I haven’t had many guest writers on this blog, but that doesn’t mean I can’t start to use them. Today’s post was written by one of my boys, Chris Jablonski, who works with me in the Tippit consulting group. He’s been a marketer, writer and analyst for over 10 years at CNET Networks, IDG Communications and a couple of startups. He’s awesome and I am excited to publish his work on The Funnelholic.
Chris describes a compelling new look at the buyer funnel developed at Tippit.
You’ve probably seen the funnel metaphor that describes B2B sales cycles and have come across many different flavors. They’re either vertical or horizontal, and are divided into any number of buyer stages. (I’ve even seen a funnel that widens back out to include post-purchase). At Tippit, we strived to find a better way to depict the funnel so that it could be more meaningful to vendors by actually helping them with their marketing strategy. We discovered that the shape and size, or “geometry,” of a funnel is governed by three characteristics: The number of buyers in your market, the length of your sale cycle and your conversion rate. To tie them together, we developed a heuristic, or rule-of-thumb, represented by this formula:
In a recently published white paper, we describe how these variables influence the buyer funnel and propose a funnel continuum that represents the diversity of B2B markets. We show how on one end of the continuum lies the “Macro” funnel, and the opposite end, a “Micro” funnel. For each type of funnel, there are a specific set of marketing tactics that apply. This takeaway helps marketers focus their efforts on activities that are going to be effective.
I recommend that you download the free white paper (quick and easy registration) to find out the shape of your funnel and what it means for how you approach demand generation. You can also sign-up for the upcoming Webinar on the topic with Tippit’s CEO, Scott Albro.