Inbound Marketing -- What is it and Why Does it Matter?
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I’ll say it: the days of outbound marketing are over.
The "Wolf of Wall Street" mentality of harassing customers over the phone, sending spamy emails, and going door-to-door to close deals has become much less effective in recent years. Customers have access to so much information every day, they’ve become increasingly resentful of marketing intrusions. The rise of blocking tools such as caller id, spam folders and ad blockers is not coincidence.
Inbound marketing is the new normal. That’s the idea that if you provide value to customers first, they will respond by returning that value back and doing business with you.
To get a peak under the hood inbound marketing, and get tips on how others can use it, I had a chance to chat with A.J. Agrawal – an entrepreneur who built his business, Alumnify, around it. A.J. is a fellow contributor at Entrepreneur as well as at Forbes, Huffington Post, and others.
Here’s an edited version of our e-mail interview:
Why begin with universities?
We started there because we saw a strong decrease year after year in alumni engagement. Right now, alumni engagement is at an all time low – under 10 percent. It was obvious that institutions were struggling to adjust to the new ways their alumni were communicating and engaging. So we saw the opportunity.
For about 85 years, alumni engagement was pretty steady. Then all of a sudden, in the 90’s it began to fall drastically. In panic mode, many schools chose to double down on the outbound marketing tactics that worked in the past: cold calls, snail mail, and increased email addresses. They also deployed better data tacking and software to help optimize open email rates as well as make the giving process easier for graduates.
But these strategies had no effect (or even a negative effect on engagement) because they were built on an overall strategy that was broken. So we decided we would build inbound marketing solutions to provide value to alumni first.
How do you begin inbound practices?
First, make sure you know what inbound marketing is. At its core, inbound is anything that provides a tremendous amount of value to your target customer without asking anything from them in return. There are tons of ways to do this and the best part is that most of the major strategies can be done for minimal cost.
One thing we recommend to companies we work with us is to start by getting a blog set up and to have someone be responsible for publishing regular content. One of the nice things about inbound marketing is that it requires companies to build major assets for their business. Your content library is a huge asset and will eventually help your SEO, and pull in more customers to your website.
Other popular inbound strategies include webinars, eBooks, infographics, mobile apps built to help your customers, and optimizing your social media.
Each business is different, so the strategy depends on factors including audience, industry, and expertise. Like most things, the hardest part is just getting started. Once you find an inbound strategy that starts to work, it becomes much easier to fine tune and expand on your traction.
Do you avoid outbound strategies?
Not at all. While inbound is definitely the future, some customers still respond well to outbound strategies. Even as an inbound company, we still cold call customers and send promotional emails once in a while -- but as part of a complete plan.
When thinking about the brand I want for Alumnify, I don’t want prospects and customers avoiding our phone calls. The image of a customer seeing an Alumnify Team Member calling them and saying “Not these people again” is my worst nightmare. And it should be any entrepreneur’s nightmare too.
Instead, I believe that the key to getting customers to love us is to provide value without asking for anything in return. For example, we have a free inbound marketing email list we just launched yesterday with weekly tips and webinars. And I’m always happy to help any fellow entrepreneur hammer out an inbound strategy. That type of approach may take more work in the short run, but it’ll also help build a much better brand to our customers in the long run.