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eliminating

FRICTION IN
THE FUNNEL

Benchmark Report
eliminating
FRICTION IN THE FUNNEL

Table of Contents
Introduction 3

Executive Summary 5

Today’s Marketing Funnel 7

Marketing Tactics Usage & Performance 11

Impact of Funnel Automation 18

The Bottom Line on Funnel Friction 26

Acknowledgements 30

Appendix: Survey Background 31


ELIMINATING FRICTION IN THE FUNNEL 3
eliminating
FRICTION IN THE FUNNEL

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.

Marketers aspire to have a funnel that is a well-oiled machine, highly


automated with ample leads flowing smoothly from top to bottom.

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.
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eliminating
FRICTION IN THE FUNNEL

Executive Summary
EXECUTIVE SUMMARY ELIMINATING FRICTION IN THE FUNNEL 6

To understand the current state of the marketing funnel, GetResponse


and Demand Metric partnered to research how much friction is in
today’s marketing funnel, and where it most commonly appears. Using
a survey, the study measured, by funnel section, the tactics marketers
This report details the results and insights from the
are using, how well they are working, where friction exists and why, and analysis of the study data. For more detail on the
the degree to which automation reduces or eliminates this friction. survey participants, please refer to the Appendix.

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.

When funnel sections are automated, performance


A minority of participants – less than 30 percent – have a
almost doubles as a result, with the biggest
precise understanding of funnel return on investment (ROI).
performance gains coming in the middle section.

Integrating sections of the funnel has a powerful impact


The top of the funnel is the most automated section,
on performance: The top and middle sections saw a 3X
but less than 20 percent of study participants report
improvement compared to funnels that lack integration.
most to full automation for any funnel section.
The bottom section saw a 2X improvement.
eliminating
FRICTION IN THE FUNNEL

Today’s Marketing Funnel


ELIMINATING FRICTION IN THE FUNNEL 8

Today’s Marketing Funnel


The marketing funnel was the central focus of this study, so to create Most marketers divide their funnel into three sections:
some context around the findings, we’ll begin by sharing some data
about the state of today’s marketing funnel.

We asked study participants to share how well the sections of their


funnels perform relative to each other.

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.

Middle: where lead qualification occurs.

Bottom: where qualified leads convert to sales.


TODAY’S MARKETING FUNNEL ELIMINATING FRICTION IN THE FUNNEL 9

Today’s marketing funnel is a collection of inter-related processes, often FIGURE 1


supported or driven by technology. Funnel Section Integration Status
Friction in the funnel – defined as forces or barriers that impede the
smooth flow of leads through the funnel – is a function of how inte-
Funnel integration status skews toward the “no” to “low” end
grated funnel processes are.
of the spectrum.
For example, a poor lead scoring or qualification process would create
friction in the movement of leads from the top to middle section of the
funnel. Lack of automation can allow leads to languish in part of the funnel.

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.

Marketers are historically challenged to report a return on their efforts.


Almost three-fourths of study participants have no or an imprecise
The funnel is central to generating ROI, and Figure 2 shows how well understanding of funnel ROI.
study participants understand the ROI of their funnels.

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

Marketing Tactics Usage & Performance


To dive more deeply into the funnel, the study took an inventory of the
marketing tactics participants are using in each section.

While these tactics are familiar to most marketers, we describe them in


the following way:

Content marketing: e-books, reports, white papers, and Paid media: online, print, and outdoor ads
similar content forms

Referral marketing: case studies, testimonials, peer


Earned media: press coverage and news review sites, and word-of-mouth
announcements

Search marketing: Google and Bing


Email marketing: sending email messages en masse to
lists of prospects or customers

Social media marketing: sharing content or adver-


tising on social media, including leveraging influencer
Events marketing: conferences, webinars, tradeshows, marketing
and other events

Video marketing: using video to promote your products


Owned media: websites, blogs, landing pages, etc. or brand
MARKETING TACTICS USAGE & PERFORMANCE ELIMINATING FRICTION IN THE FUNNEL 13

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:

Email sees the most consistent and heaviest use


1
across all funnel sections.
Most of these marketing tactics see the heaviest use at the top of the
funnel. Referral marketing usage remains relatively
2
steady in all funnel sections.

Personal, 1-to-1 selling, as reflected in write-in comments,


Top Middle Bottom
3
becomes important in the bottom funnel section.

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

Tactics shift in effectiveness depending on the funnel section in


which they are used.

Top Middle Bottom

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 following table illustrates this.

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

1. Referral marketing 1. Email marketing


Top 2. Events marketing 2. Owned media
3. Content marketing 3. Events marketing

1. Referral marketing 1. Email marketing


Middle 1. Email marketing (tie) 2. Owned media
3. Events marketing 3. Content marketing

1. Referral marketing 1. Email marketing


Bottom 2. Events marketing 2. Events marketing
3. Video marketing 2. Referral marketing (tie)
MARKETING TACTICS USAGE & PERFORMANCE ELIMINATING FRICTION IN THE FUNNEL 16

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

A majority of the tactics become harder to execute as you move down


the funnel.

Top Middle Bottom

69% 69% 68%

58% 60% 62% 59%


58%
55% 54% 53% 55%
49% 48% 48%
46% 45% 46%
39% 40% 39% 40% 39% 40% 39%
35% 32%
25% 25%

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.

Table 2 compares tactic performance with the ease of executing them.


Comparing tactic performance and ease of execution.
The overall picture this section presents is that the tactics marketers
use in the funnel change in their performance and ease of execution
depending on which funnel section they see use in.
Best Performing Easiest to Execute
Of greater interest is the finding that the most effective tactics are not Tactics Tactics
the ones that see the greatest use. One reason, as Table 2 shows, is the
ease of execution.
1. Referral marketing 1. Social media marketing
Top 2. Events marketing 2. Email marketing
3. Content marketing 3. Paid media

The next section of this report shares how funnel auto-


mation impacts these tactics, and other funnel performance
1. Referral marketing 1. Social media marketing
characteristics.
Middle 1. Email marketing (tie) 2. Email marketing
3. Events marketing 3. Paid media

1. Referral marketing 1. Social media marketing


Bottom 2. Events marketing 2. Email marketing
3. Video marketing 3. Search marketing
ELIMINATING FRICTION IN THE FUNNEL 18
eliminating
FRICTION IN THE FUNNEL

Impact of Funnel Automation


ELIMINATING FRICTION IN THE FUNNEL 19

Impact of Funnel Automation FIGURE 6


Funnel Automation Status

Much of marketing’s investment in technology is directed at the funnel.


Figure 6 summarizes the automation status of participant funnels by
The majority of study participants have little to no funnel automation.
section.

By summing the “Moderate” and “Mostly to fully” automated responses,


the the top-of-the-funnel, by a slight margin, is the most automated
section. However, regardless of section, more than half report little to
no funnel automation. Top Middle Bottom

Does it matter? The results of this study suggest there are some signifi-
cant benefits to automating the funnel.

12% 35% 53%

14% 28% 58%

17% 25% 58%

Mostly to fully Moderate Little to no


automated automation automation
IMPACT OF FUNNEL AUTOMATION ELIMINATING FRICTION IN THE FUNNEL 20

Evaluating the impact of automation on funnel section performance is FIGURE 7


possible by contrasting funnel automation statuses. % Highest Funnel Performance Rating by
Figure 7 shows only those study participants that gave their respective Contrasting Automation Status
funnel sections the highest performance rating, revealing the difference
between little or no automation, and most or full automation.
Most or full automation more than doubles the incidence of
The correlation between automation and funnel section performance performance that meets expectations in every section of the funnel.
that meets expectations is strong. The results shown in Figure 7 make a
compelling case for automating the funnel.

Top Middle Bottom

78% 22%

75% 25%

74% 36%

Mostly to fully Little to no


automated automation
IMPACT OF FUNNEL AUTOMATION ELIMINATING FRICTION IN THE FUNNEL 21

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

All tactics performed better when the mid-section of the


funnel was automated.

Mostly/Fully Automated Little/No Automation

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.

Top Middle Bottom

56% 43%

72% 43%

67% 40%

Mostly to fully Little to no


automated automation
IMPACT OF FUNNEL AUTOMATION ELIMINATING FRICTION IN THE FUNNEL 23

Automating the funnel makes marketing tactics easier to execute in TABLE 3


every section. The impact of automation is most profoundly felt in the Study Participants Rating Tactics “Easy” or
funnel section that needs it most: the middle “Very Easy” to Use
Table 3 shows which tactics, by funnel section, saw the greatest lift in
ease of execution because of automation:
Tactics showing the greatest ease of execution improvement
by funnel section.

When Mostly/Fully % Improvement over


Automated “Little/No Automation”

1. Paid media (83%) 19%


2. Earned media (78%) 57%
Top 3. Email marketing (67%) 9%
4. Content marketing (63%) 36%
4. Search marketing (63%) 12%

1. Social Media (90%) 30%


2. Search marketing (83%) 39%
Middle 2. Events marketing (83%) 30%
4. Owned media (82%) 35%
5. Email marketing (73%) 16%

1. Social media (100%) 58%


2. Events marketing (100%) 51%
Bottom 3. Earned media (83%) 50%
4. Search marketing (80%) 40%
5. Content marketing (63%) 26%
IMPACT OF FUNNEL AUTOMATION ELIMINATING FRICTION IN THE FUNNEL 24

In addition to impacting marketing tactic performance and ease of execu- FIGURE 10


tion, this study also looked at the challenge of attributing results to activity Average Ease of Atributing Funnel Tactics by Section
in each funnel section.

Accurate attribution has always been a challenge, despite the increasing


Accurately attributing tactics to outcomes in the funnel occurs more
application of technology and artificial intelligence to the task.
easily with automation.
Baseline measurements taken during this study reveal that accurate attri-
bution is equally challenging in all funnel sections. Automation, however,
does make attribution efforts more accurate.
Top Middle Bottom
Figure 10 shows the average attribution accuracy for all tactics in use by
funnel section.

Experienced marketers understand that accurate attribution is a puzzle with


many pieces. This study shows, however, that automation is a major piece
of the attribution puzzle. It is always important for marketers to understand
56% 36%
which tactics are driving conversions in every section of the funnel.

An accurate understanding of attribution has implications for allocating


budget and resources. Figure 10 confirms that automation contributes to
more accurate attribution. 49% 30%

58% 36%

Mostly to fully Little to no


automated automation
IMPACT OF FUNNEL AUTOMATION ELIMINATING FRICTION IN THE FUNNEL 25

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.

The ability to have a precise understanding of funnel ROI is far higher


for those with more automation. The gap for this understanding widens Top Middle Bottom
as one moves from the top to the bottom of the funnel, with the size of
the gap almost doubling.

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%

Mostly to fully Little to no


automated automation
ELIMINATING FRICTION IN THE FUNNEL 26
eliminating
FRICTION IN THE FUNNEL

The Bottom Line


on Funnel Friction
THE BOTTOM LINE ON FUNNEL FRICTION ELIMINATING FRICTION IN THE FUNNEL 27

The Bottom Line on Funnel Friction


Marketing and sales teams understand how high the stakes are
regarding funnel performance. The funnel is the mechanism for gener-
ating revenue, and when there is friction in the funnel, leads don’t flow
through it as they should or could.

The presence of friction makes its negative presence felt in two ways:

Friction impacts the customer experience.


1 Friction represents inefficiency. 2
It slows things down and drains energy from whatever Leads are more than figures and metrics; they are
process it afflicts. In the case of the funnel, friction means people. Once they enter the funnel, their experience as
that leads slow down, lengthening the revenue cycle. a customer with a brand intensifies.

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

Integration through automation is the solution to minimizing funnel FIGURE 12


friction. There are simply too many things going on in the funnel for Funnel Section Performance by Degree of Integration
marketers to manage the funnel using manual processes and without
the aid of technology.

Automation is the key to reducing the friction within and between each Integrated funnels far outperform those with no or low integration.
funnel section.

Figure 12 paints a very clear picture of how integrated funnels perform


in allowing leads to flow smoothly through them.
Top Middle Bottom
The effect of integration on funnel performance is enormous and uniform
across all sections.

Strong integration produces a 3X performance improvement in the top


and middle sections, and over a 2X improvement in the bottom section.
While these are impressive gains, it’s better to think of what they repre-
70% 21%

sent for each section of the funnel:

65% 21%

Top: more leads.

Middle: more qualified leads that require less nurturing.

Bottom: more leads converting to sales, and faster. 71% 30%

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.

Automate the funnel.


3
Perhaps the most significant finding in this study is the impact of
automation on the funnel. As Figure 7 shows, all sections realized
massive performance gains from automation. The return on funnel
automation investments will happen quickly because of these gains.

Leverage an integrated funnel.


4
Leverage an integrated funnel: Integration is a product of auto-
mating the funnel. While marketers tend to look at the funnel by
sections, the best view to have is a holistic one. Leads and pros-
pects want a smooth, frictionless journey and a great experience
to match. The best assurance of providing the preferred journey
and experience is through a funnel that is seamlessly integrated.
Having an integrated funnel creates powerful differentiation.
ELIMINATING FRICTION IN THE FUNNEL 30

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

Appendix: Survey Background


This 2019 Funnel Friction Benchmark Study survey was administered online during The representativeness of this study’s results depends on the similarity of
the period of June 2 through July 5, 2019. During this period, 284 responses were the sample to environments in which this survey data is used for comparison
collected, 264 of which were qualified and complete enough for inclusion in the or guidance.
analysis. Only valid or correlated findings are shared in this report.

Summarized below is the basic categorization data collected about respondents to enable filtering and analysis of the data:

TYPE OF BUSINESS/MARKET FOCUS: APPROXIMATE ANNUAL REVENUES:

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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