Marketing funnels have been used by many businesses for decades to generate sales and convert leads into customers. Sadly, funnels are now dead because it no longer does its job. It has lost its energy and has reached the bottom. This called for a new model that will bring back the ardour of marketing. This new model has restored the energy that funnels have lost because of their inefficiency.
Essentially, this new growth model focuses on the concept of A flywheel and is called ‘flywheel marketing’. If you’ll think about flywheel, you’ll envision a disk or a wheel used in cars and power plants. A flywheel is particularly designed to store rotational energy inefficiently and this mirrors the ideal marketing method to boost sales and drive customers. Nonetheless, there is more to flywheel marketing than a simple marketing tool inspired by a disk.
The Flywheel Effect
The concept of flywheel marketing is comprehensible. Basically, the flywheel effect developed by Jim Collins can explain how the flywheel is related to marketing. A flywheel is 5000 pounds heavy and it can’t be moved by a single push. With each push, however, it starts to pick up speed. This is the same with marketing; everything can’t be done and achieved with a single effort. Simply put it, the more force you exert, the faster it spins.
The success of every business can be achieved through different marketing efforts and various channels. If you have a good marketing campaign, the flywheel will keep spinning once it gets going. This concept may seem simple but it works wonders for everyone who wants to grow their businesses.
Advantages of Flywheel Marketing
It is Focused on a Single Direction
What’s great about the flywheel marketing is it is focused on only one direction and that is the place where you’ll get consistent sales growth and clients. To maintain momentum and combined returns, the flywheel needs sustained effort and should be directed into a single direction. The application of the flywheel effect should be done carefully as misplaced effort can lead to negative outcomes. They will also waste your money, time and effort so you have to focus on only one place where you envision your business to be.
image source: Hubspot
It Helps Improve Customer Experience
The common problem with sales funnels is that they use customers as output where customers, especially nowadays, should be used as input to grow a business. The buying process has also changed as well as customers’ buying behaviour. People are driven to buy something through word of mouth so old marketing techniques are not likely to work anymore.
Significantly, flywheel marketing can improve the customers experience where the sale funnels cannot. Unlike sales funnel, flywheel marketing does not only explain and satisfy the needs of the customers but it also guides the business throughout the customers’ journey.
Moreover, flywheel marketing helps improve customer experience through customer interaction. Your customers are handled by your employees and as real humans; they don’t create friction, making the customer experience light and stress-free. Most customers want to be served as they have many questions that need to be answered by real humans. This is why a great customer service is very important in every business. Once your customers’ experience increased, it will be easier for you to retain them and attract more customers.
It Uses Fewer but More Skilled Employees
Because increased customer experience relies on the employees, flywheel marketing makes sure to use fewer but skilled employees. Some businesses have a lot of employees that handle customers; there are pre-sales employees, sales representatives and other employees in different positions to handle customers. The problem with this is that the customers are being passed from one employee to another, and they actually hate that.
With flywheel marketing, you can pick one employee that will focus on customer experience and satisfaction. Most customers are busy and they don’t have the patience to talk to many different employees to get the answers they want. For sure, you can find an employee with excellent customer service skills and have other expertise. This will help you avoid friction from customers and also save money on employee salaries.
Companies that Use Flywheel Marketing
Uber is one of the most successful companies today and from their increasing growth, it is plausible that they are getting the flywheel effect through their marketing campaigns. The Positive Feedback Loops of Uber shared by Andrew Chan shows how the company is benefiting from their business efforts. When they started hiring more drivers, they also began feeling the flywheel effect. More drivers led to shorter pick-up times which made customers think they are reliable. The growth of Uber also increased utilization which enabled them to lower their prices. The lower the prices of their services are, the happier the customers will be.
Amazon’s success is another great exemplar of the flywheel effect. This company is known to have a keen focus on selection, price and convenience as well as long-term business perspectives. Like Uber, Amazon’s growth also led to many positive changes as increased web traffic, better customer experience, more sellers, low-cost structure and lower prices of prices. These all lead to more satisfied customers and probably recurring customers.
Airbnb is another popular online platform that is taking advantage of the flywheel marketing. The flywheel effect started from using more hosts. The more hosts they have, the greater selection for their customers. If their customers have a wide variety of options, this can be a better experience for them. Better experience from current customers will help attract more travellers. The more customers they have, the greater the reviews they will get and with many reviews, the users are more likely to trust them.
Applying Flywheel Marketing on your Business
Now that you have a better understanding of how flywheel marketing works, it will be easier for you to apply it on your business. Though this new business growth model is new to some businesses, it is still worth trying considering how efficient it is for growing organisations.
Study your Sales Model Well
Before you start using flywheel marketing for your business, you have to first have a sales model where all your ideas will be. Basically, your sales model is the strategy that you are going to use to get your products to your customers. Your sales model will be based on your products or services, business processes and metrics. Without a sales model, it will be difficult to find the direction that your business is going to take. Know where you want your flywheel to head so you won’t get lost in the process of applying this marketing strategy.
Find What Works for your Business
When running a business, you have to keep testing the water. The world of business is evolving and depending on your industry or niche, things may keep moving fast. This is why you have to know what is working and what isn’t working for your business. You must keep upgrading and evolving your products as we are in a fast paced consumer age. Nonetheless, knowing what works is not enough. You have to ramp up the speed of your flywheel and don’t lose your focus. By focusing on your goals, your flywheel will keep moving to the direction that you want to take.
Examine the Forces that Make your Flywheel Move
Because you are going to use different forces to make your flywheel move, you have to know which ones among there are really working. It will be a little difficult for you to do these so you have to assess each force and the specific outcomes of your business. Once you find out which forces are actually pushing your flywheel, you can eliminate the other forces because they may even lead to more frictions from your customers.
While you exert more force into your flywheel, you need to avoid creating friction or resistance. If you want your business to grow, implement marketing strategies that will engage your customers and drive them to buy your products instead of resisting or thinking twice. To take all the friction out of your flywheel, make sure that your products are ten times better than your competitors’. If you have high-quality products, you don’t need too much marketing to sell them since your customers will buy them on their own even without your encouragement.
Automate Repetitive, Mechanical Tasks
There are some mechanical tasks that your employees do over and over again every day. This will not only make your employees exhausted but it may also create frictions from your target customers. Fortunately, there are some mechanical tasks that you can fix with automation. Most customers nowadays want convenience when buying products and relying on automation can help you improve customer satisfaction. For example, HubSpot’s target customers want to try their products before they pay for it. What HubSpot did to fix this was they offered a free product for their customers. This is why you always have to consider your customers’ feedback to fix problems easily.
Reset your Goals and Re-Orient your Team
As you apply flywheel marketing, you will realize that it is not easy to achieve your goals due to frictions that come along the way. There are factors that keeping your flywheel from moving and this sometimes happens because your team is not moving into the same direction.
If you are getting a lot of frictions from your customers, maybe it’s time to rethink your goals or reset them. Resetting your goals doesn’t mean you have given up on the old ones but to create more feasible and achievable ones. It will also help to re-orient and restore your team. Let them all know what your goals are and you can achieve that by heading to the same direction. Re-organize your team and re-assess their skills so you’ll know how they can help you with the business.
Make your Progress Visible
You make progress while using forces that work and you don’t have to keep it to yourself. When you are selling your products, it means people love them and they are willing to buy from you again. Whatever progress you are making, you have to show it to everyone especially to your target customers. You will attract more customers if they know that your products are hot and trending. Know that people love being a part of a successful team and if you are winning, people will chase you because they want to be winners, too.
When you try to push your flywheel, you create a momentum and as you keep pushing it, you will accumulate visible and tangible results. This is when people will line up to buy your products because they are energized by your results. As long as you are providing great results, people will recognize your business and try to fit in your success.
Measure your Success
To know the status of your flywheel, you also need to measure your success. Identify important metrics for the specific efforts you use for your flywheel. Determine how many qualified leads you have and how many customers you had in a certain period of time. Know your winning products and measure customer engagement. By doing this, you will know where you are heading and how well your business is doing. It will also help you identify your team’s advantages and how you can use them to even grow your business.
Push your Flywheel Further and Harder
Your current success cannot determine where your business is leading so it is important to always look after your flywheel. Just because you are making progress and better results doesn’t mean you have to stop making efforts to move your flywheel even further. Exert more force and get rid of frictions completely to speed up the movement of your flywheel. Study all the aspects of your business well and don’t stop making improvements. All these knowledge and tips will help you in the long run so you have to make good use of them.
If you need help with creating a Flywheel Marketing Strategy get in touch with us for a FREE strategy session call.