Many marketing agencies express the urgent need for businesses to start an inbound marketing campaign. While the urgency is accurate many agencies fail to articulate exactly why companies need to make this investment. Our goal is to provide you with information and services that do not overshadow or hinder your business. Therefore, we believe you should know why inbound marketing will add value to your business. In the same respect we will also illustrate the expected loss should our company decide to forgo inbound marketing techniques.
The Benefits of Inbound Marketing
Inbound marketing is based on a collective strategy base that focuses solely on generating interested targeted traffic via digital mediums including blogging, social media, PPC, and search engine optimization. The primary benefits of an inbound marketing campaign is the substantially low cost of leads in comparison to outbound marketing and the availability of high responsive lead channels. The chart below references the immediate inbound marketing savings potential based on cost per lead acquisition.
Aside from immediate savings businesses that use inbound marketing strategies are able to maintain and grow their inbound marketing investment as a perpetual asset. According to Hubspot 86% state their blog is important. Moreover, 20% of those businesses surveyed indicate their blog is critical to business. Overall, inbound marketing is more cost effective and yields more consistent results than those of traditional outbound marketing strategies.
Expected Loss Illustration
We can quantify the expected loss over a period of 12 months or more by determining the average website traffic increase using inbound marketing over a specified period, the average lead conversion rate of inbound marketing websites, and the cost per lead.
In a study provided by Hubspot the increase in visitors over a 12 month period averages out to 2,080 visitors. Now let’s consider an extremely reasonable scenario. If the average growth of website visitor traffic is 2,080 and your blog is using inbound marketing strategies, and 13% to 32% are landing page conversions. Therefore, of the 2,080 new visitors within the year based on the lower end conversion rate we can determine the average expected loss per year.
Here’s the calculation: Where v=website visitors, r=rate, p=cost per lead
v(r)=X(p)= Expected Loss in USD
Using the inbound marketing averages above the expected loss that occurs when companies do not use inbound marketing strategies or techniques during the year is:
$38,667.20 – $95,180.80
Using the calculation provided above we are able to determine a range of loss based on growth averages, industry averages, and cost per acquisition. Notice we were extremely conservative in our calculations. Many inbound marketing websites showcase their results as above average especially amongst emerging industry types. For example, an Industrial company Acoustiblok Inc. participated in a Hubspot case study. After 1.5 years of using inbound marketing techniques Acoustiblok was able to achieve a 210% increase in traffic, 307% increase in leads for organic search, and a 40% increase in customer transactions.
River Pools and Spas is also another company that participated in a Hubspot case study. After 1 year of using inbound marketing techniques that company was able to increase organic traffic results by 120%, reduce PPC spending by 50%, and generates at least 6,000 website visitors a month. River Pools and Spas is an excellent example of how inbound marketing strategies impact company expenditures. Imagine how much your company could save if the PPC budget was cut in half?
Georgia Golf Academy also showcased their inbound marketing results on Hubspot. The company was able to increase traffic and lead volume by 50x their average, accumulate over 300 subscribers and attract 4,491 links from over 230 domain names. This company has only 6 employees (4 golf instructors, 1 admin assistant, and one salesperson) everyone has a dedicated position with no room for error. However, they managed to increase traffic rates, lead generation rates, monthly visits.
The moral of the story is that regardless of your business size or industry you company can monetarily benefit from the use of inbound marketing strategies or techniques. If you need help getting start or just have some questions let us know, and be sure to check out more of our blogs to see more examples of how inbound marketing can help your business!
If starting an inbound marketing campaign is something that you are interested in but don’t know how to get started, contact us today to schedule your free marketing analysis.