Flywheel

Flywheel vs. Sales Funnel, why you should invest in a Flywheel in 2021

 

If you know anything about marketing, you’ve probably heard of the sales funnel. 

Until recently, the sales funnel has been the best way to turn leads into customers. But with evolving technology and sales tactics, there’s now room for other sales strategies. 

Enter the Flywheel.

 

For businesses to get the most out of their marketing strategies, marketers are shifting their focus from a linear funnel that pushes customers through, to a circular model that keeps customers at the center. 

To provide more value to customers and focus on customer retention, switching from the Flywheel to funnel is the way to go.

Keep reading to learn more about the sales funnel, the Flywheel, and why you should make the switch.

Sales Funnel

The sales funnel is the journey from top to bottom that a person needs to take in order to become a customer. 

In the funnel, there are four stages that a customer’s mindset must go through to make that journey that include awareness, interest, decision, and action. 

The Four Stages of the Funnel: 

Awareness: When a person becomes aware of your business and what you have to offer. This stage is where most marketers focus the bulk of their efforts. They think, the more people know about the company, the more customers they will get. Picture a sign with flashing lights, desperately trying to get your attention. 

Interest: When a person is interested in your product, they begin to do the research, comparing prices and ratings. 

Decision: When a customer is in the decision stage, they are ready to buy. They may have added to the cart your website and are considering a couple of options carefully. This is when offers like free shipping, or 20% off makes the most impact. 

Action: When a customer buys your product, becomes a member, makes the call, books the appointment, etc. 

So, that’s the sales funnel. Now let me tell you why we can do better. 

Why the Sales Funnel is Outdated

The sales funnel focuses on getting people’s attention. 

Most marketers who use this model will spend most of their money at the top of the funnel, trying to get anyone to notice them.  

The thing is, there are more than 500,000 new businesses every month, so it’s becoming more and more difficult to stand out from the crowd.

So what do you do when you’re struggling to get the attention of the masses because of competition? 

Instead of focusing on trying to grab the attention of people who have never heard of your company, why not focus on engaging and retaining the customers you already have? 

Which is exactly the main focus of the Flywheel. 

Flywheel

Flywheel

Customers are not just looking for products anymore, they are looking for experiences. The Flywheel is the marketing tool to help businesses give them just that. 

The flywheel is more than just a marketing term, it’s physics.

A flywheel is a wheel that is used to increase the momentum of a machine. They are used to create power, force, and momentum in automobiles and now…loyal customers. 

Similar to the Buyer’s Funnel, the Flywheel is about the buyer’s journey. Unlike the funnel, the Flywheels’ customer stages are to attract, engage, and delight with the customer at the center of it all. 

Attract: Draw customers to your brand using engaging and useful content, traditional ads, reviews, testimonials, and adding value through inbound marketing. 

Engage: Create meaningful relationships by understanding and meeting needs, motivations, and pain points. You can do this by creating blogs with useful content, sharing resources on social media, podcasts, and chatbots for a better customer experience.

Delight: Delighting your customer means going the extra mile to keep your customers coming back for more. You can do this by offering free returns, a money-back guarantee, reward programs, and customer support.

With the customer at the center, the wheel begins to spin, each rotation is the growth of your business, and as customer loyalty grows, so does your momentum.

The difference between the sales funnel and the Flywheel is, with the Flywheel, you never have to start over. The customer stays within the loop, so you never lose that energy. 

How to Switch?

Switching from the Funnel to the Flywheel is less complicated and more cost-effective than you might think. It’s more like a shift than a switch. The good news is that you most likely, already have everything that you need in place.

One way to switch is by reallocating spending from the top of the funnel to the delight stage. 

For example, instead of spending time on broad content topics, you could create articles on topics that would help your existing customers instead, making them feel like insiders. 

Investing in Flywheel as your marketing model will help you stand out from the crowd! 

Making the switch doesn’t have to be difficult and if you need a hand with this transition, goodteam.agency is here to help! Click here to schedule a 7-minute call. 

 

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