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Flywheel and Sales Funnel – Which Model Will Better Drive Your Business? The Customer Journey

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Flywheel and Sales Funnel – Which Model Will Better Drive Your Business? The Customer Journey

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The customer journey and its transformation

The sales funnel method has been with me for years. Using it as a work tool has provided both me and my colleagues with valuable feedback and a measurable indicator of our work's results. My good friend, the funnel, has bailed me out of more than one jam.

Sales funnel concept

You probably think about your company in a similar way, based on the concept of a funnel: many people have heard about your company somewhere, a large group (smaller or larger, depending on the business) has had contact with it, and a certain percentage (quite small) of these people have become your customer. Despite the long-standing attachment to the funnel, its simplistic, linear perception as a growth indicator remains its huge weakness. A sales funnel allows a company to visualize the customer journey, but it leaves the question open: do acquired customers contribute to the company's growth? And all the energy invested in building customer relationships? That's a one-time event. New customer, new funnel. Every day, month, or quarter, we start anew.This approach is not only ineffective but also poses a serious problem in today's world. It carries the risk of overlooking the client's growth potential, and consequently, the growth of your company.

Flywheel as a development tool

The flywheel provides a broader context in which to place the funnels so that all parts are aligned with the overall growth of the company.If you reprogram your thinking about your business and visualize your enterprise not as a funnel but as a flywheel, you will start making completely different decisions. The flywheel symbolizes continuous development. Its operation forces a circular process. Thanks to it, we move away from a linear perspective on customer relationships. At Verseo, we are increasing our direct marketing spending and focusing on individual customers. We've created the most seamless onboarding process possible for new clients. We've invested heavily in creating an integrated system that makes it easier for clients to use our solutions (each client receives a dedicated specialist and platform support that manages client campaigns 24/7 and optimizes rates to maximize budget spending).This is why we offer a free quote for our services to get you started, including analyzing the client's website and assessing advertising opportunities. We then streamline the sales process through easy access to a single specialist with industry experience, and we also offer a solution that allows you to use our VCM product as quickly as possible. We learn what the client needs and strive to meet those needs.flywheel

How to give momentum to your funnel?

As the flywheel speed increases and friction decreases, the number of satisfied customers increases. As their number increases, the flywheel's weight increases, meaning it can spin with greater momentum, producing more and more energy. Torque will therefore increase in direct proportion to the number of customers and the products they use.

How to increase flywheel speed?

Improving conversion rates, improving customer satisfaction, and reducing churn are just some of the factors contributing to increasing the speed of the wheel. It's also worth considering the mechanical factors that increase friction. Simply reviewing a company's internal organizational structure is enough. The higher the degree of complexity at the organizational level, the more mechanical elements create unnecessary friction. That's why Verseo has had clear principles and a flat communication structure from the very beginning.

How to start using flywheel in your organization?

First, identify the key performance indicators that guide your company.Second, examine your company's strengths, focusing on how you can maximize customer satisfaction and increase word-of-mouth.Third, highlight potential friction drivers for both customers and employees. Identify key moments where task delegation and organizational structure buildup negatively impact the customer experience.fly wheel

Reconstructing the sales funnel in Verseo

Based on the previously created model, we decided to create our own reflection of the flywheel concept in Verseo. The flywheel, even in Poland better known as a flywheel, doesn't reject the funnel concept. It still embraces its pre-established customer journey and the steps a company should take to acquire them, build a long-term relationship with them, and satisfy them. However, Flywheel introduces a significant shift in the perception of this funnel – the beginning and end are interconnected. This assumes continuity and gives enormous impact to the final step, which is customer satisfaction and making them a brand ambassador, influencing the customers we want to acquire. Depending on the phase of the wheel's rotation, we've designed our approach at Verseo to create "momentum."flywheel shopping pathThe goals of marketing departments used to be very different from those of today. Verseo has been on the market for six years. Over the years, our approach to marketing and customer service has evolved. Many of the daily activities of our Google Ads and SEO specialists have been redesigned with the advent of automation and the growing importance of customer service. You can see what it was like then and what it is now below:flywheel verseo shopping pathGrowing competition in virtually every industry and the ever-increasing demands of customers in both the B2C and B2B markets are forcing everyone to redesign their marketing approach, including changing the concept of a sales funnel to a flywheel. A brand has long been more than just a promise—it's also its execution.

Competitive advantage with flywheel – Verseo case study

By shifting our approach from the sales funnel to the Flywheel, we've also changed our approach to communication and marketing, particularly the channels we use. By focusing on a few marketing channels, you slow down the wheel, and your brand has fewer ambassadors, reaching fewer new people – potential customers. At Verseo, we're open to new possibilities: we test and verify how individual channels work and what benefits they bring. Given the evolving competitive landscape and market demand, companies must operate in diverse marketing environments, leveraging various channels that only deliver the intended results when combined. Therefore, in order to achieve a market advantage, now in every industry, companies should recognize the need to operate and use cross-channel marketing, which is based on the use of many different channels to reach customers.More and more companies are choosing to engage customers through multiple channels simultaneously. At Verseo, we're gradually expanding our offerings to include complementary reach methods (such as Google Ads, YouTube advertising, Facebook Ads, LinkedIn Ads, SEO, etc.). By utilizing these methods with us, you can be sure that your budgets are being used as effectively as possible – all thanks to machine learning and continuous reporting, which keeps you on track.cross channelsThis combination allows us to drive the flywheel and achieve maximum results that only a cross-channel approach to customer communication can guarantee. What does it look like for you, dear readers? 🙂 Still a funnel or already a flywheel?
Summary

The above article covers the following topics:

  • The evolution of the approach to customer relations from a traditional model to modern solutions
  • Characteristics of the classic sales funnel model and its limitations in company development
  • An alternative approach to customer relations as a tool for organizational growth
  • Methods for accelerating business processes and eliminating barriers to consumer experience
  • Practical implementation of the new model at Verseo

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