The internet has transformed how we build and maintain relationships with customers. Yet, most marketers still rely on the same outdated funnel model—one that assumes customer interest shrinks at every stage. But that’s not how modern consumers behave, and if you’re still thinking this way, you’re missing huge opportunities.
Why the Funnel Has Changed
Before the internet, we had no way to bring back leads or customers who left the funnel. Push marketing—TV, radio, print—was the only option. Today, digital tools let us engage, re-engage, and maintain relationships with potential and existing customers.
But most marketers haven’t updated their approach. They still assume:
- The consideration phase is smaller than awareness. (It’s often bigger.)
- The loyalty phase is the smallest. (It can actually grow.)
Here’s the reality:
At any given moment, more people are in the consideration phase than in the awareness phase because of the ability to maintain relationships. In other words, digital marketing lets us keep prospects engaged longer, meaning they don’t disappear as quickly as they did in the past.
With the right strategy, you can actively convert more of these “considerers” (warm leads) rather than constantly taking the tough approach and chasing the awareness phase (cold leads).
How to Invest Smarter: Focus on Consideration and Loyalty
- The Consideration Phase: Where Decisions Are Made
The consideration phase is no longer a brief stop on the way to purchase. Consumers now research extensively, sign up for newsletters, follow brands on social media, and return to websites multiple times before deciding. This means:
- There are often more people in consideration than in awareness because digital tools allow brands to maintain ongoing engagement.
- Instead of spending all your budget on creating awareness, focus on converting the large pool of prospects who are already interested.
- Use email and text marketing to keep them engaged while they compare options.
- Offer exclusive discounts, free trials, or valuable content (such as comparison guides and customer reviews) to help them decide.
- Retarget visitors with personalized ads and follow-up emails to pull them back into the conversation.
- The Loyalty Phase: Your Secret Growth Engine
Most brands treat loyalty as an afterthought, assuming it’s the smallest segment. But if nurtured properly, loyalty can grow bigger than awareness and fuel organic customer acquisition. Here’s why:
- Loyal customers don’t just buy again—they bring in new customers. Word-of-mouth (WOM) and digital WOM (eWOM) are your most powerful marketing tools.
- Instead of constantly chasing new leads, focus on retaining and engaging existing customers—they’re easier to convert and more profitable over time.
- Invest in loyalty programs, VIP offers, and referral incentives to keep them engaged rather than pouring that money into chasing cold leads. Treat your best customers like your best opinion leaders—because they are.
- Use automated email and SMS campaigns for personalized rewards, restock alerts, and birthday offers. Again, this costs money, but reducing dollars spent in awareness can easily fund these actions.
The marketing funnel is no longer a narrowing pipeline. We’ve recognized through our marketing actions that it’s a dynamic system where relationships can expand and drive sustainable growth. The problem is, most marketing budget strategies haven’t been updates to mirror the system.
If you’re still spending most of your budget on awareness and conversion, it’s time to shift your focus. We need a paradigm shift in the way we design marketing budgets so that we meet the potential we all have in our modern funnels.
Bonus points if you can name the new shape something other than stacked tea cups!
