In recent years, I’ve met a lot of people willing to invest in Inbound and expecting a high return. The arguments are generally based on the scale that the process allows and the automation available through tools and services aimed at the area.
However, I see many companies investing heavily and changing their dynamics of generating business opportunities without fully understanding the challenges of the Inbound process or, at least, without understanding how to mix their strategies.
Therefore, I decided to point out some situations in which Inbound hinders the growth of your business:
1. Time to get ROI (Return on Investment)
For those who have already invested well in Inbound, you know how difficult it is to establish a lead generation channel that consolidates an interesting growth, but even the first results are difficult to achieve.
Generally, the Inbound customer acquisition curve looks like the one below:
Logically, the numbers are fictitious and there are companies that scale faster, achieving an exceptional result, but there is a set of factors that can hinder your business.
Anyone who has worked with SEO, CRO and Social Media knows how much resources are spent on each of these points and how long it can take to bring consistent results. In a new company, with less than 1 year, these first months are essential for validating your business/product and bringing revenue is necessary to ensure that you survive the first 12 months, period when most companies end their activities.
In the chart above, you can see that the first month has a higher result than its sequel, this is due to the launch, which usually garners greater exposure and also to Early Adopters, who are already willing to purchase new products/ services.
Now, we can take into account that, if you have good financial planning, you can survive the first 12 months without any problem paying your bills, but there are several situations that complicate Inbound. Response time and feedback on your communication and product strategies, for example, can disrupt your planning. If you’ve defined the wrong personas or even the wrong reasons for buying and need to pivot your product or strategy, you’ll have to start building your audience from scratch, waiting a while longer for it to consolidate.
For this reason, Outbound Marketing strategies are useful in the first few months, for you to validate your business and ensure that you have found an audience with the needs aligned with your offer.
2. High investment of resources
Of course, point 1 plays a role here, as the more time you go without getting a clear ROI, the worse it gets. But what are the resources invested?
In addition to creating a site optimized for conversions (CRO), you need to invest in optimizing it in Search Engine Ranking (SEO). If you don’t have any experts on your team, you should outsource this service. We also have investments made in content production, marketing automation tools, public relations, maintenance and dissemination on social media, etc.
In the end, if you internalize all these demands, hiring people for each service, you will have at least a team of 4 employees (some working on more than one delivery).
If the average salary of this team were R$1,500.00/month, with an addition of almost 100% of the value in taxes, at the end of 6 months, their expenses only with the team would be around R$70,000.
Finally, this team would be generating a value far below what is spent during this period.
For this reason, the team of Park view city Islamabad with a certainty that they have already found their target audience have much greater security than start-up companies. Emphasizing that, in the graph above, we only take into account the expenses with staff, without including the value of different tools, dissemination in social media, Adwords and Adsense, Public Relations, etc.
3. Red Ocean favors the oldest in the market
If your product is innovative, but it’s just addressing an innovative way to solve an existing problem, you’ll have a hard time confronting your components with common Inbound strategies.
The first reason is that the SEO built by them has been working for a long time and, therefore, they have priorities in the ranking of search engines like Google.
The second is that if there are other competitors with the same problem, the Adwords bids will be high, pushing your CAC to a very tricky limit for a new company.
If your competitors acted strategically, they already have consolidated disclosure in the best acquisition channels and you will have a very fierce competition, which should increase even more the costs of your process.
A cool example today is the Digital Marketing market. If you search for keywords related to it, you will find several different results, but some companies have already established themselves, in a very strategic way, with the best rankings on Google. As they continue to produce content in high volume and have efficient distribution channels, competing is difficult.
4. Enterprise Sales
Another common scenario for the Outbound Marketing market and complicated in Inbound is that of Enterprise Sales, those with medium-high ticket and aimed at large companies, generally.
This scenario generally does not require such a large scale to pay, but the decision and nutrition process is far less effective in Inbound.
A common strategy is the mix of Inbound and Outbound processes, and one of the most common ways is the use of Content for the Outbound Sales process.
One of the most common reasons is that, when you have a high ticket, you disqualify a good part of the leads that arrive in your base, as they do not have a purchase profile. Many smaller companies may be interested in the service and want to learn more, but those that really have the necessary budget are on a smaller scale.
As your LTV tends to be very high, your CAC may be higher. As the Outbound process ensures that you are talking to your Ideal Customer Profile (ICP), it is preferred by companies with that profile.
A really cool analogy I’ve heard about Enterprise Sales and Inbound and Outbound is:
“Nobody hunts sharks with fishing nets, you have to use a harpoon to make sure you get what you want”
PS: if you notice, almost no company has plans with ticket much above $3,000 open on their websites. The service is always differentiated and more personalized.
Mixpanel Pricing Marketo Pricing
5. Many people for the same solution or Many solutions for different people
In companies where the same solution serves more than five different people or there are more than 5-7 products being offered, the logic of the Inbound process becomes more complex.
AppProva works well its communication for different people
In the first case, where there are many people willing to buy the same solution, you should segment your website communication and all your blog content. If you want to produce funnel top materials (ToFu), for example, you must produce at least five in order to meet your entire potential market.
All of this leads to greater complexity on your website and more financial and staff investment to deliver the full message.
With so many solutions, InsideSales has difficulty in segmenting communication
In the second case, when you want to present several products, you must segment the communication channels.
Imagine a company like Totvs producing articles for all their products and putting them on just one blog… As much as there are different categories and ways to segment your content, it would be chaos for a user to find only what interests him.
In the end, we know that the time to create strong traction and rapid growth tends to be up to 2.5x longer than for companies with a more streamlined process.
We know how effective a well-structured Inbound Marketing process can be, but some realities are not compatible with it.
It is up to your Marketing and Sales manager to decide in which cases he should take advantage of each of the processes, Inbound and Outbound, to achieve the best results in the shortest time possible.