The Flywheel thinking model improves your budget by focusing on value-added ideas that are more in line with your goals. Flywheel strategies are frequently used in the marketing department, sales team, or support team. From a marketing standpoint, it is used to assist companies in shifting their mindset to growth in customer happiness rather than simply high-risk, short-term campaigns. From a sales standpoint, it’s about recognizing how to convert new prospects into brand advocates. A customer service team employs the flywheel to drive customer happiness in a way that develops successful customers while accepting product improvement suggestions.
The Flywheel thinking model can also be used in other fields. Whether you’re just getting started or have a long history, our goal here is to talk about how these methods can help you focus your finances and overall efficiency. Companies that are willing to apply flywheel thinking are committed to creating lifetime value and customer advocacy while also improving the company’s budget.
What exactly is the Flywheel Model?
A flywheel approach is similar to the funnel model that is commonly used in sales and marketing departments. The central theme of the wheel is customer satisfaction and how it fuels growth, whereas a funnel represents the various stages of the customer journey. Top marketers and sales executives believe that existing customers are often a more reliable source of revenue growth than new customers and have refocused efforts to better serve this segment. Many people have decided that traditional funnels are obsolete and have completely switched to a flywheel model.
Flywheel success is achieved by applying force in the areas where it has the greatest impact. Forces are programs that help to accelerate the flywheel, such as providing more customer discounts or developing new ways to solve customer problems. Friction, on the other hand, slows a company’s strategy by working against the customer. In this way, your ability to reduce friction can help you achieve customer success. The key is to find ways to reduce frustration for both loyal and potential customers. In the same way that adding force accelerates the flywheel, less friction creates more business opportunities.
Sales Funnel vs. Flywheel Model
For many years, businesses based their strategies on marketing or sales funnels. Customer referrals, word-of-mouth, and reviews are now a major influence in purchasing decisions. Before speaking with a member of your sales team, it is common practice to conduct independent research. This causes issues within the funnel as well as overall budget decisions. This isn’t to say that funnels don’t work anymore, or that there aren’t any correct answers. These mental shifts engage new customers more effectively than a traditional marketing funnel.
The flywheel model represents a more comprehensive, unified way of representing the forces that influence the growth of your company. A flywheel is a mental model that combines these customer-centric forces while focusing your budget on opportunities for growth.
