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Flipping the Funnel in the Trucking Industry

by john


We will be walking the floor this week at the Mid America Trucking Show, and I’m really interested to find out if trucking industry companies are allocating more of their marketing resources to social media.

Specifically, are they shifting marketing resources from one-way communications (i.e., advertising) to two-way communications (facilitated by social media) with their customers and potential customers?

 

According to McKinsey’s David Edelman in an insightful Harvard Business Review article, companies today are over-emphasizing  the “consider” and “buy” stages at the top of the purchase funnel, continuing to put the lion’s share of their marketing resources into building awareness through advertising.  What they are missing is how consumers today remain engaged with a brand after the purchase . . . talking about it (good or bad) via social media, participating in online forums, etc.  Thanks to Web 2.0 technologies, consumers are now sharing their opinions with people across the globe . . . instantaneously, reaching potentially thousands or millions of others.

 

Consumers today rely heavily on digital interactions to evaluate products.  Products drop in and out of their consideration set during this rigorous process.  And after the purchase, they remain engaged with the brand through social media.

 

Edelman says, “Marketing investments that help consumers navigate the evaluation process and then spread positive word of mouth about the brands they choose can be as important as building awareness and purchase.”

 

Why?  According to McKinsey, two-thirds of the economy is now based on recommendations . . . not the funniest TV ad . . . nor the most eye-catching billboard.  According to Nielson, only 14 percent of people trust ads, while 76 percent trust others’ recommendations.  People in the trucking industry have always placed a heavy emphasis on word-of-mouth.  After all, if you’re making a six figure investment in a tractor, you want to hear the opinions of your peers.

 

Still, though, many marketers focus on media spend (typically 80 – 90 percent of their budget) that hits consumers at the “consider” and “buy” stages all while consumers are increasingly influenced during the evaluation stage and what Edelman calls the “enjoy-advocate-bond” stages.

 

What to do?  First, carefully analyze all the touch points for your target consumers and which channels are most influencing their decisions.  Go beyond analyzing paid media; also think about “earned” media such as online communities, blogs and product review websites.

 

Then, shift some of your budget to funding the people and technology required to create and manage content for a plethora of online channels.  We’re talking two-way communications here; time consuming yes, but so worth it.

I’ll report back next week on what I find.  In the meantime, enjoy the show!  Don’t forget to follow  http://twitter.com/truckingshow and the #mats hashtag on Twitter.  Give us a follow as well. http://twitter.com/JTMarCom

 

 

 

 

 

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