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Press "Run" where shown on the right to see what happens.  Play with the settings to see what happens to Revenues when settings are above average (Green) or below average (Red).

To a seller, the market looks like a pipeline or funnel.  (See Solution Cycle for the Buyers point of view.)

The pipe shows the stages that a prospect or customer goes through starting left to right: Awareness, Opinion Consideration and Purchase.  

Everything done in marketing, sales, product/service development and customer service should 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.

Negative Experience lowers likelihood of buying from you and raises likelihood of telling others not to buy from you too.

To see a more refined pipeline model click here.