Last Updated: April 8, 2024 by Editorial Team | Reviewed by: James Dyson
We’ve seen incredible changes to marketing strategies and the ways to attract potential customers. Many of these acquisitions stem from a variety of sales funnel models, but another popular avenue instead embraces flywheel marketing.
The question is: when should a company opt for a flywheel model? In some cases, a traditional funnel approach may be more suitable, while in others, the flywheel could be the key to unlocking sustainable growth.
Here's everything you need to know when comparing a sales funnel vs flywheel model and how you can apply each of these powerful frameworks.
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Sales funnels allow you to visualize and optimize the customer journey from initial awareness to a closed sale.
They're especially useful if you have a well-defined product or service offering, or if you're targeting a specific niche audience. Some of the most converting sales and marketing strategies happen once you specifically define every stage of your sales funnel.
To do so, you map out the typical journey a prospect takes, from the top of the funnel (awareness/interest) through the middle (evaluation/consideration) to the bottom (purchase intent/conversion).
With tailored messaging, content, and tactics to guide leads smoothly through the buying process, you reduce friction, roadblocks, and end up with a foolproof formula to nurture prospects until they become paying customers.
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Sales funnels can be used in just about any industry and for any product or service. They can be shaped in a variety of ways, in both text and video formats. Some of the most popular sales funnel examples that companies currently use are:
While a variety of sales funnels are extremely effective at guiding your leads all the way through purchasing decisions, they do require a sharp understanding of who your target audience is and what their needs are.
But generally, here is a breakdown of the pros and cons of sales funnels to expect.
Business Goals | Pros | Cons |
---|---|---|
Structured Approach | Provides a structured approach to nurturing leads through the buyer's journey | Requires significant upfront planning and strategising |
Personalisation | Allows for personalised messaging and content tailored to each funnel stage | May feel impersonal or "pushy" if not executed thoughtfully |
Optimisation | Helps identify drop-off points and areas for optimisation | Doesn't account for customers who take non-linear paths |
Automation | Can automate repetitive tasks and streamline the sales process | Needs continuous monitoring and refinement as buyer behaviours evolve |
Performance Tracking | Enables effective tracking and measurement of marketing/sales performance | Over-reliance on funnels can neglect customer relationships post-purchase |
The flywheel model is a cyclical approach that focuses on creating a self-sustaining engine of growth which attracts and retains customers.
For it to be successful, you’d need a holistic, company-wide approach that delivers remarkable experiences.
This begins by identifying your ideal customer (buyer persona), how you can attract them, and ultimately driving referrals and repeat business on a deeper emotional level through customer delight.
Down the line, the flywheel allows you to build meaningful relationships with your prospective leads, strengthen customer loyalty, and nurture brand advocacy long-term, without much additional effort.
If you're looking for sustainable, long-term business growth, flywheel models could be a powerful tool for fostering customer centricity, and certainly worth considering.
Because flywheel models are all cut from the same cloth, they operate using the same core principle of continuous, circular customer value creation.
For example, Amazon uses a flywheel model to drive growth by offering a wide range of products, providing fast shipping, and delivering exceptional customer service.
This has led to high levels of customer satisfaction and loyalty, which in turn has driven continued growth for the company.
On the other hand, Hubspot uses flywheel marketing to drive growth through educational resources, personalised support, and continuously improving its products and services. Through this level of nurturing, Hubspot has created a loyal customer base that continues to promote the company to others.
In either case, the core principle is to continuously delight customers to fuel business growth. But let's break down some of the ways in which you can develop a flywheel model:
Flywheels are extremely rewarding when executed effectively. However, they're more challenging to set up due to requiring cross-functional alignment and a long-term commitment.
This can be mitigated by starting small, experimenting, and finding your winning formula, but you'll want to choose carefully at every stage of the process.
Here's a quick look at some of the most prominent pros and cons of flywheel marketing.
Business Goals | Pros | Cons |
---|---|---|
Customer Retention | Builds long-term customer relationships and reduces churn | Requires consistent effort to keep customers engaged |
Referrals and Word-of-Mouth | Motivates positive referrals from delighted customers | Requires a strong commitment to tailor exceptional customer experiences |
Cross-Team Demands | Brings the entire organisation together to deliver unparalleled value to customers | Can be challenging to get all teams/departments aligned |
Adaptability | Accommodates for any evolving and changing customer needs | Needs constant optimisation and planning as trends evolve |
Data-Driven Insights | Allows tracking of customer behaviour and feedback for improvements | Requires investment in strong data collection and analysis capabilities |
Scalability | It’s a self-sustaining model with growth cycles that enable efficient scaling | Initially slower growth compared to rapid acquisition funnels |
It’s simple: sales funnel and flywheel models are two contrasting approaches to marketing and customer acquisition.
One focuses on pushing prospects through a linear journey to conversion, while the other helps you shape and define long-term customer relationships – they’re night and day.
But this is great news for companies, solopreneurs, or digital marketers, because having the two at your disposal creates a spectrum. And you get to pivot your strategies in the best direction based on what your marketing functions require.
Let’s highlight the main differences and how you can use these to your benefit.
The sales funnel is mostly a linear model that guides prospects through a series of stages from awareness to purchase. It’s a one-way street, and once the customer completes their journey, the relationship may end. You could adopt a bonus stage at the end to retain loyalty, but it’s not the primary focus of sales funnels.
In contrast, the flywheel is a wholly circular, ongoing process that emphasises customer retention, advocacy, and repeat business. So if you want full attention on building long-term relationships and sustainable growth with a specific target group, the flywheel approach could be a better fit.
Sales funnels are often optimised for short-term conversions and quick wins, making them ideal for product launches, promotions, or specific campaigns.
Flywheels, on the other hand, prioritise long-term customer value and lifetime relationships over immediate transactions.
Here, it really depends what your marketing aims are. Quick product launches, or limited-time offers and promotions, will most likely perform best and require fewer resources than developing a flywheel model.
The sales funnel represents a more traditional, business-centric approach, where the focus is on moving prospects through the funnel and closing sales. The approach itself is also a veteran in the marketing game, and has been around for longer than we can count.
Flywheel models instead put the customer at the centre, emphasising their needs, experiences, and satisfaction as the driving force behind growth. They’re also fairly new to the marketing world, and can be linked back to Jim Collins in his 2001 book “Good to Great”.
If you want to adopt a truly customer-centric mindset and foster advocacy, the flywheel model could be the way to go. But if your goal is generating quick conversions or executing short-term campaigns, you're better off relying on a thoughtfully designed sales funnel.
Each of these models has its special place in your marketing strategy. And while there’s a big contrast between the two, that's not to say that they can't coexist or that you'd have to choose one over the other.
We’ll show a few examples of where sales funnels and flywheel models work best and why.
Sales funnels work well for product launches, limited-time promotions, or when your sales team wants to attract a high volume of new customers within a set timeframe.
For example, if you’re an e-commerce business launching a new product line, you could benefit from a sales funnel that builds awareness and interest, and will ultimately convert prospects into buyers.
Similarly, a SaaS company running a time-sensitive discount promotion could benefit from a sales funnel to attract and convert new customers.
Let's say that you're going ahead with a sales funnel. You'll want to put some thought behind a few key elements to guarantee you'll guide prospects through the buyer's journey. These are:
In the process of executing the above steps, there are a few key strategies to keep in mind that will not only help you nurture leads effectively, but will also maximise conversions along the way. The following isn’t an exhaustive list, but are great to get you started:
Flywheel models shine when you want your product or service to become an integral part of your prospect’s life or workflow.
For instance, a mobile app company could build a flywheel to keep their users engaged through frequent updates, new features based on user feedback, and value-added content that enhances the overall experience.
Businesses in industries with high customer lifetime value, like professional services or B2B software, can also benefit from the flywheel model, because they create "sticky" customers who continue to invest and spread positive referrals.
Creating a flywheel model will require an in-depth assessment of your entire business structure, how it all operates, and how it will ultimately delight your targets. What you'll want to do is:
Customer-centricity isn't easy, and while knowing where all your company assets stand is key, there are a few critical elements that will make or break your flywheel strategy. To kick things off, make sure you've got these areas covered:
All in all, you've got some incredible marketing tools at your disposal to drive growth. On one hand, you can effortlessly nurture leads and drive conversions through sales funnels.
On the other hand, you can capture attention and build a long-lasting relationship with loyal customers with a dedicated flywheel model. Either way, you end up on the path to success, as long as you execute strategically.
If you want to build your flywheel model or an optimised sales funnel, but don't know where to start, OptimizePress has proven templates and resources to kick things off for you. Some of our best performing funnel designs and page layouts are geared towards ecommerce, info products, and software/SaaS.
Need help getting started or want professional guidance? Reach out to us with any questions!
Business Goals | Pros | Cons |
---|---|---|
Focus | Short-term conversions, quick wins | Long-term customer relationships, sustainability |
Approach | Linear, one-way journey | Circular, ongoing process |
Mindset | Business-centric | Customer-centric |
Ideal For | Product launches, promotions, specific campaigns | Building brand loyalty, advocacy, repeat business |
Customer Lifecycle | Ends after conversion, but you can add a bonus step for retention | Nurtures customers into loyal advocates |
Alignment | Sales and marketing teams | Entire organisation, cross-functional |
Metrics | Lead generation, conversion rates | Customer retention, lifetime value, referrals |
Examples | Webinar, product launch, tripwire funnels | Customer-centric, content-centric, service-centric models |
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