Bury the Marketing Funnel

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Bury the Marketing Funnel

  1. 1. BURYING THE MARKETING FUNNEL: <br />IT’S ALL ABOUT THE CONSUMERKathy Hecht<br />February 2011<br />®<br />1<br />
  2. 2. <ul><li>Why the funnel?
  3. 3. What happened?
  4. 4. What’s next? </li></li></ul><li>CONSUMER PURCHASE DECISION PROCESS<br />
  5. 5. Car buying: 40 years ag0<br />Insert Footer here<br />4<br />Aware of Brands<br />Brands Under Consideration<br />Prefer<br />
  6. 6. The funnel view<br />5<br />Aware<br />Consider<br />Prefer<br />Purchase<br />
  7. 7. More consumers<br />6<br />
  8. 8. How the marketers see it<br />7<br />
  9. 9. PURCHASE FUNNEL WORKED<br />The difficulty in getting inputs was so significant that the brands had the ability to significantly alter their inclusion in various steps<br />FITS THE FUNNEL<br /><ul><li>Brand-centric, push model
  10. 10. Broad, general reach
  11. 11. Limited product choice
  12. 12. Barriers to information</li></ul>8<br />
  13. 13. The funnel:What happened<br />9<br />
  14. 14. Car buying: today<br />10<br />OUTCOME<br />PURCHASE<br />LEASE<br />WAIT<br />
  15. 15. WHAT’S CHANGED<br />THEN<br />NOW<br /><ul><li>Brand-Centric, push model
  16. 16. Consumer-Centric, pull model
  17. 17. Broad, general reach
  18. 18. Expanded, targeted reach
  19. 19. Limited product choices
  20. 20. Proliferation of product customization
  21. 21. Barriers to information
  22. 22. Transparency of information</li></ul>11<br />
  23. 23. THE FUNNEL: WHAT’S NEXT<br />12<br />
  24. 24. The Experts<br /><ul><li>Model similarities and differences
  25. 25. McKinsey
  26. 26. Jaffe
  27. 27. Jantsch
  28. 28. Kumar
  29. 29. Forrester</li></li></ul><li>MCKINSEY<br />Image source:. MCKinsey. “The Consumer Decision Journey.” <br />14<br />: IT’S ALL ABOUT…<br />…the consumer decision journey<br />…Aligning Marketing with the Consumer Decision Journey<br />1<br />2<br />3<br />4<br />Active evaluation<br />Information gathering, shopping<br />The consumer considers an initial set of brands, based on brand perceptionsand exposure to recent touch points.<br />Consumers add or subtract brands as they evaluate what they want.<br />After purchasing a product or service, the consumer builds expectations base on experience to inform the next decision journey.<br />Ultimately, the consumer selects a brand at the moment of purchase.<br />Loyalty loop<br />Moment of purchase<br />Initial-<br />consideration <br />set<br />Trigger<br />Postpurchase experience<br />Ongoing exposure<br />
  30. 30. JAFFE<br />15<br />: IT’S ALL ABOUT…<br />…Acquisitions<br />A<br />A<br />I<br />D<br />A<br />A<br />I<br />D<br />Acquisition<br />Retention<br />New Acquisition<br />Image source: Joseph Jaffe. <br />Flip the Funnel.<br />
  31. 31. : IT’S ALL ABOUT…<br />JANTSCH<br />…Repetition<br />Know<br /><ul><li>Articles
  32. 32. Ads
  33. 33. Referrals</li></ul>Like<br /><ul><li>Web site
  34. 34. Reception
  35. 35. Newsletter</li></ul>Trust<br /><ul><li>Marketing kit
  36. 36. Free report
  37. 37. Sales presentation</li></ul>Try<br /><ul><li>Webinar
  38. 38. Evaluation
  39. 39. Nurturing</li></ul>Buy<br /><ul><li>Service team
  40. 40. New customer kit
  41. 41. Finance/delivery</li></ul>Repeat<br /><ul><li>Post project survey
  42. 42. Cross selling
  43. 43. Quarterly events</li></ul>Refer<br /><ul><li>Results reviews
  44. 44. Partner intros
  45. 45. Peer2peer events</li></ul>16<br />Image source: John Jantsch. Duct Tape Marketing.<br />“The Easiest Way To Explain the Marketing Process.”<br />
  46. 46. KUMAR<br />Opulents<br />Icons<br />Customer Lifetime Value-based approach to Marketing Communications and Multichannel Shopping<br />High<br />Consumer Lifetime value<br />Misers<br />Go-Getters<br />Low<br />Low<br />High<br />Marginal effects of marketing communications<br />17<br />: IT’S ALL ABOUT…<br />…Consumer Lifetime Value<br />Customer Factors:<br />Heterogeneity of customer preferences for media and channels<br />Environmental<br />Factors:<br />Proliferation of media <br />and channels<br />Firm Factors:<br />Proliferation of new <br />product/service <br />offerings by firms<br />Technological Factors:<br />Emergence of new channels and decreased storage costs<br />Image source: V. Kumar. Direct Marketing Educational Foundation, Inc. <br />“A Customer Lifetime Value-Based Approach to Marketing in the Multichannel, Multimedia Retailing Environment.”<br />
  47. 47. FORRESTER<br />18<br />: IT’S ALL ABOUT…<br />…Engagement<br />Image source: Steven Noble. Forrester.<br />“It's Time To Bury The Marketing Funnel.” <br />
  48. 48.
  49. 49. SO WHAT’S NEXT<br />EXPERTS AGREE<br />ACTIONS TO TAKE<br /><ul><li>Focus on “Push”/mass media is behind us
  50. 50. Narrowcasting with relevant communications
  51. 51. Shift strategy to identify, understand, and engage
  52. 52. Role of consumer has shifted
  53. 53. Top-down modes are less predictive
  54. 54. Leverage multi-dimensional insights to guide customer interactions
  55. 55. Customer engagement extends beyond purchase
  56. 56. Expand and integrate valuable consumer data</li></ul>20<br />

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