B-to-B Insights : Are You Going In or Out?

Explore inbound and outbound marketing channels, and see which produce better leads for your company

The reason I do not rate organic search leads higher is that, while these prospects may be predisposed to buying, they are in no way predisposed to buying from you. Indeed, the very fact that they are doing a Google search on a generic keyword probably means they have little brand loyalty. As a freelance copywriter, some of the worst leads I get are people searching for freelance copywriters on Google. These prospects often view copywriting as a commodity service and are likely to choose low price over experience and quality.

Conversely, the best leads that service professionals, like myself, get are typically people who call or e-mail us because they know us by reputation and may even be fans of our work. The absolute best leads I get are prospects who have read my books and articles, or heard me speak at a seminar, conference or workshop.

Social Networking

I rated social networking a 4 in lead quality. Networking always has produced good leads, and social networks are basically networking moved online. So far, however, most B-to-B marketers have been unsuccessful in establishing metrics to measure social media ROI. Some argue that the ROI has to be high because social networking is virtually free. But they neglect ROTI, return on time invested. A survey by Michael Stelzner of WhitePaperSource found experienced social media users spend two to four hours per day using it, which means an investment of up to half their work weeks.

Direct Mail

Direct mail has long been considered the "workhorse" of lead-generating B-to-B marketing communications. Ten years ago, I would have rated the lead quality a 4, because postal list selects enable narrow targeting so you can mail only to prospects who fit your ideal customer's profile. I downgraded direct mail lead quality from a 4 to a 3, because lately in B-to-B, I find prospects with more urgent needs respond to electronic or phone marketing, while those whose needs are not as immediate are more likely to mail back a business reply card requesting your catalog, brochure or white paper.

ROI of direct mail-generated leads is a 4, because the leads you do close often make significant purchases in the multiple thousands of dollars. As a rule, you can get 10 percent to 25-plus percent of direct mail leads to take the next step in your buying cycle, whether agreeing to see your rep or sending you a purchase order. Direct mail that works usually generates a positive and significant ROI, producing revenues many times greater than the campaign cost.

E-mail

E-mail gets a 3 in lead quality. You can target the right prospects. But Internet users often have an element of distrust for e-mail. So a single e-mail isn't going to move prospects very far forward in the buying cycle.

ROI from e-mail is a 5. That's because e-mail marketing is so cheap, even a few orders can yield an ROI equal to many multiples of the promotion cost. When you rent opt-in e-lists, your cost per thousand can be $200 or more. E-mailing your own list, depending on what service you use, is a fraction of a cent per name.

Public Relations

I also gave public relations an ROI rating of 5 because the cost is so minimal that any business generated usually pays for the PR campaign many times over. Lead quality of PR is a 4, because people believe and trust editorial content more than marketing copy.

So the Winner Is ... ?

Remember, there isn't a single winner—it's subjective, based on your specific marketing plans. The point is that in the debate of outbound vs. inbound marketing, you simply cannot make a sweeping generalization about which is better. You must evaluate the lead quality and ROI of each marketing channel individually. But the quality and ROI for each medium can vary greatly from industry to industry, even from company to company. My recommendation: Test them, track results, do not repeat those that fail and do more of the ones that work. yy

Bob Bly is a freelance copywriter and the author of more than 70 books, including "The White Paper Marketing Handbook" (Racom). You can find him on the Web at www.bly.com, e-mail him at rwbly@bly.com or phone (201) 505-9451.

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