Banking

Funnel vs. Flywheel: Everything Modern Bank Marketers Need to Know

5 mins read
March 21, 2019
By
Total Expert

Today’s customer cannot simply be passed from inquiry to transaction using the same generic messaging time and time again, only to fall through the funnel – and out of communication with your bank – once they transact. As technology and digital tools inundate consumers with options and the ability to self-navigate, the traditional sales funnel no longer fits the diverse needs and heightened expectations of modern consumers.  

Consumers cannot be led through your pipeline on your terms. Some need you to reach out with personalized content earlier, while others prefer to get further along in the process before engaging with the organization.  

As competition increases and the cost to acquire new customers skyrockets, you also can’t afford to letexisting customer relationships fall through the cracks.  

Either way, the funnel is dead – with many experts sounding the alarm a decade ago.  

In order to thrive, you need to “bury” the funnel and live by the flywheel as the new marketing model for attracting, engaging and retaining customers and prospects.

The Birth of Your Flywheel

The flywheel is a modern approach to sales and marketing that recognizes the power today’s consumers wield in a company’s long-term success. Unlike the funnel, where there is no place for the customer to goafter they transact, the flywheel places the customer at its center and builds speed as you exert energy on it. It shifts the focus from new leads and single transactions to customer retention and brand loyalty.

To compete with digital disruptors and build lifetime relationships with modern customers, banks must leverage cyclical, “one-to-one” messaging that attracts, engages and amazes.

Attract

The attraction stage of the flywheel is when customers first interact with your brand or are reestablishing a connection to explore new products or services.  

With evolving technology and evolving consumer buying patterns, banks now have more opportunities to capture customer attention. From digital, email, social, SMS and more, banking customers are “always on”and available for outreach across their preferred channels.

But banks must overcome the 10,000+ messages the average customer is exposed to each day and connect with the personal financial challenges of their customers.  

It’s not enough for banks to get their message in front of the customer – your message must say something meaningful if you want customers to stay in the flywheel.

Engage

The ability to not only attract but engage customers with hyper-relevant messaging across the customer journey is critical to keeping them in the flywheel – and increasing the lifetime value of your customers.

Bank customers who are not engaged with relevant messaging are at risk of falling out of the flywheel: they may lose trust or they may opt for a competitor that better understands their needs.  

Banks must continually empower customers with seamless experiences that maximize efficiency, add value and eliminate barriers, as 80 percent of consumers admit they would switch financial institutions for a better experience.

Amaze

To bring customers full circle in the flywheel, banks must make deep personal connections, anticipate future needs and focus on being a financial partner to your customers.

Consider the impact of helping a family reduce their interest rate or advising on a home equity line of credit. Banks that go above and beyond will earn the two most valuable customer commodities: trust and loyalty.  

Loyal customers are proven to spend more, spend more often and are easier to sell to.

Customers that trust your brand (the result of consistently amazing customer experiences) are more likely to partner with you for a lifetime of transactions.  

Conclusion

The sales and marketing flywheel is a modern approach to winning savvy consumers with deeply relevant outreach that elevates your brand and builds seamless customer experiences.

Fueled by the hard-won trust and loyalty of customers, the flywheel challenges banks to go above and beyond with “one-to-one” messaging that attracts, engages and amazes. If you successfully set it in motion, each piece of the flywheel builds and sends customers flying from one stage to the next in a never-ending cycle. And, if everyone in the company focuses their energy on the flywheel’s lynchpin, your customers, it will gain momentum – creating customers for life and increasing your bottom line.

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Forming authentic relationships has always been the competitive edge for smaller lenders. And as the FinServ world has become more tech-driven and digital-first, credit unions and community banks have only leaned further into this powerful differentiator. But we’re seeing an interesting trend among some of the most successful small- to mid-market lenders: They’re recognizing that tech-enabled engagement is no longer mutually exclusive to genuine human connections. They’ve created powerful data-driven strategies that make it easier for them to build good, old-fashioned personal relationships.

These forward-thinking lenders are realizing that their smaller size is actually an advantage in implementing “big data” tools and strategies. We’re seeing credit unions and community banks deploy Total Expert Customer Intelligence in a matter of weeks and start realizing value in as little as 90 days, building a loyalty- and revenue-generating engine that fuels itself.

But how are they doing it in a financial landscape where consumers have more choices and competitors aren’t just in the building across the street?

Even close borrower relationships are growing more complex

Small- to mid-market lenders have been historically hesitant to embrace tech-powered, data-driven strategies because there was a concern that it would dehumanize their connections with borrowers. Which is understandable as community banks and credit unions have built their brands and their reputations on their ability to forge honest, transparent relationships—getting to know their customers and members in ways bigger lenders could only dream of.

But even those 1:1 borrower connections are now digital-first, multi-channel relationships. Those increasingly complex relationships involve exponentially more data, information, preferences, and intent signals. A common concern we hear among smaller lenders runs along the lines of, “We don’t have enough data for a ‘Big Data’ strategy.” But the truth is that even the smallest credit unions and community banks are swimming (and sometimes drowning) in a pool of tremendously valuable data.

Borrowers expect to feel “known” across every channel; they want the same feeling of 1:1 personalization at every touchpoint. And it’s becoming a genuine challenge for smaller lenders to juggle all the information and orchestrate these hyper-personalized omnichannel experiences.

Using Customer Intelligence + marketing automation to enhance personal borrower relationships

More and more credit unions and community banks are turning to data-driven, tech-enabled strategies to complement—not replace—their personal relationships with borrowers. We’ve seen smaller lenders have tremendous success with Customer Intelligence and our dynamic, automated Journeys because they:

  • Surface intent signals in real time: Customer Intelligence surfaces critical intent signals as they happen, giving LOs the superpower of knowing what borrowers and homeowners need when they need it.
  • Highlight life events as critical engagement opportunities: Customer Intelligence helps smaller lenders go beyond traditional intent signals, recognizing key life events or milestones (graduating, getting married, starting a family, changing careers, retiring, etc.) that signal shifting financial goals and new borrowing needs. This gives your LOs natural opportunities to reach out with helpful, personalized guidance.
  • Enable personalized outreach at scale and speed: Credit unions and community banks are using Total Expert Journeys and other automation capabilities to help their LOs stay on top of all of these valuable Customer Intelligence signals. Built-in triggers and automated Journeys enable LOs to magically engage at just the right time—across their full roster of customers and prospects.

Smaller lenders are leveraging Total Expert’s digital toolset to help them show up for borrowers when it matters most—across every and all channels—to give them the feeling they want most: a trusted financial advisor who understands their financial needs and goals, providing proactive support and guidance to help deliver the best possible outcome.

Measuring time-to-value in weeks, not years

Another major misconception among credit unions and community banks is that they don’t have the resources to manage this kind of automated, Customer Intelligence-powered strategy.  

It’s true that smaller lenders likely don’t have large internal teams of data analysts (if any). But Total Expert has led the charge in democratizing access to leading-edge data analytics tools and capabilities. We’ve designed Customer Intelligence and Journeys to be easy to deploy and quick and intuitive to set up.

The smaller size of most credit unions and community banks works to their advantage here. We consistently see these customers go live and start seeing measurable value with Customer Intelligence in as little as eight weeks because they’re able to implement, build, test, and launch faster than larger lenders that have more layers of reviews and approvals.

Smaller lenders driving big value: Customer Intelligence case studies

Dart Bank

  • Customer Intelligence in action: Dart Bank uses Customer Intelligence to surface life events and intent signals in real time, enabling LOs to engage members with proactive, personalized support across channels.
  • Driving measurable value: In just six months, Dart Bank drove an additional $48 million in funded loans—all by connecting with borrowers at the right moments of opportunity.

Tucson Federal Credit Union (TFCU)

  • Customer Intelligence in action: TFCU adopted Total Expert Journeys + Customer Intelligence to automate workflows, unify member data, and personalize communications; reducing manual work (e.g., uploading data daily) and streamlining email campaigns.
  • Driving measurable value: Open rates now exceed industry benchmarks (25–26%), and click‐through rates have improved. Campaign build times dropped from weeks to minutes.

Family Savings Credit Union

  • Customer Intelligence in action: Family Savings Credit Union moved from generic, outsourced marketing to using Total Expert Journeys, personalized messaging across channels, and better data visibility internally (bringing together core banking data, email, etc.), enabling them to send more strategic and relevant communications.
  • Driving measurable value: By acting on these insights, Family Savings Credit Union has increased retention and preserved the strong member relationships that fuel long-term success.

Horicon Bank

  • Customer Intelligence in action: Horicon created a Data Insights department, deployed Total Expert for centralized CRM/marketing automation, enabling more intentional targeting and personalized communications, letting staff have visibility into customer behavior across branches and channels.
  • Driving measurable value: The bank is now orchestrating timely, personalized borrower outreach at scale—transforming digital signals into relationship-building opportunities that strengthen loyalty.

Tech- and data-driven strategies have proven over and over that they have the ability to help deepen personal relationships for smaller credit unions and community banks. Our customers are proving that size doesn’t have to be a barrier. It can be an advantage that allows organizations to move quickly, leverage powerful tools like Customer Intelligence, and deliver authentic, personalized experiences at scale.

Learn more about Customer Intelligence and how it can drive consistent growth by enhancing your member and customer relationships.

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Change is the one constant in financial services, but the way we respond to it separates the leaders from the pack. The newly signed Homebuyer Privacy Protection Act (HPPA)—taking effect in March 2026—is a shift in how lenders can access and use consumer credit data. However, while some may view this as another regulatory headache, the reality is far more encouraging: it’s an opportunity to raise the bar on trust, transparency, and customer experience.  It’s another validation of our “Customer for Life” strategy.

This isn’t about dodging restrictions. It’s about recognizing that the playbook for winning customers is evolving—and those who embrace that evolution will come out stronger.

What’s changing?

Under the HPPA, credit bureaus can no longer sell a consumer’s credit file unless the lender meets one of a few narrow conditions:

  • Originated the consumer's current mortgage
  • Service the consumer's current mortgage
  • Obtained clear, documented consent from the consumer
  • As a bank or credit union, maintain an active account for that consumer

There’s even a GAO study on the way, examining how trigger-lead solicitations via text messaging impact consumers—a clear sign regulators are watching the fine line between engagement and harassment.

For lenders who have long relied on trigger leads, this represents a fundamental shift. But for institutions that have invested in building relationships the right way, this is good news.

What this means for lenders

The HPPA shuts the door on spray-and-pray solicitation tactics. But it opens the door wider for lenders who want to compete on trust and relationship strength. Specifically, it creates new opportunities to:

  • Deepen existing customer relationships with proactive, personalized engagement.
  • Capture consent earlier in the journey, before borrowers get lost in a flood of noise.
  • Differentiate in a less crowded, more consumer-friendly marketplace where trust is a true competitive advantage.

The lenders who lean in here will win—not because they shouted the loudest, but because they earned the right to stay connected.

Why this isn’t just another regulatory headache

Consumers have been saying it for years: the barrage of calls, texts, and emails after a mortgage application is exhausting. Some borrowers receive 100+ solicitations within 24 hours. That doesn’t build confidence—it erodes it. And we know this is not how our TE customers run their business.

HPPA represents a rare alignment of regulators, consumer advocates, and lenders themselves. It clears away predatory noise, improves the homebuying experience, and rewards lenders who put relationships at the center of their strategy.

As our Founder & CEO Joe Welu often reminds us, “Trust is the currency of modern financial services.” This law is an accelerant for lenders who understand that principle.

How we're going to help you thrive in a post-HPPA world

We’re not sitting on the sidelines waiting to see how this plays out. Our platform was purpose-built to help lenders engage customers in a way that’s personal, compliant, and built to last. Here’s how we’re making sure you’re ready for March 2026:

  • Proactive guidance: Our mortgage and tech experts are already helping lenders adjust monitoring practices, so they stay compliant without losing momentum.
  • Expand Customer Intelligence: We’re finalizing new capabilities to drive increased awareness and enrichment of your relationships, including expanding CI to all three bureaus, and streamlining our credit improvement alert.
  • Investments in consent: Upgraded features coming soon to capture and respect consumer consent in clear, frictionless ways—including through our ecosystem partnerships.

This isn’t a band-aid or a reaction; it’s an evolution of how modern lenders build sustainable engagement to develop customers for life.

Bottom line: this isn’t a roadblock—it’s an opportunity

Every regulatory change comes with friction. But HPPA isn’t just about compliance—it’s about clarity. It’s about stripping away noise and giving lenders who prioritize relationships a stage to shine.

The lenders who thrive in this new environment won’t be the ones chasing trigger leads. They’ll be the ones investing in trusted, personalized engagement—from first touch through every financial milestone.

And that’s exactly what Total Expert was built to help you do: navigate the shifts, build lifelong trust, and continue winning customers for life.

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