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If you work in marketing or sales, you’ve probably come across two models that organize the customer journey: the traditional sales funnel and the more recent flywheel model. But are they rivals? Competitors? Nothing of the sort.
While the funnel represents a linear path to conversion, the flywheel proposes a constant cycle, where customer satisfaction drives new business. In this article, we will show you that the true strength lies in the integration of these two models. Let's go!
Importance of efficiency in sales processes
Efficiency in sales processes is vital to the success of any company. Therefore, understanding how the sales funnel and flywheel differ and how they can work together is essential to optimizing sales strategies.
Efficient processes allow sales teams to focus on the most impactful activities, increasing productivity and reducing wasted resources. Additionally, they ensure teams are approaching the right leads, which leads to improved sales quality and customer satisfaction.
Combining the sales funnel, which focuses on traditional acquisition stages, with the flywheel, which focuses on customer satisfaction, ensures a comprehensive customer-centric approach throughout the entire sales cycle. In addition, the flywheel values customer feedback as a key tool for driving continuous improvements and enhancing the overall experience.
Next, we will understand each of the concepts, how they differ and how to integrate them to achieve even better results.
What is the sales funnel?
The sales funnel is a visual representation of the steps a lead (potential customer) goes through until becoming a customer. Thus, it is a traditional structure that represents the steps a customer goes through, from product discovery to actual purchase. This concept is often used in the context of marketing and sales to visualize and understand the process of converting these leads into actual customers.
The sales funnel is so called because of its shape, which resembles a funnel, where the width represents the initial phase of the process and the narrow part represents the completion of the sale.
It is divided into three major phases: top, middle and bottom. In this way, each phase has specific objectives, from attracting initial attention to converting leads into customers.
The three stages of the funnel: ToFu, MoFu and BoFu
- Top of the Funnel (ToFu): AND where it all begins. At this stage, marketing efforts aim to attract the attention of a wider audience. In this way, the objective is to generate awareness about the brand, products or services. Strategies include creating relevant content, social media presence, advertising and other tactics to attract potential interested parties.
- Middle of the Funnel (MoFu): Here, leads are more engaged and have shown interest in exploring more about the company. Therefore, the focus is to educate these leads by providing more detailed information, product demonstrations, case studies, webinars and other resources that help with decision making.
- Bottom of the Funnel (BoFu): In the final phase, leads are more likely to become customers. Thus, strategies focus on closing deals, offering commercial proposals, more detailed demonstrations, customer testimonials and other forms of incentives for conversion.
Each phase requires specific activities, from creating attractive content to personalized monitoring in the final stage of the sales process.
“The sales funnel is a linear model that focuses on converting leads into customers, while the flywheel is circular and values delight and loyalty.”
Advantages and limitations of the traditional model
The funnel is easy to understand, allows for clear tracking, and helps identify bottlenecks in the sales process. But there’s one problem: it ends with the sale.
And then what? The customer disappears from the radar, as if the relationship has come to an end. And that’s where the flywheel comes into play.
What is the flywheel?
The flywheel is an analogy used to represent a cyclical growth model. Popularized by HubSpot, it puts the customer at the center of everything.
In contrast to the sales funnel, the flywheel is a newer approach, emphasizing customer satisfaction and the continuous generation of positive energy. The flywheel model in inbound marketing it is a strategic approach. In this way, it focuses on creating a continuous cycle of customer attraction, engagement, and satisfaction to drive a company's sustainable growth. This concept is an alternative to the traditional sales funnel model, highlighting the importance of placing the customer at the center of marketing and sales strategies. And more than that, it serves as a complement to the funnel concept, and can be applied together.
The flywheel metaphor represents the idea of a spinning disk that accumulates energy over time. This energy is then generated by satisfied and engaged customers, fueling a positive cycle of growth. The flywheel is based on the principles of attracting, engaging and delighting customers to create a solid and lasting foundation.
The three phases: Attract, Engage and Delight
The main elements of the flywheel model are:
- Attract: The process begins by attracting qualified visitors to your company website through content marketing strategies, SEO, social media, and other tactics that spark genuine interest.
- Engage: Once visitors are on the website, the next step is to engage them in a meaningful way. This involves providing relevant content, personalized interactions, and positive experiences to turn visitors into leads.
- Enchant (Delight): The enchantment phase is crucial for creating brand advocates. Offering exceptional customer support, personalizing interactions, providing memorable experiences and constantly striving for customer satisfaction are essential elements of this stage.
“In the flywheel, the customer is not the end of the journey, but the driving force that keeps the growth cycle turning.”
Fundamental differences in relation to the sales funnel
The flywheel breaks the linearity of the sales funnel, promoting a continuous feedback cycle and constant adjustments. While the sales funnel prioritizes closing deals, the flywheel highlights the importance of building lasting, positive relationships with customers.
“The main difference between the funnel and the flywheel is the focus: the funnel ends with the sale; the flywheel starts with it.”
In this way, the linearity of the sales funnel contrasts with the continuous nature of the flywheel, where customer satisfaction fuels a cycle of constant growth.
The difference with the flywheel is that, instead of considering the customer as the last stage of the process, they are placed at the center of the model, generating positive energy as they progress through the phases. Thus, the flywheel creates a continuous cycle of growth, where satisfied customers become brand promoters, attracting new customers and feeding the flywheel.
Unlike the sales funnel, the flywheel model does not have a single direction. He suggests that marketing and sales are not just about acquisition, but also about maintaining and continually cultivating customer relationships.
“While the funnel measures success by conversion rate, the flywheel measures it by level of customer satisfaction and retention.”
Model integration: how to do it
Identifying where models overlap is essential for the success of sales processes. Effective integrations occur at transitions between phases of the sales funnel and at opportunities to generate positive energy in the flywheel.
Therefore, communication and collaboration between these areas are crucial to align strategies and ensure a smooth transition between models.
“Flywheel and sales funnel are not competing models, but complementary ones. Together, they offer a complete journey: from attraction to delight.”
The use of marketing automation, the use of analytical tools and personalized strategies to synchronize models, taking advantage of the best of each approach, is the backbone of successful integration. Inbound marketing and inbound sales go hand in hand in these processes, strengthening results, focusing on the customer and their purchasing journey.
“Integrating sales funnel and flywheel means transforming the sale into a starting point, not an ending point.”
The importance of lead tracking
Lead tracking is an essential practice to effectively integrate the flywheel and marketing funnel into an inbound marketing strategy. Lead tracking refers to the process of monitoring and recording lead interactions (potential customers) throughout the sales cycle. In this way, this monitoring is carried out to obtain insights into the behavior of leads, understand their needs and personalize marketing and sales interactions according to their actions and interests.
Therefore, you must identify the integration points between the flywheel and the marketing funnel, including points such as lead attraction, conversion, closing sales and customer delight.
“Lead tracking is essential to unite the two models, as it allows you to map customer behavior before, during and after the purchase.”
How to implement lead tracking
To implement lead tracking, use marketing automation tools, such as RD Station e Hubspot, to track lead behavior at every stage of the funnel and flywheel. This includes interactions on the website, opening emails, participating in webinars, among others.
“Marketing automation is the link that connects the funnel to the flywheel, enabling personalization at scale.”
Establish clear criteria to qualify leads based on their interactions. For example, a lead who participates in a webinar may be considered more engaged than one who just downloaded an eBook.
Use the information collected to personalize your approach to leads at different stages of the funnel and flywheel. This could include sending specific content, personalized offers, or invitations to exclusive events.
Integrate your CRM system with marketing automation tools to ensure a holistic customer view. This allows for effective collaboration between marketing, sales and customer service teams.
Regularly monitor lead tracking results. Therefore, analyze metrics such as conversion rates, sales cycle time and customer satisfaction. Adjust your strategies based on the insights you gain.
Use lead tracking to identify opportunities for customer delight. Offer proactive support, provide relevant post-sale content, and solicit feedback to continually improve the customer experience.
Conclusion: The future of sales is circular
By understanding the differences between the sales funnel and the flywheel and exploring efficient integration strategies, companies can position themselves to win customers in a sustainable way, promoting constant growth and lasting satisfaction. Try combining the best of both worlds to take your sales strategies to the next level.
“Companies that adopt the flywheel as an extension of the funnel are able to transform customers into brand promoters.”
Use marketing automation and lead tracking to foster and monitor your customers’ activities. But don't forget, always prioritize understanding your needs and align teams to keep the flywheel spinning with the aim of delighting and retaining your customers!
Frequently Asked Questions about Sales Funnels and Flywheels – FAQ
1. What is the sales funnel?
The sales funnel is a model that represents the customer journey in three phases: attraction, consideration and decision. It organizes the sales process in a linear way.
2. What is the flywheel?
It is a circular model that places the customer at the center of the strategy. Growth comes from delight and loyalty, not just acquisition.
3. Which is better: funnel or flywheel?
Neither is better on its own. The secret is to combine the two to cover the entire customer journey.
4. How can I apply the flywheel to my business?
Start by offering an amazing post-sale experience. Use automation, collect feedback, and invest in customer support.
5. How to integrate funnel and flywheel in practice?
Use tools like CRM and marketing automation to map the entire customer journey. Create processes that don’t end with the sale, but evolve into delight.
Image: Freepik
Article originally published on 01/22/2024 and updated on that date.
Marcel Castilho is a specialist in digital marketing, neuromarketing, neuroscience, mindfulness and positive psychology. In addition to being an advertiser, he also has a Master's degree in Neurolinguistic Programming. He is the founder and owner of Vero Comunicação and also the digital agency Vero Contents.
