happy!

So, what were the costs to this approach? It cost a once-off investment of a professionally designed, easy-to-navigate website, a bit of marketing automation software, and time creating content and promoting it.

The framework is now in place to operate every day, year-round—even while the real estate agent isn’t taking calls because he’s asleep, on holiday, or at lunch (he hasn’t been able to silence his phone to enjoy lunch in years!). His website is continually generating leads, and it’s permanent—unlike a print advertisement or radio ad.

Now that’s smart and effective marketing that has adapted to our new digital age.

What do you think: Is inbound marketing the new marketing approach for you?

 

iProperty helps business leaders, entrepreneurs, and visionaries develop values-driven brands. Contact us for professional websites, microsites, apps, software, and more.

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