Leveraging the modern purchasing funnel is one of the most powerful ways of maximising business ROI from your brand and marketing spend. Do you really know what the purchasing funnel is for your category, how you are performing against your competitors, where the holes are in your funnel, and how many customers you are really losing?
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Purchasing Funnel Brand Presentation Linked In
1. Leveraging the purchasing funnel for business performance: Achieving the highest ROI for your brand and marketing spend Copyright 2011 Longship Research & Consulting
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3. Not always timed or targeted to influence key decision moments for consumers
50. Active vs passive loyalty 16 Source: McKinsey consumer decision survey
51. Developing your purchasing funnel Define the category’s purchase process Identify conversion drivers by segment Evaluate your brand’s performance vs competitors Quantify the value of increasing conversion Develop strategies and programs to address gaps Link metrics to increased sales and market share 17
67. Identify the priority segments 23 Revenue impact of closing the gap on the lead competitor of 10% Revenue impact = $M Revenue impact of closing the gap on the lead competitor of 10% Revenue impact = $M Revenue impact of closing the gap on the lead competitor of 10% Revenue impact = $M
78. Impact of the internet 28 Automotive category Traditional funnel Sales incentives & in-dealer programs here Marketing spend here
79. Impact of the internet 29 Automotive category Interrupt by focussing here Get repeat business and positive WOM here Awareness is still an advantage, but lack of it can be overcome by interrupting the funnel and focussing efforts on touch points that have the greatest impact
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81. Explosion of product choices – on the one hand, makes brand awareness more important
82. Consumers can enter the funnel at different stages – on the other hand, makes brand awareness less important
83. Consumers often expand the funnel (rather than narrow it as was done through the traditional purchasing funnel
85. Impact of the internet 31 Mortgage broker category Traditional funnel New funnel
86. A new perspective 32 Can be aware but with no intention to purchase. Must identify the purchase intent trigger Passive or active loyalty? Advocate or saboteur? Product performance is now critical. Alternatives Peer reviews User-generated content The extent of research depends entirely on the category and target market. Recommendations from friends Different marketing messages required for different stages Value proposition / brand must be strong, relevant and different
89. Getting through to consumers is becoming increasingly difficult due to clutter and busy lives. Awareness is a good start, but when something triggers consumers to buy, they will more actively research options to expand their awareness set anyway.
90. The purchase decision is often made at the retail end – ‘they walk in the store not having decided which brand to purchase yet’.34
125. Specialist market researchBruce Stafford Managing Director bstafford@longship.com.au +61 411 606701 www.longship.com.au Copyright 2011 Longship Research & Consulting
Notas del editor
Brand is a long-term investment delivering long-term benefits, but how do you maximise the business benefit at the same time in the short-term?
Auto-pilot – many Boards are afraid to change the nature of brand spend. There is perceived safety in doing what has always been done.
Otherwise known as the buying path or hierarchy of effect or consumer decision journeyCompletely customer centricNeed awareness to be familiar....etc... Awareness – do they know of your brand Familiarity – how familiar are they with your company and what you offer – advertising benefits, PR, online research Consideration – have they actively considered your brand – a good look, have asked others about it, trialled it... Purchase - have they actually purchased your brand Loyalty – how likely will they buy again, stay with your brand, or recommend it
Every category is different
You need to: Understand why your consideration is so low It could be: Brand issues – reputational, brand relevance Marketing issues – poor internet strategy and presence, wrong marketing messages, ineffective creative, poor VP, segmentation issues Product issues – bad, not as good Service issues – badCompetitor A Pricing issue Convenience issue Warranty issueFocus your marketing investment
‘Your Company’ Understand why your consideration is so low It could be: Brand issues – reputational, brand relevance Marketing issues – poor internet strategy and presence, wrong marketing messages, ineffective creative, poor VP, segmentation issues Product issues – bad, not as good Service issues – badCompetitor A Pricing issue Convenience issue Warranty issueFocus your marketing investment
Interrupt the loyalty loop: If your competitors have a lot of passive loyalty, then make comparison shopping and switching easy and attractive. Give their customers an excuse to leave rather than one to stay.Expand your base of active loyalists: Focus your spending on the right tough-points and experiences. Cultivating positive WOM is a key in today’s socially networked environment.
Auto insurance = high passive loyalty. If your competitors customers have it – then interrupt If your customers have it – then increase active loyaltyCar = Low loyalty Restart search again each timeBoth represent different marketing and branding challenges
Qual – in-depths, focus groups, observation, onlineReally understand how your market buys, how they go about itEvery category and market is different
Door openers are the drivers that take you from awareness to considerationDeal makers are the drivers that take you from consideration to purchaseLoyalty Drivers earn you loyalty
Passive loyalty – inertia is a factor tooNail the drivers where the most customer loss is
Recall that Competitor A had significant leakage from consideration to purchaseAnd you had leakage from familiarity to consideration
Segment revenue levels will help identify where the bigger bang for buck isIf it can be demonstrated that a 5% improvement in a stage or driver will yield a $X million increase in sales...Diminishing return issues for some segments.
Do by segment – the more segments have in common, the easier the implementation task
Not just set and forget:Customer preferences and approach changeCompetitor performance and approach change
Awareness is still an advantage, but lack of it can be overcome by interrupting the funnel and focussing efforts on touch points that have the greatest impactAwareness is no longer the ‘guarantee’ of converting to sales as it once was.Brands can be added to the mix later in the funnel now. Rather than narrowing, the funnel widens, initially.Critical touch points are now driven by both the consumer and the company. Traditional push marketing and new consumer pull marketing. The game is fast turning to how companies can influence consumer-driven touch points.Focus on the initial familiarity phase and on the loyalty phase. Toyota and Honda have done this very well with after sales service and product quality.
The old funnel has always been somewhat circular in application, but now much more so.The brand experience is now critical to develop loyalty and generate new customersAwareness - can be aware but with no intention to purchase.Purchase intent trigger – the event that triggers the consumer to start thinking about a purchase: life event, pay rise or advertising message.Familiarity – research, checking features and benefits, looking at the competitors, the extent of research will depend on the product and the perceived importance/risk and differencesConsideration – the short list, affordability, trial/testLoyalty – passive or active, repurchase intention, advocate or saboteur?Specific messages for different stages of the funnel.What is the purchase intent trigger? How do you target it?
The game is moving from push marketing towards pull marketing and influencing consumer touch-points. Different for every category and segment.Getting through to consumers is becoming increasingly difficult due to clutter and busy lives. Awareness is a good start, but when something triggers consumers to buy, they will more actively research options to expand their awareness set anyway.The purchase decision is often made at the retail end – they walk in the store not having decided which brand to purchase yet.New dynamics: More research before purchase – better informed Using mobile web to research prices while shoppingSMSing a friend or checking with your social network online for an opinion prior to purchase Packaging, presentation and service has gained in importance (all at the point of sale) The brand must have a quickly communicated clear and compelling value proposition
You must deliver your brand promise at every touch-point or pay the price.The best way to protect your brand is to deliver on your promise – you no longer control what is said about – but what you can control is how you deliver experiences.
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