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Flip the Funnel: How to Use Existing Customers to Gain New Ones Hardcover – January 26, 2010
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'...[Jaffe's] fresh outlook on the changes facing the marketing environment provide an insightful read...' (BusinessandLeadership.com, July 2010).
From the Inside Flap
When you consider customer acquisition for your business, think about this question for a moment: how much of your sales come from repeat business versus first-time customers? Now contrast that against how much money you spend against each segment. If you are embarrassed by the gaping disconnect, don't worry; you are not alone. But what if you did something about it? What if you turned everything on its head and instead of ending with a customer purchase, you began with it? What if you focused the lion's share of your effort, energy, and budget on keeping customers versus attracting them? What if you could correct this imbalance and, in doing so, not only get your customers to keep coming back for more, but tell others to do so as well?
Joseph Jaffe loves to take on such sacred cows in business practice, turning them on their heads and shaking them up to see what falls out. Building on what this prolific thought leader started in Life After the 30-Second Spot and Join the Conversation, Flip the Funnel brings you a radically new, radically common sense look at customer experience as the key to business success.
Get ready to do a 180 on everything you thought you knew about marketing as Flip the Funnel:
Explains how to cut your marketing budget and grow sales by focusing on what really matters— your customers and employees
Outlines the real role of social media
Reveals the hidden potential of influencers and evangelists
Illustrates practical ways to use existing customers to reach out to new prospects
Shows how retention can be the new acquisition
Demonstrates key ideas with rich, real-life examples including Comcast, Apple, the Obama campaign, Dell, Panasonic, American Airlines, Zappos, Johnson & Johnson, Coca-Cola, and many, many more
Using his newly introduced "flipped funnel" model (A.D.I.A.), together with a set of new rules of customer service (customer service 2.0) and a revolutionary customer referral and activation process, you'll learn how to transform your existing customers into your best salespeople, discover how to strategically differentiate your brand, save money, and forge lasting customer relationships along the way.
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The next section is called "A New Way Forward" and it describes how the customers are a company's biggest asset when it comes to marketing. Instead of marketing towards a large group and eventually getting a core group of loyal customers, business must start the other way. Companies need to get a solid customer base and use them to reinforce the public that their product is worth using in order to gain more customers. It is a very interesting concept that I believe is a great idea. Word of mouth and buzz marketing is one of the best ways for a product to become popular and if you have loyal customers willing to do that for you it will save you time and money. Jaffe also makes it clear that companies need to listen to their consumers so that they can improve on their products. The goal of a business is to make money by making their customers happy and if they can consistently improve upon their product in a way customers enjoy they will build a great reputation.
The final section of the book is titled "Making it All Happen" and it goes over ideas and examples of how to do your own funnel flipping. It also explains how funnel flipping and building positive customer relationships is not only a good idea, but vital for any business to succeed. Jaffe goes over the specific monetary benefits that a business can receive by having a loyal customer base and positive referrals.
Throughout the course of the book Jaffe gives a lot of examples and well researched data including tables, graphs, and charts to back up his opinions. The book is very interesting and it actually helped me develop the marketing plan for my current project. Jaffe stresses the importance of good customer relationships and how investing a decent amount of effort into one customer is better then putting in very little effort to satisfy multiple customers. Everything that Jaffe writes seems like common sense, but his evidence shows that businesses are not properly taking care of their customers. Joseph Jaffe is a well educated author and Flip the Funnel is a great book that would be beneficial for CEOs, marketers, sales people, and customer service employees.
The notion that customers are not predictable because they are not linear also makes sense. Two mothers in their thirties with two children each could lead drastically different lifestyles--even if they share other defining characteristics. Perhaps it is time for companies to start looking at their customers on an individual case-by-case scenario. If a company can find a way to keep their existing customers, some of the pressure of finding new ones will be alleviated. If customers are happy with a product or service, they are likely to share their experiences with other people. Essentially, a company's current customers can be the ones to find new customers.
The whole idea of flipping the marketing funnel sounds really good. Instead of getting customers to focus on the product or service, the flipped funnel is having the business focus on the customers.
Jaffe brought up a lot of valid points and examples. "Flip the Funnel" was well written and researched. It would be well suited for high school and college students, as well as any company looking to make a change in their marketing department. Jaffe uses the basic set-up of, where we are now, where we should be, and then what happens after that. The main takeaway is for companies to focus on their existing customers and then to let them attract new customers.
In a moment where we feel constantly disrespected by companies that we interact with, Joseph reminds us that marketing is all about commitment and true human connection. This book was able to impact me more as a consumer than as a marketing professional: Flip the Funnel it's a collective outburst of the customer service that we are all experiencing by companies that surround us. Joseph brings the great paradox of companies and marketers: how companies that carefully build and protect its brand can treat customers in such an apathy way? Companies that spent millions and millions in advertising, but ruins every effort on a single call answered by an unprepared staff. These moments are called by the service industry as "moments of truth", but how seriously brands are taking care of these moments?
To turn this game, Joseph suggests that we should flip the funnel; companies must understand that making a sale is not the end of the process, but the beginning of a relationship between the brand and its customers. This is definitely the most valuable learning from this book and would probably require major changes from companies to achieve this transformation. To flip the funnel the book mentions different rules and important key words such as ADIA: Acknowledgement, Dialogue, Incentivization, and Activation. But, instead of memorizing all these words, simply have in mind that you need to leverage your customer experience. And if your company has not started to think about that, Joseph shows that in a world where everything is connect and interconnect, customer experience is not anymore a matter of choice, no matter the industry.
Flip the funnel has a great balance between tradition and forward thinking. It brings back the importance of doing business in a more old-fashioned way, but also how marketers should embrace technology as a transformative game-changer on customer service. Technology is not made to eliminate human connections, on the contrary is to enhance our connections with people and brands. The balance between old and new is expanded to the channel discussion. I felt relieved that the book is not only about social media. In other words, he puts social media as an important piece of puzzle to a high quality customer experience, but not as the only solution.
The book also clarifies some concepts that are being used in a wrong way by marketers such as retention, personalization and customer loyalty. It's interesting how much we've already heard from these concepts, but how few brands really know how to do it. The cases to support Joseph's thoughts are mostly already known by marketers, but still the author brings a fresh perspective about why we should continue to pay attention to brands like Ritz-Carlton, IBM and Jet Blue.
Joseph doesn't seem very worried in eternize its book as a fundamental marketing book, but instead, more concerned about provoking and challenging the way that most brands relate with its customers today. So, don't expect that this book will become your marketing bible, but will definitely make you rethink the current way you are building your brand.