Should We Re-Think the Lead Generation Funnel?

23 10 2009

What happens when someone becomes a fan of a facebook fan page? What happens when someone RT retweets something? What happens when you hold a conversation on Linkedin? This individual “vote to participate into a sales process” is seen by their ‘friends’. Did I shock you? It may not lead to a monetary transaction but it triggers an increased awareness of something. Consumers and customers have been empowered for some time to become active participants of their consumption. They are clearly moving outside of the traditional sales funnel starting with thorough research using internet.

A recent McKinsey report (June 2009 Subscription) highlights that only 30% of purchasing decision points are still ‘company driven’. This means that more than 70% of decision points in a buyer’s active evaluation process are now consumer-driven: user consumer reviews, word of mouth and in store interactions. Is it time to re-evaluate how things are done?

Social technologies are expanding these phenomena to micro-influence level never seen before. A few weeks ago, I had to change our office router and jumped on Twitter & FB to ask what people thought… it didn’t take more than 10 minutes to get 10 e-pinions… 2 from people I know, 8 from people I don’t know. It’s getting much easier to get that instant feedback. You bet I bought what was most recommended.

Now what does it mean for our businesses? People are empowered to swap between brands more than ever before. The social media funnel and measurement is simply upside down compared with a traditional sales or purchasing decision process. It’s cheaper, greener, further-sighted to use social media. Brands need to go through the journey of seeing themselves through the lens of their constituents. It’s not an audience, it’s a constituency.

1- A brand may and connect with its core customers to start with and then expand. There is, most of the time, an underlying community of customers or consumers. There are also communities of influencers in that space. Both groups should be recognized and empowered by your brand if you’re serious about building trust.

2- A community will only engage if they feel connected and empowered by that brand. If there is no exchange, there is no social media; it’s only push marketing through new channels. Deliver high quality content and help them support each other. People are likely to want to discuss about much larger things surrounding your brand than just your product. They already know of your product or use them.

3- The more they talk, the more they trust, the more everyone is merrier.

4- Be where conversations happen. If you’re lucky/skilled… but mostly honest and caring, people will progressively feel comfortable discussing the brand’s social footprint or presence. If not, a brand should carry its ‘conversation capital’ where ever those conversations happen.

No one likes to be part of a funnel (ask the Foie Gras ducks what they think about this). Like everyone else, we vote with our $$ when you see value and can trust a product or services. On the other side, it always feels good to buy something from a brand you trust. Be the change you want to see, they say.

Now, is this the right mix? Am I saying that the traditional funnel should disappear? No. How do you think an organization should look at these strategies?

@YannR

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What’s the old Napster got to do with the new PR?

6 01 2009

As 2009 dawns here at Extanz we have been reflecting on  some of the simultaneously insightful and frustrating conversations we have had with folks recently around the notion of PR 2.0 and what counts as “success” in such a field. Now, we know we say we do PR 2.0 and the term sits heavily with us. We use the term because it is something that people can “hold onto” and has some meaning, but like all language, it traps us in a game (as Nietzsche would argue) and it is this game that has become increasingly frustrating to us. You could argue that our view on PR is colored by our politics. You could argue it is colored by our international backgrounds. Even our language differences. But it really comes down to some very simple terms — “public” and “relations”. These terms beg the questions, we would argue, of 1)  “who is your public?” and 2) what kind of “relations” do you want to have with them? We’ve implicitly discussed these philosophical underpinnings of Extanz’ work before in our posts on Trust 2.0 and The Medium is the Message, but we thought we try and spell it out here. See what you think.

First of all, hands up all those who remember Napster? How about KaZaa? Come on now, you don’t have to be nervous…. how many of you participated in P2P activities way before it was gentrified and still considered a somewhat edgy act akin to, dare we say it, hacking? How many of us believed ‘information just wants to be free’? How many of us still do?

Back in the radical early days of Napster, I was lucky enough to be around some super smart media  and cultural studies people and we wrote a paper on just what it was about Napster that made authorities’ blood boil and music lovers rejoice. Napster and its P2P friends, peers and offspring reminded us that systems of enclosure such as copyright, patents, and property deeds are artificial creations, the tools of the powerful to become more powerful; weapons of exclusivity, designed to keep their users in “in their place” in an artificial order of things; instruments of selfish wealth creation for some individuals. Now, one of the reasons Napster and KaZaa and the like were so popular was because we all knew we were being sold 2 good tracks on a CD for the price of 10 and there was nothing we thought we could do about it until we realized that if we just set those tracks we liked free, or if our friends had them and we traded them for others, then everyone could win. And win we did. Heck, even the bands cut out the middle people which made them, well you know, discontent. And then vengeful.

Around the same time, I was torturing myself over my ‘original contribution’ to academic knowledge as I toiled through my PhD program (with those smart types I was mentioning earlier). Frozen like a deer in the headlights, I was whining to one of my mentors one day about my desperation of not finding my unique contribution when she reminded me that, “there is no such thing as an original idea. There are only original combinations and articulations.” That’s academic speak for what we know now as, ‘the mashup rules; and the more creative the mash, the better it is’.

What’s the old Napster got to do with the new PR? Everything. Napster then and now serves us a reminder of the true power of the Web (it is called a web for a reason, folks). It reminded us of its original conception, its unique brilliance– its power to connect and create mutually beneficial relationships with others. At the same time that Napster ruled as a radical force and disruptive technology, we both had the honor of working for a data storage company. While sadly unaware of what would come to pass in its industry, the company had a slogan at the time —  “information made powerful”.  Napster was information made powerful. Facebook is information made powerful. Web 2.0 is information made powerful. Napster ushered in the age of the bricoleur; the artist who weaves different forms, different objects and different ideas together to create something new and useful to share with others. PR 2.0 is about the bricoleur; the individual who creates relationships between people, objects and ideas.

The new PR is not the PR of our parents’ generation. It is the PR of the Napster Generation. The Millenials. Gen Y. Gen disrupting the workforce. Gen ADHD. In the eyes of Extanz, PR 2.0, the new PR, is conversations made powerful. People made powerful. Participation made powerful. Relationships made powerful. As the Zen Buddhist Teacher Shunryu Suzuki, in Zen Mind, Beginner’s Mind states, “when you forget all your dualistic ideas, everything becomes your teacher, and everything can be the object of worship.” (p.44). PR 2.0 Extanz-style.

With thanks to Today is a good day  ,  jm3and of course Napster, for their inspiration!

Welcome to the brave new world — ready to share?

Kirsti