If you’re still polishing that classic funnel, I’ve got to be honest – it’s basically a fossil.
Acquisition costs are climbing, churn is waiting around every corner, and the tidy little triangle from Marketing 101 has turned into a black hole – swallowing budget and energy while leaking growth all over the place.
The funnel is dead. Long live the bowtie funnel.
Why I don’t buy into the old funnel anymore
The traditional funnel stops at ‘closed-won’ as though that’s the finish line. In SaaS and recurring revenue, it’s not even close.
I’ve seen too many businesses celebrate new logos while ignoring the fact that half of them never make it to renewal. Boards don’t cheer that kind of growth, and investors definitely don’t. Growth has to stretch far beyond the first deal.
Enter the bowtie funnel
The bowtie funnel isn’t just a catchy name. It’s a shift in how I think about growth – and how more businesses should too.
- Left side (acquisition): Demand gen, demos, discovery calls – the familiar pipeline work.
- Right side (retention): Expansion, renewals, referrals, advocacy – the parts that actually fuel long-term revenue.
When I see teams focus only on acquisition, it’s like watching someone pour water into a bucket with no bottom. Busy, yes. Sustainable, no.
Proof it works in practice
The best SaaS operators are already running on the bowtie model, and the results are obvious:
- NRR that investors can actually get excited about
- Expansion revenue that outweighs new logos
- Customers becoming advocates and sellers
- CAC that drops over time instead of spiralling up
I’ve worked with teams who’ve made this switch, and the difference is night and day.
Where I see the upside
Acquisition is expensive and messy. Retention and expansion give you higher margins, lower risk, and compounding growth. Whenever I look at the numbers, the upside is always on the right side of the bowtie.
Breaking silos is non-negotiable
Sales, marketing, and customer success can’t afford to run as separate kingdoms anymore. I’ve seen the damage that does. Bowtie growth needs one unified team, with shared goals, smooth handoffs, and a language even your CFO can rally around.
The new scoreboard
Pipeline obsession belongs in the past. The scoreboard I pay attention to looks like this:
- Net revenue retention (NRR)
- Expansion CAC – the real cost of growing existing accounts
- Product adoption rates – because logins don’t lie
- Customer advocacy – when users effectively become your salesforce
The playbook for tomorrow
Here’s how I’d recommend making the shift:
- Redraw the funnel into a lifecycle bowtie.
- Treat customer success as a revenue engine, not a cost centre.
- Put as much energy into expansion as acquisition.
- Align every team around NRR, not just ‘closed-won’.
The funnel I built yesterday won’t carry me – or you – into tomorrow. Growth isn’t about cramming more into the top. It’s about owning the whole journey. The bowtie funnel gives us the structure to do exactly that.