Consumers Killed the Funnel - Now What?!
By Xochi Adame
http://www.cds-global.com/blogs/us/2013/08/consumers-killed-the-funnel-now-what/
We've all heard about the sales funnel's demise. The new consumer - an always on, always sharing, connected consumer (what Forrester Research calls the Perpetually Connected Consumer) - has utterly decimated the traditional sales and marketing path, leaving a permanent, public trail of sentiment, ratings and peer-to-peer influence in its wake.
Consumers are driving change. Technology is the enabler - not the reason. The insane proliferation of social, mobile and digital may play a crucial part, but it's the consumers' intrinsic understanding of how these new technologies improve everyday life that has crippled the traditional funnel. Connected consumers are empowered - and they know it. The majority of today's buyers take to Google search and the social web throughout the path to conversion, preferring to educate themselves, first and foremost, about a product or service.
But the consumer shift doesn't stop at the awareness or education phases of the sales funnel. In the past, prospective customers were led down a neatly groomed path that started with awareness and ended with conversion and loyalty. Predictable, and almost idyllic-seeming, no? But today's digital connectivity means that every experience, every "touch" a prospect or customer makes with your brand, is amplified and publicly magnified. One customer's socially shared purchase experience is the education phase of the prospective next.
Not only has the seller lost significant control over the buyer journey, the "journey" itself is virtually unrecognizable. Today's consumer journey is non-linear, complex and characterized by high-volume digital distractions throughout every "phase." Marketers, start your engines, because vying for a customer's awareness and loyalty has become a perpetual, cyclical pursuit.
Altimeter's popular rendition of the new buyer journey:
So now what?
Ignore the temptation to stick with the funnel mentality. It may be a familiar, easy formula - but it will never be valid again. Instead, set about gaining a solid grasp on what the new buyer journey looks and feels like - how it operates, and why. Do. Your. Homework (DYH, an acronym to live by). But don't stop at research reports and business intel. Walk in the shoes of today's connected customer. Experiment, tinker. You must immerse yourself firsthand, not vicariously through analysts, peers or your kids. Download mobile apps like Yelp or Foursquare. Share your most recent shopping or airline experiences on Twitter or Facebook.
Contribute to Amazon reviews, comment on a blog post. Take note of how it all feels, observe the differences in your experience. What makes life easier, richer? What are your newly discovered pain points?
Once you are informed, and can relate, make a habit of listening to your connected consumers in key communities of interest. Anticipate their needs and wishes, and go about satisfying them. Design from the get-go with social and digital top of mind - with the new consumer's lifestyle top of mind. Tailor everything, from vision and mission, to product strategy, UX and customer service - to connect with and engage this new consumer.
But remember, the new consumer isn't just the Millennial or Gen Z kid gearing up to lead the workforce and economy in a few short years. The new consumer spans the sociographic and demographic gamut. This isn't an age or gender thing, it's not a tax bracket thing. It's a revolution - one that's transforming the everyday life of every single one of us - like it or not. Personally, I love it.