One telltale sign is accelerating profit declines, which usually happens when CAC which is primarily influenced by marketing expenses is growing faster than revenue.
These current market conditions highlight some of the fatal flaws of the funnel model and why startups need to think more holistically about their business models, like a growth flywheel.
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*The k-factor is an action-based measure of customer sri lanka mobile database satisfaction. Explained later.
What is a funnel?
Let’s start by defining what we mean by a funnel. Whether people are talking about marketing, sales, or purchasing funnels – they all mean the same thing: a funnel is a graphical model of the process by which a customer goes about purchasing a good or service.
The funnel has some key characteristics and assumptions:
The stagesphases are sequential.
There is a certain amount of wear from one stagephase to the next, creating a funnel shape.
The goal is to manage and optimize the procurement process.
Customer acquisition is a linear process.
Walk into any company’s sales or marketing department and you’ll likely hear the team talking about their funnel. Chances are you’ll see a faded poster of a six-stage funnel taped to the wall, with different colored sections labeled “Awareness,” “Interest,” “Consideration,” “Intent,” “Evaluation,” and “Purchase”—with the customer at the bottom.