The Marketing Funnel Vs The Marketing Flywheel 

If you’ve ever worked in marketing, you’ve probably come across the term ‘marketing funnel’ when talking about customers. But while it may be the most well-known, is it the only or even the best option?  

In this article we explore two popular paradigms: the marketing funnel and the marketing flywheel. These diagrams serve as navigation for marketing strategies, to help comprehend and optimise the intricate journeys our customers undertake. We delve into what these two concepts are and share the reasons why the Next Chapter team favours the flywheel over the funnel.  

Why marketers use the marketing funnel & flywheel in their strategies

As a marketer, I’m sure you’ve encountered your fair share of marketing diagrams that visually represent customer journeys. It often feels like everyone has that one ‘go-to’ customer acquisition diagram they eagerly share with their teams when creating marketing strategies. These visual representations are more than just illustrations; they’re invaluable guides for marketers seeking to understand and enhance the customer journey.  

The benefits:  

– Visualisation – Trying to explain a proposed customer journey to different stakeholders can be difficult, so having a diagram to refer to can help others understand your strategy and buy-in.  

– Segmentation – allows to visually show the different segments for tailored messaging and more effective targeting of specific customer groups.  

– Conversion tracking – By visualising the marketing funnel, businesses can easily track and analyse where potential customers drop off in the conversion process, enabling data-driven improvements to boost conversion rates.  

– Lead generation – A clear structure for lead generation efforts, making it easier to identify and capitalise on opportunities at various stages of the diagram.  

– Customer journey mapping – Diagrams help to map the entire customer journey, making it easier to anticipate customer needs and align marketing strategies accordingly.  

– Budget allocation – Assist in allocating budgets more efficiently, ensuring that the right the right investment is directed to different stages of the customer journey.  

– Sales and marketing alignment – Better alignment between sales and marketing by providing a shared framework that enables both departments to understand and contribute to the customer’s journey.  

– Customer retention – Emphasise the importance of customer satisfaction and retention as an integral part of the marketing strategy, leading to increased customer loyalty and repeat business.  

– Optimisation – This visual reference helps for identifying inefficiencies in the marketing process, facilitating continuous improvement and optimisation of marketing strategies.

The marketing funnel

  The beloved marketing funnel. This classic diagram is a well-known representation of the customer journey. It outlines the conversion path from initial awareness to the ultimate goal of a conversion. It takes us through the stages of discovery, consideration, and conversion. But does it capture the full story?   

This diagram was set in place to describe your customers’ journey and map out the conversion routes. This starts from what influenced your customer to find you, to their purchasing pattern.  

Each line and arrow on these diagrams represent a vital aspect of the approach to winning and keeping customers.  

What happens after the purchase stage? You tell me. This diagram does not accurately represent the true marketing journey to customer acquisition. Before you set up your targeted social ads, you will often create audiences that reflect and represent your previous customers, and what the common characteristics are. You only know that information from mapping out the steps from the marketing funnel, so where does the funnel represent your audience targeting?   

Utilising a marketing funnel can enhance the efficiency of achieving your goals. This tool empowers you to design customised campaigns, enhancing customer acquisition and retention, elevating conversion rates, and ultimately leading to increased efficiency. Harnessing the valuable insights derived from data on your target audience allows you to construct a funnel that drives sales.  

The marketing flywheel

This is where the marketing flywheel comes in. The marketing flywheel takes into account that customer acquisition is an ongoing process, like a wheel. This is inspired by the principles of energy efficiency and momentum which presents a fresh perspective.   

Through meticulous analysis, a marketing funnel empowers your organisation with the insights needed to strategically engage consumers at various stages. By evaluating your marketing funnel, you can have the potential to boost sales, cultivate customer loyalty, and enhance brand recognition.  

However, the marketing funnel can often demonstrate the idea that once you win the client/customer then that’s end game, when in fact, this is where your re-marketing strategy should come in. Re-marketing builds a loyal client and customer base, and in the long run is better for your marketing strategies and easier to maintain, so essentially, this should be the more important part of the diagram. With the flywheel, you don’t ever forget about the about a particular audience or segment.  

As Daniel Swepson, Head of Marketing at Next Chapter, puts it, “It illustrates how your company’s focus on delivering a remarkable customer experience can create a self-sustaining cycle of growth. This model embodies the idea that satisfied customers can be a continuous source of energy driving your business forward”.  

Other models think of customers as an outcome — nothing more, nothing less. All the energy you spend acquiring that customer is wasted, leaving you at square one.  

Why we adopt the marketing flywheel in our marketing strategies at Next Chapter and what you need to build a successful flywheel

At Next Chapter, we’ve embraced the marketing flywheel in our marketing strategies recognising its potential to foster sustained growth. To build a successful flywheel, you need to prioritise customer experience, align your entire organisation, and focus on retaining and delighting customers. This approach ensures that your marketing efforts aren’t wasted but contribute to the ongoing success of your business. To us, returning customers and users are as integral to a successful strategy as new ones.  

At Next Chapter, we specialise in crafting marketing strategies that drive results. Get in touch to explore how we can collaborate and propel your strategy efforts to new heights.