They are just an output. That’s it. The customer journey and momentum stops there.
The simplified formula below represents the business as a funnel. New customer growth depends on how effectively you spend your marketing and sales dollars to acquire new customers.
Customer growth funnel equation:
As customer acquisition costs CAC continue to increase sri lanka mobile database across all industries, this functionality is becoming increasingly unsustainable.
We will refer to these formulas later when comparing them to the basic principles of the flywheel.
What is a flywheel?
A mechanical flywheel is a disc-shaped part with a large moment of inertia, which acts as an energy storage device. It first became popular during the Industrial Revolution with the development of steam engines, and then with the development of internal combustion engines. The design purpose of the flywheel is to build and maintain power. For a four-stroke engine, work is done once every four piston strokes, that is, only the power stroke does work, while the exhaust, intake and compression strokes all consume work. Therefore, the torque output by the crankshaft changes periodically, and the crankshaft speed is also unstable. In order to improve this situation, a flywheel is installed at the rear end of the crankshaft so that the engine can more efficiently transmit energy to power the vehicle.