What is a Sales Funnel? (& What You Should Make Instead)

The sales funnel has been the trusty tool of businesses for the last century. The idea is simple – pour leads in the top, nurture them through the buying process, and see the sales come out the bottom. Easy, right?

Not so fast. While the sales funnel may have been effective in the past, the reality is that today‘s customer journey is far more complex. The linear, company-centric funnel simply doesn‘t match how people actually buy in our digital, customer-driven world.

It‘s time to toss the funnel out the window and embrace a new model that puts the customer at the center. Enter the flywheel – a more dynamic, customer-centric approach that aligns with the modern buyer‘s journey.

In this post, we‘ll unpack the problems with the traditional sales funnel, make the case for the flywheel, and show you how to start building your own. Get ready to revolutionize your sales process.

The Psychology Behind the Sales Funnel

First, let‘s give credit where it‘s due. The sales funnel has been around since the late 19th century for good reason – it provides a tidy framework for understanding the customer journey.

The typical funnel looks something like this:

• Awareness: Prospect becomes aware of a problem or need
• Interest: Prospect gathers information to solve their problem
• Desire: Prospect evaluates options and starts leaning towards a solution
• Action: Prospect decides to buy the solution

The traditional sales funnel model. Source: Ontrack Solution

Psychologically, the funnel mirrors the basic human decision making process. We identify a need, research solutions, weigh the options, then make a choice. The funnel simply applied that universal process to the realm of sales and marketing.

And for a long time, it worked well. Companies could map their sales and marketing efforts to each stage of the funnel to systematically guide prospects towards a purchase.

The Trouble with Funnels

But here‘s the thing – the world has changed, and customer behavior has changed with it. The internet has completely transformed how people buy, and the traditional funnel just hasn‘t kept up.

Consider these consumer trends:

• 67% of the buyer‘s journey is now done digitally (SiriusDecisions)
• 81% of shoppers research online before buying (RetailingToday)
• B2B buyers conduct 12 searches on average prior to engaging on a specific brand‘s site (Google)

The reality is that buyers are now in control. They have unlimited information at their fingertips and can engage with brands on their own terms. The linear, company-controlled funnel doesn‘t reflect this new reality.

There are three core problems with the traditional funnel:

1. It views customers as an afterthought, not the central focus
2. It represents a company-centric viewpoint, not the actual customer experience
3. It doesn‘t account for customer expansion, retention, or advocacy after the sale

Put simply, funnels lose the plot. They focus on the purchase transaction rather than the complete, ongoing relationship. That worked when companies held all the cards, but not in today‘s customer-centric age.

Flipping the Funnel: Why Flywheels Beat Funnels

The flywheel framework, popularized by HubSpot, addresses the shortcomings of the funnel by putting the customer at the center:

The Flywheel Model. Source: HubSpot

Rather than viewing customers as an output, the flywheel integrates them into a continuous cycle of growth. It recognizes that customer experience is essential to driving new customer acquisition.

Here‘s how the flywheel works:

• Attract: Draw in the right customers with valuable content and a great customer experience
• Engage: Build enduring relationships with insights and solutions that align with customer needs
• Delight: Exceed expectations to create promoters that fuel business growth

At the center is the customer – their experience is the driving force that spins the flywheel. By aligning every part of the organization around delivering an exceptional customer experience, companies can build unstoppable momentum.

The flywheel isn‘t just a different shape, it‘s a different philosophy. It shifts the focus from the funnel‘s company-centric view to the flywheel‘s customer-centric view.

Building Your Flywheel: Getting Started

Sold on the flywheel model but not sure where to start? Here‘s a quick guide to help you make the shift.

1. Map your customer journey

Document each touchpoint a customer has with your brand, from first impression to purchase and beyond. Identify friction points and opportunities to enhance the experience. This will be your blueprint.

2. Align your teams

Break down the silos between marketing, sales, and service. Every team should be working together to attract, engage, and delight customers. Foster open communication and shared goals.

3. Invest in content

Content is the fuel that spins the flywheel. Invest in high-quality educational content that attracts the right leads, engages prospects, and empowers customers. Think blog posts, guides, videos, and more.

4. Empower your customers

Give customers the tools and information they need to succeed with your product. Build out a robust knowledge base, offer proactive customer service, and create a community for customers to connect.

5. Track the right metrics

Identify the metrics that reflect flywheel performance, like customer acquisition cost, customer lifetime value, and net promoter score. Continuously monitor and optimize based on this data.

The flywheel isn‘t a one-and-done initiative – it‘s a fundamentally new way of doing business. It requires cross-functional alignment, a long-term customer focus, and a commitment to continuous iteration.

But the payoff is worth it. Companies that nail the flywheel experience accelerated growth, lower customer churn, and a real competitive advantage. Some flywheel success stories:

• Amazon has built a flywheel around customer experience and low prices, fueling incredible growth. Their yearly revenue has increased 2x on average every 2.5 years.

• HubSpot uses the flywheel model to drive their own growth, resulting in 30%+ CAGR over the last 5 years.

• Atlassian attributes much of their success to a flywheel effect created by their freemium model and vibrant user community. They now have 125K+ customers and $1B+ in revenue.

The companies that will thrive in the future are those that put customers at the center and build their business to serve them better. The flywheel provides the model for that customer-centric approach.

Tying It All Together

We‘re living in the age of the customer, and our sales process needs to reflect that reality. The traditional sales funnel may have worked in the past, but it‘s a relic of a company-centric era.

The flywheel represents an evolution of the funnel that aligns with the way people actually buy today. By putting the customer at the center, the flywheel orients the entire organization around delivering a great customer experience.

That customer experience, in turn, drives ongoing growth as satisfied customers become repeat buyers and vocal advocates. It‘s a virtuous cycle of sustainable growth.

Making the shift from funnel to flywheel isn‘t easy, but it‘s necessary. The companies that cling to the old models will struggle to compete against those that adapt to and embrace a customer-centric worldview.

If you want to build a business that stands the test of time, it‘s time to rethink your funnel. Tear it down, and build a flywheel in its place. Your customers, and your bottom line, will thank you for it.