Data Model: Funnel VS Bowtie

The "Recurrent Revenue Operating Model" program proposed by Winning by Design builded an architecture based on six models: Business, Data, Mathematical, GTM, Growth, and Implementation.

I think the vast majority of professionals still use the classic funnel model to analyze growth data and act accordingly. But this model has some limitations when scaling the businesses.

These are the 5 disadvantages of the funnel model:

1. Acquisition only
2. Focuses on closing deals
3. One-way approach
4. Assumes a linear relationship
5. Silo'd implementation

The growth principle in this model is the result of winning more deals. This model is often seen in the early scaling of the revenue.

Unlike the funnel model, the bowtie growth model proposes other possibilities since growth is not based on a linear but exponential function. The principle is the result of recurrent impact, and the 5 pros from this approach are:

1. Entire Journey
2. Customer Impact
3. Growth Loops
4. Exponential Relationship
5. Operating Approach

While in the traditional funnel the value is being promised. In the bowtie the value is being realized. So, recurrent revenue is the result of recurrent impact.

Here I only shared a small pill of knowledge, but without a doubt I encourage you to delve deeper into this program.

I hope you find this insightful and special thanks to Maria Abad Baides for facilitating and being supportive during the revenue architecture course.