The marketing funnel is a tool that has been used by businesses for many years. It is a way of thinking about the customer journey, from awareness to purchase. The funnel is often represented as a linear journey, with Awareness at the top, Consideration in the middle, and Purchase at the bottom.
However, in recent years, there has been a shift in the way businesses think about the marketing funnel. The new model is known as the flywheel, and it is a circular journey that starts with the customer.
So, what is the difference between the two models? And, more importantly, is the flywheel really better? Keep reading to find out!
2. What is the flywheel method?
The flywheel model is an alternative to the traditional marketing funnel. It is a useful tool for understanding how customers move through the customer journey.
The flywheel model focuses on the customer journey in three key areas: Engagement, retention, and referral.
Engagement refers to the methods and channels a business uses to make their products or services known to potential customers. This includes content marketing, SEO, PPC ads, and more.
Retention is the process of keeping existing customers engaged with the brand. This includes loyalty programs, personalized campaigns, and providing excellent customer service.
Finally, referral is how businesses encourage existing customers to refer new customers to the brand. This could be done through referral programs, product reviews, and product demonstrations.
Together, these three elements help businesses build relationships with customers and create a sense of loyalty, all while driving sales and growth.
3. How is the flywheel method different from the traditional marketing funnel?
The traditional marketing funnel is linear, with potential customers moving through the stages of awareness, consideration, and purchase. The journey ends with conversion and there is no more customer interaction.
The flywheel model, on the other hand, is a circular model. Rather than focusing purely on acquisition and conversion, it puts more emphasis on engaging and retaining customers. Once customers become loyal supporters of the brand, they become ambassadors that refer new customers and move the flywheel forward.
The biggest difference between the funnel and flywheel models is that the flywheel focusses heavily on customer loyalty and advocacy. With the flywheel, customer interaction doesn’t end after the purchase. It is just the beginning. Every interaction or touchpoint is an opportunity to engage and build relationships with customers, making them more likely to remain loyal and refer new customers.
4. What are the benefits of using the flywheel method?
Using the flywheel model over the traditional marketing funnel provides multiple benefits for businesses. One of the main benefits is that it encourages businesses to think more holistically about customer engagement. This means that every customer interaction is an opportunity to strengthen customer loyalty and brand advocacy.
When customers become brand ambassadors, it boosts brand awareness, generates more leads and sales, and saves money on marketing costs. The flywheel model focuses on providing more value to customers, which leads to greater customer loyalty. It also increases customer retention, which provides the business with additional revenue and improves the customer’s lifetime value.
The flywheel model also makes it easier for businesses to develop new customer outreach strategies. It helps businesses view customer relationships as a long-term investment, rather than a series of one-time interactions.
Overall, the flywheel model provides multiple advantages and changes the customer experience game and helps businesses to improve their customer retention, generate more revenue, and ultimately succeed.
5. Are there any drawbacks to using the flywheel method?
Yes, there are a few drawbacks associated with using the flywheel model. The main downside is that a company needs to invest more time and money into the customer experience and relationship building. This means that more resources need to be allocated and businesses need to be patient and wait for results.
Another problem is that a business may suffer if they are unable to address customer issues and complaints in a timely manner. This can lead to customer dissatisfaction and brand dissatisfaction.
Finally, some businesses may have difficulty adapting to the new flywheel model. This can create too much complexity and confusion in the customer service process. If the customer service team is not well-versed in the flywheel model, it can be difficult to switch from the traditional marketing funnel to the new flywheel method.
6. How can you get started with the flywheel method?
The flywheel method can be incredibly effective for companies, but the challenge is getting started.
Here are a few key steps that businesses can take to get started with this method:
1. Measure customer feedback: Companies should measure customer feedback and use insights to determine areas for improvement to enhance the customer journey.
2. Map the customer journey: Companies need to pinpoint the customer experience from start to finish and identify areas where customer experience can be improved.
3. Analyze customer data: Businesses should collect and analyze customer data to gain a better understanding of customer behavior so they can adjust their strategies accordingly.
4. Automate processes: Companies should leverage automation technology to streamline the customer service process and minimize costly mistakes.
5. Invest in relationships: It’s important to invest in relationships with customers by offering loyalty programs or rewards, personalized customer service, and more.
By taking the time to invest in the customer experience and relationship building, businesses can reap the rewards of the flywheel method.
7. To wrap things up
The flywheel method is a more comprehensive approach to marketing than the traditional funnel method. It’s focused on creating a positive customer experience that keeps customers coming back. It’s a long-term strategy that requires investment in customer relationships, automation of processes, and analysis of customer data.
By investing in the customer journey and focusing on building relationships, companies can generate more loyal customers who will become loyal advocates. The flywheel method offers companies a more comprehensive approach that will help drive better results in the long run.
The success of the flywheel method depends on the efforts taken to build relationships with customers and focus on the customer experience. Companies that take the time to invest in the customer experience and invest in relationships with customers can reap the rewards of the flywheel method. If you are looking to revamp your marketing strategy, the flywheel method may be the key to driving better results.