Inbound marketing has been shown to produce more sales leads at lower cost per lead than traditional (outbound) marketing techniques.
According to a 2009 Forrester Research study, companies that excelled at lead nurturing are able to generate 50% more sales-ready leads at 33% lower cost per lead.
Respondents to a Hubspot survey who spent traditionally 50% or more of their budget on inbound marketing channels reported an average cost per lead of £85, whilst those companies who spent the majority of their budget on outbound marketing channels had an average cost per lead of £210, equating to a 60% difference.
Why is the cost per lead per lead for inbound market so much lower ?
Well, at its core inbound marketing builds relationships using digital marketing channels like the internet.
More importantly it integrates, compounds and leverages marketing assets that traditional marketing methods would find impossible to replicate.
By combining strategies such as search engine marketing, email marketing, social media marketing with marketing intelligence and a solid online marketing framework or process much more can be done for less time, effort and expense.
By connecting your marketing processes to sales activities using this integrated and open framework you can further elevate the impact your marketing has on your revenue generating operations.
With sustained effort, not only will inbound marketing improve lead conversion rates but it will significantly impact customer retention and loyalty meaning customers will be more likely to renew and upgrade products and services.
The bottom line is lower marketing costs coupled with higher returns. I’ll be discussing the costs and ROI in more detail in future posts that demonstrate how to reduce your cost per lead with inbound marketing and its importance as a strategic business tool whether your responsible for sales, marketing, finance or growth.
