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You are here: Home / Marcom / Is Outbound Marketing Dead?

By Phil Morettini 9 Comments

Is Outbound Marketing Dead?

The trend in the marketing world for some time has been away from “outbound marketing” towards “inbound marketing”–otherwise know as “content marketing”, “permission marketing”, “new marketing” “modern marketing” and a few other buzz-terms. The definitions may vary slightly, but they’re essentially variations on the same theme:

Potential customers find you, rather than you (the marketer) directly approaching them.

The contemporary conventional wisdom on appropriate tech marketing methods goes like this:

People are insanely busy these days and already multi-tasking to the max, plus they are constantly inundated with marketing offers of all kinds which causes folks to tune them out. Traditional outbound methods such as direct mail/email, advertising, etc. no longer work as a result. The “answer” is to use inbound marketing methods, defined as to driving traffic to your website via search engines, content (such as blogs and videos) and social media. Since these users have found you, rather than vice versa, they are by definition more attentive and better qualified targets.

Outbound Marketing vs. Inbound Marketing for Technology

Of course, although the discussion is ongoing with this new terminology in the marketing world today – it isn’t really a new topic. It’s really an argument about Push vs. Pull marketing, concepts which have been around nearly since the beginning of marketing as a science. The terms push and pull are a bit dated and aren’t as in favor as the hot new buzzwords. But beyond changes in terminology and of course massive technological changes, marketing methodology hasn’t changed all that much over time. At any rate, the preceding paragraph about the heavy utilization of inbound methods makes a lot of sense today, no doubt. No denying that getting boatloads of prospects to find you is a good thing.

The problem I see is that like most hyped “trends”, the inbound marketing case is being grossly overstated. There is no doubt that the Internet has enabled pull/inbound methods to grow to a degree not previously possible. If you’re a software or tech company marketer, in almost every market/product situation you should be leveraging online inbound methods to the max. But is that all you should be doing?

Of course not. Some companies may be able to fill their pipelines using only inbound methods. But this shouldn’t be an either/or discussion. In almost every market situation, both inbound (pull) and outbound (push) should be used. They should not be seen as competing methods; they each serve a different purpose and are actually very complementary. Let’s take a look why:

Different psychographic profile of tech prospects

Software or hardware buyers/prospects are not a homogeneous group in any market. They come in all shapes and sizes–early adopters, mainstream buyers, late adopters, etc. As a result, they respond to different stimuli and have different buying styles. Many want to be totally in control and never have any “invasive” outbound marketing targeted at them. But for every person that is offended by any offer directed at them, there are many others who are happy to receive a timely, well-targeted offer which saves them money–as well as time– in searching out a software or hardware product they need. This is especially true for some very busy folks, as well as others that just absolutely hate the shopping process. Outbound marketing can be a real advantage with these prospect profiles.

Different stage in the software & hardware buying process

This is a key point which someone relatively new to marketing may not understand. If you have a prospect in the active research or buying stages, inbound marketing works great. Since they are out searching for your product or service, if you’ve done a good job on inbound marketing activities there is a good chance they will “find” you. But what about those target prospects that aren’t yet in active research/buying mode? Should you just be ignoring them? I think not. First of all, you absolutely want to get a leg up on your competition and get your message to them as early as possible. By doing this, you’ll be on their short list of vendors to check out when they are ready to buy. But the right offer can also turn that distant future prospect into an active buyer–without so much as a look at the competition. What happens to your odds of a sale if yours is the only marketing message they see? They go up dramatically, of course. Outbound marketing is much more effective than inbound in this particular scenario as it often can provide “exclusivity” with the prospect.

Outbound marketing or inbound marketing: timing vs. budget

From a marketer’s perspective, outbound and inbound marketing can fulfill different needs. Inbound marketing may provide a solid, day-in-and-day-out flow of leads and revenue. Outbound marketing can provide a more instantaneous bump to your numbers. Think PPC advertising vs. SEO. An inbound marketing technique like SEO is probably the more powerful activity in the long run, but more proactive methods like direct email, outbound telesales and  PPC advertising can start creating business almost instantly. (I view PPC is kind of a hybrid outbound/inbound method, by the way). This outbound bump can be very useful during slow periods where you’d like to “smooth out” your numbers, when you’re just getting started, during a busy (but competitive) holiday buying season or to give extra emphasis to a new product introduction.

Targeted tech marketing offers

Since you have greater control with respect to when a prospect will be exposed to an offer, it’s much easier to provide urgency (think time-limited offers) and that critical timeliness component via outbound marketing. In addition, targeting can also be easier with outbound methods.  Direct outbound marketing, in particular, can be highly targeted if good lists are available.

Push and pull on the same prospect

Lastly and very importantly, this really isn’t shouldn’t be an either/or argument–as I stated earlier. When discussing inbound and outbound marketing, again we’re really still just talking about push and pull by other names. As any good marketer knows, push and pull work together. The number of total marketing impressions on a particular prospect matters–more impressions increase your odds. This is fundamental brand-building. As an example, it’s well documented that having both a PPC ad as well as appearing in organic results on the SERP converts better than either alone. So don’t choose between inbound and outbound marketing–use best practices in both methodologies to optimize your marketing results.

What do you think? Will all your investments going forward be predominantly toward inbound marketing activities, or is there still room in your budget for outbound methods? I’d love to hear your plans and opinions–post a comment to weigh in on this discussion.

Follow Phil Morettini and Morettini on Management via Twitter, Facebook, LinkedIn, RSS, or the PJM Consulting Quarterly Newsletter. Contact Phil directly at info@pjmconsult.com

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Filed Under: Marcom, Online Marketing, Product Marketing/Management, Promotion, Social media Tagged With: blog, consulting, consumer software, content, content marketing, direct, high tech, inbound marketing, market, marketing, modern marketing, new marketing, Outbound Marketing, permission marketing, product management, product marketing, Promotion, pull, pull marketing, push, push marketing, seo, Social media, software, strategy

About Phil Morettini

Phil Morettini is the author of the Morettini on Management Tech Blog and President of PJM Consulting. Mr. Morettini has an extensive C-level software and hardware company executive background. PJM Consulting provides management consulting and interim management services to technology companies.

Comments

  1. Dave Simon says

    June 2, 2011 at 9:06 am

    Another great column from Phil in terms of ferretting out and identifying how to get to a customer and finding his/her unique needs. Not all customers are alike. Not everyone is ready to buy. Phil makes great points about how to recognize that best methods to reach your customers, particularly in the software industry.

    Reply
    • admin says

      June 2, 2011 at 12:00 pm

      David, you’re so very kind.

      Reply
  2. Nic Windley says

    September 9, 2011 at 12:18 am

    I’d agree that combining outbound and inbound is effective but there is a huge difference between doing outbound and inbound that works and outbound and inbound that just costs time and money and delivers very little.

    Whats happening is that many of the pieces are being pulled to gether in inbound to make things happen faster and more effectively.

    Inbound is easier to track, cheaper to test and can be significantly more targetted than outbound that just aims at companies that “might” be a possible customer.

    However, good outbound can be more personal and suit certain audiences better than inbound.

    Thanks for your post.

    Reply
  3. Emily says

    November 8, 2011 at 6:20 am

    I don’t believe that outbound marketing is dead – however I do believe that inbound marketing can be more effective in many ways. I do agree with Nic that it’s incredibly time consuming though, and a lot of thought needs to go into where and when to make efforts – especially with social media, for your audience to find you.
    I think that tv ads are always going to be there and don’t generally annoy people (tv breaks do but not the company themselves) so I feel they will always be there. However, cold calling and emailing may be something of the past soon, I believe.
    We also wrote a blog article on inbound marketing and whether it’s the new way forward – it’s very pro inbound marketing and offers tips and some stats on outbound marketing too, it could be a useful read http://www.lucidica.com/blog/emilys-corner/is-inbound-marketing-the-new-way-forward/

    Reply
  4. Tim Nguyen says

    November 12, 2013 at 6:11 am

    There is little doubt that inbound marketing is critical, however we would all be cutting ourselves very short if we ignored the power of outbound marketing when targeted and executed correctly. Consider a niche 1-3 billion B2B industry with a total available market of 2,000 potential customers. In this particular case, we found much more powerful sales opportunities simply by cold calling and having conversations. You’ll be surprised how refreshing a good consultative conversation can be to the right person.

    I guess the lesson here is to try it all. Measure and revise. Don’t blanket any assumptions. The premise of marketing doesn’t change, howeverthe methods do, and like Phil’s point above, Push/Pull have been around since the beginning and it’s still here today.

    Reply
  5. IT Support London says

    February 3, 2014 at 5:20 am

    I do not think so. I believe that the existence of Outbound Marketing will run long.

    Reply
  6. Louise says

    June 29, 2015 at 2:39 pm

    Great read and really informative. I still think that a nice balance to both marketing strategies would be most beneficial to a company. Inbound and outbound marketing strategies can be utilized to sort of complement each other if executed properly.

    Reply
  7. Response IT says

    October 30, 2016 at 8:59 pm

    Great Article–I don’t ever believe outbound marketing will do although inbound marketing is the new way forward

    Reply
  8. Jenny says

    December 2, 2016 at 6:43 am

    Outbound an Inbound marketing, its really difficult to take any one path for business. We should go for both, these are two completely different ways but both are necessary. The article give very good balance between them. Thank You.

    Reply

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