The marketing funnel is ‘dead’ – people trust customer reviews more than marketers, claims HubSpot MD
The traditional marketing funnel is “dead” and marketers have to get used to the fact that they are trusted less than the customer referrals enabled by internet ratings and reviews, the HubSpot Asia-Pacific managing director has claimed.
Speaking at the Echelon Summit in Singapore, Shahid Nizami told delegates that research by his company – a global survey of just under 1,000 consumers – had revealed that only 3% of people trusted marketers, a percentage lower than the trust in journalists (5%) and the same as investment bankers, also at 3%.
“The funnel is dead,” said Nizami. “It’s developing cracks and it’s not a good way to run your business.”
He added that marketing could only build awareness rather than drive purchasing nowadays, suggesting that the “last mile was driven by customer referrals”.
“Your customers are your best marketing channel and word-of-mouth is the single largest source of reference,” he explained.
Promoting the idea of inbound marketing via content creation and social media networks plus search engine optimisation, as a more valid alternative to traditional marketing channels, Nizami said: “It puts customers at the heart of your business and will ensure growth.”
In addition, he said that marketers had to quickly move beyond the urge to simply attract and engage consumers. “The maximum focus now should be on delighting them,” he added. “Companies have to become customer-obsessed, rather than self-obsessed.”
At HubSpot – an inbound marketing software provider – Nizami said this had been achieved by rethinking the industry norms. This included taking commission back from sales people if the customer left within eight months, but then rewarding the sales teams exponentially if the client stayed for more than a year.
Other initiatives included creating a customer code that actually rated the firm’s performance for its clients, and a determination to quickly take ownership of mistakes and publicly apologise.
“You have to own your screw-ups, mistakes are part of life,” he said. “It’s how you deal with them that sets you apart. The customers really appreciate it.”
Highlighting a brand doing this, he referenced KFC’s public apology in the United Kingdom when the fast-food chain ran out of chicken due to poor supply chain decisions.
Beyond that, he recommended clear and transparent pricing in order to improve the customer experience.
“It will change your destiny because the customer experience never ends,” added Nizami.
“The traditional marketing funnel is “dead” and marketers have to get used to the fact that they are trusted less than the customer referrals enabled by internet ratings and reviews…”
Absofuckinglutely.
ReplySeems an odd perspective to take.
The marketing funnel is a metaphor for the customer journey, not an instruction booklet for communications. It doesn’t specify the medium or the message, nor does it exclude customer delight and transparent pricing.
Creating a narrative to support it is the purpose of marketing. [Edited under Mumbrella’s community guidelines]
Suggesting that marketing simply drives awareness strikes me as slightly weird. Marketing identifies customer needs and delivers on them – the exceptional customer experience that drives referrals IS marketing.
ReplyI agree.
The marketing funnel is still a useful framework though it does need some reinventing. But not for the same reasons the article states. The marketing funnel assumes that customers go through a linear decision-making journey, when in reality the search, evaluation, and trial phases can happen simultaneously. The marketer’s job is to ensure that the customer journey is as seamless as possible.
Reply“The traditional marketing funnel is “dead” and marketers have to get used to the fact that they are trusted less than the customer referrals enabled by internet ratings and reviews…”
I agree to a certain extend. Customer referrals and internet ratings/reviews do matter but only because businesses became more and more competitive such that customer referrals/ratings becomes one of the few key variable in comparing quotations and making a purchase decision.
I think Mumbrella should do an article on how marketers should adapt to market to customers who live in a world of nearly , perfect information. How do we stay out when sometimes the customers know more than the marketer or the sales person. This is a very big challenge.
ReplyI trust consumer reviews as much as anonymous comments on industry websites
ReplyDepends on where the customer reviews are coming from. On a commerce site, no way.
On a forum with established, credible members who have been there
long enough, yes.
No one talks about soap, insurance, detergent or cup noodles in forums….mainly technology, gadgets, hi-end watches, electronics, specialised categories mainly.
ReplyWhat sort of nonsense is this? Customer reviews are an integral part of the funnel. The bottom bit! The modem funnel includes advocacy, following purchase. They should very much be considered as part of the overall marketing mix by any marketer who actually knows what they’re doing.
ReplyTick. they are more important than ever.
Tick. it’s cheaper to convert using reviews and testimonials.
Big tick. they have a massive influence on potential customers – where the aim
Is that then they turn your funnel into a cycle.
What a cliche-laden piece based on a questionably-constructed survey. Everything described above IS marketing. And of course nobody trusts marketERS. What’s the news again?
ReplyI agree.
The marketing funnel is still a useful framework though it does need some reinventing, thank you for this wonderful article
ReplyI agree….
ReplyThey should very much be considered as part of the overall marketing mix by any marketer who actually knows what they’re doing
Replythats true i aggreed with your article
Replyconsumer reviews as much as anonymous comments on industry websites, I agree about that
ReplyHave your say