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The Inbound Growth Blog covers all topics relating to an integrated marketing strategy. We write about inbound marketing, social media, integrated marketing strategies and the sales process.

The Trajectory of Inbound Marketing ROI

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Posted by John Beveridge on Jun 18, 2012 5:58:00 PM

inbound-marketing-roiMany businesses intuitively understand the benefit of inbound marketing.  They understand that buyers in today's economy use search engines and social media to learn about potential solutions to their problems well before speaking with sales people.  However, they don't know what to expect from the implementation of an inbound marketing program.  What kind of increases in website traffic and leads can they expect?  How quickly can they expect to see a return on their investment?

 

In August 2011, a partnership of MIT and Babson MBA students completed independent research into the return on investment from inbound marketing of businesses using HubSpot's all-in-one marketing automation software.  The results of their research, based on the responses of 214 HubSpot users, provided answers to those questions.  Here are some of the key findings of the research:

Increased Website Traffic

Regardless of the amount of website traffic prior to the software implementation, the vast majority of survey respondents (88%) reported an increase in web visitors after implementation.  Here is a summary of the survey findings on website traffic:

  • Customers starting with less than 200 monthly web visitors experienced an average increase of 7.8 times more monthly traffic after 12 months of active use.

  • Customers starting with between 200 and 499 monthly visitors experienced a 17% increase in visitors month-to-month during the first 12 months after implementation.

  • On average, all customers experienced a 13% increase in visitors in visitors month-to-month in the first 12 months of active use.

The chart below summarizes the typical trajectory of the increase in web traffic:

web-traffic-inbound

Increase in Leads

As was the case with website traffic, the vast majority of respondents (83%) reported an increase in leads after implementing HubSpot's marketing automation software.  Here are some examples of how leads increased with inbound marketing:

  • Customers starting with 1 to 5 leads per month captured 41.1 times more leads after 12 months of active use.

  • Those starting with 6-20 leads per month observed a 30 percent increase in leads month-to-month.

  • Overall, users experienced an average 32 percent increase in leads month-to-month.

Here is a chart summarizing the typical trajectory of the increase in leainbound-marketing-leads

Sales Growth

When asked if their sales increased subsequent to implementing an inbound marketing program, 64% said yes, 9% percent said no and 27% said they didn't know.  Sales growth is a function of how well an organization nurtures and closes its leads - it's vitally important to integrate your sales approach with your inbound marketing approach.  In any event, I think any manager would be happy with more qualified leads for the sales team to pursue.

Summary

When asked what elements of inbound marketing were responsible for the increase in web traffic and leads, respondents identified Search Engine Optimization (79%), blogging (77%) and social media (50%) as the most important tactics.  This comports with the textbook inbound marketing process:  structure your site to get found by buyers, educate and nurture leads with engaging content that is spread through social media and a constant review of metrics to provide for a process of continual improvement.

So for those contemplating starting an inbound marketing program, the evidence is clear.  If you consistently do the right things, you will increase website traffic, leads and ultimately sales.  Why not get started today?

download-the-2013-essential-guide-to-inbound-marketing

Topics: Inbound Marketing

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