1. BURYING THE MARKETING FUNNEL: IT’S ALL ABOUT THE CONSUMERKathy Hecht February 2011 ® 1

3. What happened?

5. Car buying: 40 years ag0 Insert Footer here 4 Aware of Brands Brands Under Consideration Prefer

6. The funnel view 5 Aware Consider Prefer Purchase

7. More consumers 6

8. How the marketers see it 7

10. Broad, general reach

11. Limited product choice

12. Barriers to information8

13. The funnel:What happened 9

14. Car buying: today 10 OUTCOME PURCHASE LEASE WAIT

16. Consumer-Centric, pull model

17. Broad, general reach

18. Expanded, targeted reach

19. Limited product choices

20. Proliferation of product customization

21. Barriers to information

22. Transparency of information11

23. THE FUNNEL: WHAT’S NEXT 12

25. McKinsey

26. Jaffe

27. Jantsch

28. Kumar

30. JAFFE 15 : IT’S ALL ABOUT… …Acquisitions A A I D A A I D Acquisition Retention New Acquisition Image source: Joseph Jaffe. Flip the Funnel.

32. Ads

34. Reception

36. Free report

38. Evaluation

40. New customer kit

42. Cross selling

44. Partner intros

45. Peer2peer events16 Image source: John Jantsch. Duct Tape Marketing. “The Easiest Way To Explain the Marketing Process.”

46. KUMAR Opulents Icons Customer Lifetime Value-based approach to Marketing Communications and Multichannel Shopping High Consumer Lifetime value Misers Go-Getters Low Low High Marginal effects of marketing communications 17 : IT’S ALL ABOUT… …Consumer Lifetime Value Customer Factors: Heterogeneity of customer preferences for media and channels Environmental Factors: Proliferation of media and channels Firm Factors: Proliferation of new product/service offerings by firms Technological Factors: Emergence of new channels and decreased storage costs Image source: V. Kumar. Direct Marketing Educational Foundation, Inc. “A Customer Lifetime Value-Based Approach to Marketing in the Multichannel, Multimedia Retailing Environment.”

47. FORRESTER 18 : IT’S ALL ABOUT… …Engagement Image source: Steven Noble. Forrester. “It's Time To Bury The Marketing Funnel.”

50. Narrowcasting with relevant communications

51. Shift strategy to identify, understand, and engage

52. Role of consumer has shifted

53. Top-down modes are less predictive

54. Leverage multi-dimensional insights to guide customer interactions

55. Customer engagement extends beyond purchase

56. Expand and integrate valuable consumer data20