Understanding the Difference Between Sales Funnels and Flywheels in Customer Journey
Introduction
Today, we will delve into the fundamental difference between sales funnels and flywheels in the context of the customer journey and sales process. Both are crucial concepts for businesses to comprehend, and we will explore their distinct characteristics and advantages.
Comparison of Funnels and Flywheels in Sales Process
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The discussion today is centered around understanding the fundamental difference between a funnel and a flywheel in the context of the customer journey and sales process.
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Funnels represent the traditional approach to viewing the customer journey, where individuals are directed into the funnel and guided further down its path. Customers at different stages of the funnel are treated differently, with distinct strategies for those at the top and bottom.
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A flywheel, in contrast, embodies a more customer-centric and self-sustained methodology. It focuses on understanding the continuous cycle of customer engagement and retention, aiming to create momentum for sustainable growth.
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Every business, consciously or not, operates with a funnel mechanism that traces the transformation of a prospect into a customer. Understanding this mechanism is crucial for optimizing customer acquisition and retention strategies.
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Funnels and flywheels serve as visualization tools to comprehend the customer journey, even if they are not deliberately constructed. However, without intentional construction, they may not effectively support the sales process.
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Comprehending the differences and advantages of funnels and flywheels is essential for constructing a scalable and efficient sales process tailored to the specific needs of a business.
Understanding the Sales Funnel
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A sales funnel is a visual representation of the customer journey towards a purchase.
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It consists of three main parts: the top, middle, and bottom.
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The top of the funnel (TOFU) represents new prospects who are just becoming aware of your business.
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These prospects may have heard about your business, engaged with social media posts, or visited your website.
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The goal at this stage is to identify the problem the prospect is seeking to solve.
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The middle of the funnel (MOFU) is where prospects have shown interest and are considering their options.
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Conversations at this stage should focus on activities like newsletter subscriptions, booking a call, or downloading resources like PDFs or ebooks.
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The bottom of the funnel (BOFU) is where prospects are close to making a purchase decision.
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This is the stage where they may be adding products to their cart or engaging in other purchase-related activities.
Understanding the Middle of the Funnel
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The middle of your funnel is where you have leads who have subscribed to your newsletter or signed up on your website.
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You have their basic contact information, but in order to move them to the bottom of the funnel, you need to learn more about them.
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Engagement is crucial in this section, which includes tracking email opens, clicks, and content viewed by the leads.
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Activation involves creating a responsive relationship between you and your leads.
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Segmentation is about categorizing leads into different buckets based on their behavior.
The Evolution from Sales Funnels to Flywheels
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The traditional sales funnel approach focuses on pushing customers towards a purchase and then losing them.
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The flywheel approach revolves around keeping customers engaged and delighted throughout their journey.
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In a sales funnel, the marketing and sales teams work independently, often leading to wasted resources.
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The flywheel model aligns the efforts of marketing, sales, and customer service to continuously support the customer.
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While funnels prioritize the end goal of a purchase, flywheels prioritize customer delight and satisfaction.
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The stages in a sales funnel are attract, engage, and convert, while the flywheel stages are attract, engage, and delight.
Understanding the Difference Between Funnel and Flywheel in Business
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Conversions flywheels focus on delighting customers, which in turn leads to happy customers who multiply.
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Happy shoppers will leave raving reviews, convincing more people to buy from you.
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It’s a win-win-win situation - a win for you, a win for the customer, and a win for the new customers who find you via the reviews.
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The traditional funnel model no longer meets the needs of the present-day customer.
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In today’s world, people are more likely to ask friends for recommendations, check reviews, or look at social media before making a purchase.
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The flywheel model accommodates this changing behavior effectively.
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The flywheel is presented as a better approach for business compared to the traditional funnel model.
Conclusion
Understanding the difference between sales funnels and flywheels is pivotal for businesses aiming to build sustainable and growth-oriented sales processes. Both concepts offer unique perspectives on customer engagement and retention, and by comprehending their distinctions, businesses can tailor their strategies to meet the evolving needs of the market.