The Sales Funnel vs. HubSpot Flywheel: Which Model Is More Sustainable?

Introduction: A Tale of Two Growth Models

In the business world, two popular frameworks shape how companies approach growth: the traditional sales funnel and the HubSpot Flywheel. The funnel has been a guiding structure for decades, helping businesses focus on lead generation and conversion. However, HubSpot’s Flywheel offers a new perspective by emphasising customer retention and advocacy as key drivers of long-term growth.

This blog explores both models, their strengths and weaknesses, and why the HubSpot Flywheel might be better suited to today’s customer-centric economy—without dismissing the utility of the sales funnel.

The Sales Funnel: A One-Way Process

The sales funnel simplifies the customer journey into a linear process with several stages. The goal is to generate as many leads as possible and guide them down through the funnel, knowing that only a portion will make it to the bottom and become paying customers. The typical funnel stages include:

• Awareness: The customer becomes aware of your product or service.
• Interest: They explore your offering further, showing curiosity.
• Decision: They consider buying, often comparing your product with competitors.
• Action: The customer makes a purchase.

While the funnel works well for acquisition, it views the process as complete once the customer converts. This can create gaps in engagement, leading to missed opportunities to build loyalty and long-term relationships.

The HubSpot Flywheel: A Continuous Cycle of Growth

The flywheel, introduced by HubSpot, takes a different approach. Instead of seeing the customer journey as a one-and-done process, the flywheel positions customers at the centre of your growth strategy. The model revolves around three key stages:

• Attract: Bring in new customers by creating valuable content, providing exceptional experiences, and generating interest organically.
• Engage: Build trust with prospects and align your product or service with their specific needs.
• Delight: Ensure that customers are satisfied with their experience, leading them to promote your brand to others.

In the flywheel, customers don’t mark the end of the process—they become active participants, fueling growth by providing referrals, leaving positive reviews, and returning for repeat business.

Key Differences Between the Funnel and Flywheel

The biggest difference between the sales funnel and the flywheel lies in how they view the customer journey and business growth. The funnel treats the customer as a goal, focusing primarily on acquisition and conversion. In contrast, the flywheel emphasises engagement and satisfaction, aiming to build momentum that continues beyond the initial sale.

Additionally, the funnel follows a linear path—once a lead becomes a customer, they are no longer part of the process. The flywheel, however, is cyclical, meaning every satisfied customer can generate new opportunities by attracting more leads, creating a self-sustaining loop of growth.

The Limitations of the Sales Funnel

Despite its popularity, the funnel has several shortcomings that can limit business growth in the long run:

1. Short-term Focus: The funnel emphasises immediate conversion rather than nurturing long-term customer relationships.
2. Neglect of Retention: With the focus on new customer acquisition, businesses using the funnel model often overlook post-purchase engagement and retention, which are crucial for sustainable growth.
3. Misalignment Between Teams: Since the funnel is primarily focused on converting leads, marketing, sales, and customer success teams may struggle to collaborate effectively beyond the initial transaction.

The sales funnel still works well for short sales cycles and lead-generation campaigns, but it isn’t ideal for today’s experience-driven economy, where retention, satisfaction, and advocacy are essential.

Why the HubSpot Flywheel is More Relevant Today

There are several reasons why the flywheel has become a popular alternative to the funnel:

1. Shifting Customer Expectations: Customers now expect more than just a transaction. They want ongoing engagement, personalised interactions, and excellent service even after making a purchase. The flywheel encourages businesses to keep customers engaged, creating positive experiences that lead to loyalty.

2. Growth Through Referrals and Advocacy: The flywheel makes customer satisfaction a priority, which increases the likelihood of word-of-mouth referrals and organic growth. This reduces the need for heavy reliance on paid marketing campaigns.

3. Team Alignment Across the Organisation: By focusing on delighting customers, the flywheel naturally aligns sales, marketing, and customer success teams toward a common goal. This alignment improves collaboration and helps teams work together to create seamless customer experiences.

4. Resilience in Competitive Markets: Businesses using the flywheel approach tend to build deeper relationships with their customers, giving them an edge when facing competition or market changes. Loyal customers are more likely to stick with a brand they trust, even when new competitors emerge.
   
   

When the Sales Funnel Still Makes Sense

While the flywheel offers several advantages, there are situations where the sales funnel can still be a useful model:

• Short Sales Cycles: For businesses that focus on one-time transactions—such as retail or e-commerce companies—the funnel may be sufficient.
• Lead Generation Campaigns: The funnel provides a straightforward way to track how prospects move through the buying process, making it effective for managing high-volume campaigns.
• B2B Sales Processes: In complex B2B environments with long sales cycles, the funnel’s structure helps track progress and manage interactions through distinct buying stages.

Although the funnel can work in these scenarios, businesses should still incorporate elements of the flywheel, such as post-purchase engagement and customer satisfaction, to increase retention.

Integrating the Funnel and Flywheel for Optimal Growth

Instead of choosing between the two models, businesses can benefit by combining the strengths of both. For example:

1. Use the Funnel for Acquisition: Employ the funnel model to attract leads, convert prospects, and measure initial conversion metrics.
2. Switch to the Flywheel Post-Conversion: Once a lead becomes a customer, transition them into the flywheel to nurture the relationship and encourage advocacy.
3. Track Both Short-Term and Long-Term Metrics: Monitor immediate conversion rates through the funnel while also tracking customer lifetime value (CLV) and referral growth using the flywheel.

This blended approach allows businesses to optimize for both acquisition and retention, creating a growth strategy that is both effective and sustainable.

Conclusion: Funnel or Flywheel—Which Should You Choose?

The sales funnel remains a valuable tool for generating leads and managing sales pipelines, but it falls short in fostering long-term customer relationships. The HubSpot Flywheel, on the other hand, emphasises customer satisfaction and advocacy, making it better suited to today’s competitive and customer-driven market.

That said, businesses don’t need to choose one model over the other. By integrating elements of both the funnel and the flywheel, companies can build a growth strategy that drives both short-term wins and sustainable momentum.

Ultimately, the flywheel offers a better path toward resilient, long-term growth, especially for businesses that prioritize customer experience. But with the right balance, the funnel and flywheel can work together, giving your business the best of both worlds.