Inbound Leads vs Outbound Leads: Pros, Cons and Tactics

Let’s address the elephant in the marketing room: the dynamic of B2B lead generation isn’t what it used to be.

Outbound marketing, whilst still effective, is the darling of yesteryear, with inbound leads your golden ticket to attracting customers.

Once upon a time, conventional marketing, steered by outbound methods, ticked the boxes; with the personalised approach of inbound marketing yet to come to the fore, cold calls, emails, and adverts weren’t considered interrupting.

With consumer behaviour changing and buyers researching in their own time, your business needs inbound leads like a Gen-Z needs a smartphone.

In this article, we’re going to cover:

• What inbound lead generation is
• Benefits of generating inbound leads
• Types of inbound lead tactics
• Difference between inbound lead generation and outbound lead generation
• Which lead generation approach suits your company best

So, let’s start by clearing up the basics…

What is inbound lead generation?

Inbound lead generation is a marketing strategy focusing on attracting potential customers to your business through content and interactions.

Remember, inbound lead generation differs dramatically from outbound marketing.

You need to deliver content that’s relevant and helpful in helping your audience navigate the B2B buying funnel.

No fluff. No rubbish. No interruptions.

Just content to guide them seamlessly through the funnel and into the arms of your sales reps.

The benefits of generating inbound leads

Generating inbound leads brings a breadth of benefits to your business.

Firstly, let’s face facts: we’re all in business to make (and save) money.

Typically speaking, inbound leads are cheaper to generate than outbound leads because they’re customer-driven and rely on cost-effective methods such as SEO strategies and social media engagement.

Plus, with more than 40% of salespeople saying prospecting is the hardest part of their job, inbound leads cut the BS and bring your reps leads who’ve researched and are interested in your products and services, resulting in more qualified leads.

It wouldn’t be possible for your shiny inbound leads to conduct said research without access to relevant content.

81% of people earmark trust as a defining factor in their buying decisions. Providing resources to support buying decisions builds your status as a trusted source of authority.

Plus, your content can influence buying decisions and deliver leads across a sustained period - provided you’re willing to invest time and effort.

One of the worst mistakes inbound marketers make is when they’re not thorough enough. Your audience shouldn’t be twiddling their thumbs thinking, “What now?”, or “I don’t have enough information.”

Build banks and clusters of content that answer every conceivable question to help solve their problem and improve the likelihood of securing your all-important inbound leads.

If you’re unfamiliar with content clusters, the premise is simple: it’s a strategy to organise your content around pillars (key themes and topics) and cluster pages using internal linking.

Tactics for generating inbound leads

Great marketing doesn’t only involve great planning. You also need to incorporate great tactics.

The same can be said for any marketer pursuing inbound leads: without the right tactics in place, the lead-gen well will run pretty dry.

So, with that in mind, let’s focus on some tactics you can use to support your inbound lead generation efforts.

Blogs/content marketing

By creating high-quality, valuable content that addresses the needs and interests of your target audience, you can attract potential inbound leads.

Regularly publishing blog posts, articles, and other content helps establish your brand as an authority in your industry.

SEO (Search Engine Optimisation)

It’s all well and good for creating great content.

However, it isn’t helpful if your target audience can’t find it.

Optimise your website and content to rank higher in search engine results.

By using relevant keywords, improving site structure, and enhancing user experience, you can increase organic traffic to your site and attract leads actively searching for information related to your products or services.

Lead nurturing

Build relationships with potential customers through targeted communications, with email workflows commonly used.

By providing relevant information and engaging with leads at various stages of their buyer’s journey, you can guide them from initial interest to a final purchase decision.

Ad retargeting

Use targeted online ads to re-engage visitors who have previously interacted with your website but didn’t convert.

By displaying ads to these users as they browse other sites, you can keep your brand top-of-mind and encourage them to return and complete a desired action.

Email marketing

99% of marketers say personalised marketing has helped their client relationships.

Send targeted and personalised emails to your prospects and customers.

Email marketing can include newsletters, promotional offers, and follow-up messages that provide value and keep your audience engaged, ultimately driving them towards buying or taking another desired action.

These inbound marketing tactics will help you attract, engage, and convert potential customers.

However, as we alluded to earlier, whilst there’s no doubting the importance of generating inbound leads, outbound lead generation isn’t extinct.

Let’s take a closer look…

What is outbound lead generation?

Whereas inbound leads hinge on creating useful content for prospects to explore when ready, outbound lead generation adopts a different approach.

Outbound marketers send information and messaging to their target audience, to increase visibility and boost brand awareness, rather than providing the user with valuable content.

Benefits of outbound lead generation

Comparatively, outbound lead generation is more disruptive, impersonal, and detached than inbound marketing.

That said, it does have its benefits…

Immediate results

Outbound methods can generate quick responses and immediate interest from potential customers.

Unlike inbound strategies, which may take time to build momentum, outbound lead generation allows you to see immediate feedback and results.

This can be particularly beneficial when you're launching new products or services and need to gauge market reaction quickly.

Targeted approach

One of the significant advantages of outbound lead generation is your ability to target specific demographics, industries, or geographical areas.

This precise targeting ensures that your outreach efforts are focused on the most relevant prospects, increasing the likelihood of conversion.

By identifying and reaching out to your ideal customer profile, you can tailor your messaging to resonate with their specific needs and challenges.

Control over your messaging

Outbound lead generation gives you complete control over the messaging and timing of your outreach efforts.

You can craft your message to highlight your unique value proposition and address the pain points of your target audience. This level of control ensures that your brand is consistently represented and that your communication aligns with your overall marketing strategy.

Scalability

Outbound techniques offer the flexibility to scale up or down depending on your campaign's objectives and available resources.

Whether you're running a small, targeted campaign or a large-scale outreach effort, outbound strategies can be adjusted to meet your needs, allowing you to manage your budget effectively and allocate resources where they will have the most impact.

Outbound lead generation provides immediate results, precise targeting, control over messaging, and scalability, making it a valuable component of your overall lead generation strategy.

By actively reaching out to potential customers, you can drive interest and engagement, ultimately contributing to your business's growth and success.

Call us biased, but we’d genuinely argue that this way of approaching lead generation is less productive than inbound marketing.

Granted, outbound marketing has its benefits, but it does rely heavily on interrupting people and there’s every chance they won’t buy into what you’re trying to sell.

Whereas inbound marketing addresses a pre-determined requirement, you’re effectively telling your audience they have a problem they need you to solve.

Not our preferred approach, but each to their own.

Types of Outbound Lead Generation Tactics

Unlike inbound approaches, where you attract potential customers to your business through content and SEO, outbound lead generation involves actively reaching out to prospects.

Here are some of the most effective outbound tactics you can use to grow your business:

Cold calling

This traditional tactic involves directly contacting potential customers via phone.

By preparing a compelling script and understanding the needs of your target audience, you can initiate conversations that may lead to valuable business opportunities. Cold calling allows you to make a personal connection and quickly gauge interest.

Email marketing

Sending targeted emails to a curated list of prospects is another powerful outbound tactic.

Personalised email campaigns can introduce your products or services, highlight key benefits, and encourage recipients to take action.

With careful segmentation and tailored content, you can significantly improve engagement rates.

Direct mail

Although it might seem old-fashioned, direct mail can be highly effective, especially when targeting specific businesses or high-value prospects.

Sending personalised letters, brochures, or postcards can make a strong impression and differentiate you from competitors who rely solely on digital methods.

Social selling

Leveraging social media platforms to connect with potential leads is a popular, effective outbound tactic.

By actively engaging with prospects on LinkedIn, Twitter, or other relevant networks, you can build relationships and introduce your offerings in a casual, approachable manner.

Social selling allows you to reach a broad audience while maintaining a personal touch.

Networking events

Attending trade shows, conferences, and industry events provides an excellent opportunity to meet potential customers face-to-face.

These events allow you to showcase your expertise, gather valuable contacts, and initiate meaningful conversations that can lead to future business.

Paid advertising

Running targeted ads on search engines, social media, or industry-specific websites can help you reach a wider audience. Pay-per-click (PPC) campaigns, display ads, and sponsored posts can drive traffic to your website and generate leads.

Targeting specific keywords and demographics means your ads can reach the right people.

Referral programs

Encouraging existing customers to refer new leads can be a highly effective outbound tactic.

By offering incentives such as discounts or rewards, you can motivate satisfied customers to spread the word about your products or services. Referrals often come with a built-in level of trust, making them more likely to convert.

Telemarketing

Similar to cold calling but often more structured, telemarketing involves a team of professionals who contact prospects to generate leads, conduct surveys, or schedule appointments.

This approach can be scaled to fit your needs and provides a systematic way to reach a large number of potential customers.

Inbound or outbound lead generation: what’s best for your business?

Determining whether inbound or outbound lead generation is best suited to your business depends largely on where your audience is and how they prefer to engage.

You need to identify where your potential customers spend their time and how they like to receive information.

For instance, if your target audience is primarily online inbound marketing could be more effective.

On the other hand, if they’re more engaged through direct interactions or traditional methods outbound marketing might be more suitable.

Take the manufacturing industry, for example. Business often relies heavily on in-person interactions and events.

Although there’s a gradual shift towards digital, much of the business is still conducted face-to-face. Therefore, outbound methods such as attending trade shows, sending direct mail, and telemarketing can be highly effective.

However, there’s also an opportunity to pioneer inbound marketing within this vertical, potentially gaining a competitive edge by leveraging content marketing and SEO to attract a new, tech-savvy audience.

In contrast, if you’re targeting technology and SaaS sectors, they’re digitally savvy, making them more accessible through online channels. Inbound marketing strategies like content creation, SEO, and social media would be well-suited to these customers.

While considering your primary focus, it's also worth noting that a balanced approach can often yield the best results.

Combining inbound and outbound tactics allows you to cover all bases and ensure you reach your audience through multiple touchpoints.

For example, outbound tactics can generate immediate interest and inbound tactics can nurture those leads over time.

So, to wrap up, the best lead generation strategy for your business hinges on understanding your audience and their preferences.

You need to carefully evaluate where your customers are and how they prefer to engage, you can tailor your approach to maximise your lead generation efforts.

Whether you lean towards inbound, outbound, or a mix of both, aligning your strategy with your audience's behaviour is key to driving growth and success.