Why the Traditional Funnel Falls Short: B2B Brands Embrace Customer-Centric Alternatives

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B2B buyer journeys defy linearity. With their complexity and involvement of multiple stakeholders, these journeys unfold over a significant span of time. Consequently, the notion of a prospective customer progressing seamlessly from awareness to consideration to conversation in a predefined manner is fundamentally flawed. Consequently, the consensus is that the traditional marketing funnel is inadequate and needs to be discarded.

Tom Roach, vice-president of strategy at Jellyfish Global and columnist for Our Website, stated that the concept of the funnel contradicts the principles of customer centricity, listening to people, and truly comprehending their unique and diverse perspectives. In his view, the funnel instead focuses on filtering individuals to prioritize the messages one wants to convey.

"We must have a deep understanding of customers and their actual journeys before implementing any strategies in sales funnels," he emphasized. Anouschka Elliott, the global head of marketing at Goldman Sachs Asset Management, echoed this sentiment during a panel discussion at Our Website's Festival of Marketing. She emphasized that B2B buyer journeys are no longer straightforward and have become more complex in recent years. As a result, marketers must adjust their approaches accordingly.

The funnel is an invaluable tool for clarifying our work to non-marketers. However, we are currently lacking in advocacy, loyalty, and the ongoing relationships that we should be cultivating, as well as the intricate aspects of the customer journey.

- Anouschka Elliott, Goldman Sachs Asset Management

She asserted that a significant portion of millennials, who now comprise a large part of the workforce, prefer minimal sales interactions. She mentioned, without providing a source, that only 17% of the purchase process currently occurs face-to-face, and on average, there are 10 to 15 decision-makers involved in each purchase.

"Furthermore, our research indicates that only 5% of the B2B audience is actively making purchases at any given moment, emphasizing the crucial role of mental availability," she emphasized. "Additionally, our relationships with institutional investors are known to span over remarkably extended periods."

The customer must be at the centre

In order to better represent the client-centric approach, PwC has introduced a custom model to replace the traditional sales funnel. According to Paul Beattie, marketing director for the global marketing organization at the professional services firm, the sales funnel fails to emphasize the client's central role.

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Derived from Antonia Wade's model on B2B buyer journeys, Beattie emphasized that each organization must consider the most suitable approach to ensure it maximizes its potential in achieving their goals. At PwC, he is dedicated to developing the brand for future revenue growth.

We have a strong emphasis on guiding individuals in identifying their unmet needs and informing them about the services we offer that address those specific challenges and opportunities within their organization," he clarified.

PwC categorizes potential customers into five stages - horizon scanners, explorers, hunters, active buyers, and clients. Although it may initially appear linear on paper, we customize the approach to each individual buyer.

The funnel isn’t dead

We will explore the challenges faced by the CEO and guide their progression through various stages. Additionally, we will also focus on the concerns of the CTO. It is crucial that both individuals come together and approach these issues and opportunities from distinct perspectives. To facilitate their buyer journey, we offer a range of resources including diverse content, educational materials, differing viewpoints, and expert opinions.

The panellists acknowledged that the traditional sales funnel is no longer effective from a buyer perspective. However, they recognized its value in communicating marketing efforts to internal stakeholders. According to Elliott, the funnel serves as a relatable framework for non-marketers to grasp our work. However, it falls short in capturing important elements such as advocacy, loyalty, and the ongoing relationship-building that we need to focus on, as well as the intricacies of the customer journey.

Beattie acknowledged that the standard funnel still serves a purpose, particularly as a model for internal understanding. However, he emphasized the importance of placing the client at the forefront of all marketing efforts.

Similarly, Roach, who has labeled the sales funnel as "the cockroach of marketing concepts," expressed that although flawed, the standard funnel can still have its merits.

He stated that due to the complexity of the media landscape, simplification can be beneficial, especially when communicating with internal stakeholders who may not fully comprehend this intricate industry. Consequently, he believes that this simplified approach is likely to persist in the future.