Monday, February 04, 2013

The Marketing Funnel is Dead: Here's What Will Replace It

Okay, I freely admit that headlines like “the marketing funnel is dead” are a cheap trick to attract attention.
But I swear I came by this one honestly. Too tired to do any serious work on a recent plane flight, I scanned a random white paper that argued the traditional idea of a funnel didn’t capture the need to treat customers individually as they move towards a purchase. So far my head was nodding in agreement plus maybe a little drowsiness. But then came the punch line: instead of a funnel, marketers should think of managing each customer’s progress as a process, which is best represented – wait for it – as an escalator.

Now I was fully awake, and not in a good way. How is an escalator any less linear than a funnel? Have I missed some crazy new form of multi-path escalator networks? Maybe so: I don’t get out much, and who knows what these kids today are up to? But assuming that’s the not case – and I do after all read Twitter – the escalator analogy is no better than a funnel at illustrating today’s situation.

Nor, to be a bit more serious, is the concept of managing buyers as a process. It’s true that a process can have branches (although not the escalator-like linear process this paper described). But a process is still something the marketer controls. Whereas, the dominant fact of marketing today is precisely that marketers don’t have control: the buyer does. It’s the buyer who decides at every step what she’ll do next.

The picture that comes to my own mind is a tornado: a totally uncontrollable, unpredictable force that leaps across the landscape setting down wherever it wants. By this analogy, the best a marketer can do is to build storm-proof structures that will function successfully no matter what buyer does. I don’t think that’s quite the right image – after all, buyers are not destructive – but it does convey the frightening powerlessness of marketers in today’s world.

The better analogy is probably a maze. Marketers can build an environment that defines the options available to buyers, even though the buyers still make their own decisions about the path they take. The maze also shows how buyers can follow different paths and still end up at the goal, can go in circles indefinitely, and can exit without reaching the goal. It also implies correctly that the marketer’s skill determines quality and effectiveness of the buyer experience, just as the maze designer’s skill determines how much fun it is for visitors. If you really want to push the analogy, you can argue that we’re talking here about a corn maze – because ultimately customers can break out of the predefined paths if they want to.

I guess we’re all lucky that my flight didn’t last much longer, since I was beginning to think about how corn needs water (funding?) and if there’s a drought the ears of corn will have small kernels (customer value?). A more useful insight is that mazes have different regions, so the maze analogy replaces the notion of sequential lead stages with a more nuanced view of non-linear buyer states that can be the same distance to the goal yet differ in other significant ways. Buyers can also jump from state to state without necessarily moving through regions that are adjacent – like a tornado touching several spots within a maze, come to think of it. But enough with the metaphors.

Let’s just stick with the main point: the marketing funnel is really and sincerely dead. The purchase process is no longer linear and, even if it were, marketers couldn’t control how buyers move through it. The image of maze may not be perfect but it does show that buyers can follow many routes, that they’ll make their own choices, and that marketers still play an important role by defining the buyers’ environment. At least it’s a start.

Of one thing I’m certain: the buying process is not an escalator.


Unknown said...

David, great article. Loved your corn maze analogy. One thing I'd argue though, marketers do have the ability in influence customers and prospects, we just can't force them to do anything. In your maze analogy, if we saw a customers stuck in a loop, we could place a sign in the path suggesting the route to take, or drop breadcrumbs for them to follow. I also think it will require the ability to utilize customer intelligence from just about every channel of interaction across every channel of interaction to achieve this. If we can use that knowledge to predict the customer need and deliver relevant, contextual offers and suggestions/guidance to that customer/prospect, we have a good chance to influence the customer. The other key element is that these things need to be about what the customer wants, not what the marketer wants. To quote Stephen Covey, it needs to be a win/win. We need to trade value for value, so we give the customer what they want & need in exchange for something that is meaningful for the marketer. That's how we can achieve influence.

David Raab said...

Thanks Darren. I quite agree that marketers can intervene dynamically. I love the image of adding a sign to guide them. It will definitely make into my next iteration of this concept.