Why Inbound Can't Replace B2B Direct Marketing

Inbound strategies are grabbing more marketing budget these days, and that can be bad news for business-to-business prospecting. Inbound marketing -- social media, e-newsletters, video, podcasts, white papers and some permission marketing -- should not displace traditional direct marketing -- cold calling, networking events and direct mail -- for three reasons, argues a recent article for LifeHealthPro.com. First, inbound marketing is designed to leverage a prospect's knowledge of needs. But, except for industrial commodities, most businesses aren't aware of the need for discretionary purchases until persuaded by a sales contact. This is especially true for business financial and insurance sales. Second, most business owners and executives are so busy with daily management that there is little window for inbound to break through. That's why the "interruptive prospecting techniques" of traditional cold calling, events and direct mail have higher response, the article proposes. Finally, if the goal is to increase leads while lowering cost per sale, marketers should be aware that the addition of inbound marketing may actually raise cost per sale. For example, if all inbound costs for an appointment with a decision-maker are included, the cost of cold calling alone is cheaper on a cost per lead basis than combining inbound marketing and cold calling to boost leads, based on the article's actual campaign data analysis. Assuming the same conversion rate for leads, the cost of sales is thus increased by adding inbound to a cold calling campaign. That's not to say inbound doesn't have its benefits in warming up prospects, providing compelling online support, or developing targeting data to improve response. The point is that b2b inbound marketing is no substitute for b2b direct marketing, since "waiting for the phone to ring has never been a particularly good strategy," the article concludes. For more on the analysis, see http://www.lifehealthpro.com/2014/03/05/is-inbound-marketing-right-for-prospecting-to-busi?t=life-practice-management