How You Can Apply Flywheel Thinking Model to Your Company’s Budget

Applying Flywheel Thinking to Your Company’s Budget


If you’re allocating resources to areas that drive customer experience, you’re already on the right track. It’s important here to allocate based on providing superior customer responsiveness and efficiency. Marketing and sales should always find ways to attract, engage, and delight customers. When you have the flywheel spinning without much friction, growth will follow. However, if you feel that there is some friction, you can invest in other areas that drive customer experience. More customer discounts or loyal programs as examples can grease the wheels enough to relieve any aforementioned friction. It’s important to note that there is no single correct answer as this will depend on your business. Investments don’t need to be evenly distributed but channeled into whatever drives your customer’s happiness. Let’s look at four instances in which we can directly apply flywheel thinking to your budget and financial strategy: • Sufficient Start-up Capital: You likely only have a small amount of money to invest in your company. Investments are made so the business can have a continuous flow of income. During this stage is where you must convince investors that your flywheel will deliver sufficient profit to sell your idea. Forget about setting up equal proportions for each department, but focus on solving problems and frustrations. • A Large and Efficient Flywheel: The wheel moving in a full circle represents the flow of profit from customer to business and back again with products or services being bought by customers. You might think that in this stage your business may be able to focus on marketing campaigns and sales strategies to create a larger audience so more profits can be generated from customers. However, it is easier for businesses during this stage to further align marketing and sales to focus on improving and selling the experience to create or maintain loyalty.




Growth Hacking Blog – Growth Hackers

Source link

Scroll Up