Latest / The Marketing Funnel Podcast with Fexingo: Awareness, Interest, Decision, and Action Stages / How a Tiny Bookshop Beats Amazon at the Marketing Funnel
Transcript
- Lucas: So we talk a lot on this show about massive brands with huge ad budgets—Nike, Lululemon, Liquid Death. But today I want to look at something almost opposite: a tiny independent bookstore that somehow beats Amazon at the marketing funnel. Luna: I'm already hooked. Which bookstore? Lucas: Powell's City of Books in Portland, Oregon. It's not really tiny—it occupies an entire city block and claims to be the largest independent new and used bookstore in the world. But compared to Amazon's trillion-dollar logistics machine, it's David versus Goliath. Luna: And yet people drive across town—or across the country—to buy books there instead of clicking 'buy now' on their phone. Lucas: Exactly. So let's walk through Powell's marketing funnel stage by stage and see what they do differently. Starting with awareness: how do people even find out about a single bookstore in 2026? Luna: My guess is word of mouth and tourism. Portland is a destination for quirky independent culture. Lucas: You're right. But there's a specific mechanism. Powell's runs a 'Rare Book Room' that attracts collectors from around the world. They also host author events—think Margaret Atwood, Neil Gaiman, Ta-Nehisi Coates—and those events generate press coverage that feeds into the awareness funnel. The key is that they don't just rely on foot traffic from people already in Portland. They actively create reasons for the broader book-loving community to know about them. Luna: So the awareness stage is fueled by cultural cachet, not paid ads. That makes sense for a brand with a strong identity. Lucas: Right. And that identity is built on curation. When you walk into Powell's, the sections are organized by genre but also by staff picks—handwritten notes from employees recommending specific titles. That's the interest stage. You're not just browsing an algorithm; you're getting a recommendation from a human whose taste you might come to trust. Luna: I love that. I remember visiting once and picking up a book just because the staff note said 'if you liked Station Eleven, try this.' It felt personal. Lucas: Exactly. And that personal touch moves you into the decision stage. At Amazon, your decision is driven by price, reviews, and delivery speed. At Powell's, it's driven by the experience of discovery. You're holding the book, feeling its weight, reading the first page. The decision becomes emotional, not transactional. Luna: But how do they get people to actually buy? Especially when Amazon might be cheaper? Lucas: That's the action stage, and here's where Powell's is really smart. They use what marketers call 'surprise and delight.' When you buy a book, they sometimes throw in a free bookmark with a literary quote. Or they stamp your receipt with a fun fact about the author. Small touches that create a memorable experience. And they have a loyalty program called 'Powell's Rewards'—you earn points on every purchase, and those points give you a reason to come back instead of going to Amazon. Luna: Let's pause there for a second. I think what's interesting is that the whole funnel is built on the physical space. A digital retailer can't replicate the feeling of walking through aisles and finding a hidden gem. Lucas: Right. And that's the lesson for any marketer: your funnel should leverage your unique advantage. For Powell's, it's the physical experience. For a software company, it might be the ease of onboarding or the quality of customer support. You can't just copy Amazon's funnel—you have to find your own angle. Luna: One thing I'm curious about: how do they measure success? It's not all about sales, right? Lucas: Good question. Powell's tracks foot traffic, obviously, but also event attendance, newsletter sign-ups, and social media engagement. They have a 'Book News' email list that goes out weekly with staff picks and events. That's a classic retargeting tool—keeping people in the funnel even when they're not in Portland. Luna: So they're essentially running a multi-channel funnel with a physical store at the center. That's harder to execute than a pure digital funnel, but it also creates deeper loyalty. Lucas: Exactly. And on that note—I want to share something about how this podcast works, because it's a similar kind of trade-off. We keep this show ad-free, and that's intentional. We'd rather rely on a small group of listeners who find the content valuable enough to chip in a few bucks a month. Luna: Yeah, it's the same principle. Instead of blasting ads at everyone, we focus on building real trust with the people who actually listen. Lucas: Right. And if you're one of those people and you want to help keep the show going, you can find us at buy me a coffee dot com slash fexingo. That support is what makes this possible. No pressure—just a thank you to those who already do. Luna: It's a small gesture that makes a big difference. Anyway, back to Powell's. Lucas: So the last stage of the funnel is advocacy. Powell's encourages customers to leave reviews, share their purchases on social media, and bring friends to events. They even have a 'Book Bazaar' section where you can trade in used books for store credit—that's a brilliant retention mechanism. Once you have store credit, you're much more likely to come back. Luna: So the funnel doesn't end at purchase. It loops back into awareness when customers tell their friends. Lucas: Exactly. And that's something Amazon struggles with. Amazon's funnel is mostly transactional—you buy, you leave, you come back when you need something else. Powell's creates an emotional connection that makes people want to evangelize. Luna: I think the biggest takeaway is that a marketing funnel doesn't have to be high-tech or expensive. It just has to be authentic to your brand. Lucas: Couldn't agree more. Powell's is proof that a tiny bookstore—well, a city block sized bookstore—can compete with the biggest retailer in the world by leaning into what makes it special. Next time you're in Portland, visit Powell's. And if you're not, check out their website. They ship. Luna: And maybe buy a book from them instead of Amazon. Your local independent bookstore thanks you.