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The Consumer Generated Funnel


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This article written by Diarmaid Byrne, Editor, STQ, was published in issue 06 of Social Technology Quarterly.
Summary: The consumer generated megaphone gives insights into what consumers really feel about a brand, which should be a focal point for brands.

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The Consumer Generated Funnel

  1. 1. KulizaObsolenceThe traditional purchase funnel that droveadvertising and marketing strategies, tactics,and budgets is obsolete. No longer cancompanies rely on targeting as many peopleas possible, knowing that a percentage ofthem will filter down the funnel and ultimatelypurchase the product. What has changed isthat the consumer - and fans in particular - isnow a larger influencer on purchase decisionsthan advertisers. It is more important forbrands to focus on the consumer generated‘megaphone’ than solely on the purchasefunnel, and evolve ways for their customersand fans to advocate products and services.TheConsumerGeneratedFunnelWord of Mouth MarketingForecast 2003 – 20132003: $313m2004: $487m2005: $722m2006: $981m2007: $1351m2008: $1543m2009: $1701m2010: $1918m2011: $2204m2012: $2572m2013: $3043mSentiment expressed byword-of-mouth marketing:66% of brand-related conversationsare mostly positive8% of brand-related conversationsare mostly negativeThe driving forces ofpurchase decisions:54% word-of-mouth47% information on a website42% email sent by a friend31% online reviewsCommerceby Diarmaid ByrneIllustration Credit: Amit Mirchandani
  2. 2. Social Technology Quarterly 06ReferencesConroy, Pat, and Anupam Narula. “A newbreed of brand advocates: Social networkingredefines consumer engagement.” DeloitteDevelopment LLC,n.d.Web.15 Oct 2012.Jackie, Huba.“14 new statistics about word ofmouth marketing.” Church of Customer. N.p.,17 2011.“Word-of-Mouth Spending to Reach $3Billion by 2013.”Marketing Charts.PQ Media,07 2009.“Consumers Believe in Positive Word-of-Mouth.” eMarketer 02 12 2010.Credibility of advocates:59% of Americans believe offlineWOM to be highly credible49% of Americans believe onlineWOM to be highly credibleCompared to negative WOM,positive WOM is more than twice aslikely to get people to seek furtherinformation.Less than 50% of respondentsdeem negative WOM as credibleMain activities of brandadvocates:1. Recommending verbally2. Payingmore for this thanother brands3. Purchasing favorite brandmultiple times when on sale4. Sharing the product /coupons with others5. Searching for coupons instore circulars6. Searching for special offercoupons online