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Branding today depends on signaling identity rather than purchasing: the reverse funnel turns marketing on its head and transforms companies into builders of community and shared meaning

Digital channels, the growing role of reputation and the influence of communities have rewritten the rules of marketing. Value-based proximity and a sense of belonging no longer represent the final destination of the relationship with a brand, but rather the starting point. This is where the concept of the reverse funnel comes into play: an approach that overturns traditional marketing logic and places identity and community at the center. The reverse funnel is based on a radical shift in perspective, in which the customer has to connect with the brand's values ​​before even discovering its products. It's no longer a matter of persuading consumers with rational levers, but of activating an aspirational mechanism. Mission, vision and purpose become entry points into a relationship where affinity is the first step: the consumer chooses to be emotionally invested in a brand they perceive as authentic, consistent and relevant, even before trying its offerings. This reversal has profound consequences for corporate strategies: while the traditional funnel prioritized conversion and performance marketing, the reverse funnel directs resources toward brand equity, identity storytelling and community building.

Business Cases

To fully understand the logic of the reverse funnel, it's helpful to critically examine what's happening in the fashion and luxury industry. Traditionally, luxury was associated with high price, exclusivity, superior quality and investment value. A rational logic, therefore, founded on tangible attributes. Today, however, luxury is no longer just about possession, but above all about the ability to create an emotional experience. Price matters less and cultural impact, social relevance and the ability to express identity and belonging have become much more important.

Especially among younger generations, status no longer derives from sizable durable goods, but from accessible micro-luxuries, objects and experiences that function as signals of belonging to a shared cultural code. The Pop Mart case is illuminating: the Chinese brand has transformed $10–$20 collectible dolls into veritable cult objects. During a single TikTok livestream, Labubu dolls managed to generate over $1.5 million in sales. The secret lies in the combination of affordable pricing, limited editions, and a strong emotional charge. Unboxing a Labubu has turned into a ritual, a community experience to be shared and enjoyed collectively.

Purchasing the product is not a first step, but the final gesture of an identity choice that has already occurred the moment the consumer identifies with the values of the group. The good or service thus becomes a badge of belonging, rather than an end in itself. It is in this context that the Golden Goose Arena must be understood, where padel is just the beginning of a journey into style, culture, and authentic connection. The customized Golden Goose Arena aims to be a hub for all sports enthusiasts in Milano, both professionals and amateurs, individuals who care not just about courts and rackets, but a true community where they can immediately feel at home and connect to the brand's values.

This approach is further strengthened by the "Business to Human" concept, which emphasizes the need to build an authentic, empathetic and emotional connection in a world that is increasingly becoming phygital. In the reverse funnel logic, consumers first fall in love with the narrative of the brand and only afterwards purchase the product that represents it.

Implications

The ongoing transformation forces companies to radically rethink their role. They shall be no longer directors of demand, but custodians of shared values. Brands that embody an authentic purpose will be chosen not for what they offer, but for what they represent.

In a world where competition is increasingly based less on product and more on identity, early loyalty represents the true competitive barrier of the future. Consumers are not just looking for objects or services, but for opportunities to define who they are and who they want to be. Brand success, therefore, will no longer be about gaining loyal customers after the purchase, but about earning their trust even before the transaction takes place. The reverse funnel is the paradigm that best describes this transformation: a model that puts values ​​ahead of product, community before conversion, and identity ahead of the transaction. For business leaders, it represents both a challenge and an opportunity: to be not just sellers of goods and services, but architects of cultural belonging.

 

 

Chiara Piancatelli photo

CHIARA PIANCATELLI

Bocconi University
Department of Marketing