Latest / The Marketing Funnel Podcast with Fexingo: Awareness, Interest, Decision, and Action Stages / How Liquid Death Built a Marketing Funnel on Absurdity
Transcript
- Lucas: There's a water company that calls its product 'liquid death,' sells it in tallboy cans that look like beer, and has built a billion dollar plus business on a marketing funnel that basically rejects every conventional rule of the beverage aisle. Luna: Liquid Death. I've seen their cans at concerts — they're designed to be mistaken for craft beer, and that's kind of the point. Lucas: Exactly. And it's not just the packaging. The entire funnel — awareness, interest, decision, action — is built on this absurdist, anti-corporate persona. The CEO Mike Cessario came from the ad world, and he openly says the brand is a media company that happens to sell water. Luna: I love that framing. And honestly, if this episode sparks an idea that saves you even an hour of marketing head-scratching, that's the link — buy me a coffee dot com slash fexingo. We keep this show ad-free because listeners like you chip in. Lucas: Yeah, we really appreciate that. It's what lets us dig into stories like this without worrying about sponsors. So — back to the funnel. Awareness is where Liquid Death shines. They don't run traditional TV ads or billboards. They rely almost entirely on viral social media content. Luna: Right. Their TikTok and Instagram are basically a comedy channel. They have 42 million followers across platforms now, and they post things like a skeleton metal band covering pop songs, or mock commercials for 'murdering your thirst.' Lucas: And the key insight is that the humor is never at the expense of the product. The product is the straight man. The joke is always on the category — the idea that water is boring, that big beverage companies are soulless. Liquid Death positions itself as the fun, rebellious alternative. Luna: That gets them awareness, but what about interest? How do you get someone who's amused by a video to actually want to buy a case of water? Lucas: They do it by extending the brand into content that people actually want to engage with. They have a record label — Liquid Death Records — that drops metal and punk singles. They have a podcast called 'Death Pact.' They sell absurd merchandise: coffin-shaped coolers, skateboard decks, even a real sword. Luna: A sword. Right. That's not a typical branded pen or T-shirt. That's a statement piece. Lucas: Exactly. And the interest stage is really about building a community around that shared absurdity. People don't just buy water — they buy into the joke. The brand becomes a badge of identity. And that makes the transition to decision much smoother. Luna: So decision — what does that look like in practice? You see a funny video, you're intrigued, you go to the website. Then what? Lucas: The website is an extension of the brand — dark, irreverent, full of copy like 'we sell water. yes, water.' But the decision stage is driven by two things: subscription and merch. They offer a 'death club' subscription where you get a discount and exclusive access to limited-edition flavors and merch drops. Luna: And that subscription model is smart because it converts a one-time buyer into a recurring customer. But what's the conversion rate? Lucas: They don't publish exact numbers, but analysts estimate that around 20 percent of first-time buyers sign up for a subscription within 90 days. And the lifetime value of a subscriber is estimated at $180, compared to about $25 for a one-time buyer. Luna: So the funnel is really designed to push people into that subscription. The product is cheap — water has a huge margin — so they can afford to spend heavily on customer acquisition. Lucas: Right. And then the action stage is where the brand's community really kicks in. Action isn't just buying again — it's advocating. Liquid Death encourages user-generated content in a way that feels organic. People post pictures of themselves drinking a can at a metal show, or using the merch in creative ways. Luna: And the brand reposts that content, which feeds back into awareness. It's a flywheel. The action stage creates the fuel for the next awareness cycle. Lucas: Exactly. And they gamify it a bit — they have a 'murder your thirst' challenge where people submit videos of themselves 'killing' a can in the most creative way. The winner gets featured on their social channels. That's pure action stage content that also drives interest. Luna: It's a textbook example of a modern funnel that doesn't feel like a funnel. But let's be real — this approach has risks. The humor could get stale, or the brand could alienate people who just want a normal water. Lucas: That's the big question. How sustainable is an absurdist brand in the long run? Cessario has said he wants Liquid Death to be the 'new normal' for water, but that's a contradiction — once it's normal, the absurdity fades. They'll need to evolve the humor without losing the core audience. Luna: And there's also the environmental angle. They sell water in aluminum cans, which are more recyclable than plastic, but they're also selling a product that's essentially tap water in some cases — they source from municipal supplies. That could be a vulnerability if scrutiny increases. Lucas: Yeah, they've already faced some criticism about that. But so far, their brand loyalty has been strong enough to weather it. The lesson for marketers is clear: you can build a funnel on personality alone, but you need to back it with a solid product and a genuine community. Luna: And you need to be willing to polarize. Liquid Death doesn't try to please everyone. They aim for a specific persona — the person who thinks big water is boring and wants to laugh at the whole category. Lucas: That's the real takeaway. A well-defined brand personality can drive every stage of the funnel, from the first viral video to the hundredth subscription renewal. But it requires consistency and a willingness to be hated by some people. Luna: And a sense of humor. You can't sell 'liquid death' without one. Lucas: Exactly. Next episode, let's look at a brand that takes the opposite approach — one that built its funnel on sincerity and trust. See you then.