Inbound Marketing and You

In recent years, the further growth of the internet as a communication system has ushered in a new era of marketing strategy and tactics. Modern marketing proceedings place emphasis on the digital nature of the marketplace. In a blog post from Marketo.com, Andrea Lehr explains that the majority of customers are positively affected (more inclined to make a purchase) by an internet search for a product of their interest. The days of shouting marketing messages from the mountaintop are fading quickly, as the more efficient audience engagement and selection process appears as a ripe usurper.

More and more companies are allocating resources toward developing strategies for inbound marketing, where customers are inclined to seek out information about the firm/product, rather than the other way around. Lehr points out that the general consumer attitude toward traditional marketing being forced upon them is one of rebellion. Consumers tend to actively resist traditional marketing like mail-in ads, fliers, and website banner ads. Inbound marketing quells this problem by changing the dynamic of communication between firm and customer. The goal of a company's inbound marketing effort is to intrigue the customer into seeking out information for themselves. 

So how exactly do firms draw interest in the eye of the consumer? The broad answer to the question, as outlined by Lehr, is to fine tune the company's brand identity, and share these core expressions with the consumer. One priority in inbound marketing is to design and create a compelling site for prospects to visit when researching the company. A webpage can often exist as the forefront of the brand identity in the customer's mind, so marketers must try to retain the interest of visitors when they access the site. Another critical importance is the employment of content creation for the company. If a firm focuses on creating brand messages that are interesting and not necessarily advertisements, more genuine intrigue will be generated, all the while building the brand identity. 

Inbound marketing goes deeper than simply making interesting content for a user base. According to Hubspot Academy, inbound marketing is all about combining creation with context. Companies need to understand the finer details of their typical customer in order to produce content and/or deliver service that is relevant to them. Hubspot advises firms to interact with customers in all four stages of the purchase process: attract, convert, close, delight. Obviously, with a attraction and conversion, original content could play a significant role in a customer's gathering of information. However, in the during and after purchase phases, the focus of the firm shifts toward ensuring that the customer had a positive experience. It is important to note that each of these steps implies a reflective analysis done by the marketer, constantly gaining and using intel to provide a service most optimal to the users. 

Another point from Hubspot that resonated with me is their unique method of profiling the user base. Hubspot compiles their research and "educated speculation" about the demographics, psychographics, and other qualities of a segment to create one defined profile of a single theoretical customer, supposedly embodying the most likely of all of the findings, the average consumer in that segment. Using this tool, marketers are able to attach a narrative to their profile and better understand the needs and wants of the mainstream. 

Once marketers can identify the type of customer they are marketing to, they can select at which stage of the "buyer's journey" that they wish to send a message. The buyer's journey is comprised of three steps: awareness, consideration, decision. Awareness and consideration certainly fall under the domain of inbound marketing. During these stages, firms should release interesting and valuable content to the consumers, that have no direct plugs for the company. Releasing educational material will inform the consumer of their problem, and also inspire them to seek out ways to solve it. It is during the decision phase when companies should step in and offer their product as a possible solution. 

Unfortunately, both Hubspot and Marketo neglect to highlight the drawbacks of inbound marketing. According to Outsourced Marketing Services, the most significant disadvantage for inbound marketing is the amount of time and money a company is required to invest when switching onto the path of digital marketing. Inbound marketing, in the long run, may be more cost efficient, but it is critical that the firm allocate a sizable chunk of its marketing budget to inbound marketing. 

Both Hubspot's benefits and drawbacks are highlighted in an Harvard Business School case focusing on Hubspot itself. Hubspot sells analytical software by subscription, and found that after a few motnhs of usage, customers tend to have a higher churn rate (discontinuation rate) than expected. It turns out, one of the sole reasons consumers used the service was to access the SEO software. They would discard the service once the changes to their website were made. In order to combat the high churn rates, Hubspot took new measures in educating their customers on their product. Hubspot offered more than just SEO; they were providing an interactive analytical network with great customer support. Parallel to these reforms was the introduction of the CHI (Customer Happiness Index), which measured how close customers were to quitting the service. Members with low CHI scores would be given special attention, long training sessions to understand the Hubspot product. Hubsopot found that once people had a full understanding of the product, the churn rate plummeted.  

Clearly, inbound marketing worked out for Hubspot. They switched their marketing focus from new customer acquisition to the understanding and retainment of current loyal ones. This is a real world example of inbound marketing at work. If people are interested in or engaged with the marketing, then there is a significantly higher chance that they will buy/won't churn.