How To Think In Funnels (And Achieve The Best Possible Outcomes)

How To Think In Funnels (And Achieve The Best Possible Outcomes)

Tom Preston Werner, co-founder of GitHub, shared valuable insights at Startup School 2012 that can help us think in funnels and achieve the best possible outcomes. By breaking down our goals into different stages and improving conversion at each step, we can optimize our results. Let's explore this concept further and see how it can be applied beyond marketing.

1. Map the stages:

One of the first steps in thinking in funnels is to map out the stages of what you want to achieve. Whether it's a marketing campaign, a sales process, or even personal development goals, breaking it down into stages helps identify areas for improvement. Even a simple funnel can show us where to focus our efforts and make the necessary improvements. By visualizing the journey from start to finish, we gain clarity on what needs to be done at each stage.

2. Normalize failure:

Failure is often seen as a negative outcome, but when viewed through the lens of a funnel, it becomes a natural part of the process. Each stage of the funnel has a conversion rate, and not every prospect or customer will make it to the end. By normalizing failure and accepting it as part of the journey, we can learn from our mistakes and make improvements. As Tom Preston Werner mentioned, there are two ways of building a business - aiming, aiming, aiming, and then shooting, or shooting, shooting, shooting, and then aiming a little bit. Don't get caught up in analysis paralysis; keep trying new strategies and iterating based on the results.

3. Improve conversion:

The primary goal of thinking in funnels is to improve conversion rates at each stage. This principle applies not only to marketing but to every aspect of our lives where outcomes matter. Instead of leaving things to chance or relying solely on intuition, thinking in funnels allows us to be more intentional and strategic in our decision-making. By analyzing and optimizing each stage, we can achieve better outcomes. Just like in design, where every element added dilutes the overall product, focusing on improving conversion ensures that we are maximizing our efforts and resources.

In his talk, Tom Preston Werner also emphasized the importance of design, optimizing for happiness, and the three components of people, product, and philosophy. These additional insights highlight the holistic approach required to achieve the best possible outcomes. Design matters because it impacts the user experience and perception of our product or service. By prioritizing focus over features and ensuring a seamless design, we can enhance the overall experience for our customers.

Optimizing for happiness is another crucial aspect of achieving success. Tom encourages us to think about how what we do creates more happiness in the world for our customers, members, and shareholders. By aligning our actions and decisions with this goal, we can build a sustainable and fulfilling business. This concept can also be applied to personal goals, where we strive to bring more happiness into our own lives and the lives of others.

Lastly, the three components of people, product, and philosophy are essential for long-term success. Surrounding ourselves with the right people, creating a remarkable product, and having a clear philosophy or guiding principles will set the foundation for achieving the best possible outcomes. These components work hand in hand, and neglecting one can hinder our progress.

To sum it up, thinking in funnels is a powerful mental model that can lead to the best possible outcomes. By mapping the stages, normalizing failure, and improving conversion, we can optimize our results. Additionally, incorporating elements such as design, optimizing for happiness, and focusing on people, product, and philosophy further enhance our chances of success. So, the next time you're faced with a goal or challenge, think in funnels and watch your outcomes improve.