Customer Lifecycle Marketing; What's it all about?
29th July 2015
What is Customer Lifecycle?
Conversion rate is the main statistic that everyone in business focuses on now. Everyone wants to see their conversion rate growing, and having a high conversion rate is great, but it doesn’t allow for longer term thought. Lifecycle marketing has replaced the traditional approach to marketing tactics and it yields some strong results. Lifecycle marketing is all about the longer term relationship with the customer, and it focuses strongly on the entire journey that your customers have with your brand, instead of just the initial securing a sale.
By understanding where a customer is in their lifecycle with your brand, you can apply the correct type of communication with them to secure them in a longer term relationship. This is a fairly strong factor in terms of how you drive engagement with your brand, and strong engagement is the metric that you as a business should strive to achieve.
The Classic Aspects to a Customer Lifecycle
Customer lifecycle is a complex cycle of stages that your customer goes through with their experience with your brand, and to satisfy these different stages you have to make sure that you have a strong business model that focuses not only on getting the sale, but post sale experience too. Some of the classic aspects to a customer life cycle go as follows:
- Reach – you need to reach out and grab the attention of those who you think will be interested in your product. If you cannot grab the attention then you will not sell your product.
- Acquisition – you need to then spark the interest of those who you have reached out to, you ideally want to influence them enough to become part of your organisations sphere so to speak.
- Conversion – the people that you have reached out to or have a relationship with decide to buy a product or service from you; this is the conversion of potential customer to customer.
- Retention – this is a vital part of the cycle, here is where you attempt to keep customers by selling them more of your products.
- Loyalty – here is where you try to keep your customers loyal, and even turn them into more than a customer. If you can turn your customers into loyal partners or brand advocates through your excelling service then you have won the battle.
The Reality of the Cycle
This cycle is key to the success of any company. The longer the average customer life cycle of your consumers the better your brand will become known. Word of mouth from actual consumers is still the best way for a positive buzz to be spread about your brand, and it is easy to forget this in a marketing world that strives so strongly for single sales. If you invest in retaining a customer then ultimately you are going to become better off for it, and it is the return on the investments you make that really matters.
Retaining a customer is much cheaper than acquiring a new customer, so financially it makes much more sense into putting more into retaining customers than it does to acquiring new ones. When you pair this with the fact that retained customers will likely become loyal, and will probably advocate your brand then it makes logical sense to retain as many customers as possible. Loyal customers will gain you more conversions from their experience with your brand, and these conversions will do the same if you put more into the experience that a consumer has with your brand after the first purchase.