At Loopify, we’re all about happy customers. Why? Because these days, that’s the only way to cut through the noise and stand out. You need to build a passionate community of loyal fans and advocates, people who rave about your brand on social media and recommend it to friends. But how do you make that happen?

Bye bye, marketing funnel

We’re sure that you’ve heard about the marketing funnel (aka the purchase funnel or the sales funnel)? It was invented in 1898, and for a long time, it was all we had to help us understand the customer journey.

The funnel explains the process customers go through, from when they first hear about a product until they decide to buy. At each stage, they’re in danger of dropping off. It’s the job of the marketing department to optimize the experience to make sure that they don’t.  

But let’s get real for a moment. The funnel has been around for 120 years. Think about how you shopped just 10 or 15 years ago. Isn’t it crazy how things have changed since then? Do you think it’s realistic that the funnel could still be relevant after all of this time?

It’s a whole new world out there. If your only focus is to get people to hit “buy,” you’re missing out. Marketing today is about building relationships with your customers and making them ambassadors for your brand.

Of course there have been attempts to update the funnel. But they don’t go far enough. Customer journeys simply aren’t linear any longer. There are so many channels and factors that play into the decision process.

Time to shake things up!

Hello, loyalty loop

The loyalty loop was developed by experts from the consulting firm McKinsey. As its name suggests, it’s circular instead of linear. Just like the marketing funnel it explains how customers decide what to buy. But it takes things a step further. It looks at what happens after the purchase. How can brands make sure that customers continue to interact with them on an ongoing basis?

The journey starts when a customer hears about a brand or a product. That’s the trigger. From there they move through the decision journey. As soon as they buy something, the funnel ends, and so does the relationship. But not the loyalty loop!

Do you see the inner loop in the model above? It stands for what customers experience after they buy something from you. Are they enjoying the product, the service and the interactions they have with your brand? Yes? Then they’ll probably become a loyal customer.

So far so good. But there’s more! McKinsey discovered that there are two different types of loyalty: active and passive.

Active loyalty means that customers not only stick with your brand but rave about it to everyone they know. And the more they talk about your brand, the more they bond with it. Perfection!

But what’s passive loyalty then? That’s when a customer wouldn’t mind buying from you again, but is also shopping around for other options. Think of it as a relationship: they are dating you, but they don’t mind also seeing other people.

So what can you do to charm them and make sure they stay true to you? Nurture your relationship. Woo them so that they can’t think about anyone else but you. In our next post where we’ll show you how.

So, are you team funnel or team loop? Let us know in the comments! 🤩