When it comes to marketing models, the funnel has been the go-to framework for years. But there’s a new player in town: the Flywheel. Both have their merits, but which one is the best fit for your business? Let’s break it down!
The Traditional Funnel Model
The traditional funnel model is straightforward. Imagine a funnel: wide at the top and narrow at the bottom. Prospects enter the wide end, and as they move through various stages like awareness, consideration, and decision, the funnel narrows until what’s left are paying customers. The funnel model is linear, focusing on converting leads into customers.
Common Marketing Funnels:
- TOFU (Top of the Funnel): This is the awareness stage where you attract prospects through content marketing, social media, and SEO.
- MOFU (Middle of the Funnel): In the consideration stage, you engage your leads through targeted content, email marketing, and webinars.
- BOFU (Bottom of the Funnel): This is the decision stage where you convert leads into customers through sales calls, demos, and special offers.
The Flywheel Model
The Flywheel Model, on the other hand, is a circular model that puts the customer at the centre. Unlike the funnel, the Flywheel is about creating a virtuous cycle where customers not only make a purchase but become advocates for your brand.
The Flywheel has three stages: attract, engage, and delight. The idea is to keep the wheel spinning, continually adding value and driving referrals.
Flywheel Stages:
- Attract: This isn’t just about drawing people in; it’s about attracting the right kind of people who are most likely to become customers and advocates. The Attract stage is all about targeted content and personalised messaging.
- Engage: Once you’ve got their attention, the next step is to engage with your audience and establish relationships. This could mean anything from a well-timed email sequence to a value-packed webinar.
- Delight: This is where you exceed expectations. Whether it’s through exceptional customer service or a surprise bonus, the aim is to turn customers into advocates and encourage them to reach their goals.
- The Middle of the Flywheel: The middle of the Flywheel represents your customer base. It’s the core that keeps the wheel spinning. The stronger your customer core, the more momentum you’ll generate. In this model, customer satisfaction isn’t the endgame; it’s the driving force that powers the Flywheel. By focusing on customer success, you not only retain existing customers but also turn them into advocates who attract new customers, keeping the Flywheel in perpetual motion.
Key Differences
- Customer Focus: The funnel model is more transactional and focuses on acquisition. The Flywheel, however, emphasises customer retention and advocacy.
- Momentum: In a funnel, the process ends once the sale is made. In a Flywheel, the energy you invest in delighting your current customers fuels future growth.
- Flexibility: The Flywheel is adaptable. You can enter at any stage, making it more flexible than the linear funnel model.
Which Model is Right for You?
- If you’re a startup or small business: The funnel model might be more suitable as it’s simpler and focuses on customer acquisition, which is often the primary concern for new businesses.
- If you’re an established business: The Flywheel could be a better fit. It focuses on customer retention, which is crucial for growth and stability.
- If you’re in a highly competitive market: The Flywheel model can give you an edge by turning your existing customers into brand advocates.
- If you have limited resources: The funnel model is less complex and might be easier to implement with fewer resources.
Choosing between the Flywheel and the funnel model depends on various factors like your business stage, market competition, and resources. Both have their merits, but the key is to pick the one that aligns with your business goals and customer needs!
Ready to find the marketing model that’s the perfect fit for your business? Talk to In The Willow today to get personalised, actionable insights tailored to your unique needs.