Maybe not, but you should when looking to effectively transform your business strategy.
Imagine pushing a heavy boulder uphill. Every step forward takes immense effort, and the moment you stop, it starts rolling back. This is what growth can feel like when you’re constantly chasing new leads, fighting for attention, and juggling disconnected strategies. But what if, instead of pushing, you could build a system where that boulder rolls more smoothly and gathers momentum on its own?
Enter the flywheel model: a strong approach to growth that prioritizes compounding momentum over one-off results. Unlike traditional methods that treat customers as end-goals, the flywheel puts them at the center of your business, turning them into drivers of your growth.
So, buckle up - for in this post we’ll be looking at;
What the Flywheel Model is
How it works
Why It outperforms traditional funnels
Real-world examples
How to implement the Flywheel Model in your business
By the end, you’ll have a clear understanding of how to build your own flywheel (yaaay!).
So, first things first.
The flywheel, originally a mechanical concept, is a heavy wheel designed to store and release energy efficiently. Once spinning, it takes little effort to maintain its momentum.
Business strategist Jim Collins adapted this idea in his book Good to Great, and companies like HubSpot have made it a cornerstone of modern growth strategies.
Here’s how it works in a business context: Instead of focusing all your efforts on “pushing” customers through a funnel, the flywheel builds momentum by using happy customers to attract and engage even more people. Every delighted customer becomes a force that propels your business forward, whether through referrals, repeat purchases, or positive reviews.
As an example, picture Amazon in its early days. Jeff Bezos didn’t just focus on selling books. He built a system. Lower prices led to more customers. More customers attracted third-party sellers, expanding product selection. A larger selection increased customer satisfaction, creating even more repeat purchases. This cycle, known as Amazon’s “virtuous cycle,” is a textbook flywheel in action.
To understand how the flywheel drives growth, it’s important to break it into three key components:
Forces: The actions and strategies that accelerate the wheel.
Friction: The obstacles that slow it down.
Momentum: The compounding energy that powers sustained growth.
Forces that drive the Flywheel are the efforts that keep your flywheel spinning faster. Examples include:
Inbound marketing: Creating valuable, engaging content that attracts prospects.
Customer loyalty programs: Encouraging repeat purchases and referrals.
Freemium Models: Lowering barriers to entry, as seen with companies like Atlassian.
For instance, Dreamdata uses a freemium approach to introduce companies to its software for free. Once those companies grow and need more advanced features, they seamlessly upgrade.
Friction occurs when processes are clunky or teams are misaligned. Common sources of friction include:
Poor handoffs between marketing, sales, and customer service.
Overly complex purchasing processes.
Negative customer experiences.
A good tip to reduce friction is to audit your customer journey - where are prospects getting stuck? Are your teams siloed?
A smoother experience means a faster, more efficient flywheel.
Funnels have been the go-to model for decades. But they’re inherently flawed. They view customers as the final destination. Once a lead converts, the funnel “ends,” leaving little emphasis on what happens next.
The flywheel flips this logic. It treats customers as an ongoing source of growth. Satisfied customers drive referrals and repeat business, creating a cycle that feeds itself. This shift isn’t just theoretical; it reflects how people make decisions today.
Think about how you shop online. Do you rely on company ads? Or do you check reviews, ask friends, and follow word-of-mouth recommendations?
The flywheel capitalizes on this dynamic, leveraging customer experiences to build trust and attract new prospects.
Amazon: The virtuous cycle of lower prices → more selection → happier customers has made Amazon the company they are today.
HubSpot: By aligning its teams around the flywheel, HubSpot ensures every customer interaction (marketing, sales, or support) adds value and keeps the wheel spinning.
Dreamdata: Through community-building and automation, Dreamdata eliminates friction, letting customers educate themselves and buy on their terms.
These companies don’t just have flywheels. They continuously refine them. Whether by adding new “forces” (like integrations or loyalty programs) or removing friction, they keep their momentum growing.
Hopefully at this point you’re intrigued enough to attempt building a flywheel of your own (trust me, you won’t regret it).
Do like this:
Identify Your Force
What drives your growth? For example:
SEO and content marketing to attract prospects.
Great onboarding experiences to reduce churn.
Customer advocacy programs to drive referrals.
Eliminate Friction
Audit your processes: Are handoffs between teams smooth? Is your pricing straightforward? (fixing these pain points makes it easier for customers to love your brand).
Align Your Teams
Marketing, sales, and customer service should work as one. When teams share data and goals, the flywheel spins faster.
Leverage Technology
Tools like CRMs or automation platforms can streamline customer interactions, making it easier to deliver consistent, delightful experiences.
Measure Momentum
Track key metrics like customer retention, referral rates, and Net Promoter Score (NPS). These indicators show whether your flywheel is gaining speed.
Iterate and Improve
Your flywheel isn’t static. As your business grows, add new forces or remove friction points to maintain momentum.
My recommendation is to start small. Focus on one area of your flywheel (e.g., reducing churn) and build from there.
Compounding growth takes time but pays off in the long run.
The flywheel model isn’t just a growth strategy; it’s a shift to your mindset.
By putting customers at the center, you create a system that thrives on momentum, turning one success into many. You care more about doing many of the right things than to stress over short-term results derived from single activities (that’s generally how you achieve long term success in anything you do in life).
Whether you’re optimizing onboarding processes, refining marketing campaigns, or investing in customer loyalty, every improvement adds force to your wheel. And as it gains speed, growth feels less like a constant uphill push and more like a downhill roll.
Then reach out to me on email, kh@profoundnorth.com, or by phone, +45 28 88 12 62.
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