Compare this with Forrester’s marketing event at The Grove, where the rallying cry seemed to be “The Funnel is dead”. Apparently, it’s now all about customer engagement.
So, were the apparently misguided Funnel attendees basing their businesses on a flawed metaphor? Will the event be called “Funnel” next year? Is the Funnel really obsolescent?
Or, are these new ways of thinking just a reflection of the ongoing requirement for analyst firms to develop new models where they can re-package existing principles to sell more white papers and analyst hours? After all, you have McKinsey pushing the Consumer Decision Journey (a circular process) and Forrester promoting their Customer Life-cycle model (another circular process). To my mind, as long as you understand the changes in the marketing landscape, you can easily map the phases from these new models on to good old Funnel.
The concept of the sales Funnel has been around for over 100 years, and as a metaphor it has worked well to illustrate the need to deliver a large number unqualified prospects into one end of the funnel to get a smaller number of qualified sales-ready leads out of the other. When there were fewer marketing channels and touch-points, it served us marketers pretty well.
But there’s a problem. One of the fundamental principles behind the Funnel is that it is linear, and until recently, it was a reasonably good model for the sales process: you’d buy a TV or press ad (Awareness); you’d send an email or DM to those who might be likely to be interested (Consideration); once you get a response you’d get on the phone and tele-market (Preference). Finally, you’d get those qualified prospects in front of a salesman (Purchase). So, as long as you had effective content for each phase, the flow of ever-more qualified prospects through the Funnel was straightforward.
These days things are different. With the proliferation of marketing channels, multiple screens and social media, our target audiences are no longer moving uni-directionally between our pre-prescribed phases or consuming our beautifully crafted marketing messages in the order that we intend. In reality, prospects are no longer passively consuming paid media thrust at them by big brands. Instead they’re engaging with content on their own terms — often on social networks — far outside the direct control of us marketers.
In my humble opinion, marketers need to change the way they promote their products to prospects and convert them to sales. And, maybe it’s just easier to adopt a new circular sales model touted by an analyst firm. What is most important, is that marketers have to understand that the landscape has fundamentally changed and that they need to:
- Become more involved in the conversation beyond the confines of the corporate website. Don’t have social media and mobile strategies. Instead, have a marketing strategy, of which social and mobile are part.
- Manage content effectively and cater for the fact that it needs to be used across multiple phases of the sales cycle (whatever model you use) and distributed in an array of formats to cater for the ever-growing demand for content on the customer’s terms.
- Focus on marketing intelligence by integrating multiple sources of data to build a consolidated view of what’s working and ensure the most effective use of scarce marketing budgets.