Goodbye to the Conversion Funnel

After the radical changes in consumer habits brought by 2020, users are increasingly relying on digital product or service searches for their interests. However, brands need to work on developing and earning the trust of consumers who don’t make purchase decisions lightly. In the past months, 32% of consumers have been conducting more research before making a transaction. Another crucial statistic is that 47% of consumers have been willing to buy or hire a service from at least one new brand they were not previously familiar with.

This leads us to present some consumer trends for 2023:

1. Despite price increases, instead of completely cutting their purchases, many consumers have chosen to be more thoughtful about their expenses, savings, and investments. They have left behind impulsive consumerism. Additionally, they are more patient and wait for sales events.
2. Consumers research price/quality before making a purchase decision. They aim to avoid impulsive buying to feel confident about the necessity of acquiring a product or service. Moreover, they manage their own costs by creating a personal budget.
3. Faced with the balance of meeting their needs without risking their personal budget, consumers’ searches are specific and thorough based on descriptions, quotes, seasons, etc.
4. Consumers have become more open to trying new variations of services or products to obtain a better experience or price. It’s the perfect scenario for brands to expand their customer base and capture new demand. In other words, users who used to ignore you can now become interested in your business if they are attracted by your prices or quality.

Based on these consumer trends, at Growketing, we decided to focus on capturing or generating demand. Why? We want to have a broad vision of the customer journey to better understand the new needs and habits of consumers (their balance between new purchases and personal budget, their openness to try new brands, and their reflection on expenses).

From this overall analysis, we can create personalized and relevant experiences for each customer throughout their entire lifecycle, which, in turn, improves brand loyalty and increases customer satisfaction.

Capturing Demand

If demand is growing, it’s time for businesses to rethink their KPIs and strive to become the category leader. If profitability is the goal, investment should be shifted towards the most profitable channels of Google. What are the ideal resources? Optimized search campaigns and Performance Max.

Generating Demand

The market offers the opportunity to reach a wider audience and gain new leads. This encourages the creation of your own funnel for revenue generation and building a sustainable brand path. What are the ideal resources? Video Action & Discovery allow capturing demand through the power of visual ad formats.

Additionally, focusing on capturing or generating demand enables us to work with other areas, such as market research, to identify growth opportunities and develop more effective strategies to reach customers.

In summary, if we solely focus on the conversion funnel, we won’t obtain a complete vision and analysis of the customer journey. This limits us and prevents our clients from understanding how to offer personalized and relevant experiences. Capturing or generating demand is a more holistic and effective approach that will allow us to maximize your growth together.