If you run a local med spa, law firm, contracting business, restaurant, or any other type of small business, you’ve likely seen conflicting information about inbound vs. outbound marketing. Which approach actually brings in customers and yields better long-term results?
The truth is, both inbound and outbound marketing play crucial roles. Inbound builds trust and awareness over time. Meanwhile, outbound helps you reach customers right where they are — including new prospects who hadn’t heard of you before. At Townsquare Interactive, we’re here to help you understand the ins and outs of both outbound and inbound marketing for your small business and set you up for long-term success.
What Is Inbound Marketing?
Inbound marketing refers to tactics that naturally attract customers via relevant, useful content. Search engine optimization (SEO), online reviews, social media posts and stories, and email marketing campaigns with opted-in subscribers are all examples of inbound marketing.
With inbound marketing, you focus on drawing in your ideal customers and engaging them through ongoing marketing efforts. For local businesses, inbound marketing helps build credibility and drive traffic from people already searching for your services.
Inbound Marketing Pros
Builds Trust and Long-Term Visibility
Prospects who discover you online through helpful content or reviews can get the information they need to make buying decisions. They are more likely to view your content as helpful and engaging rather than intrusive when they find it themselves.
For example, Brothers Restaurant and Bar wanted to increase online visibility for its catering services. The founders worked with Townsquare Interactive to create a professional, search-optimized website that pushed the restaurant to page-one Google results.
Additional efforts included email and SMS campaigns, plus the integration of online scheduling software and invoicing tools. These inbound strategies don’t require ad spend; they run in the background to increase brand awareness and customer loyalty.
Works Around the Clock
Content, social posts, and Google listings continue working even when you’re not. With SEO and business listings management, your business stays visible 24/7.
Strengthens Relationships
Inbound marketing allows you to build genuine connections. Over time, inbound marketing lets you build a highly engaged list of prospects — and further market to them with automated email and SMS campaigns.
For example, Amber Moon Studios, a yoga and wellness business, used Townsquare’s email and SMS automation tools to segment clients into groups and send personalized messages. Even better, by automating administrative and marketing tasks, she reclaimed billable session time, increasing revenue.
Inbound Marketing Cons
Inbound marketing is a long game. Results do not happen overnight, and building organic visibility requires consistent effort, data tracking, and plenty of patience.
However, integrating tools like Townsquare’s cloud-based CRM lets you see what’s working and tweak your strategy as needed. The business management platform also keeps everything organized and accessible across your organization.
What Is Outbound Marketing?
Outbound marketing involves proactive outreach. Examples include social media ads, local display ads, and traditional methods like direct mail.
Outbound Marketing Pros
Potential for Faster Results
Unlike inbound, outbound marketing can create an immediate impact. Whereas inbound waits for customers to find you, outbound attempts to get in front of them with timely and relevant messages.
Targets Specific Audiences
With a highly targeted ad, you can reach your best local customers while they’re mid-scroll. With Townsquare’s social ads services, local companies can precisely hone in on nearby customers with high intent, maximizing ad spend.
Complements Inbound
Combining inbound with outbound marketing can be an effective way for local businesses to drive awareness and push seasonal offers. For example, during tax season, a tax and accounting firm could combine organic methods, such as social media posting, with paid efforts like social ads.
Outbound Marketing Cons
Higher Costs
Outbound marketing can be more expensive per lead, depending on the industry and specific offer. Why?
- You’re paying for impressions or placements (ads, mailers, airtime, etc.), regardless of whether those viewers convert into paying customers.
- Response rates may be lower than those achieved through inbound marketing with an engaged audience, potentially increasing your cost per lead or sale.
- Some industries, like telecom and financial services, spend significantly more on digital ads than others. Businesses in these industries may face higher ad competition and increased costs.
More Difficult To Build Trust
Outbound doesn’t always foster the same lasting trust and engaged audience as inbound marketing. Without personalized messaging or clear audience insights, campaigns can feel generic and may get ignored.
Which Is Better for Local Businesses?
For most local businesses, it’s not a question of inbound vs. outbound sales. Combining well-thought-out outbound campaigns with inbound nurturing can be an effective way to reach customers through multiple channels.
When first starting out, though, many businesses begin with inbound tactics to reduce costs as they get to know their audiences. From there, adding in outbound methods, such as social ads, can further amplify reach.
Remember:
- Inbound marketing establishes your reputation and attracts organic traffic over time.
- Outbound marketing gives you the visibility and momentum to grow faster.
As the American Marketing Association points out, the strongest strategies are omnichannel, reaching customers across multiple touchpoints. Small, local businesses may find the most success by initially prioritizing online presence and personalized follow-ups, then adding in strategic outbound methods.
Partnering With Townsquare Interactive
Whether you want to strengthen your inbound or outbound marketing or combine both, Townsquare Interactive provides the tools and expertise to help you grow.
With a single business management platform, you can manage your entire operation from one place with:
- A cloud-based CRM for tracking customers and leads
- Scheduling software to reduce no-shows; see this case study from a holistic canine health provider that reduced no-shows by 100% and admin costs by 50%
- Estimating and billing tools for seamless payments
- Email and SMS automation for effortless follow-ups
- SEO, social ads, and web design that boost your online visibility
By combining inbound and outbound tactics with Townsquare Interactive’s marketing expertise, you can attract and retain more customers and manage your business from a single, user-friendly platform.
Ready to see what inbound and outbound marketing can do for your small business? Book a demo to explore our platform features and dedicated services.