I'm less than two years into building Botanical. The pressure I apply to "grow" and "scale" to my vision…or just having enough revenue to pay myself a salary similar to my former roles…is brutal.
Despite this, I've recently extended our timeline from 2 to 10 years. We are realigning the mental models we use to mirror this adaptation.
Why? I am ensuring Botanical knows our craft and is recognized for delivering results.
Slowing down and pausing in the case of our business development is giving us space to align with a more customer-centric approach.
From Funnel to Flywheel:
More intelligent people than me, like Graham Weaver and Cal Newport (in his new book Slow Productivity), have been highlighting the compound value of sticking to things for decades.
Graham hammers this point by highlighting the formula for returns:
R = 1 + r^n
N is the years I'm willing to invest in Botanical, and it's this longevity (this quadratic component of the formula) that makes the return and compound value of persistence so valuable.
In your case, and in the flywheel case, it could be the number of happy customers you can count on.
This change in approach is already inviting us to pause and reflect on how we can over-deliver for our clients. Understanding and focusing on their needs versus just what they're saying or what we've scoped out
Funnel vs. Flywheel:
If you're grappling with challenges beyond traditional marketing and sales tactics, it's worth rethinking your mental model; funnel versus flywheel.
If you're seeing
-Declining customer retention
-Low engagement
-Lack of referrals or a low Net Promoter Score (NPS)
This could point to a deeper issue connected to the revenue models you're using —particularly the sales funnel—that are conceptualized and implemented.
The Sales Funnel: A Linear Approach
This linear model, which moves customers from awareness to purchase, often overlooks the critical post-purchase phase, where the real opportunity for building lasting relationships and driving repeat business lies.
The Flywheel: A Cyclical, Customer-Centric Model
The flywheel model emerges as a more practical alternative, emphasizing a cyclical, ongoing customer journey that doesn't end with a purchase but instead sees each sale as the start of the following engagement phase.
This model prioritizes long-term customer satisfaction and loyalty, understanding that today's happy customers are tomorrow's advocates and repeat buyers. This approach invites you to invest in customer success, engagement, and overall satisfaction versus its predecessor, the funnel.
The flywheel invites us to shift our focus from top-of-funnel lead generation pursuits and optimizing sales process steps to nurturing continuous relationships that foster referrals and further purchases, enhancing customer lifetime value and loyalty.
It's common knowledge that it's "10 times more expensive to acquire a new customer than to keep an existing one," so our mental model around revenue and customer-centric retention should reflect that belief.
This isn't abstract for us at Botanical; we've received two referrals this week because of this approach.
Shifting Culture & Compensation:
Such a shift requires a reevaluation of KPIs—moving from the top-of-funnel lead conversion rates to include Net Promoter Score (NPS), customer lifetime value (CLV), and referral rates—and a cultural shift within organizations to prioritize long-term engagement over short-term gains.
What if sales commissions were realigned with customer retention and sales velocity or included clawbacks for poor-performing accounts? How would that impact cooperation and support across Sales, Marketing, and Customer Service? What if trade marketing teams receive a commission on key accounts?
This timeline transition for Botanical and me, from Funnel to Flywheel, from 2 to 10 years, might impact short-term revenue and kill hockey stick growth, but who cares?
I'm going to enjoy the journey more, my team is going to develop more, and our customers will appreciate the care and quality we deliver more.
Where are you slowing down or speeding up in your business? What mental models are you considering or dropping?
