1. Press "New Run " where shown below to see what happens.
Comment or Question on the Pipes Model?
To a seller, the market looks like a pipeline or funnel. This is not what it looks like to a buyer. Using the pipeline analogy and showing one pipeline for new customers and a separate pipeline for repeat customers we can set up the simple "Pipes" model as shown below.
Each pipe shows the stages that a prospect or customer goes through, and the boxes on the right show the likelihood that the customer will go through each stage.
Everything done in marketing, sales, product/service development and customer service ( the TOUCH POINTS) is to reduce the LEAKS of lost prospects and customers at each step.
- Prospects leak out of the pipeline at each stage if, for example, they don't become aware, don't consider, don't try or don't buy. What does get through becomes a new customer.
- Repeat customers can only come from prior customers. Usually, the conversion percents are higher than with new customers. That's why keeping customers costs less than getting new customers.
- When you run out of prospects, you stop adding new customers and unless you bring back 100% of your existing customers every time, your customer base and revenue will necessarily decline.