Understanding The Customer Life Cycle and Its Importance

What is the Customer Life Cycle?

Unlike product life cycles, customer life cycles focus primarily on creating a lifetime value of your brand to a client. It analyzes all of the different stages a customer will go through while purchasing and using your product or service and identifies the various needs of your client during these steps. For example, a person making vacation plans will need to buy a plane ticket, arrive at the airport to depart, and return to the airport to fly back home. Including package options for hotels or car rentals is an excellent way to enhance customer experience and awarding them rewards for their miles after their travels creates an incentive for them to do business with the same airline company again in the future. 

understanding1.png

 

Stages of the Customer Life Cycle

1. Reach
Reaching out to potential customers involves creating brand awareness with strategic marketing strategies. Build demographic profiles of your clients and show them how your product can benefit them.

2. Acquire
Contact potential customers directly through email, social media, and in-person appointments. Personalize your communication to each target.

3. Develop
Once you have caught the attention of your target audience and have gotten them to take the first step towards becoming a customer, you need to focus on maintaining a relationship with them.

4. Retain
A huge part of the client's lifecycle is figuring out how to keep customers in the long-term. Offer incentives, loyalty programs, and additional add-on products you can sell to your clients later on.

5. Advocacy
Word of mouth is the most effective form of advertising. If you take care of your customers and provide them with quality service, they will spread the word for you.

Benefits of Customer Life Cycle

  • Improves your customer service and enhance your customer’s experience. Ultimately, you will see an increase in sales and improved profit margins.
  • Helps steer marketers in the right direction. The customer data contained in each phase and touch point can contribute to mapping the client's journey in a more detailed manner. Also, it provides new metrics about the customer conversion path that can be added to the overall marketing mix and provides insight into which customers offer the greatest lifetime value.
  • Taking an outside-in perspective reveals patterns in customers' use of a service and helps to find their hotspots.
  • Finds points where you can improve the customers’ overall experience.
  • Enables you to design services that have a significant impact on customers.
  • Achieve organizational alignment with lifecycles.

If you haven’t already been thinking regarding cultivating and maintaining a customer life cycle, you could be losing out on long-term engagement opportunities, and continued sales with individuals who appreciate the services and products you have to offer.