The Funnel is Dead. Long Live the Flywheel

For many years, the marketing Funnel has been a staple of my business world—a linear model guiding potential customers from; unawareness to awareness, familiarity to consideration, and from purchase to loyalty.?

However, in an age where customer experience (CX) reigns supreme, the traditional Funnel falls short.?

Enter the Flywheel (Ta! Da!), a more dynamic, customer-centric model that captures the continuous nature of customer engagement and growth.?

(Inspired by McKinsey & Co's Community Model)?

I’d like to lay out how the Flywheel can revolutionise your approach to customer experience.

My Experience with the Flywheel

Having just finished my third 360-degree client CRM project using the Flywheel as opposed to the Funnel, I can confidently say that the Flywheel approach is business transformative.?

These projects have involved substantial work to set up; Single point of truth of the Customer, API integrations, Basic Machine Learning, and early-stage Artificial Intelligence.?

However, the effort and outcome is well worth it when done properly.?

The Flywheel provides a comprehensive and sustainable model that enhances customer relationships and drives continuous growth.

If this level of transformation is of interest to you for your business, please DM me and we can discuss it in more detail?

Understanding the Flywheel Model

At the core of the Flywheel model is the Customer.?

Unlike the Funnel, which is transactional and linear, the Flywheel is circular and continuous, emphasising the importance of keeping the customer at the centre of all activities.?

The (unpopulated) visual representation (shown above) highlights the key layers that interact seamlessly to create a perpetual growth machine.

The Layers of the Flywheel

1.0 Customer - The Flywheel starts and ends with the customer. Every strategy, tactic, and interaction revolves around delivering value to the customer.

2.0 Phases of Engagement

2.1 Awareness - This is where potential customers become aware of your brand.?

2.2 Consideration - At this stage, they consider your product or service as a potential solution to their needs.

2.3 Purchase - The actual transaction where the customer buys your product or service.

2.4 Loyalty - Post-purchase, the focus shifts to retaining the customer and turning them into loyal advocates.

3.0 Personas - Understanding different customer personas helps tailor interactions and content to meet the unique needs of each segment.

4.0 Journey Stage - Mapping out the customer journey stage ensures that you provide relevant touchpoints at the right time.

5.0 Touchpoints - These are the various interactions a customer has with your brand, whether through social media, email, in-store visits, or customer service.

6.0 Process - Efficient and seamless processes enhance customer satisfaction and streamline operations.

7.0 Data - Leveraging and augmenting the single view of the customer data to understand customer behaviour and preferences allows for more personalised and effective marketing strategies.

8.0 Platform - Utilising the right platforms to reach and engage with customers is crucial in maintaining a cohesive and integrated customer experience.

Why is the Funnel outdated?

The traditional Funnel focuses on acquiring new customers and guiding them towards a purchase, it often neglects the post-purchase experience, which is critical in today's market.?

Customers now have more choices and higher expectations than ever before.?

They demand continuous value and exceptional experiences, not just during the purchase phase but throughout their entire relationship with your brand.

The Benefits of the Flywheel

Customer-Centric Approach?

By placing the customer at the centre, businesses can ensure that every action is aimed at enhancing the customer experience.

Continuous Engagement?

Unlike the Funnel, the Flywheel promotes continuous engagement with customers, fostering long-term relationships and loyalty.

Data-Driven Decisions?

The Flywheel model emphasises the use of data to understand and anticipate customer needs, allowing for more informed and effective decision-making.

Scalability?

As satisfied customers become advocates, they bring in new customers through word-of-mouth, reviews, and referrals, creating a self-sustaining growth loop.

Implementing the Flywheel in Your Business

To transition from a Funnel to a Flywheel, start by re-evaluating your customer journey.?

Identify key touchpoints and areas where you can enhance the customer experience.?

Invest in data analytics to gain insights into customer behaviour and preferences.?

Ensure that your processes are streamlined and efficient, reducing friction at every stage of the customer journey.?

Lastly, leverage technology and platforms that enable seamless and integrated customer interactions.

In conclusion

The Funnel served its purpose in a different era of marketing, but as customer expectations evolve, so must our strategies.?

The Flywheel, with its emphasis on continuous engagement and customer-centricity, offers a more holistic and sustainable approach to growth.?

By adopting the Flywheel model, businesses can build stronger, more enduring relationships with their customers, driving long-term success and loyalty.?

The Funnel is dead. Long live the Flywheel.