What's all the talk about Inbound Marketing for?

What's all the talk about Inbound Marketing for?

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What's all the talk about Inbound Marketing for?

By Ranya Barakat

Topics: Inbound Marketing

Reading Time: 4 minutes

Thu, Apr 7, 2016

What's all the talk about Inbound Marketing for?

Any regular digital marketing agency will tell you that, as of 2016, the way customers engage has changed radically.

That isn't news at all. Any marketing and sales figure shows it.

However, many people fail to ask the right question. What has changed and why? And, most importantly:  how can my company address this shift?

Hubspot's State of Inbound 2015 report provides the latest digital marketing trends for success and proves, especially, that the marketer needs to become a forward thinking analyst, understanding and embracing the changes in the buying process and accommodate to it.

  • 3 out of 4 marketing professionals considers using an inbound marketing strategy, and both inbound and outbound experts believe that paid advertising is the most overvalued type of publicity.
  • The most significant evidence for most marketers: inbound marketing influences a larger return on investment (ROI) both in the way it engages people with information and a customized, informed and consumer oriented sales process. Moreover, the inbound marketing method itself provides plenty of metrics to support marketers in proving ROI, and subsequently increase marketing budgets.

Traditional marketers say that they waste half of their advertising budget, but they don’t know which half.

The new customer is empowered. When asked about the sources of information, they rely on when making purchase decisions for business software:

  • 60% of executives responded that they heard word-of-mouth, social media referrals, and friends
  • 49% reviewed customer references
  • 47% revised analyst reports
  • 43% checked vendor-authored materials such as ebooks, blog posts and whitepapers.

 Only 18% relied on the salesperson. 

Source: Hubspot State of Inbound Report 2015

Source: Hubspot State of Inbound Report 2015

On the other hand, decision makers enter the sales process much more informed about sales offerings than before and are busier than before.

Marketing executives can tailor the process to the modern buyer, and be more forward thinking by using techniques and tools which help them track the return on investment of different campaigns, products, prices, buyer personas and sales channels.

However, proving ROI is a growing trend but is still not the winning one.

In Latin America, for instance, proving and demonstrating ROI accounts for only 32% of small companies, 4% of middle companies and 46% of big business.

Source: Hubspot Estado de Inbound Latino America 2015

Source: Hubspot Estado de Inbound Latino America 2015

The most important challenge marketers have proving ROI to top management and secure a larger budget for the following year.

 How are succesful marketers forward thinking?

  • Successful marketers are concerned with measuring and proving yearly ROI with higher budgets as a result
  • Past success with inbound is the single most important topic to increase budgets
  • Leading marketers check their analytics over 3 times a week
  • The most successful companies show an increase in marketing budgets, demonstrating that their teams are worth the increase in the budget by measuring results year by year
  • Survey respondents had 50% more chances to get a higher budget in 2015 if they measured ROI in the first place, and twice more likely to increase budgets when a higher ROI is demonstrated.

Even though "closing more deals" remains salespeople's number one priority, social selling is catching and working with leads up the sales funnel, instead of force-pushing them into acquiring a product, altough it’s a long process, it’s more effective than direct sales when looking at the big picture.

 Hiring sales teams are more likely to:

  • Use Customer Relationship Management techniques.
  • Work with a custom database.
  • Use marketing automation software

Source: Hubspot State of Inbound Report 2015Source: Hubspot State of Inbound Report 2015

At the same time, in order to customize solutions and sales offers, hiring sales teams are more likely to check data such as:

  • Contact information
  • Website interaction history
  • Social media information 

Source: Hubspot State of Inbound Report 2015

Source: Hubspot State of Inbound Report 2015

With these results, it is evident that time and effort to relate strategy and results is important , and shows that analysing your customers and measuring return on investment might look like a large road, especially when you have to deal with waiting for a lead to nurture to get to sales. But, in the long run, it pays off.

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"Top marketers realize that inbound is a long game," the report says. "If you get off to a slow start, you shouldn't back off. In fact, you might consider doubling down."

Since in the long term it is cost-effective and measurable, you can now go to your financial manager and tell them, effectively, which half of the advertising budget is wasted, and which half is not. Moreover, you can provide them evidence on how a 10% increase can exponentially turn into a 50% profit.

It's April and the year runs ahead. You need to start tracking ROI now!

What prevents your team from aligning in long term marketing strategies? We appreciate your comments and opinions.

Ranya Barakat
Ranya Barakat

Ranya is an entrepreneur with over a decade experience in pulling up her sleeves and getting S*** done. She is specialized in inbound marketing and inbound sales.

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