In a customer-centric approach, customer relationships are evaluated in distinct stages from potential customer to purchase and loyalty. Each stage has its own scope, problems, and resolution points. The traditional funnel covers only a portion of this process.
The Traditional Funnel’s Limitation
Funnel analysis is useful for mapping the process from potential customer to purchase and identifying touchpoints. However, it does not cover post-purchase stages1.
Customers can exit the funnel by changing their research and purchasing behaviors2. In such cases, marketing professionals evaluate potential undefined areas and update the conversion journey accordingly3.
McKinsey Consumer Decision Journey (CDJ)
McKinsey’s model, published in 2009 based on research with 20,000 businesses in the US, Germany, and Japan, demonstrated that customer decisions are circular, not linear1. It consists of four stages:
- Initial Consideration: The customer evaluates a set of brands based on existing perceptions
- Active Evaluation: Research, comparison, and evaluation process; brands can be added or removed
- Closure (Purchase): The purchase decision and transaction
- Post-Purchase: Product experience, ongoing relationship with the brand
Loyalty Loop
The CDJ model’s key contribution is the loyalty loop concept4. When the post-purchase experience is strong enough, customers skip the initial consideration and active evaluation stages in their next purchase, going directly to repurchase. This enables using post-purchase experience as a growth driver.
McKinsey updated the model in 2015, adding that brands can accelerate the loyalty loop through technology-driven automated interactions5.
Customer Lifecycle
The length and scope of the customer journey varies by market, product, and service. Starbucks has a short lifecycle: customers return after each purchase and repeat the transaction. For high-value transactions like cars or real estate, companies focus on turning customers into brand advocates rather than expecting immediate returns.
5A Framework
A common end-to-end customer journey can be expressed in 5 stages6:
- Awareness: Becoming aware of the company, product, or service
- Acquisition: Research and evaluation
- Adoption: Purchase and initial use
- Assimilation: Regular usage and integration
- Advocacy: Becoming a brand advocate and influencing others
Customer Journey Map
Companies evaluate each stage their customers pass through to anticipate stage-specific needs and improve service quality7. A customer journey map enables a company to think from the customer’s perspective and proactively prepare solutions for potential issues8.
5 Components of Journey Mapping
The following components should be addressed when designing a customer journey map9:
Timeline : Changes and significant milestones in the brand-customer relationship.
Personas : Hypothetical characters representing a broader customer group, created from data collected through web analytics and user research.
Emotion : Symbolic indicators representing the customer’s emotional state and emotional shifts during interactions.
Channels : All tools encompassing brand-customer interactions and touchpoints.
Touchpoints : Moments when the customer interacts with the company or its products and services.
Model Connections
These models are complementary, not alternatives:
- Customer journey (this article): the theoretical model of how customer decisions happen
- Funnel analysis: the measurement tool for specific conversion sequences within the journey
- Conversion rate: the primary metric produced by funnel analysis
- Customer statuses: the structure that operationalizes the journey in CRM
Footnotes
- David Court, Dave Elzinga, Susan Mulder, Ole Jørgen Vetvik. (2009). The consumer decision journey. McKinsey & Company ↩ ↩2
- Victoria Bough, Ralph Breuer, Nicolas Maechler, Kelly Ungerman. (2020). The three building blocks of successful customer-experience transformations. McKinsey ↩
- Gadi BenMark, Maher Masri. (2015). Cracking the digital-shopper genome. McKinsey & Company ↩
- McKinsey Consumer Decision Journey Loyalty Loop. Umbrex ↩
- The New Consumer Decision Journey. McKinsey & Company ↩
- Customer Journey Definition. Transformation ↩
- Kim Kosaka. Customer Lifecycle Marketing: The Complete Guide. Alexa ↩
- Customer Journey Mapping Nedir? Euromessage ↩
- Digital Customer Journey Mapping: Improving the Customer Experience. Synegys ↩
- 01 The traditional funnel does not cover post-purchase stages; McKinsey CDJ offers a circular alternative
- 02 Loyalty loop: a strong post-purchase experience can cause customers to skip active evaluation and go directly to repurchase
- 03 5A framework: Awareness > Acquisition > Adoption > Assimilation > Advocacy
- 04 Funnel analysis measures specific conversion sequences; journey analysis covers all touchpoints
- 05 Journey mapping consists of 5 core components: timeline, personas, emotion, channels, touchpoints
+ What is the difference between funnel analysis and customer journey analysis?
Funnel analysis measures a specific conversion sequence and has a linear structure. Customer journey analysis covers all customer touchpoints, can be circular, and includes post-purchase stages. A funnel is a specific measurement tool within the broader journey.
+ How does the McKinsey CDJ model differ from the traditional funnel?
The traditional funnel is linear and moves in one direction from awareness to purchase. McKinsey CDJ (2009) offers a circular model: initial consideration, active evaluation, closure (purchase), and post-purchase. Customers can move back and forth between stages and skip active evaluation through the loyalty loop.
+ What is a loyalty loop?
A concept from the McKinsey CDJ model. When the post-purchase experience is strong enough, customers skip the initial consideration and active evaluation stages in their next purchase, going directly to repurchase. This shortcut enables using post-purchase experience as a growth driver.
+ How is a customer journey map created?
It consists of 5 core components: Timeline (milestones in the brand-customer relationship), Personas (hypothetical characters derived from user research), Emotion (emotional states during interactions), Channels (interaction tools), and Touchpoints (moments of interaction).