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FRICTION IN
THE FUNNEL
Benchmark Report
eliminating
FRICTION IN THE FUNNEL
Table of Contents
Introduction 3
Executive Summary 5
Acknowledgements 30
Introduction
ELIMINATING FRICTION IN THE FUNNEL 4
Introduction
Marketers invest significant time and money to build funnels that attract,
nurture, qualify, and convert leads to customers. In most organizations,
the funnel is the object of continuous efforts to manage and improve its
performance, always tuning it to produce higher conversion rates.
The reality, however, is that few marketers have funnels that perform
flawlessly even some of the time. There is almost always some “friction”
in the funnel that impedes the ability of leads to flow from one section
to another.
For many marketing organizations, it’s common to have one section of the
funnel that works well while another section is problematic. Marketers
find themselves applying time, effort, technology, and resources to
address “hot spots” in their funnels.
Once addressed, the hot spots rarely go away completely; they just relo-
cate to a different part of the funnel.
ELIMINATING FRICTION IN THE FUNNEL 5
eliminating
FRICTION IN THE FUNNEL
Executive Summary
EXECUTIVE SUMMARY ELIMINATING FRICTION IN THE FUNNEL 6
This report shares the research results and insights to help marketers
achieve better performing funnels. Some of the key findings from this
study include:
Less than 20 percent of study participants report having Study participants rated the top funnel section as best
strong or complete integration of funnel sections. performing, and the middle section as worst performing.
The top section had the highest rating, followed closely by the bottom,
with the mid-funnel ranking a distant third. The mid-section of the
funnel is the most problematic for most participants in this study.
Top: where lead capture occurs.
Figure 1 shows study participants’ rating for how well their funnel sections 2%
were integrated to allow leads to flow smoothly.
11%
No integration
Complete integration
16%Strong
integration
41%
Moderate
30%
Low integration
integration
TODAY’S MARKETING FUNNEL ELIMINATING FRICTION IN THE FUNNEL 10
With less than one in five participants reporting “strong” to “complete” FIGURE 2
integration of their funnel sections, some degree of friction in the funnel Understanding of Funnel ROI
is clearly present.
This funnel overview reveals that the mid-section is the lowest performer,
and that most study participants don’t have strong integration of funnel
sections, nor do they understand ROI. 4%
A premise of this study is that automation can do much to reduce the
friction in the funnel.
11%
Don’t know
Very precise
25% Mostly
the following sections of this report examine that precise
premise by exploring the tactics in use, the difficulty of
executing them, how they perform, the accuracy of attributing
results to them, and how automation impacts all these things.
27% Mostly
33%
Very imprecise
imprecise
ELIMINATING FRICTION IN THE FUNNEL 11
eliminating
FRICTION IN THE FUNNEL
Marketing Tactics
Usage & Performance
ELIMINATING FRICTION IN THE FUNNEL 12
Content marketing: e-books, reports, white papers, and Paid media: online, print, and outdoor ads
similar content forms
Figure 3 shares this inventory of tactics usage for the top, middle, and The mix of marketing tactics doesn’t change much based on the section
bottom sections of the funnel. of the funnel: all tactics see use throughout the funnel. However, the
frequency of their use does, and depending on the funnel section, some-
FIGURE 3 times the change is significant. The usage for all tactics decreases from
Inventory of Marketing Tactics in Use the top to the bottom of the funnel, with exceptions:
2%
66% 64% 61% 56% 53% 42% 42% 40% 34% 30%
7%
64% 43% 34% 33% 39% 22% 17% 23% 38% 20%
46% 28% 30% 19% 20% 15% 14% 10% 30% 18% 17%
Email Owned Events Social media Content Search Earned Paid Referral Video Other
marketing media marketing marketing marketing marketing media media marketing marketing tactic
MARKETING TACTICS USAGE & PERFORMANCE ELIMINATING FRICTION IN THE FUNNEL 14
Tactics usage tells just part of the story. Figure 4 shows how study partic-
ipants rated the tactics from Figure 3 in terms of performance.
FIGURE 4
Tactics Rated “Better” and “Best” by Funnel Section
80%
76%
73%
69% 69%
65% 63% 64%
59% 61% 59% 59%
56% 57% 57%
54% 53% 54%
51% 53% 47% 48% 47% 48% 46%
43% 40%
40% 41%
35%
Referral Events Video Email Content Owned Paid media Search Social media Earned
marketing marketing marketing marketing marketing media marketing marketing media
MARKETING TACTICS USAGE & PERFORMANCE ELIMINATING FRICTION IN THE FUNNEL 15
What stands out when comparing the usage data from Figure 1 with the TABLE 1
tactics performance data from Figure 4 is that the best performing tactic
is not the most used tactic. Logic says that the best performing tactic
should see the greatest use, but that is not the case in this study. Comparing tactic performance and usage.
The top and mid-sections of the funnel have the least overlap between
best performing and most used tactics. The bottom of the funnel has Best Performing Most Used
the best match. Tactics Tactics
A factor that may influence tactics usage is the difficulty of executing a Social, email, referral marketing, and earned media become easier
tactic. Figure 5 shows the relative difficulty of executing the tactics from to execute as their usage moves down the funnel. Most other tactics
Figure 3 in each section of the funnel. become more difficult to use, particularly video marketing.
Overall, these tactics are hardest to use at the top of the funnel, and
FIGURE 5 easiest in the mid-section.
Tactics Rated “Easy” or “Very easy” to Use by Funnel Section
16%
Social media Email Search Owned Referral Paid media Content Earned Events Video
marketing marketing marketing media marketing marketing media marketing marketing
MARKETING TACTICS USAGE & PERFORMANCE ELIMINATING FRICTION IN THE FUNNEL 17
When looking at the difficulty of executing tactics, it becomes clear why TABLE 2
the best performing tactics aren’t always the most frequently employed.
Does it matter? The results of this study suggest there are some signifi-
cant benefits to automating the funnel.
78% 22%
75% 25%
74% 36%
While all sections of the funnel received substantial benefit from automa- The impact of most or full automation on tactics performance in
tion, the measured difference in performance of individual tactics listed this funnel section is dramatic, with all tactics showing performance
in Figure 3 was greatest mid-funnel. Figure 8 summarizes this tactics improvements. This result is welcome news for the most problematic
performance comparison. mid-section of the funnel.
FIGURE 8
Impact of Automation on Mid-Funnel Marketing Tactic
Performance
75% 73% 67% 67% 63% 62% 60% 55% 50% 40%
54% 63% 33% 61% 29% 46% 33% 54% 39% 38%
Referral Email Search Events Earned Content Social media Owned Video Paid media
marketing marketing marketing marketing media marketing marketing media marketing
IMPACT OF FUNNEL AUTOMATION ELIMINATING FRICTION IN THE FUNNEL 22
The previous section of this report shared the ease of execution for FIGURE 9
tactics in all funnel sections. Automation should, in theory, make many of Average Ease of Execution for All Funnel Tactics by Section
these tactics easier to execute.
The study results show that this is, in fact, true, as Figure 9 depicts.
Automation improves the ease of executing funnel tactics in
every section.
56% 43%
72% 43%
67% 40%
58% 36%
It’s clear that automation favorably impacts the performance of the tactics FIGURE 11
marketing uses, as well as making them easier to execute and attribute. Having a Precise Understanding of Funnel ROI by
What marketers and the C-suite alike also wish to know is how automa- Contrasting Automation Status
tion – or any investment – provides a return.
Using the funnel ROI understanding data from Figure 2, Figure 11 pres- Automation makes it far more likely to have a precise understanding
ents only those who claim a precise understanding of ROI by contrasting of funnel ROI.
levels of automation.
It’s very clear that automation consistently improves the ability for an 39% 20%
organization to have a precise understanding of the ROI it gets from its
funnel, regardless of funnel section.
63% 37%
53% 17%
The presence of friction makes its negative presence felt in two ways:
It also means that leads, by virtue of the fact that their They are not blind or immune to the nurturing efforts
progress through the funnel is slowed, leak out of the they experience.
funnel. Poorly integrated funnels that lack automation create
This leakage is a simple function of the reality that friction that leads the experience negatively as they
slowing leads for any reason on their journey allows journey through the funnel.
them more time to escape the funnel. For many competitive businesses, the experience is the
only differentiator. It is therefore imperative to provide
the best possible customer experience while leads
move through the funnel.
THE BOTTOM LINE ON FUNNEL FRICTION ELIMINATING FRICTION IN THE FUNNEL 28
Automation is the key to reducing the friction within and between each Integrated funnels far outperform those with no or low integration.
funnel section.
65% 21%
Strong/Complete No/Low
integration integration
THE BOTTOM LINE ON FUNNEL FRICTION ELIMINATING FRICTION IN THE FUNNEL 29
Based on the research findings, these recommendations will help In the final analysis, achieving a fully automated funnel may deliver the
marketers reduce the friction in their funnels: most powerful competitive advantage a sales and marketing team could
hope for. Automating has the effect of turbocharging its performance.
Tactics selection.
1 The benefits of doing so include simplifying the execution of marketing
tactics, realizing better performance, and gaining more accurate attribution.
Emphasize the use of tactics that perform best in each section of
the funnel rather than selecting the ones that are easiest to execute.
These benefits ultimately extend outside of sales and marketing to impact
the entire organization.
Focus on the mid-funnel.
2
This section of the funnel was most problematic for study partic-
ipants. The way marketers can improve the performance of all
funnel sections is through automation and integration, which
comprise the next two recommendations.
Acknowledgements
Demand Metric is grateful to GetResponse for sponsoring this research,
and for those who took the time to complete the study survey.
Demand Metric is a global research and advisory firm that supports GetResponse is an all-in-one online marketing platform for SMBs, with
marketing professionals with primary research and benchmark reports, more than 350,000 active users from 182 countries.
technology research and advice, consulting services, training, and software.
GetResponse delivers more than 1 billion permission-based emails per
Demand Metric’s core focus is to help B2B marketing organizations grow month, with an average deliverability rate higher than 99 percent.
revenue by operationalizing the best practices discovered in our research.
For more information, visit: www.getresponse.com
To learn more about Demand Metric, sign up for a free membership at
www.demandmetric.com
ELIMINATING FRICTION IN THE FUNNEL 31
Summarized below is the basic categorization data collected about respondents to enable filtering and analysis of the data:
4% 4% 9%
Agency/Consulting firm $1 billion or more
$500 to $999 million
7% 43% 49%
Non-profit Mostly B2B 14%
$100 to $499 million Less than $10
million
11%
15% $25 to $99 million
Mostly B2C 31% 13%
Mixed B2B/B2C $10 to $24 million
PRIMARY ROLE OF RESPONDENT: REVENUE GROWTH ENVIRONMENT IN MOST RECENT FISCAL YEAR:
6% 11% 1%
10% Other CEO/President/Owner Significant decrease
8% Operations
3% IT
6% 14%
Finance
55% Slight Significant
Marketing decrease increase
7% 26%
Sales
Flat
53%
Slight increase
© Demand Metric Research Corporation.
All Rights Reserved.
www.demandmetric.com
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