Inbound Marketing

Assume that we have two potential customers, one is actively looking for a product/service that solves their problem and the second one is only there two seek out the information. For sellers, who is the easier prospect to target? You are correct if you guessed the first one, as they already have an established need to look for potential solutions. Inbound marketing works similarly. "How?" you might ask. Read along to find the answer to this question and learn about the applications of inbound marketing.

Inbound Marketing Inbound Marketing

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Table of contents

    Inbound Marketing Definition

    Businesses are always looking for new potential customers to increase their revenues and profitability. However, targeting and convincing new customers about a product/service is not an easy task. It requires careful planning and accurate execution of marketing strategies. These days marketers prefer inbound marketing to pull potential customers to their business offerings. The question is, what exactly is inbound marketing? As the name suggests, inbound marketing is about directing the prospective leads inwards, i.e., to the business.

    Inbound marketing is a marketing strategy that businesses use to create content via their website, SEO, and social media channels to pull potential customers toward the business offerings.

    Inbound marketing is an optimized marketing strategy that draws customers towards a business by providing solutions to their problems. A proactive customer actively seeks information about potential solutions on the Internet (or in person). By using online channels, marketers can attract those potential customers and drive conversions. Marketers can produce content on the business's digital channels matching customers' wants and needs and focusing on long-term customer relationships.

    A potential customer looks for organic skin care products online. Here, the marketer can create valuable content on the website and social media pages of the business that focuses on providing organic skin care solutions. He can employ search engine optimization (SEO) to help potential customers find the business offer. This process is likely to generate more leads for the business.

    Check out our explanation of SEO Marketing to learn more about search engines.

    In short, inbound marketing enables businesses to target the right customers through engaging content. It is an approach that focuses on solving the problems of customers.

    Inbound Marketing vs. Outbound Marketing

    Many marketers pit inbound marketing against outbound marketing. These two are different approaches in many ways, but could they work in tandem? Before answering this question, let's talk about outbound marketing and how it differs from inbound marketing.

    Outbound marketing involves reaching out to the audience to evoke their interest in a particular product or service.

    Table 1 below summarizes the key differences between inbound and outbound marketing.

    Inbound MarketingOutbound Marketing
    The business uses its content to draw potential customers toward it. The business intends to reach out to the audience by sending a message to them.
    Marketers use targeted messaging. Marketers use general messaging.
    Content is used to target a selected audience. Content is used to target a wider audience.
    Content is intended to solve the problems of customers. Content is intended to increase sales.
    It is an interactive form of communication. It is a one-way form of communication.
    It adds to the user's overall experience. It can disrupt the user's experience.
    It is a low-cost strategy to implement. It is a higher-cost strategy to implement.
    Blogging and SEO are examples of inbound marketing. Print or TV advertisements are examples of outbound marketing.

    Table 1. Inbound vs. Outbound Marketing

    Check out our explanation of Advertising Media to learn more about the different types of ads.

    Companies integrate inbound marketing with outbound marketing to give a cohesive experience to the target audience. Using inbound marketing, companies use data to create relevant and engaging content for potential customers. They use outbound marketing to reach out to potential audiences with target messaging. In this way, they direct the audience to the optimized inbound content.

    Inbound Marketing Strategy

    Businesses need to plan and execute the inbound marketing strategy carefully. The strategy must align with the needs of the target audience. The strategy enables marketers to focus on the problems of potential customers and allows them to provide solutions. Here are some ways to implement an inbound marketing strategy.

    1. Set goals – Before implementing the inbound marketing strategy, set goals. These goals should be realistic and measurable. Along with objectives, identify some key performance indicators. It helps in measuring performance. For instance, one of the objectives could be to increase engagement on digital channels. Marketers will measure this by observing engagement metrics.

    2. Research – Once you set the goals, start researching the potential customers and the ways to create optimized content for them. Marketers analyze data to find meaningful insights about potential customers. The key here is to see things through the lens of a customer. For instance, the problems customers have and the kind of solutions they are looking for. Researchers might examine customer reports, trends, popular keyword searches, etc.

    3. Create quality content – It is a no-brainer that quality content is at the heart of inbound marketing. From entertaining videos to informative blog posts, marketers should provide quality content to customers. It allows companies to increase engagement and eventually translates to strong customer relationships.

    4. Build a solid social media presence – The content on the website alone is not enough to draw the attention of potential customers. It is essential to build a strong social media presence simultaneously. It helps in driving traffic to the website.

    5. Optimize – One of the main focal points of inbound marketing is driving website traffic. Once you can drive traffic toward the website, it is essential to optimize it. The website's loading speed, high search frequency keywords, and clear descriptions optimize inbound marketing, making it more effective. This way, there are more chances for potential customers to reach you.

    Inbound Marketing Principles

    Inbound marketing principles give a framework to execute an inbound marketing strategy. These principles are represented by the abbreviation "SCOPE," i.e., standardize, contextualize, optimize, personalize, and empathize.

    • Standardize – The first principle tells us to standardize the content. It means that every piece of content should have a consistent message. It helps potential customers recognize the business and avoid any confusion. Consistent content helps a brand develop a clear identity.

    • Contextualize – This principle tells us to contextualize the messages. It means tailoring the message according to different contexts. It allows marketers to send out messages that focus on the customers' specific needs. It also allows marketers to customize the message based on a particular product or service.

    • Optimize – This principle is about optimizing the content. It means the content must be accessible, engaging, and functional. Marketers should analyze the data to determine how users interact with the content. It gives vital keyword search insights and improves the content based on those insights.

    • Personalize – Personalizing messages enables businesses to cut through the noise in a competitive market. Customers get numerous messages and reminders about products and services daily. Personalization allows marketers to add a personal touch to these messages and connect with the target audience effectively.

    • Empathize – This principle is about empathizing with the target audience. It means understanding customers' problems and showing a willingness to help solve them. When customers genuinely connect with a brand, they will likely continue the association in the long term.

    Explore our Brand Equity explanation to learn more about the customer-brand connection.

    Inbound Marketing Examples

    When using inbound marketing, marketers generate content through websites, blog posts, videos, and social media channels. Here are a couple of real-life inbound marketing examples.

    Netflix

    Netflix uses data to discover the entertainment preferences of its subscribers. The data analysis helps them to provide tailored recommendations to the viewers on the app and via email. It also uses its strong social media presence to draw potential customers.

    Inbound Marketing Netflix Example StudySmarterFigure 1. Netflix uses its social media for inbound marketing

    Spotify

    Spotify analyzes users' interactions to find their music preferences and streaming habits. It uses personalized email marketing to attract users. It has also introduced innovative inbound marketing techniques such as the "Wrapped" campaign to draw users towards the music streaming platform.

    Inbound Marketing Spotify Example StudySmarterFigure 2. Spotify's tailored messaging

    Inbound Marketing - Key takeaways

    • Inbound marketing is an optimized marketing strategy that draws customers towards a business by providing solutions to their problems.
    • Inbound marketing helps businesses match potential customers' needs and focus on forming long-term customer relationships.
    • Marketers can integrate inbound and outbound marketing to provide a cohesive experience to the target audience.
    • Inbound marketing strategy must align with the needs of the target audience.
    • Standardize, contextualize, optimize, personalize, and empathize (SCOPE) are the five principles of inbound marketing.

    References

    1. Figure 1. https://pixabay.com/photos/netflix-watching-tv-streaming-6964935/
    2. Figure 2. https://pixabay.com/photos/android-mobile-smartphone-2618093/
    Frequently Asked Questions about Inbound Marketing

    What is inbound marketing? 

    Inbound marketing is a marketing strategy that businesses use to create content via their website, SEO, and social media channels to pull potential customers toward the business offerings. 

    What are examples of inbound marketing? 

    Blog posts, website content, videos, and SEO are examples of inbound marketing. 

    What are inbound marketing strategies? 

    Optimizing the website, creating quality content are some of the inbound marketing strategies. 

    What are the 5 principles of inbound marketing? 

    Standardize, contextualize, optimize, personalize, and empathize (SCOPE) are the five principles of inbound marketing. 

    Is inbound marketing better than outbound marketing? 

    Inbound marketing is better than outbound marketing in terms of conversion rate, cost, and personalization. However, these two approaches can be used together. 

    Test your knowledge with multiple choice flashcards

    Inbound marketing is used to pull potential customers to the business's offerings. 

    Inbound marketing is an optimized ________ that focuses on drawing customers towards a business by providing solutions to their problems

    Inbound marketing is an approach that focuses on solving the problems of customers. 

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