So far, most companies have based their activities on a traditional sales funnel. They focused primarily on acquiring a new client, and therefore on the end result. However, this situation is slowly changing and the flywheel concept is becoming more and more popular. It is based on different assumptions and emphasizes many different aspects. What exactly is flywheel and where will it work?
Flywheel and the sales funnel – what is it?
Let’s start with what is characterized by a sales funnel, in other words, income or purchase funnel. It is a visualization of the sales process that shows how the transition from the appearance of the brand in the minds of customers to making a purchase decision looks like. There are four main steps here, namely:
1. Get attention.
2. Build interest.
3. Lead classification.
4. Action, bringing to finalization.
It is worth emphasizing that the use of the funnel symbol is not accidental here. Its upper part is the broadest and shows that marketing activities reach a wide audience. The funnel gradually narrows downwards and ends up with a small group of customers deciding to buy. Its proper construction allows you to create an action plan that allows you to achieve the intended business goal.
The sales funnel method focuses on customer acquisition. His needs or impressions about the product or service are irrelevant. Sometimes this approach does not fully work, as it generates many one-time customers who choose not to re-purchase. Flywheel is to be the answer to such problems.
Flywheel is a concept based on concepts other than a sales funnel. In this case, there is not one aspect that needs to be particularly focused on. In addition to acquiring a customer, other elements also play an important role, such as the manner of customer service or meeting all expectations. The flywheel model was proposed by HubSpot and focuses on long-term effects. It is important to build lasting relationships with customers, which is to encourage them to issue positive recommendations and recommend the company to others.
How does flywheel work?
The flywheel concept has 3 main stages:
1. Attracting attention.
2. Maintaining commitment.
3. Providing satisfaction.
First, it is necessary to gain customer interest. This can be done using various measures, such as polished content, activity on social media or optimization of the conversion rate. It is also a good idea to establish cooperation with, for example, well-known internet creators. Steps should be taken to encourage the transition to the second stage.
Maintaining commitment comes down to making it easier for customers to get through the entire sales process without any problems. It is important to create a readable and user-friendly website, as well as to ensure multi-channel communication. It is necessary to minimize doubts and problems that may arise at this stage. If everything goes as planned, the client will go to the last level, i.e. satisfaction.
The third stage of the flywheel model decides whether to buy again and recommend the company. Both the product itself and its quality play an important role, as well as customer service and transaction processing (shipping time, availability of several delivery methods, etc.). It is worth contacting the customer after completing the sales process to make sure that he is satisfied, inform him about new products or propose an attractive discount.
Flywheel is all about growing and building a loyal community. The concept focuses on customer satisfaction. If their feelings are positive, they can effectively promote the company in a selfless way – recommend it not only to family and friends, but also to unknown people via the Internet.
Advantages of flywheel
Flywheel is not just about winning a customer and making a transaction. Thanks to this model, it is possible to realize that all activities undertaken by the company influence each other. This encourages fine-tuning of every important aspect and continuous development to guarantee 100% customer satisfaction. For many businesses, flywheel is a comprehensive view of their business, showing additional opportunities and the perfect chance for success.
With the help of the handwheel strategy, you can effectively improve the customer journey map and customer experience. There is a belief that the traditional sales funnel does not fully use the energy put into the implementation of activities leading to sales. The situation is different with flywheel. The more effort you put into the acceleration of the flywheel, the longer it will turn and the faster it will spin. Of course, this requires the involvement of a large number of people to implement the strategy. However, thanks to this, it is possible to remove obstacles that would slow down the flywheel and thus hinder the achievement of the business goal.
The implementation of the flywheel model makes it possible to build a lasting relationship with the customer from the very beginning. The company cares about its needs from the moment it shows interest in it, and further activities allow for the improvement of this relationship. The end result is a loyal and trustworthy ambassador. Why is a lasting relationship so important? It becomes a source of recommendations (often spontaneous), flattering opinions, as well as repeated purchases.
How to implement flywheel?
The flywheel concept puts the customer and their impressions in the spotlight, and more and more companies decide to implement it. There are often opinions that it is more adequate to the current market situation and standards than a sales funnel. A simple example confirming such a thesis – the sale of shoes. In the funnel model, all activities come down to achieving one, short-term goal, i.e. persuading a potential customer to sell the product. In the case of flywheel, it is not only the fact that the ordered shoes will reach the addressee that matters, it is only the beginning of a longer relationship. An important role is played by what the new owner thinks about his shoes and whether he is fully satisfied with the transaction. Actions are taken to encourage entering the world of the brand and getting to know its value.
It should be emphasized that flywheel does not completely reject the funnel concept. However, it is a completely different look at all sales, it connects its beginning and end. The flywheel focuses on the continuity of the process. How to implement this concept in the company? First of all, you need to be prepared for long-term effects. It is necessary, among others:
– ensuring a friendly, fully transparent and fast shopping path,
– recognizing customer needs, understanding their behavior,
– focusing on emotions and impressions of customers,
– changing the way of thinking so far.
The friction that prevents the flywheel from working properly should not be forgotten either. They can appear at different stages of the work, it’s inevitable. For example, an underdeveloped, malfunctioning website or a long waiting time for a product are considered friction. The successful implementation of the flywheel method requires the cooperation of all departments of the company. Everyone has to refine their area of operation and eliminate errors that could slow down the rotation of the wheel. It is also often necessary to take additional steps, such as introducing the company to new social media or performing an SEO audit.
Flywheel – is it worth it?
The flywheel concept is increasingly being said to be a forward-thinking approach and a true revolution. For many businesses, this is an opportunity to discover completely new opportunities and significantly help in creating a popular, strong brand. A flywheel allows you to appreciate customer relationships, not just the transactions you make. This model is also an impulse for debugging and improving the company.
Usually it takes a lot of time to get rid of or minimize friction, but there are many benefits. Flywheel allows you to work more effectively and change the current approach to marketing. It is important that the concept can be successfully implemented not only in a large enterprise, but also in a small business, because it is flexible. However, using it does not always have to mean abandoning the sales funnel altogether. There are situations when a combination of both models gives good results. The choice of the right strategy should be made on the basis of the analysis of the current situation of the company and the effects that are to be achieved.