What is the flywheel model and how it works?

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The flywheel model is the new way of doing business.

Business is changing, as customers believe companies should care more than the transaction. The companies who understand the new customer behaviors shifted their business models. They include customers as part of their success formula. In this way, organizations can ensure customers are satisfied with their purchase, using their loyalty and referral as growth factors. Such tactics are part of the flywheel model. 

But what is the flywheel model, how does it work, and why is it better than the funnel? Let’s dive in and answer those questions. 

What is the flywheel model?

The flywheel is a new business model which puts customers at the center of the business. Build on the analogy of the flywheel, the model aims to keep spinning the sales. The main factor of the model is to create happy customers. Then, use their satisfaction to drive repeated sales and referrals.


Why is the model successful? Because implementing it means your customers are the ones that are growing your business, not you! When you create a meaningful experience for your customers you let them drive the success of your business. You spend less time, energy, and money in keeping the current customers. 

How does the flywheel model work?

The flywheel model is build based on the inbound methodology. The inbound approach attracts new customers by providing valuable products and content that speak to the customer’s needs. With the inbound methodology in place, the flywheel model divides flywheel model into three stages:

  • Attract
  • Engage 
  • Delight. 

The success of the model then depends on how much force you put on each of these phases. The forces can be the strategies and programs you implement to drive the customers throughout all stages.

The attract stage focuses on drawing potential customers through helpful content to familiarize the prospects with your business. The forces added to this phase are marketing strategies you build, such as content marketing, SEO, or social media marketing. 

In the engagement stage, your focus shifts to creating a better buying experience for your customers. This means that your strategies include creating channels for the customers to buy on their desired platform and time. The plans and programs that can push customers to purchase can be:

  • Sales automation, 
  • Database segmentation, 
  • Direct communications such as phone, email, messaging,
  • Trial programs

After the prospects have finally purchased, they enter the last stage of the wheel: delight. After they become your customers, it is your job to ensure a good customer experience by helping and supporting them. In this phase, you add forces such as knowledge base self-services, loyalty programs, and multichannel customer services (chats, emails, phone calls).

When customers complete the cycle, they are more likely to purchase again and refer others to buy from you. 

Why flywheel model is better than the funnel?

The funnel has been the backbone of sales strategy for years, and it showed success too. But one major flaw of this model is that it sees customers as an end result, not as a growing force for the business. The funnel is good in creating new customers but not a sustainable model for keeping them loyal to the company.

Referral and word-of-mouth are the main large-scale purchase drivers. The funnel dismisses them by failing to keep the old customers as a factor of the business growth.

This is why the flywheel model puts customer satisfaction at the center of the business. New and old customers can gain value from your business, buy, keep their loyalty to your company, and refer others to order from you.

Osmos Cloud


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