The Modern Customer Funnel

Originally, businesses created a traditional sales funnel where the company was in control and got to push the prospect through the sales grinder. That original model is dead now that a new model has emerged. The main difference in the new model is that instead of businesses working toward a “close,” both customers and businesses alike are starting to see the funnel as the beginning of a deep and valuable relationship with each other. The new model was coined Pirate Metrics by Dave McClure because of its infamous acronym: AARRR! This stands for the five key metrics that McClure believes map out the lifecycle of the customer: Acquisition, Activation, Retention, Referral and Revenue.

AIDA vs. AARRR

The original AIDA model has been around in the marketing world for ages. The lifecycle went like this:

A is for Awareness, or attracting the customers’ attention.

I is for getting the Interest of the customer.

D is for getting the customer to Desire your product and convincing them it will satisfy their needs.

A is for Action, which is leading customers toward the actual purchase.

While its principles still have some value, it is now pretty out of date. The main difference between AIDA and AARRR is that McClure’s followers start with acquisition of customers instead of Awareness building, according to Sean Ellis. From there, it goes on to extend the life of the client-relationship with the retention phase.

Data Driven Analysis and The Funnel

Consumers don’t follow a linear path through the funnel any longer. Much of the journey relies on digital engagement. For instance, consumers often check out product reviews on websites and across platforms, look at their social media accounts and then make purchases online. All of this information is tracked and available for us to analyze. The split-funnel attribution model takes advantage of this data-driven insight into how each part of the funnel boosts conversions by tracking impressions, clicks and conversion info. In turn, this data-driven analysis helps you to create more personalized content that drives acquisitions, leads and revenue as well.

The Acquisition Phase

In the new marketing funnel, you place a lot of emphasis on your first contact point with your customer. Your initial marketing efforts worked and you have their attention. They’ve probably visited your website and some of them have even taken an interest in your content. These numbers serve as the starting point for analyzing which of your marketing channels are working. You can see which types of content are holding people on your site and which ones are trickling down and out. Breaking this into stages helps, such as who signed up for your mailing list, who signed up for your Beta list and how long their engagement with certain aspects of your site was. The ones who are subscribing are the ones in an advanced stage of acquisition – these are the ones you want to push forward with your Activation steps.

Retention Phase

In today’s connected world, the conversation doesn’t end when the sale is ‘closed’. For example, Halloween is confined to sales during September and October. However, the conversation doesn’t abruptly stop after the 31st. Technology allows for companies to have a continuous conversation with customers, make them continuously feel appreciated, and increase their lifetime value as a customer.

Traditionally, it was hard to monitor when customers were talking about a brand and required more resources to focus on retention vs. customer acquisition. In the modern era, we have technology such as Oracle’s new image recognition software designed for brands to ‘listen’ for when customer post photos including recognizable brand attributes. These tools make it easier to focus on increasing the lifetime value of customers through engagement with the intention of increasing their individual net promoter score as well.

 

Sources

https://www.ensighten.com/company/newsroom/lets-split-funnel/

https://www.convertwithcontent.com/the-content-marketing-sales-funnel/

https://twitter.com/seanellis/status/629699744097439745

http://www.samuelhulick.com/life-inside-dave-mcclures-pirate-metrics-funnel/

Using Identity and Attribute Data For More Effective Marketing Initiatives

Broadcast marketing is dead. Sending the same message to everyone of your customers is less effective every year.

A more effective approach is to build campaigns to a select a group of your customers. You can do that with accurate identity and attribute data about your clients:

  • Identity data is the primary data about your customers — for example: name, address, phone and email address.
  • Attribute data is more detailed data like their age, income, gender and education.

With better information, you can identify what will appeal to specific customers and create more relevant promotional messages to meet their needs. Let’s take a closer look at identity data and attribute data.

Identity Data Points

Identity data refers to data points you can use to identify one customer from another. Every media channel in some way uses identity data. Smart phones have specific device IDs. Internet browsers utilize cookies to ID users. Retailers and online platforms routinely use e-mail addresses as identity data.

Once you have identity data about different clients, you can customize your promotional messages for very specific audiences, rather than using a broad message which may only appeal to a finite segment of your client base.

All Phases of the Marketing Funnel

Identity data is prominent in many phases of advertising, marketing and digital analytics. Brands use it throughout their marketing funnel. Online publishers and media routinely check their site metrics and visitors using identity data.

There are many forms of identity data. Low-level data like cookie IDs identify web browsers, but don’t provide a lot of information about your clients. E-mail addresses, in contrast, span several media channels, tend not to change much, and are usually specific to an individual person. That’s why progressive marketers want to collect and utilize stable data points.

Attribute Data Adds Depth

In a previous article we discussed the Differences In Data sourced for marketing initiatives. There are also different types of attributes accessible for marketing purposes, such as demographic, geographic, interest, and behavioral.

Gender, age and income are all examples of attribute data. This is demographic information that provides more complex and actionable information about your customer. It can include things like whether they are a premium or regular customer.

Attribute data is used in creating, developing and implementing marketing and promotional efforts. Examples of this include:

  • Encouraging members that have passed the two-year membership to sign up for the premium membership level.
  • Targeting specific product deals to customers that have bought similar products in the past.
  • Segmenting product promotions by market depending on weather conditions.

Eliminate Noise and Inefficiency

Each of these data points provide leverage that has not been available in the past. Now marketers can reach customers with more effective messaging that provides more value to them. It not only features products and services they want, it eliminates the noise of anointing broadcast marketing which hits many people outside the target market.

Cross Channel Optimization

This is becomes more complex as customers interact with your business across a variety of channels. Let’s say one of your customers opens an email, later searches for your product online, asks for opinions from friends on Facebook, or they watch a YouTube video about it. A profile of this customer spans across multiple channels to provide unified information which is powerful for marketers. There are a variety of technology solutions to support the complexity of identifying, tracking, and matching users across multiple channels.

You can segment your audience to target users more effectively. The data is anonymous so privacy is respected. But you can get a view across multiple channels which changes marketing. You want to be able to build campaigns that reaches clients across channels, understands their behavior and segments their message.

Data Collection Mechanisms

The question then becomes do you have the right mechanisms to collect this data. And do you know how you’re going to utilize it after you’ve gathered it?

The secret is to get the clearest picture of your target customer as soon as you can. The challenge is that the data is constantly changing. People move, get new email addresses, and change their phone number.

Using the proper data is critical to ensure the effectiveness of every direct mail piece, email message or retargeting campaign you initiate. The only way these efforts work is if you have accurate data that you keep up to date.

Transparency and Trust

You can gather more information, and more accurate information if you communicate to your clients and prospects how their data will be used. A recent Gigya study showed that a large majority of respondents will click out of online registrations because they feel concerns about how their information will be used.

It’s important to address these concerns because accurate information is key to effective messaging. That’s why some online platforms like Facebook have introduced line by line permissions in their sign-up process. This is the practice of asking several questions after login that allow customers to decide how their information will be used.

Building and developing a relationship with your customer is crucial for long term success, so transparency and trust are core values to your marketing initiatives. It is mutually beneficial to the customer and marketer, so both gain value in the relationship.

More Effective Messaging

It’s important to collect accurate identity and attribute data not only because you want to reach the consumers who are open to your message, but you want to improve the quality of the message itself. You are the bridge between your customer’s data and the message that will most resonate with them.

Your goal is to look for stories in the data that you can pull out and frame so that it motivates your clients to take action. The trick is to make it personable and memorable for the market segment you are targeting.

Win Clients Over with Storytelling

For example, Buffer, a social media sharing company, shares the story of a customer support app called Groove. Groove was able to generate a 300 percent increase in the people that read a particular post using the power of storytelling. They explain how using dialogue, metaphors, emotions, familiarity, and powerful graphics combined to drive a huge response.

Art and Science of Data Collection

Identity and attribute data are the science. Your creative and storytelling abilities are the art. Effective marketers are adept at both. Gather accurate data, look at it to see patterns, and build stories that will create the most impact from your target market.

About Diggen, Inc.

Diggen is a data marketplace to help marketers become and manage data driven enterprises. Data driven marketing initiatives accelerate growth, since it improves key performance indicator (KPI) metrics and increases revenue over 19%. However, marketers have monumental technical challenges accessing data assets, sourcing data providers, and integrating into their marketing technology stack.

Our platform uniquely combines a data marketplace to source all marketing data with middleware to integrate into all marketing technology stacks. For example use our intuitive web interface to append gender, age, location to email addresses and integrate into an email service provider. Therefore, marketers segment their audience for newsletter emails, which creates relevancy, more engagement, and increases conversions.