B2B marcoms: using funnels to create relevance and accurate positioning

Posted at December 11, 2009

Developing marketing communications for relevance throughout the buying cycle

The graphic below is from a whitepaper by Tippit Inc and it illustrates the phased nature of the B2B buying process. It’s such an important graphic for marketers because it provides a roadmap for developing and positioning marcoms that are relevant for each phase in the buying process - ranging from initial awareness through to purchasing and beyond.

Micro funnel

Working with funnels

The concept of marketing and sales funnels is not new: essentially they are a development of AIDA and the Hierarchy of Effects which categorise the buying phases as: Awareness, Interest, Evaluation, Desire/Conviction, Action/Purchase. Nowadays, its usual to add something like ‘Support’ and ‘Retention’ to account for maintaining loyalty in the post-purchase phase.

The shape of a funnel will vary according to two main factors: the amount of buyers in the market; and the timescale of the sales cycle. Markets with lots of buyers have funnels with wide openings or mouths – so that you can ‘pour-in’ lots of potential buyers:

Macro funnel

 Time

From a marketing perspective, Tippit puts it like this:

The funnel is the most commonly used metaphor to describe B2B sales cycles. But funnels come in dif­ferent shapes and sizes depending on the nature of your target market. For example, the complexity of a purchasing decision guides the frequency and breadth of interactions between buyers and sellers. This, in turn, determines the shape of the funnel.

To be a successful marketer, it’s important to understand how certain variables shape the funnel, and what type of funnel governs your market. This understanding can help marketing professionals like you choose the most effective set of marketing tactics for your organization’s goals.

Using the funnel to segment marketing messages: the Perception Cycle

In the Tippit whitepaper, ‘buyer activity’ is categorised or segmented as follows: 

Marketers can use the categories to segment the type of messages that are most relevant in the perception cycle.

The perception cycle is the market’s process of acquiring information that builds associations and opinions about a brand and what it represents.  

First impressions

In the ‘awareness’ phase, buyers are gathering information that begins to build their knowledge about a subject and its related products and services.

They are starting with a blank canvas and are forming opinions and perceptions. This process of discovery is a critical point in the perception cycle because first impressions really do matter.

This is a major opportunity for marketers to influence first impressions or to shift initial perceptions that have not yet become entrenched. For example, someone searching the web is likely to fall into the ‘awareness’ category, as opposed to someone who goes straight to your site because they already know of you – perhaps from an ad they just saw. 

Will a Google search find you? And if it does, what will they find there? Will it be relevant and what further action will it motivate?

Most importantly, will it keep them in your funnel?

In the funnel: five-by-five

Wikipedia defines the term ‘five-by-five’ as: ‘a signal that has excellent strength and perfect clarity - the most understandable signal possible.’

As the funnel narrows – not everyone who is ‘aware’ converts to a buyer - the relevance of marcoms messages and the accuracy of their positioning need to be increased.  

Equally, as the funnel narrows, the influence of those still in the funnel increases: at some point, the influence will be sufficiently strong to sanction the purchase. Some people will only fully enter the funnel at an advanced stage of the sales cycle – perhaps towards the end of the Project and Shortlist phases once their colleagues have already completed the processes of Awareness and Consideration.  

Very often, these late-entrants hold the purchasing authority. They might be guided by the opinions of others, but they will still draw their own conclusions and make their own judgements – as decision-makers, that’s what they do.

At this point in the cycle, the relevance of your message is critical. Excellent strength, perfect clarity and the most understandable signal possible: concise and compelling.

Relevance and positioning: what are you saying in the funnel and how are you saying it?

Two earlier posts, Building brand relationships and B2B buying: What? How? Who?, focus on identifying audiences within B2B markets and how to create relevant messages for them.

Having established the various audiences in the funnel, it’s a relatively easy task to identify how to communicate with them across the marketing portfolio: in essence, a detailed knowledge of each audience within the overall market will provide guidelines for the most effective means to communicate with them.

It all comes back to relevance: relevant message, relevant medium – five-by-five.

Working your way through the marcoms funnel

By their nature, B2B funnels are much narrower than those in B2C. However, not all your products and services will necessarily fall into the same-shaped funnel. As a generalisation, B2B tunnels will become narrower as the complexity and cost of your products and services increases.

Here’s what Tippit has to say about managing communications in narrow funnels:

Target hard-to-reach buyers
Hone in on key buyers in decision committees by profiling the organization. This means get­ting resourceful and creative to uncover and connect with influencers who would benefit from your remarkable content and, ultimately, your offerings.

Create and distribute remarkable content
A library of marketing assets is critical for complex and expensive purchases with long sales cycles. Your content must educate and convince buyers that your solution is proven and makes sound business sense to them and others in the decision committee.

Execute a multi-channel pursuit
Engage buyers with a combination of communication techniques (online retargeting, email, and phone all work well). Use multiple touches to deliver to sales a verified list from within a hard-to-reach target.

Managing the ‘perception cycle’ for higher ROI

B2B marcoms are a cycle of interactions with your market that should be carefully balanced so that the right message is getting to the right people at the right time.

By thinking in terms of a funnel, marketers can raise ROI by increasing the relevance of their messages and targeting them more accurately. And this approach certainly brings structure to managing the five basic principles of creating and presenting marketing communications: what, who, how, when and where.

Click on the link below to download the whitepaper from Tippit Inc

What’s the Shape of Your Funnel? Why funnel shape means everything in B2B marketing

Read more on creating and positioning marcoms:

Market reflections: managing brand perceptions

Leveraging B2B’s buying motivators - results-driven marcoms     

Marcoms: Outcomes are the differentiators - how outcomes create ‘Value’

Preventing price pressure - the influence on ‘Value’ on B2B buying

Back to The Long Hello: making B2B marketing work for the bottom line

B2B buying motivators, B2B sales, Making B2B marketing work, Marcoms

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