Marketing Funnel vs. The Four Engines

Editor’s Note (April 2025)

This article on “The 4 Engines of a Sustainable Digital Business” represents an essential milestone in my evolving understanding of strategic marketing systems. I wrote this piece in 2024 as I transitioned from conventional marketing frameworks toward a more integrated, systems-thinking approach.

Since publishing this article, my thinking has continued to evolve into what I now call the “Attract-Connect-Commit-Transform” framework, which incorporates deeper etymological insights and a more nuanced understanding of how transformation actually occurs in business relationships.

I’ve chosen to preserve this article rather than replace it because:

It demonstrates an essential step in the journey away from linear marketing funnels
The systems-thinking approach remains valuable, even as my articulation has become more refined
Many businesses may find the 4 Engines model provides a practical bridge between conventional marketing and more profound transformation

If you’re interested in exploring how this thinking has evolved, I invite you to read my recent work on Etymology in Marketing and the Attract-Connect-Commit-Transform framework. You’ll notice threads of continuity alongside significant new insights that emerged through a deeper exploration of these concepts.

The journey of understanding is never complete—it’s a continuous process of refinement and discovery. I’m sharing my earlier and current thinking to demonstrate that intellectual evolution is acceptable and essential for meaningful growth.

If you’d like to explore this critical stepping stone in my strategic thinking journey, continue reading below to discover how the 4 Engines model challenges traditional marketing funnel approaches.

– Josipher Wallé

An old business strategy like traditional marketing funnel stages is becoming increasingly obsolete in the ever-evolving digital marketing landscape.

These outdated models assume a rigid sequence, ignoring today’s dynamic digital environment.

“Marketing is no longer about the stuff that you make, but about the stories you tell.” – Seth Godin.

Instead of the old paradigm, embrace a holistic business strategy, recognizing interconnected marketing activities and empowered consumers.

This approach uses systems thinking, considering relationships between marketing components rather than viewing them in isolation.

This article introduces the 4 Engines of a Sustainable Digital Business: The Attention Earner, The Relationship Builder, The Monetization Engine, and The Transformation Engine.

These engines provide a sustainable and adaptable framework for thriving in the digital age.

Old Business Strategy – Marketing Funnel Stages vs. The 4 Engines of a Sustainable Digital Business.

We build the marketing funnel stages and present them using linear thinking (logical thinking—old business strategy thinking).

As a result, we assume that the visitor goes from steps 1 to 2 to 3 and 4 sequentially.

Marketing funnel examples in practice:

From ads to Squeeze page to sales page to upsell / downsell to purchase
From ad to Product page to cart, to checkout, to purchase

“Marketing is no longer about the stuff that you make, but about the stories you tell.” – Seth Godin.

The 4 Engines of a Sustainable Digital Business. Tapping into New Business Strategies

These engines are a different way of thinking about Digital Business.

Instead of the linear funnel thinking, we adopt the system thinking.

Instead of seeing the visitor go from an ad to a product page, to checkout, and purchase. A+B+C= Revenue

We dig deeper and try to understand the parts we cannot see. For example, you have a body but cannot see your heart with your eyes. You can only feel it.

So we want to understand the part of the marketing funnel stages, “Awareness, Engagement and Conversion,” which we don’t see.

When we use linear thinking, it goes like this:

Awareness + Engagement + Conversion = Revenue
Let’s put it into numbers –> 3 Aware + 2 Engage + 1 Conversion = 6 USD in Revenue
This is what linear thinking brings to us.
For example, 6 Aware + 0 Engage + 0 Conversion = 6 USD in Revenue.
We can see that this doesn’t make sense, but having linear thinking (logical thinking) makes you believe this can be real.

When we use system thinking / system theory, you can immediately understand that:

6 Aware + 0 Engage + 0 Conversion = 0 in Revenue.
So, it is not about logical thinking but about understanding that the relationship between awareness, Engagement, and conversion creates revenue.
If we remove one, the business will have no revenue, meaning you don’t have a business.
They are glued together as “AEC,” and as a result, we see revenue. It is not “A+E+C=Revenue.” Hence, we cannot think of funnels, break them down into pieces, and optimize each part separately. Instead, we need to see everything as a whole.
For example, if we upgrade the rims and tires on our car to bigger and heavier ones, it will definitely impact the performance of our engine and fuel consumption. The engine has to work hard, which will require more fuel, increasing fuel consumption while reducing the lifetime of your engine and breaking the system (linear thinking). System thinking means upgrading the engine, brake system, rim, tire, and anything else that might impact it.

“Marketing is too important to be left to the marketing department.” – David Packard.

The 4 Engines of a Sustainable Digital Business is an upgraded version of the marketing funnel stages, “AEC,” to meet the new rules of running a Sustainable Business in the Digital era with a System Thinking Mindset. (Adopting new business strategies)

The 4 Engines of a Sustainable Digital Business are:

The Attention Earner.
The Relationship Builder.
The Monetization Engine.
The Transformation Engine.

“People don’t buy what you do; they buy why you do it. And what you do simply proves what you believe.” – Simon Sinek.

“The best advertising is done by satisfied customers.” – Philip.

“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” – Peter Ducker.

Business Strategy Level 2: The Marketing Funnel Stage of Consideration/ Engagement vs The Relationship Builder

From the marketing funnel stages of awareness to Engagement, we quickly think about retargeting or re-engaging with the audience.

We spent some money on retargeting Content to present our offer in multiple ways; we try to have Content that answers questions or video content that addresses these questions.

We might also retarget with Content that addresses objectives.

All of these have the sole purpose of helping users drive purchase or conversion as fast as possible.

These approaches have worked for some time and are still working for some businesses.

There is one thing that I need clarification on regarding this approach.

Will it still work in the long run?

Do you think the audience will stick around for 10 years if you continuously try to re-engage them with more offers, Q&A, testimonials, discounts, etc., over and over, or would they get tired and abandoned ship?

I do not want to receive your promotional campaigns every day, week, or month.

Receiving these emails without added value to my life will tarnish my trust in your business.

So, the crucial thing I see most marketers forget about is trust.

Once you understand that attention is something you need to earn and costs money, you will treat it carefully so you don’t lose it.

If I am using the Attention Earner to bring awareness and add value instantly, I need to double down on that and use another new business strategy to help get the best next tactic to keep the well-earned attention.

Without further ado, let me introduce Engine 2…

The Relationship Builder is a new Marketing Strategy Component.

3 Crucial principles apply in the Relationship Builder Engine:

Add value first –>
1. “The best way to hold customers is to constantly figure out how to give them more for less.” – Philip Kotler.
2. “Your Content has to be better. It has to be something that moves people.” – Joe Pulizzi.
Implementing Believe –>
1. “A good advertisement is one which sells the product without drawing attention to itself.” – David Ogilvy.
2. “Persuasion is not about manipulating people. It’s about creating an environment in which they can make informed decisions.” – Robert Cialdini.
3. “People do not buy goods and services. They buy relations, stories, and magic.” – Seth Godin.
Permission first, then promotion–>
1. “Permission marketing is the privilege (not the right) of delivering anticipated, personal, and relevant messages to people who want to get them.” – Seth Godin.
2. “Treating people respectfully is the best way to earn their attention.” Seth Godin.
3. “Real permission works like this: if you stop showing up, people complain, they ask where you went.” – Seth Godin.

Adding Value.

In the Attention Earner, we ensured that we added value instantly. In the Relationship Builder, we will continue with the same principle of adding value instantly. With each re-engagement with our audience, we want to add value to sustain their attention and build on their trust.

Secondly, we want to assess and understand our audience’s current reality.

So, instead of talking about your product or service, you can ask:

About any struggle, pain, or problem.
About any desire, goal, or dream.
About any task or step they need to take.
About their current perception of a topic that can help you in the long run.

Asking these questions will help you build Engagement and learn more about your audience.

You can then use this learning to implant new beliefs.

Implanting Beliefs.

Implanting beliefs is all about creating structural tension.

You know your end goal, which is a happy customer, and you know what your customer believes.

Now, it is time to add value in a way that will shift your customers’ beliefs from their current reality, prepare them, and make them ready to become customers.

One of the best ways to implant beliefs is through storytelling, such as email, video content, blogs, and other forms of communication.

It is crucial to understand that this part of the journey helps you:

Generate Lead –> From ads to sign up.
Nurture a lead –> Newsletter.
And prepare your leads to become customers –> Newsletter to Promotions.

And before you promote, you want to request…

Permission.

You are used to re-engaging and promoting your users constantly without asking them if they want or are ready for your promotion.

Promoting without permission means sending your audience promotional content without them being ready to buy. When you promote to them regularly, they will get tired and unsubscribe, which means you will lose the attention of an audience you have earned.

It’s like throwing money away.

They shouldn’t be on my list if they don’t buy now. This is a valid point only if you are making money today.

If you are looking for a sustainable business, you know you want to play the infinite game. You want your audience to stick around forever.

So, when you ask for permission, you ensure you only target those who want the promotion and are likely to become paying customers. You also want those who wish to avoid promotion to stick around for as long as they want to.

That is why permission is critical.

Now, it is time to monetize.

Business Strategy Level 3: The Marketing Funnel Stage of Conversion vs The Monetization Engine.

Typically, with the marketing funnel stage of conversion, we focus on the following tactics:

Optimized Landing Pages: Creating focused, high-converting landing pages with clear calls to action (CTAs) that guide visitors toward purchasing or completing a desired action.
Clear Calls to Action: Using solid and compelling CTAs throughout marketing materials and websites to direct users towards conversion points.
Retargeting Campaigns: Using retargeting ads to remind and encourage visitors who have previously shown interest but have yet to convert.
Personalized Offers: Offering personalized discounts, promotions, or recommendations based on user behavior and preferences.
Social Proof and Testimonials: Showcasing customer reviews, testimonials, and case studies to build trust and reduce hesitation.
Simplified Checkout Process: This ensures the purchasing process is smooth and user-friendly, reducing friction points that could lead to cart abandonment.
A/B Testing: Continuously testing different elements of the conversion process, such as CTAs, landing page designs, and messaging, to optimize for higher conversion rates.
Email Marketing: Sending targeted follow-up emails to nurture leads, remind them of abandoned carts, or provide additional incentives to convert.
Live Chat and Customer Support: Offering immediate assistance through live chat or customer support to address any last-minute questions or concerns that could hinder conversion.

And then, we typically will focus on the following metrics:

Conversion Rate: The percentage of visitors who complete a desired action (such as making a purchase or signing up for a service) out of the total number of visitors. This is the most direct measure of success at this stage.
Sales Revenue: The total amount of money generated from conversions, providing a direct link to the impact of marketing efforts on the bottom line.
Cost Per Conversion (CPC): The average price of acquiring a single conversion. This helps in understanding the efficiency of marketing spend.
Cart Abandonment Rate: The percentage of users who add items to their shopping cart but still need to complete the purchase. This metric helps identify potential friction points in the checkout process.
Average Order Value (AOV): The average amount customers spend per transaction. This helps in evaluating the effectiveness of upselling and cross-selling strategies.
Lead-to-Customer Conversion Rate: The percentage of leads that ultimately become paying customers. This metric indicates the effectiveness of the entire funnel in driving conversions.
Click-Through Rate (CTR) on CTAs: The percentage of users who click on calls to action, providing insight into the effectiveness of your CTAs in prompting further action.
Return on Investment (ROI): The overall profitability of marketing campaigns, calculated by comparing the revenue generated to the costs incurred.
Customer Acquisition Cost (CAC): The Cost associated with acquiring a new customer, calculated by dividing the total marketing spend by the number of new customers acquired.
Time to Conversion: The average time it takes for a prospect to convert after their initial interaction with the brand. This helps understand the buyer’s journey length and optimize touchpoints.

All of the tactics and metrics are valid things to focus on.

The Monetization Engine is Different.

The Monetization Engine is a new marketing strategy component that prioritizes 4 fundamental principles attached to tactics that are mentioned below.

The principles and tactics we will focus on are:

Story-Driven promotional campaigns –> Since we used engagement questions in The Relationship Building Engine to better understand our audience and their current beliefs, we can now use story-driven campaigns tailored to our audience’s beliefs and show them how our products or services can help them become the Heroes of their journey. “Stop selling. Start helping.”—Zig Ziglar.
Implanting beliefs –> Here, we will double down on this tactic and use a story-driven campaign to take our audience on a journey to prepare them for our offer/promotion. Once they are ready, we will present our offer and use all the ethical persuasion skills possible to get them to convert. “Content is king, but context is God.” – Gary Vaynerchuk.
Email marketing –> Tactically, I will choose email marketing to present the story-driven offer/promotion because it is cost-effective. You can automate and segment better than YouTube or Facebook video series. Email marketing costs are relatively cheap compared to running ads on ad platforms. You have a relatively constant cost. The only variable that can affect the price is the size of your audience. Lastly, I choose email because I will always own my list compared to the other platforms. The audience will never be mine, so if they block my account, it will affect my business.
Structural tension –> As mentioned before, Structural Tension is the relationship between your outcome and your current reality. Your customer wants to become the Hero of their journey (the outcome they want). In the monetization engine, your end goal is to help the customer start the transformation process by making a purchase (the outcome you wish). You also know their current reality, including their struggles, concerns, or objections. The structural tension principle will help you create the necessary tension to move them from their current reality and lead them on their transformation journey to become heroes. At the same time, the structural tension will help you take them from a non-paying customer to a paying customer. “Persuasion is about creating an environment in which they can make informed decisions.” – Robert Cialdini.
Permission –> Trust is critical in business. Once someone loses trust in you, it will cost you a lot to earn it back, and most of the time, you won’t earn it back. Therefore, we always ask for permission before sending promotional material to our audience. The principle of permission is the key to sustaining a long-term relationship with our audience and maintaining the integrity of our Relationship Building Engine.

The metrics we will Focus on are:

Cost per Acquiring a Happy Customer –> We remind ourselves that we are optimizing for a happy customer by reducing our CAHC.
User engagement rate –> Tell you how well and engaging your story-driven campaigns are and if they add value, create curiosity, and “Aha moments.”
Click-Through Rate (CTR) on CTAs –> The percentage of users who click on calls to action, providing insight into the effectiveness of your campaign in prompting further action.
Lead-to-Customer Conversion Rate –> The percentage of leads that ultimately become paying customers. This metric indicates the effectiveness of the entire funnel in building trust with your audience. The higher your Lead to Customer Rate, the better you will build trust.
Average Order Value (AOV) –> The average amount customers spend per transaction. This helps in evaluating the effectiveness of upselling and cross-selling strategies.
Sales & revenue –> The total amount of money generated from conversions, providing a direct link to the impact of marketing efforts on the bottom line.

As you can see, I am focusing on similar, fewer metrics at this stage, with only one different metric, the cost of acquiring a happy customer. This metric is most valuable because it serves as my north star.

As business owners at this stage, we need to be careful because we might fall into the trap of thinking that we have accomplished our goal of turning a stranger into a customer. The reality is that to turn a stranger into a customer, we promise to make them the Heroes of their journey. Therefore, we now need to make sure that they actually become heroes.

Business Strategy Level 4: The Marketing Funnel Stage of Loyalty/retention vs The Transformation Engine.

The marketing funnel stage of loyalty/retention is focused on maintaining relationships with existing customers to encourage repeat business, increase lifetime value, and turn customers into brand advocates. This stage is crucial because retaining customers is generally more cost-effective than acquiring new ones.

“Do what you do so well that they will want to see it again and bring their friends.” – Walt Disney.

Here are some typical Strategies for the Loyalty/Retention Stage

Personalized Communication:
1. Email Marketing –> Send personalized emails based on purchase history, preferences, and behavior. This can include special offers, product recommendations, and customized Content.
2. Segmentation –> Use customer segmentation to tailor messages to different groups based on interests and behaviors.
Loyalty Programs:
1. Rewards Programs –> Implement loyalty programs that reward customers for repeat purchases, referrals, and other positive behaviors.
2. Point Systems –> Allow customers to earn points for purchases that can be redeemed for discounts, free products, or other benefits.
Customer Support and Service:
1. Responsive Support –> Ensure customer support is easily accessible and responsive. This includes live chat, phone support, and social media interactions.
2. Proactive Engagement –> Contact customers to check their satisfaction, address issues, and offer assistance.
Exclusive Offers and Promotions:
1. Special Discounts –> Offer exclusive discounts and promotions to repeat customers as a token of appreciation for their loyalty.
2. Early Access –> Provide loyal customers early Access to new products, sales, or events.
Content and Community Building:
1. Engaging Content –> Create Content that engages and adds value to the customer’s experience, such as how-to guides, tips, and industry news.
2. Community Building –> Foster community among customers through social media groups, forums, or exclusive events.
Feedback and Improvement:
1. Surveys and Feedback –> Regularly ask for customer feedback to understand their needs, preferences, and areas for improvement.
2. Act on Feedback –> Show customers their feedback is valued by making visible changes and improvements based on their suggestions.
Personalized Recommendations:
1. Product Suggestions –> Use data analytics to provide personalized product recommendations based on previous purchases and browsing behavior.
2. Follow-up –> Follow up with customers to recommend complementary products or services after a purchase.
Post-Purchase Engagement:
1. Thank You Messages –> Send personalized thank you messages after each purchase to show appreciation.
2. Check-In Emails –> Periodically check in with customers to ensure they are satisfied with their purchase and offer additional Support or recommendations.

Here are some typical Metrics to Track in the Loyalty/Retention Stage:

Customer Retention Rate –> The percentage of customers who continue to do business with you over a specific period.
Churn Rate –> The percentage of customers who stop doing business with you over a specific period.
Customer Lifetime Value (CLTV) –> is the total revenue a business can expect from a single customer over the entire relationship.
Repeat Purchase Rate –> The percentage of customers who make multiple purchases.
Net Promoter Score (NPS) –> A measure of customer satisfaction and loyalty, indicating how likely customers are to recommend your brand to others.
Customer Satisfaction Score (CSAT) –> A metric that measures customer satisfaction with a product, service, or interaction.
Engagement Metrics –> Email open rates, click-through rates, and Engagement on social media indicate how actively customers interact with your brand.
Loyalty Program Participation –> The number of customers participating in loyalty programs and their activity levels.
Average Order Value (AOV) –> The average amount spent per transaction by repeat customers.
Referral Rate –> The percentage of customers who refer new customers to your business.

First of all, I am overwhelmed by this old business strategy with all the metrics, and there is a lot you need to do.

But if you pay attention to the engines, you will notice that we have been working on these things from the beginning. Instead of waiting until after the customer purchases to personalize the experience, we start personalizing at the attention engine stage and continue to personalize across the other engines.

So when we come to the…

Transformation Engine.

The last new marketing strategy component.

When we compare it with the marketing funnel stage loyalty/retention, we focus here on a few metrics and strategies because the previous engines do most of the work.

“Customer service shouldn’t just be a department, it should be the entire company.” – Tony Hsieh.

So, let us summarize.

In the previous engines, we have used the following business strategies:

In The Attention Earner, we have added value through personalization, stories, and establishing beliefs to filter and drive the right audience into The Relationship Builder.
In The Relationship Builder, we continued to add value by using engagement techniques to gain insight into our audience to further personalize, establish beliefs, and ask permission to promote.
In The Monetization Engine, we used stories, establishing beliefs, Structural Tension, and all the persuasion techniques to get our audience to purchase and start their transformation journey.

All these business strategies help us increase the probability that our audience will purchase from us when the time is right.

When you combine these strategies and capabilities, you will have a customer who is 80% to 90% happy after purchasing from you.

We must focus on a few business strategies since we work to make the odds in our favor from the start.

Our primary business strategies here are:

Provide as much support as possible to help them start, progress, and finish.
We need to make the process as frictionless as possible for them.
Get feedback from our customers regarding post-purchase Engagement.

“We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.” – Jeff Bezos.

At this stage, our key metrics are:

Customer Life Time Value (CLTV)–> The value of your customer’s lifespan tells you how happy they are. I recommend you measure this yearly and try to increase this by at least 30% yearly.
Average Order Value (AOV) –> The average amount spent per transaction of a returning customer.
Referral Rate –> The percentage of customers who refer new and happy customers to your business.
Loyalty Program Participation –> If you have a loyalty program, measure the number of customers participating in loyalty programs and their activity levels.

We want to focus on the least metric and ranking order from 1 to 4.

“Customer service is not a department. It is a philosophy to be embraced by every employee from the CEO to the newest hire.” – Shep Hyken.

CLTV is the most important because it tells you how happy customers are. The happier a customer is, the more likely they are to refer your business.

Let us refresh ourselves with the benefits of a happy customer:

They will buy back.
They will brag about your brand with their friends and family.
They will refer your brand to others.
They will stay forever.
Each time they buy again, there is more revenue.
You will get free marketing and word of mouth.
For each person, they recommend that you generate more revenue.

If you pay close attention, you can see that the AOV, referral rate, and loyalty participation directly correlate with your CLTV. The higher your CLTV, the higher your AOV, referral rate, and loyalty participation.

In the case of The Relationship Builder Engine, it is the same. Your lead-to-customer rate is also directly correlated with your CLTV. The higher your lead-to-customer rate, the higher your CLTV tends to be.

The only metric correlating oppositely with your Customer Life Time Value (CLTV) is your Cost per Acquiring a Happy Customer (CAHC). The higher your CLTV, the lower your CAHC will be; if your CLTV is low, your CAHC will be high.

To optimize adequately, we must understand each engine’s relationship with the others, move away from linear logic thinking, and remove assumptions.

Conclusion.

As we shift from traditional marketing funnel stages to the 4 Engines of a Sustainable Digital Business, it becomes clear that a holistic, customer-centric approach is the key to long-term success. Integrating systems thinking into your digital business strategy development allows you to create meaningful connections, build lasting relationships, and ensure that every interaction adds value.

“Do what you do so well that they will want to see it again and bring their friends.” – Walt Disney.

We’ve explored how each engine—the Attention Earner, Relationship Builder, Monetization Engine, and Transformation Engine—plays a vital role in this new business strategy paradigm. By focusing on earning attention, nurturing relationships, ethically monetizing interactions, and ensuring customer transformation, you can build a business that survives and thrives.

“Customer service shouldn’t just be a department; it should be the entire company.” – Tony Hsieh.

To stay ahead in this fast-paced digital world, you must continuously adapt and refine your marketing strategies based on a deep understanding of your audience’s needs and behaviors. This commitment to innovation and empathy will help you turn strangers into lifelong advocates for your brand.

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