What is the Flywheel Model in Sales?
2 years ago
We live in an age of technology and constant change. Sales and marketing have become more complicated. Customers are more careful and informed. To make things harder, competition is fierce.
Gone are the days when you can just spam the public with posters and see considerable returns in no time. Companies tried formulating various methods to boost their sales, but nothing has been more groundbreaking than HubSpot’s flywheel model.
Getting to Know the Flywheel Model
Image source: Hubspot.com
HubSpot experts developed the flywheel after years of relentless marketing and sales. They have grown tired of the limitations imposed by the traditional sales funnel method. A good way to think about how the flywheel works is by comparing it to an old-fashioned spinning wheel where pushing forces will get things going. Its entire process puts a strong emphasis on customer experience. The more satisfied customers you have, the more retention and future conversions you’re going to reap.
Flywheel Vs. Traditional Sales Funnel
In a traditional sales funnel, customers undergo a calculated process filled with mechanisms that encourage or force them to take the desired action. There’s actually nothing wrong with it, and it’s proven to work. However, this also makes it seem that customers are not the priority -- getting the sales is.
On the other hand, the flywheel method puts customers at the center of the entire process. Its purpose is to provide customers with the correct information before making a commitment. Everything you do, from marketing to communications, aims to provide an enjoyable purchase experience. Simply speaking, if you can make your customers happy, sales will soon follow after.
How Does it Work?
Unlike the funnel where you lose a decent number of leads as they approach the end, flywheel aims to convert most, if not all, of your prospects. You need to keep the wheel rolling using different strategies and forces.
According to HubSpot, the wheel spins based on:
1. How fast you spin it.
2. The amount of friction present.
3. The size of the wheel.
The flywheel model works by focusing on improving each factor’s efficiency to create a spinning effect. As much as possible, it’s best to allocate ample resources on all three aspects for optimal results. From there, you can add more resources as needed to build momentum behind the system further.
Let’s talk about the first factor: speed. To make the flywheel spin, you have to apply force. To make it spin faster, you simply have to put more force. A force counts as any program or strategy you implement to drive sales. It can be anything from discounts, marketing, paid ads, surveys, seamless customer support, etc. The better the methods used to increase customer satisfaction, the faster the wheel will spin as people spread the word about your product.
Next on your list is friction, and it’s just as crucial as the force. See, making customers happy takes more than just an amazing offer. You also need to eliminate barriers or, in this case, the friction that prevents them from purchasing with ease. A good example of friction is a confusing user interface. It can discourage buyers or prevent them from finding the proper way to make an order. Eliminating friction basically sums up to streamlining your company’s processes to serve your clientele better.
Last but not least is the size of the wheel. This pertains to how big your entire project is. Some businesses sell products that are easy to sell. For example, you don’t need tons of processes to sell dog food. You just have to set your product apart from the rest of the competition. However, selling something as expensive and complicated like properties take time. You’ll need to use different methods to convince customers and make the wheel turn.
Using the Flywheel Model
The flywheel effect doesn’t have to be complicated. However, switching from a traditional sales funnel to a flywheel is a considerable undertaking. Here are some tips on how to successfully launch the change:
- Familiarize yourself with the Flywheel’s stages. HubSpot’s wheel generally consists of three namely: Attract, Engage, and Delight. Of course, you can always add your own components to create a more engaging customer journey. Understanding every stage gives your team an idea of making the experience better for everyone involved in the process.
- Get your team on board. Just as much as you need to understand the flywheel, every team member should be informed as well. The entire operation will heavily rely on teamwork and collaborative capabilities.
- Set key metrics to measure the wheel’s performance. Like how you would monitor a sales funnel, a flywheel needs constant analysis. You want to know what strategy makes it turn faster and what frictional forces slow it down. From there, you can come up with better decisions to make your customers happy.
- Don’t be afraid to experiment. The flywheel effect isn’t a perfect solution. It is an ideal one. You will have to perform several trial-and-error until you find the piece of unicorn that works. Once you know what works, you can capitalize from there to improve the overall performance of the wheel.
- Monitor progress and analyze statistics. Enhancing a flywheel is no different than improving a funnel. You will have to spend time, energy, and resources on collecting valuable data, so you know which direction the wheel is headed.
Summing It Up
The flywheel and traditional sales funnel each has its own strengths and weaknesses. For a flywheel to be successful, it needs to heavily focus on customer journey and experience. That being said, make sure you have an excellent CRM system to pull this operation off. Dashup is a friendly platform that allows businesses like yours to execute the flywheel effect efficiently. Curious? Try it for free today, or reach out to the team, and they’ll teach you how!