Sheryl Goldstein: Rethinking the Funnel
Modern life isn’t linear. The IAB's Chief Industry Growth Officer explains how today’s consumer purchase behavior has evolved from a straight trajectory to “a bowl of spaghetti”—and why SpaghettiOs are the future.
“Think of the consumer experience as a circle where a brand meets a consumer at any point in their purchase journey. Within that one experience, you can close the loop and complete the transaction.”
By sheryl Goldstein
Old media planning models are ineffective for the ever-changing media and customer engagement landscape. The old models explain customer engagement as a linear process, when evidence-based practices align with viewing engagement from a continuous standpoint. It’s time for marketers to recognize that the purchase funnel has changed—and creators are a brand’s best friend.
The Purchase Funnel
Traditional marketing practices describe the purchase funnel as a linear model. Marketers start by driving consumer awareness, leading them through the funnel to consideration, intent, and purchase. That model served marketers well when they could control their brand messaging exposure. They knew who they reached and controlled when and how often a potential customer would see the message. They created campaigns for specific parts of the funnel and knew how to track and measure results.
Today, marketers no longer control when, where, and how consumers are exposed to their brand. The rise of social media has taken brand exposure out of the hands of the marketer and into the hands of creators, influencers, friends, and family. Brand exposures are coming to consumers from various places, turning the customer journey from a linear funnel to a bowl of spaghetti, with twists and turns that make it very challenging for a brand to know when and where to provide the right message.
“With the rise of eCommerce, shoppable ads, instant reviews, ratings, opinions, and recommendations from creators and influencers, the funnel is even more compressed and consolidated into a singular experience.”
Seeing a friend share their love for a brand brings the brand to new prospects. For example, last year, I gave in and bought a Peloton after seeing dozens of friends, colleagues, and family members share their passion for the brand. I never considered another brand and didn't compare prices or read up on reviews. I trusted people I knew and bought based on their recommendations. With the rise of eCommerce, shoppable ads, instant reviews, ratings, opinions, and recommendations from creators and influencers, the funnel is even more compressed and consolidated into a singular experience, turning the bowl of spaghetti into SpaghettiOs.
You can think of the experience as a circle where a brand meets a consumer at any point in their purchase journey. Within that one experience, you can close the loop and complete the transaction. For example, a beauty/fashion creator offering "get the look" tips uses MAC cosmetics in their demonstration. Through AR and shoppable ad technology, the consumer can virtually "try on" the look and, in one click, buy now. If that consumer was already a MAC customer, they might have been easily influenced to try a new product. If they had never heard of MAC, this exposure might have lured a new customer to the brand. In both scenarios, the consumers experienced the same message, and the MAC brand controlled neither, and both could have completed the transaction to purchase.
So, what does this mean for marketers?
“Doing nothing means missing out.”
Creators Are a Brand's Best Friend
Smart marketers recognize the power of social media and a creator's influence to find and engage new customers and drive loyalty for existing customers. Influencers and creators are the most trusted source of information for younger generations. Their ability to take a consumer through the purchase circle is unmatched by any other marketing vehicle.
Most social platforms now enable social shopping with built in purchase capabilities. AR technology can enhance the shopping experience and lower the bar of purchase resistance. There's no need to go somewhere to "try it on" when a consumer can try it on from their computer or phone and see what something "looks like" in their house, making the purchase decision even more immediate.
Let the Creators Create
Creators have a unique bond with their audience. Trust is at the core, and authenticity is critical for maintaining the integrity of the relationship. Brands should seek out creators that speak to their core brand values and look to partner with those creators for a long-term partnership.
Let the creator take the lead for the best way to connect "authentically" to their followers. Forced or inauthentic messaging can backfire and hurt both the brand and the creator's image. Most social media companies offer services to help align brands to the right creator and how to best leverage their platform.
“Even if brands can't control the message or the exposure, they will have many voices amplifying and advocating on their behalf, and the path to purchase will be as simple as heating up a bowl of SpaghettiOs.”
Best Practices and Tips for Brands
Explore marketing funnels as circular models with customers onboarding at any place in the continuum. How does this evolution impact your marketing operations and consumer experience?
Understand how your product gets discovered. Is your brand recommended by creators or passionate customers? Find ways to give voice to those that naturally love your brand and let them guide the way to best connect with their followers.
Authenticity is key. Make sure you find creators that align with your brand values and let the creators create.
Don't try to control the conversation. Let consumers share their thoughts about your brand, and don't be afraid to chime in and have an honest dialogue.
Doing nothing means missing out on opportunities to connect with hard-to-reach consumers—especially Gen Z.
Navigating through the consumer journey has never been more challenging, yet opportunities to build long-lasting, deep relationships with your customers have never been better. The rise of social media and the impact and growth of the creator economy has presented brands with endless opportunities to build meaningful, trusted relationships.
Brands that take advantage of this booming industry will benefit as they develop customer relationships through a creator's network. Even if brands can't control the message or the exposure, they will have many voices amplifying and advocating on their behalf, and the path to purchase will be as simple as heating up a bowl of SpaghettiOs.
May 24, 2022