The purchase funnel was first developed in 1898 by E. St. Elmo Lewis as a theoretical customer journey from the first point of contact with a brand to the final
purchase decision. As consumers traverse
through the funnel the numbers lessen.
This is due to the fact that of all who first become aware of the brand,
relatively few actually convert.
Understanding how changes in our marketing strategies at each of these
steps impacts the bottom line is key to the success of any business. Pre web and social media or post, the basics
are still the same.
As shown in Figure 1 below, the marketing purchase funnel
has been comprised of four main components over the years: Awareness, Interest, Desire and Action. This is known as AIDA. What has mostly influenced the decisions at each stage were brand initiated and included such things as in store demos, TV and print ads, FSI's, coupons and billboards.
Figure 1: Purchase Funnel Pre
Social Media
Due to the introduction of the web, search engines and
social media, the definition of each are changing as is the relationship of
each of these to one another. However, the
basic funnel concept still works. Let’s
discuss each of these concepts further in today’s world.
Awareness
in today’s world has totally changed due to Social Media. No longer are we made aware by simple push
messages. Brands are pulling us in and
telling us what they have to offer. And
in some cases it is not even the brand that is directly making us aware of a
product but rather our friends who are sharing their experiences with us on
social media sites.
How a brand keeps our interest
is also totally different thanks to retargeting of online ads or tailored web
experiences due to cookie drops.
Once we have gained product awareness and shown sustained
interest, a brand has many more options today to move us further along that
path in order to increase our desire to
buy. Years ago we would have to call to
request a sample or go into an automobile showroom to talk pricing. Today those are no longer the only options
available.
And then of course there is the purchase action. Money is still needed for this to take place,
but what has changed is how we can share our purchase experiences (good or bad)
with our friends and family. We can
become advocates and make others aware of the product on behalf of the brand.
The new funnel is being depicted in many forms by various
companies like Forrester Research as shown below in Figure 3.
Figure 3: New Model by Forrester
Research
What this figure shows nicely is the “disruption” being
caused in the purchase cycle by the abundance of information we can now gather
at every step of the purchase process.
But at a high level the “funnel” concept still works. It shows nicely how as consumers move along
that journey their numbers lessen.
Keep in mind, the funnel never was meant to depict a linear
path. What is vastly different today are
the experiences or options we have at each of those steps from a marketers and
consumers perspective. What the funnel
looks like today is as shown in Figure 3 below. As you can see there are now many more things affecting the purchase decision.
Figure 3: The New Purchase Funnel
Post Social Media
The biggest difference in today’s world is advocacy. Brands need advocates for their
products. They need to create them, find
them and foster a good relationship with them.
Why? Because they who the
consumer turns to in order to gain information prior any purchase
consideration. Based on a recent Nielsen
report, 92% of people trust brand advocates.
Remember, as said prior, control has shifted to the consumer in so many
regards. This makes brands a bit
nervous. Understanding that shift, as
Sephora has done, and capitalizing on it will ensure a strong customer base
full of advocates for your brand or offering for years to come.
Here is another thought on the new conversion funnel that I like: https://curatti.com/a-new-marketing-funnel-is-taking-over/
Here is another thought on the new conversion funnel that I like: https://curatti.com/a-new-marketing-funnel-is-taking-over/
I would love to hear your comments.
Perry D. Drake
Professor of Social and Digital Media
University of Missouri - St. Louis
