Latest / The Marketing Funnel Podcast with Fexingo: Awareness, Interest, Decision, and Action Stages / How Liquid Death Built a Marketing Funnel on Canned Water
Transcript
- Lucas: So, Liquid Death. The company that sells water in a can that looks like a tallboy of beer, and it's now valued at one point four billion dollars. That's not a typo. Luna: And I have to say, when I first saw the branding, I thought it was a joke. Like, is this a parody? But no, it's real, and it's everywhere. Lucas: Exactly. And the fascinating part isn't just the success—it's how they completely flipped the classic marketing funnel on its head. The traditional AIDA model: awareness, interest, decision, action. Most brands start by building awareness through expensive ads. Liquid Death started with the product itself as the hook, and the awareness came later, almost organically. Luna: So you're saying the product was the awareness? How does that work? You have to buy it before you know it exists. Lucas: Right, but the product is also the billboard. They put it in the hands of influencers, at music festivals, in quirky retail placements. And the can is so distinctive that people post it on social media without being asked. That's earned media, and it's more trusted than any ad. Luna: So the interest stage is basically people seeing the can and thinking, 'What is that?' and then Googling it. Lucas: Exactly. That curiosity gap is huge. And they've mastered that through their social channels. They have over two point seven million followers on TikTok, and their content is absurd—skits about murdering your thirst, heavy metal aesthetics, all that. It's not about selling water; it's about building a personality. Luna: And the decision stage? How do they convert that curiosity into a purchase? Lucas: Social proof and scarcity. They lean into limited-edition flavors, collabs with bands, and they make it seem like you're part of an inside club. Plus, the price point is premium—it's not cheap. But that actually helps, because it positions the product as something special, not just water. Luna: So the action stage is just buying a case online or grabbing one at the store. But from what you're saying, the funnel isn't linear. People might see the product, then go to social, then buy, but others might see the social first, then seek out the product. Lucas: Exactly. It's a non-linear funnel. And that's really the innovation. They've essentially made the awareness stage a byproduct of the interest and action stages. People become evangelists before they've even tried it. Luna: But isn't that risky? If the product itself is just water, what happens when the novelty wears off? Lucas: That's the million-dollar question. And they're trying to address that by building a community and expanding into other products like flavored sparkling water and even iced tea. They're trying to become a lifestyle brand, not just a water company. Luna: It's like they're using the AIDA model but in a circular way. Awareness feeds interest, interest feeds action, and action feeds more awareness through user-generated content. Lucas: You're nailing it. And that circularity is what makes it work. Each stage feeds the next, and because it's so shareable, the cost of customer acquisition is a fraction of what it would be for a traditional beverage brand. Luna: Which brings me to something I've been thinking about. We're able to dive into these case studies because listeners support the show. A small group of you chip in monthly through buy me a coffee dot com slash fexingo, and that's honestly what keeps the lights on and keeps us ad-free. It's not a big ask, but it means everything. Lucas: Yeah, it's a nice model. No sponsors to please, so we can talk about whatever we find interesting. And speaking of interesting, let's get back to Liquid Death's numbers. They've sold over five hundred million cans since launch. That's not just novelty—that's scale. Luna: And their valuation jumped from two hundred and fifty million to one point four billion in less than two years. That's insane growth. Lucas: It is. But the real lesson for marketers isn't the valuation—it's the funnel. They didn't follow the traditional playbook. They built a brand first, and the product was just the vehicle. And that's something small businesses can learn from, even if they're not selling something as meme-able as water in a skull can. Luna: So what's the takeaway for someone listening who runs a small business? How can they apply this? Lucas: Take a hard look at your product. Is it visually distinctive? Does it tell a story? If not, can you change that? And then, are you using social media to create a personality, not just to push product? That's where Liquid Death excels. Luna: But not every product is inherently visual or fun. What if you sell B2B software? Lucas: Even then, you can find a hook. Look at how companies like Slack or Notion built their brands—they used playful copy and a distinct voice. You don't need a skull on your can, but you need a personality that people want to share. Luna: So it's about making your product shareable, not just in a literal sense, but in a way that makes people want to talk about it. Lucas: Exactly. And that's the core of the Liquid Death story. They created a product that people can't help but talk about. That's the ultimate marketing asset. Luna: And they've also mastered the decision stage with things like limited editions and collaborations. It creates a sense of urgency and belonging. Lucas: It's a masterclass in scarcity. They release a new flavor like 'Severed Lime' and it's gone in weeks. That drives repeat purchases and keeps the community engaged. Luna: But is there a risk of overdoing it? If everything is limited, does it lose its appeal? Lucas: There's definitely a balancing act. But they seem to have found a rhythm—enough variety to keep it exciting, but not so much that it feels gimmicky. And their core product is always available. Luna: So what's next for Liquid Death? Can they sustain this growth? Lucas: That's the big question. They're expanding into new categories, which is smart, but they'll need to maintain that brand irreverence without becoming a parody of themselves. It's a tightrope. Luna: I guess that's the challenge for any brand that's built on a strong personality. How do you evolve without losing your edge? Lucas: And that's a question worth wrestling with. For now, Liquid Death is a case study in how a non-traditional funnel can create explosive growth. But whether it has staying power is still an open question. Luna: Well, it's definitely given us a lot to think about. And I'm curious to see if other brands start copying this approach. Lucas: They already are. I've seen 'Death to Soda' style knockoffs in the works. But the key is authenticity—you can't fake this kind of brand voice. Luna: True. It has to come from a genuine place, or it'll fall flat. And that's a good note to end on. Lucas: So next time you see a weird product and think 'that's a gimmick,' remember Liquid Death. Sometimes the gimmick is the strategy.