Think you need deep pockets and an outrageously large marketing budget to attract customers? Think again.
Some of the highest growth companies have shockingly low marketing budgets. In fact, companies with the highest growth spend only 4.9% of their revenues on marketing, according to a survey by Hinge. That’s compared to the 5.1% spent by businesses with average growth figures.
The reason high growth businesses can spend so little is because these companies focus on a strategy that has the greatest return on investment – inbound marketing.
Inbound marketing is a strategy that attracts customers to your brand naturally. It doesn’t rely on pushy messages and forcing brands in front of consumers. It instead takes a value-based approach to bring customers the answers needed to make a purchase.
Here’s an example of when this works. SEO leads have a 14.6% close rate, while outbound leads (from print or direct mail) only see a 1.7% close rate, according to Search Engine Journal. Businesses with 401 – 1000 pages of content on their website get six times more leads than businesses with only 51 – 100 pages of content, according to HubSpot’s Lead Generation Lessons from 4,000 Businesses report.
Companies that see the biggest influx in leads, and in turn higher growth patterns, are those that put value first.
Here are some of the core elements of this strategy and why it works.