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Why the Digital Marketing Funnel Needs a Rethink

The Digital Marketing Funnel Needs a Rethink

Gavin Duff's avatarGavin Duff30th Sep 2024
MarketingStrategyUser Experience

The digital marketing funnel has been a mainstay in the industry for decades. I stopped presenting the typical marketing funnel long ago because it stopped making sense to me. Here’s why…

Traditionally the marketing funnel was a simple way to visualise and guide a customer’s journey, from Awareness to Purchase. However, as the world evolves, it’s clear that the funnel no longer reflects the complexity of today’s consumer behaviour. Not one bit.

The linearity of the funnel – where a customer moves predictably from one stage to the next – is no longer relevant in the digital marketing space.

Holding onto this outdated model may limit your potential to connect with customers where they are.

The Traditional Funnel: Where It Once Worked

For years, the traditional funnel offered a sense of order. It was like a reliable map – easy to follow, simple to measure. You could chart a customer’s path through Awareness, Interest, Consideration, and finally Purchase. At every stage, specific KPIs could track the success of each step.

This method was beloved by marketers for its ability to guide a structured campaign. But we have to ask ourselves: Are customers following such neat paths anymore?

I don’t think so.

Today’s consumers are empowered. They jump between devices, review social media, check multiple websites, and take advice from influencers before they even consider clicking ‘Buy Now.’ The journey from discovery to purchase is now more like a spider web of touchpoints, not a straight line at all.

Where the Funnel Falls Apart: Missing the Consumer Journey

When you think about the journey consumers take today, it’s easy to see why the funnel is falling out of favour. Modern consumers are information-rich and choice-heavy. They are sceptical of anything that feels generic.

Consumers now interact with brands across numerous channels, often engaging with multiple stages of the traditional funnel at the same time – or skipping them altogether.

Picture this: A potential customer stumbles across your social media ads, clicks through to your site, and then leaves. A week later, they see a retargeted ad, do a quick Google search for reviews, and finally buy based on an influencer’s recommendation on TikTok. This journey wasn’t linear; it was a loop, with each touchpoint adding new layers of influence and consideration.

The problem with the funnel is that it simply doesn’t capture the complexity of today’s consumer experience. Worse, relying on this model can blind you to what’s actually happening in the minds of your potential customers.

The Frustration of Over-Simplified Journeys

One of the biggest frustrations marketers face today is trying to shoehorn diverse customer behaviours into the rigid stages of a funnel. When consumers don’t behave the way the model predicts, it’s not their fault – it’s the model’s failure to account for reality. Trying to push people through a funnel can feel forced and irrelevant. It can even turn customers away.

Think about how this impacts the effectiveness of your marketing. Instead of focusing on real touchpoints and behaviours, too much time and budget is spent pushing people from one stage to the next. This approach doesn’t just waste resources; it also risks alienating your audience with messaging that doesn’t resonate.

Worse, the funnel’s structure can lead marketers to over-rely on outdated strategies like interruptive advertising or hard-sell tactics that don’t align with the modern consumer’s desire for meaningful interaction.

A Better Approach

It’s time to let go of the funnel and adopt a model that more accurately reflects consumer behaviour today – the flywheel. The flywheel turns the traditional funnel on its head, focusing on continuous motion and customer engagement rather than a straight line to conversion.

Here’s the key difference: The flywheel keeps customers at the centre, constantly fuelling momentum. Every customer interaction – whether with a chatbot, a customer service rep, or an influencer – adds energy to the wheel, keeping it spinning. The goal isn’t just to convert but to delight, encouraging customers to keep coming back and, just as importantly, to advocate for your brand.

For example, a website with great UX fits into the flywheel by seamlessly attracting, engaging, and delighting users at every touchpoint, fuelling continuous customer satisfaction and brand advocacy.

flywheel funnel

 

Why the Flywheel is More Effective

Continuous Engagement: It’s no longer about driving a customer to a one-time purchase. The focus is on building long-term relationships and creating brand advocates.

Multiple Entry Points: The flywheel allows for a nonlinear journey where customers can enter at any stage and move freely between touchpoints.

Post-Purchase Focus: The flywheel recognises that the customer journey doesn’t end with the purchase; it continues through engagement, loyalty, and advocacy.

Think of it this way: the funnel ends once the sale is made, but the flywheel keeps customers engaged, turning them into repeat buyers and evangelists. It’s a model for sustainable, long-term growth, not just one-off transactions.

Using Data to Unlock Consumer Behaviour

The success of the flywheel model is deeply tied to how well you understand your audience. Luckily, the explosion of digital data now allows us to understand customers in ways we never could before. This data allows for personalisation and targeting at every step of the journey, from product recommendations to perfectly timed follow-up emails.

Consumers expect personalisation, but here’s the catch: they also expect authenticity. It’s not enough to throw data-driven suggestions at them. Those suggestions need to feel genuine, like a helpful nudge from a trusted friend. This is where understanding the emotional and psychological drivers behind consumer behaviour becomes key.

By digging into your data, you can begin to uncover patterns of intent – the real reasons why consumers take certain actions, like abandoning a cart or returning to a website weeks later. But using this insight wisely means not just reacting to behaviours but anticipating needs. With the right data, you can predict what a customer might want before they even know it themselves! Creepy? Perhaps (joking). Effective? Yes.

The Role of AI and Automation

AI and automation are crucial for implementing the flywheel effectively. AI allows marketers to analyse enormous datasets and extract meaningful insights, while automation ensures that each customer interaction feels seamless.

For example, AI-driven chatbots can provide instant, personalised service 24/7, answering questions and guiding consumers in real time. This type of engagement makes the customer feel understood and valued, enhancing the overall experience. Automation can also streamline lead nurturing through tailored email sequences, ensuring that every customer interaction is relevant and timely.

But remember: automation is a tool, not a solution. The human touch still matters. I always bang on about this, but it does. The key is to use AI and automation to free up resources for more meaningful, personalised interactions, not replace them.

Moving Beyond the Funnel

At the heart of this shift is a fundamental change in how we think about customers. No longer are they targets to be herded through a predefined journey. Instead, they are partners in an ongoing relationship. By letting go of the traditional funnel and embracing the flywheel model, you create space for more meaningful interactions, deeper customer loyalty, and sustained growth.

The digital world is complex, but that doesn’t mean your marketing strategy has to be. By focusing on the flywheel, you can better capture the realities of consumer behaviour and build strategies that resonate deeply with today’s consumers.

It’s time to stop pushing consumers through a funnel and start pulling them into a dynamic, ongoing relationship.

Here are the next steps for marketers to transition from the traditional funnel to the flywheel model:

1. Analyse Your Current Customer Journey

Map out every customer interaction across different channels (social, email, web, etc.). Identify areas where customers loop back, jump between stages, or drop off.

Use analytics tools to track consumer behaviours and pinpoint where they’re engaging the most.

Collect insights from reviews, surveys, and customer support to understand pain points and what delights your audience.

2. Shift Your Mindset to Customer-Centricity

Think beyond one-time conversions. Look at how you can continuously engage with customers before, during, and after the purchase.

Make existing customers feel valued, as loyal customers generate the momentum that powers the flywheel.

Turn satisfied customers into brand advocates by offering referral programs, user-generated content campaigns, or exclusive loyalty perks.

3. Break Down Internal Silos

Align sales, marketing, and customer support around a singular goal—delighting the customer. Share data and insights across departments to maintain a unified customer experience.

Ensure seamless transitions between departments for customers. This avoids fragmenting their experience at different touchpoints.

4. Leverage Data for Personalisation

Leverage data from CRM systems, website analytics, and customer interactions to personalise every touchpoint.

Develop detailed customer segments based on behaviours and preferences. This allows you to tailor messaging and offers to the individual, not just broad demographics.

5. Implement Automation for Continuous Engagement

Create workflows that automatically nurture customers through email campaigns, retargeting ads, and personalised follow-up messages based on their behaviours.

Employ AI-powered chatbots, recommendation engines, and predictive analytics to anticipate customer needs and engage them in real time.

6. Measure Customer Lifetime Value (CLV)

Track Customer Lifetime Value (CLV) rather than just immediate ROI. Use this metric to prioritise investments that lead to longer, more profitable relationships.

Continuously gather data from customer interactions and use it to refine and optimise your flywheel strategy.

7. Engage Post-Purchase

Develop strategies for post-purchase engagement like follow-up emails, personalised offers, or exclusive content to keep customers engaged.

Promote opportunities for satisfied customers to share their experiences, review products, and recommend your brand to others.

8. Continuously Optimise

Test new engagement strategies across the flywheel phases—Attract, Engage, and Delight. Use data to measure success and optimise the process.

Be ready to adjust based on feedback and changing consumer behaviour.

By following these steps, marketers can create a more dynamic, customer-centric strategy that fuels long-term growth and continuous engagement.

The key is to view the customer journey as an ongoing cycle, not a linear path. Those days are long gone.

Do you want to learn how our unique blend of User Experience and Digital Marketing can redefine your customers’ delight? Get in touch today.

Gavin Duff's avatar

For two decades, Gavin has defined effective digital marketing strategy, SEO, PPC, display, content, e-commerce, data analytics, conversion rate optimisation, and social media direction for businesses multinationally and across all sectors. He is also an author, conference speaker, lecturer for Trinity College Dublin, podcast guest, media source, guest blogger and many other things in the area of digital marketing. He also holds a Dip. in Cyberpsychology, as well as AI and Machine Learning, and is a member of the Psychological Society of Ireland.

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