How to turn the Marketing Funnel into a Loyalty Loop
So you’ve heard that the Marketing Funnel is Dead, and the Loyalty Loop is the new black. Why? The marketing teams of most clients I work with today are more focused on building existing relationships and creating deeper connections, over just getting more new ones. These clients are from diverse industries too: From law firms to travel to food services, product manufacturers, grocery distribution, and even universities.
So why can’t the marketing funnel work for existing clients or even engaged prospects? It’s too static, assumes all humans are the same, and doesn’t allow for the individual needs. It treats someone who has already engaged with you, even bought from you, the same way as someone who has never heard of you. It doesn’t take into account Einstein’s definition of insanity (trying the same tactic and expecting different results) when your tactics aren’t working to convert. And most importantly it doesn’t care for the loyalty you’ve created with your existing customers and how they can help you and build on it. Existing loyal customers are your best marketing team, after all!
Ok, so I’m by no means the inventor of the loyalty loop. Here’s a few great examples and reading material for those looking into what is a loyalty loop: from General Assembly, from Business2Community.
While most agree that a customer’s journey, creating an emotional connection, and tracking loyalty is more important than the Marketing Funnel, the truth is that most Martech tools (CRM, Marketing Automation, Analytics) are still made to support the Funnel. My focus for the rest of this article is how to take your marketing funnel and tools and use them to support your loyalty loop.
Marketing Funnel Model
The Ultimate Guide to Marketing Funnels - Business 2 Community
This Marketing Funnel from Business2Community is a perfect traditional model of attracting prospective customers and sending them into the funnel to purchase until they become current customers. It’s a good example of both B2B and B2C funnels regardless of the timeframe taken to move through the funnel from awareness to purchase. However, it is also the perfect example to showcase what should happen after? And what should you do to those who fall out of the funnel? Is your digital experience not for your current customers, and do you not need to engage those that are not part of your funnel anymore? Should they just “go back up” and start over? Is it right to treat someone who knows you, even loves you, the same as someone who does not?
Loyalty Loop Model
Loyalty Loop (Source: General Assembly)
Here’s a loyalty loop model by General Assembly. It does address the most important concern with the Marketing Funnel. It has a loop for your prospects and a loop for your currents. And remember, your current customers who are your advocates not only keep buying from you, but these are the customers who can bring you more customers and thus become an extension of your marketing team.
Translating your Marketing Funnel into a Loyalty Loop
Your Loyalty Loop should have two loops. The first one can be a representation of a prospect and what it takes for them to go from first getting to know you or your product (awareness) to becoming a customer (buy). This first loop will be very similar to your Marketing Funnel.
The second loop is for your customer. Your existing customer is an essential piece of your marketing efforts. Hence, the loyalty loop should focus on what it takes to get an existing customer to become a repeat customer, a referrer, a loyalist, a fan, and an influencer for others towards your brand and products. This is the main focus of your second loop. The second loop interacts with the first loop as your existing customer refers and influences others to buy your products or services.
