How the flywheel destroyed HubSpot's funnel

How the flywheel destroyed HubSpot's funnel


I will be honest. When Brian Halligan (CEO of HubSpot) began talking about the removal of the funnel and the adoption of the flywheel as a model for thinking about our activities, I did not think about it. I was not very happy.

See, I love the funnel. He's my trusted sidekick for years. That's what gave me the feedback I needed, celebrated my team's success and allowed me to get out of more growth problems than I would have liked to admit. I love the funnel to such an extent that my HubSpot team literally called the Funnel team, and the opening slide of my shot of sending the 39th world team this year was a photo of about 25 funnels.

So, do not disrespect Brian funnel "Yes, well

until I start learning the ruffles.

The funnels lose the energy you put in them once at the bottom, but the flywheels are remarkable for storing and releasing energy.

Invented by James Watt (Yes, the name More than 200 years ago, a steering wheel of 39, inertia is a wheel or disc on an axis, which is incredibly energy efficient.The amount of energy stored depends on the speed of rotation, the friction and the composition of the wheel itself – the size and weight of flywheels are used in cars, trains and power plants

Here's why this model changed its mind.

Although the funnel is my first love, I must admit that his linear approach to measuring growth The funnels produce customers, but do not do not consider how these customers can help you grow. And all the dynamism you have built to acquire this customer? Faded away. Every day, every month and every quarter, we have to start from scratch.

It's not only inefficient, it's a major problem. Ignoring how customers can help you grow is dangerous in today's world.

Word of mouth has always been fundamental to good marketing, but look at the world we live in today. Confidence is at its lowest, it is harder to get a distribution on Google and Facebook, and prospects do much more independent research than ever. Word of mouth is crucial, the loss of momentum that you generate to create a new customer weighs heavily on your growth. In addition, because they preserve movement so well, any extra energy you add to make it spin faster adds to the overall capacity.

 Learn how to switch from a funnel to a flywheel in a free tutorial.

The importance of the flywheel structure

I know what you think: do we just discuss jargon for fun?

you make different decisions.

At HubSpot, driving through inertia allowed us to change as follows:

  1. Flywheels are a circular process in which customers fuel growth. We have invested more in customer marketing, more in customer advocacy, and more in creating engaging integrations for new customers. We have also invested in an ecosystem of integrations that helps customers do more with HubSpot and creates real value for those who adopt our suite of software.
  2. Friction kills flying. We have made investments that systematically target our main points of friction: a high-performance free software as an entry point, channels that help users to connect instead of later, a sales process for prospects and a wide range customer training. [19659019] Using your flywheel as a growth tool

    Three factors determine the amount of movement of your flywheel:

    1. The rotational speed
    2. What is the friction
    3. How is she composed? how much weighs

    The best teams will have strategies for all three.

    Let's start with the speed at which you rotate it. The speed of your flywheel is increased by applying more force in areas where it can have the greatest impact. In a funnel style, all the strength is applied to attract and acquire customers. In a model with flywheel, you also apply a force to delight these customers and make them perform.

    As you apply all kinds of forces around your flywheel, make sure none of your investments are in opposition. A lack of alignment between sales and customer success, for example, can create dissatisfied customers and slow down your flywheel when they disintegrate. The classic misalignment of sales and marketing is another area in which the steering wheel can slow down. Alignment is crucial.

    You can reduce friction by finding inefficiencies where your customers lose momentum and improving them. The improvement of conversion rates, large-scale customer satisfaction and the resolution of the problems that cause you to destabilize your customers increase the speed of your flywheel. The other crucial area to consider when thinking about friction is the way your teams are organized. Silos, transfers and specialization all create friction.

    By increasing speed and reducing friction, you will create more delighted customers. More delighted customers mean a "heavier" wheel and a wheel that produces more energy when it is spun. In other words, your flywheel produces more growth as your customer base increases. If you can add "density" to these customers, encourage them to adopt more products or be more "sticky", you can get even more momentum and growth.

    How to Energize Your Funnel

    In his opening address at INBOUND 2018, Halligan explained the wheel of inertia, and why it's a powerful new growth model. In his keynote address, he attributed the following duties to the participants:

    1. Identify the key indicators of flywheel followed by your company
    2. Identify the strengths of your company by floor of inertia
      • Re-draw these forces to maximize pleasure and word of mouth
    3. Identifying the points of friction between your clients and your employees and the transfer points between internal teams that affect the customer experience
      • Realign these friction points to better serve the customer through automation, shared goals or reorganization

    To help you build your flywheel and make it a growth tool for your business, I have completed its work on the flywheel of the inertia wheel. HubSpot and provided you with a guide.

    to homework templates:

    • Google Slides – you will not be able to edit this file directly, so make a copy for an editable version
    • PowerPoint

    Homework 1: Measuring the flywheel

    Our first The task is to understand the status quo of your flywheel.

    At each step described below – Attract, Engage and Delight – HubSpot has different priorities and commitments to our prospects and customers.

    Here's how we think about each step:

    Attract: It's here that prospects enter your flywheel and interact with your business for the first time. Our commitment is to provide value before we can extract value from these prospects.

    Engage: At this point, engage prospects interested in becoming clients. Our commitment is to make this process of buying and making decisions as simple as possible.

    Delight: Finally, new customers have the potential to become the promoters of your business. Remember that customer success is your success.

    To determine the health of our flywheel, we asked ourselves two questions:

    1. What investments do we make at each step of the flywheel?
    2. How are we doing? measuring the success or failure of these investments?

    Part 1: Mapping Your Marketing Strategy

    In this step, identify the activity or core program your company has invested in supporting each of your attractions, commitments, and satisfaction commitments. Fill in each activity corresponding to its floor of inertia.

    You may find that a flywheel is not enough to encompass everything your company does. It's perfect, there are probably several wheels running in parallel. The goal of this exercise is to distill the essentials of your business, so focus on the most important activity at each stage.

    Attract: At HubSpot, we use the principles of inbound marketing. To provide value before extracting value, we have invested heavily in free content through our blogs, webinars, campaigns, social media, and HubSpot Academy lessons and certifications.

    Convert: shopping prospects, we offer free versions of our software so that users can try before to buy and update seamlessly.

    Delight: We help our clients succeed in their studies. Paid customers have access to a core implementation and strategy team, free users receive free support, and both groups have access to extensive user guides and knowledge base documentation.

    <img src = "https://blog.hubspot.com/hs-fs/hubfs/_Thought%20Leadership/Our%20Flywheel/Table1.png?t=1536185310388&width=634&name=Table1.png" alt = "Part 2: Measuring Success

    In this step, identify the most important metric for each activity, and note the conversion rates between each step – this measures the friction in your flywheel.

    Next, write down (month by month or year over year) how much you added or lost in that bucket and your total number.

    Attract: Here, site metrics Web is We measure the amount of traffic we earn from one month to the next.

    Engage: HubSpot's flywheel drives up Visitors to the stage "Engage" in two stages.

    Free users of our product enter our steering wheel every month. ns also the number of these users. More users are free, the better the composition of our flywheel and the more it can generate momentum.

    Second, we are developing upgrade points in our product where free users can become qualified leads. We follow closely the number of paying customers of these qualified customers then we follow the number of these customers.

    Delight: We conduct quarterly surveys on the Net Promoter Score®, and we track the number of customers who are promoters – that is, how many customers say that they would recommend HubSpot to a friend, and how many spend from promoters to passives or detractors.

    Mission 2: Maximize Pleasure

    Your resources will be concentrated on the Attract and Convert parts of your flywheel. Rightly – it takes a lot of investment to create enough momentum to turn your wheel. But once that's the case, determine if your resources could be better used to satisfy your customers.

    Once your flywheel turns, you have to keep your customers and turn them into promoters who will defend your brand and bring you new ones

    In this mission, examine the "forces" – activities and programs – which currently move your customers around the flywheel and determine if they are designed to meet the needs of your processes or your customers. Then, indicate what changes you should make to these forces in 2019 to help maximize your satisfaction.

    At HubSpot, we completed this exercise early in 2018. This is how our strengths have evolved in our marketing, sales, and service teams.

     Table2

     Table3

     Table4

    This list is not exhaustive. The changes we have made to refocus our efforts on the customer, but they illustrate some of the most important changes we have made in our marketing and service organizations.

    Mission 3: Reduce Friction

    There are several ways to reduce friction in your flywheel.

    One of the methods is to smooth out common friction points, such as the conversion rate between the different phases, the number of successful clients and the number of unsubscriptions. It is not too difficult to identify this type of weakness because you are dealing with measures largely isolated from each other.

    It is more difficult to see the forest for the trees and to examine the overall structure of your business. contributing to drag and friction. So, for this mission, we will focus on one of the most challenging sources of friction in your business: your organizational chart. Silo work and poor transfer between crews are some of the biggest areas of friction in most flywheels, and at HubSpot, there is a legacy of our startling days.

    friction?

  3. What can be automated?
  4. What can be solved by shared goals?
  5. What can be solved by a reorganization of the team?

We are going step by step here. Identifying friction

Where is the brake in your organization?

Externally, think about complaints from customers and prospects. Where do they have difficulty interacting with your business?

Here is how we envisage this with HubSpot (we fill in each column as each step progresses):

 Tableau5

Step 2: Automate repeatable tasks

] Consider the activities that your customers and prospects want to do, but are complex to perform for humans. In addition, look for the repetitive and mechanical tasks that fall on your team. Can you free up time to work, which is more valuable for your customers? Also, evaluate the parts of your market that currently only depend on your employees to function but could be supplemented by automation.

Here are the friction points resolved by HubSpot with automation:

 Table6

Step 3: Reset the Objectives to Fill Teams

Frictions often exist because two teams move in opposite directions. For example, marketing is traditionally focused on a global lead generation figure – but optimizing for the amount of lead does not always lead to well-suited customers.

Some of your main points of friction process that reorient teams in the same direction. Here are our remaining friction points:

 Table7

Step 4: Restructuring Teams

Within each organization, problems can not be solved by automating or realigning goals . In these cases, a reorganization may be necessary.

Some of the questions you can use to self-assess are:

  • Do employees in the same job occupy different departments?
  • Are the teams too specialized?
  • If your organization has a systemic blind spot, do you have a dedicated team to solve it?

Here are the last points of friction and how we solved them:

 Table8 [19659002] Here is our flywheel. I may have been hesitant at first, but after using this framework to evaluate areas we could improve … well, I am a believer.

your flywheel and share it on Twitter or Instagram using the hashtag #OurFlywheel.

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