Flip It, Turn It, 'Bop It!' The Traditional Marketing/Sales Funnel Is Out, So What Really Works?
If you have kids, you may know the Bop
It! game. If you don't... picture a portable gaming unit (a joystick of
sorts) that tests your reaction time when performing a series of commands.
Those commands are in random order, and players need to respond correctly and
as quickly as possible, or they're out of the game.
You're asking, What
exactly does this have to do with marketing?
Well, Bop It! reminds
me of the many new go-to-market (GTM) strategies that have emerged because of
the need to move away from the antiquated linear marketing and sales
funnel, as originally defined by William W. Townsend—soon to celebrate its
95th birthday. Sales and marketing teams are trying all different approaches,
but whether they flip the funnel, turn it, or "bop it" (the choice of nine-year-olds), the traditional funnel doesn't properly reflect how most B2B
GTM's run.
The main issue? It
doesn't encompass the way buyers behave, the way purchasing decisions are made,
or the way customer engagement should be designed. Buying cycles for today's
complex global enterprises are more multidimensional and spiral-like, with a
continuum of purchasing decisions made over the customer's lifecycle.
Typically, the initial sale is just the beginning: 80+% of organizational
revenue actually comes later.
That's because in today's
digital marketplace, where more is sold "as a service," companies can
"try and buy," thus leaving most of their lifetime value
on the table for future purchases.
Particularly in the
case of software, businesses can purchase fewer licenses and test-drive a
product or service without making a long term or expensive commitment. Many
industries are shifting to a Cloud-like services model that allows this.
Moreover, with
everything from human interactions to business transactions being measurable,
the "trial model" empowers buyers to require tangible ROI before
expanding.
It's not bad news,
though. There is a way to win in this environment.
The Bow Tie: A Funnel
for Continuous Marketing
So,
in this world, where customers start small and grow, what does it mean
specifically for marketing? Most marketing activities today occur before the
sale, versus after the win, which right off the bat creates a major disconnect
between investment and generated revenue. Instead of thinking of customers as
"exiting the funnel" once a deal is signed, marketers should model
the entire customer lifecycle in terms of a "Bow Tie" Funnel" to
optimize for and sustain revenue growth.
The Bow Tie
methodology—essentially an infinity loop for marketing efforts wherein a
customer is always treated like a prospect—ensures that marketers, together
with Sales, are providing value and engaging at each stage of the relationship:
before, during and after the sale.
That's
a fundamental concept ingrained in account-based marketing.
Opening the doors to new customers is important, but so is widening the door for existing customers. In a sense, marketing needs to prepare or trigger the next sale, similar to the Nir Eyal's model of hooked triggering events for user adoption and habit creation. Marketing needs to think about the customer lifetime value holistically—from initial sales, to loyalty, to expansion via upsell, and ultimately to renewal and through this cycle again.
Opening the doors to new customers is important, but so is widening the door for existing customers. In a sense, marketing needs to prepare or trigger the next sale, similar to the Nir Eyal's model of hooked triggering events for user adoption and habit creation. Marketing needs to think about the customer lifetime value holistically—from initial sales, to loyalty, to expansion via upsell, and ultimately to renewal and through this cycle again.
Post-Initial Sales
Approaches: The Right Side of the Bow Tie
Marketers
who don't use the Bow Tie typically focus solely on the left side—creating
awareness and measuring interest levels. However, there are several key post-sale
areas that marketers should capitalize on.
For
example, when a new customer need is identified via a sales interaction, data
analysis or marketing insight, marketers can take customer relationships to the
next level, create growth opportunities, and eventually turn them to brand
evangelists.
Below
are a few Bow Tie right-side opportunities to explore, allowing marketers to
"trigger" the next revenue generating customer event:
- Implementation: Larger and more complex
deployments often need consulting and professional services after initial
setup. Be on the lookout for opportunities to offer support, mainly in the
form of marketing created education and guidance.
- Renewal: Automatic renewals may be
easier for rebilling, but manual renewals provide an opportunity to
cross-sell or upsell. Use the renewal process as a way to offer new
services.
- Expansion and upsell: Happy clients make the
best referrals. Harness your successful client relationships as the basis
for expansion suggestions. Suggest additional offerings during the account
evaluation, or mention other departments within the organization that
could also benefit from your solutions.
- Cross-sell: Identify opportunities to
share complementary products to what customers are already using or
evaluating, and thus expand the deal.
Programs to Implement
to Trigger the Next Sale
There
are some real-world tactics that can yield impressive outcomes for your
business:
- Send educational newsletters
from Sales. One
of our customers continuously educates prospective buyers and stays top of
mind by sending monthly newsletters via account executives. It's important
to take a consultative approach to content to gain trust as an adviser.
Also use third-party content, such as analyst reports and industry blogs,
that are rich in information; they, too, can lend credibility.
- Prepare for upsell. Another customer
identified an upsell opportunity, but, instead of abruptly springing it on
the buyer, created an educational campaign that started a month
beforehand. By placing a strong focus on trend education rather than on
the product, the company was successful.
- Host webinars focused on
specific stages. Successful
marketers run webinars for groups of existing accounts that are at the
same stage of the Bow Tie Funnel—for example, "have purchased Product
X and are looking to roll it out globally." This approach allows you
to be very targeted with webinar content, providing immense value to
customers.
- Provide knowledge-sharing
opportunities. Provide
opportunities for customers to talk to each other in the vein of a
dedicated customer community. Whether via customer forums or informal
one-to-ones, peer interaction can go a long way. One of the ground rules
is to stay on the sidelines: Facilitate the discussion, but don't run it.
- Send end-of-year summaries. Some companies routinely
communicate value and ROI to customers; that's the hook for the next sale.
Organizations that create end-of-year campaigns to demonstrate the success
of the past year and plans for the next are frontrunners in earning the
customer's trust.
Beyond the Bow Tie
To
evolve into a high-performing GTM team, marketers can enlist other tactics. The
first includes formulating a different engagement model with Sales, something
talked about a lot in forming ABM strategy: Instead of handing off leads to
Sales, Marketing needs to be fully involved in the sales process.
Harnessing
customer data is also key to value-driven marketing. Because we know so much
more about customers than prospects—such as key stakeholders, their business
goals, challenges, usage patterns, and more—it's imperative to incorporate this
data into marketing campaigns to make them more personalized, relevant, and
effective.
Finally,
because people buy from people, position a dedicated contact on the front
lines. Customers already have a relationship with the account and/or customer
success manager, so that person must be at the forefront of every marketing
activity: People interact with people—not just with a brand.
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