Do we need to keep using funnels in B2B marketing? Has the traditional funnel served us well, but the reality is, our buyers are simply in or out of market. Do we overcomplicate the role of the funnel, and what worked years ago, still serves us well? Has our role evolved and do we need to take into account the extra complexity of our marketing that requires a more visual representative like the bowtie funnel? But what’s the core purpose of our funnel? Do we use the graphic as a visual representation to guide our marketing execution, strategy and thinking? Does our funnel serve us well to navigate office politics, secure budgets and convey our plan of action? Does it help us unpack our thinking? Or, is it all of the above, and we simply adapt to the situation that stands in front of us?
A funnel is helpful for ensuring you have ads/content for the different stages of the buyer journey. However, I do think in B2B people are either in-market or out-of-market. And you can't linearly try and push buyers through a funnel step-by-step.
I don't think the B2B funnel is redundant but it's obviously more complex. The buying process is not a linear pattern, it moves up and down the funnel with changing requirements and many decision makers with different agendas. Providing you take this into account I still think the funnel is useful for B2B marketing.
A funnel is an instrument lead generation marketers use, to push buyers from MQL to SQL. For Brand and Demand marketers it's a useless instrument, because you don't push, you pull.
I know there's a lot of debate about this but I find in PLG motions it's very easy to prove the funnel. You align content to each stage and retarget audiences accordingly. On a short sales cycle it can be proven. When we look ABM/enterprise motions proving the impact gets much harder because sales cycles are much longer. Marketers tend to panic here and dive too deep in attribution - they try to control each touch point. And ABM practictioners then say 'the funnel has flipped' because they struggle to prove channel by channel ROI. I stand firmly in the camp that a funnel provides a framework. On some tactical campaigns you can cheat it - but most the time it works. The effectiveness of retargeting audiences is digital proof.
The funnel is a model that's largely not an accurate representation of how people buy stuff. It's not useless and I think you can use it to set objectives, I just think it's inferior to other more empirically backed approaches.
We deprecated the lead-based waterfall at SiriusDecisions in 2017 in favor of a model that makes a full accounting of potential opportunities. Every marketing organization must know what the market of potential opportunities is, and where each potential opportunity is in its lifecycle, understanding that most are not in a buying process of any kind. So, I think every org should strive to know: How many potential opportunities are available and theoretically obtainable if in market? How many of those are in market (not just which will buy, but which are out shopping)? How many of the in-market accounts are engaging with me? Of those that are engaging with me, how much? Those are stages in the B2B Revenue Waterfall at Forrester. I think those are non-negotiable must-knows. But I think these days you should be measuring where in the buying journey those potential opportunities are? Of course, they'll move backward and forward, and an estimation or prediction of where they are in their journeys at any give moment is just that. But, understanding this affords a level of predictability that a lead-based system cannot do.
There are no problems with the funnel or any representation. They're tools, that's all. All the issues are thinking problems.
User journeys are non-linear and have been for a long time. The marketing funnel has been nothing more than a representation of the three states a customer may be in at any one time and should never be treated as steps they go through. Also, B2B marketing is very broad. For small business marketing, the funnel is virtually irrelevant.
The funnel idea is on top of my mind because of a recent post by Tom Hunt. He recently 'purchased' a funnel that may significantly impact his biz.
Head of Brand at Aldermore
1moLike any model, it's a representation of reality, but is only that. The funnel isn't a literal translation of ala customer (or potential) customer journey, it should be used to articulate how decisions are made. The key is understanding the funnel for your customers, identifying the key decision points and what's needed at each stage. Decisions are not linear or rational, but the funnel is useful for driving activity.