2 minutes reading time (446 words)

How the Flywheel Approach Killed the Marketing Funnel

flywheel-method

For years companies have structured their business strategies around the funnel, and it worked. But, all good things must come to an end, right? Today, customer referrals and word-of-mouth have become the largest influence in the purchase process.

ENTER THE FLYWHEEL METHOD

The funnel's major flaw was that it viewed customers as an afterthought, not the driving force behind the growth of a business. Whereas, the flywheel helps you to use the momentum of your happy customers to drive referrals and repeat sales. With this method, your business keeps spinning.

The flywheel was first used by James Watt over 200 years ago in his steam engine. Simply put, it is a wheel that's incredibly energy-efficient and depends on these 3 points.
  1. How fast it spins,
  2. The amount of friction it encounters and
  3. Its size. In marketing these 3 points are replaced by 3 stages: attract, engage, and delight. By using this method you are looking to build trust, credibility and momentum which leads to loyal customers.
There are at least two techniques involving Flywheel that you can integrate into your business model, Amazon's Flywheel and the Flywheel Effect.

Amazon Flywheel

One of the most famous flywheels responsible for Amazon's continued success is the Bezos' Virtuous Cycle. The customer base lies at the centre of this particular Flywheel technique with the belief that happy customers are the energy that fuels your company's growth hence, Amazon's core initiatives are embedded firmly around continuous improvement of its customers' experience. The cycle goes, strong customer experience which will lead to an increase in shoppers, and the influx of potential buyers will cause lower costs and prices through competition while increasing selection for customers simultaneously. Lower prices and an increase in selection will bring in more customers as the cycle repeats itself.

The Flywheel Effect

This technique centres on generating momentum as it aids marketing teams in producing a surround-sound effect within your marketing messages or a combination thereof working synergistically using different media formats, creating momentum to generate leads and raise awareness for your brand, as a result.

Ideally, your marketing team should have multiple flywheels in effect wherein one "spoke" is focused on a single purpose for your organisation and then several program flywheels for each campaign your business develops throughout the year. For example, a top-level flywheel may focus on revenue generation while program flywheels may focus on customer experience or brand awareness.
If your business is having difficulty growing, then the Flywheel Model may just prove to be the game-changer you've been looking for.
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Tuesday, 14 May 2024