{"id":56449,"date":"2022-11-29T21:22:05","date_gmt":"2022-11-29T21:22:05","guid":{"rendered":"https:\/\/inmoment.com\/xi-terms\/customer-lifecycle\/"},"modified":"2023-04-03T18:14:21","modified_gmt":"2023-04-04T00:14:21","slug":"customer-lifecycle","status":"publish","type":"glossary-terms","link":"https:\/\/inmoment.com\/en-au\/xi-terms\/customer-lifecycle\/","title":{"rendered":"Customer Lifecycle"},"content":{"rendered":"\n

Today\u2019s marketplace is more competitive than ever. To really succeed in such a competitive market, your company needs loyal and lifelong customers. The most successful businesses are the ones with loyal customers. Loyal customers come to your company consistently, and they are a great way to bring in new potential customers. Even though customer loyalty may seem like a simple idea\u2014after all, great customer experiences should be the norm\u2014it\u2019s not always so easy to achieve.<\/p>\n\n\n\n

But how do you keep your customers coming back again and again? The customer lifecycle could be the answer. Whether you manage a small company or lead a large corporation, it\u2019s crucial to understand your customers at every stage of their relationship with your business. That\u2019s how you can work on improving customer loyalty. Understanding where customers are in their lifecycle with your company is key to ensuring that they have an excellent experience from start to finish\u2014and will come back again. <\/p>\n\n\n\n

We\u2019ll walk you through the customer lifecycle, how the lifecycle helps businesses improve their customer service and loyalty, and how to get started.<\/p>\n\n\n\n

What Is the Customer Lifecycle?<\/h2>\n\n\n\n

If you want to build a successful business, you need to understand your customers and the lifecycle they\u2019re in at any given time. But what is the customer lifecycle? The customer lifecycle is a term to describe the process of someone becoming aware of your business to making a purchase to becoming a loyal and lifelong customer. <\/p>\n\n\n\n

The lifecycle begins when potential customers notice your product or service and become aware that it exists and that your company exists. Next, customers interact with your brand and make a purchase, whether that\u2019s signing up for a newsletter or booking a flight. After that, they use the product or service they purchased. Finally, they move on to enjoying other products and services\u2014or they end their relationship with your brand altogether. Customers can also circle through the cycle and repeat the process multiple times. <\/p>\n\n\n\n

At its simplest, the customer lifecycle is the customer\u2019s journey from Point A to Point B\u2014awareness to loyalty. <\/p>\n\n\n\n

Stages of the Customer Lifecycle<\/h2>\n\n\n\n

The five-step customer lifecycle is an easy way to visualise the common stages people go through when making a purchase and becoming repeat customers. It\u2019s a model to understand what can be a complex process. This helpful marketing concept breaks down every stage of the customer journey, from the initial awareness phase all the way through to the point when customers make repeat purchases. The customer lifecycle helps businesses improve their customer service and loyalty by providing valuable insight into which customers need extra attention and what products or areas of service require more focus. Let\u2019s walk through the customer lifecycle stages. <\/p>\n\n\n\n

Step 1: Reach<\/h3>\n\n\n\n

At the very beginning of the customer lifecycle, your goal is to get noticed by potential customers. Potential customers in this stage have some kind of problem or need, and they\u2019re looking for a solution to solve their problem. At this stage, you have the opportunity to reach customers and establish your company as a solution while they\u2019re still deliberating a solution to their problem. <\/p>\n\n\n\n

Your first step, therefore, is to reach or establish brand awareness. This means that you need to find a way to let your target customers know you exist. The most important thing is to develop a strong marketing plan. You need to know who your target audience is, where they are, and what they are most likely to see and hear. Social media, SEO, paid advertising, content marketing, and other outbound marketing efforts can be powerful tools to raise awareness of your company for customers looking for solutions. <\/p>\n\n\n\n

The customers who learn about your company will then keep exploring and looking for more information. That leads us to the next step in the lifecycle process. <\/p>\n\n\n\n

Step 2: Acquisition<\/h3>\n\n\n\n

Once your potential customers know about you, it\u2019s time to turn them into actual customers who have purchased your product or used your service. As soon as a customer hits your website or contacts you, they\u2019re in the acquisition phase. Your next step is to acquire these customers, so they become part of your customer base. <\/p>\n\n\n\n

The exact way to acquire a customer is going to depend on the channel they reach out to you on. For example, if they call you on the phone, the first step to acquisition is to answer all of their questions and concerns over the phone. Only after that can you discuss purchasing your product. <\/p>\n\n\n\n

If they\u2019ve found your website, it\u2019s important to have a great marketing funnel that leads your potential customers to a sales or sign-up page. The marketing funnel is designed to help you convert website visitors into leads and leads into paying customers. Your marketing funnel will likely include a number of different marketing channels, such as a blog, social media, email marketing, and paid advertising. <\/p>\n\n\n\n

As customers follow your website funnel, they can find more information about your company, product, and services. They may sign up for a service or purchase something, or they may find your contact information on the website and reach out to you to learn more. <\/p>\n\n\n\n

Don\u2019t forget to gather some customer information, so you can reach out to them as well. Emails lists, gated content that requires an email address, or live chats can be a way to gather information and keep customers moving forward to learning more. <\/p>\n\n\n\n

Step 3: Conversion<\/h3>\n\n\n\n

Once you\u2019ve acquired customers\u2014that is, people are aware of your brand and have taken some sort of action, such as filling out a lead form or subscribing to your email list\u2014your next step is to convert these leads into paying customers. If you follow up with your leads at the right time, you can turn them into paying customers and avoid empty carts, lost potential customers, and other pitfalls altogether. <\/p>\n\n\n\n

In this stage, customers need to know what value you\u2019re providing them. Think of this first purchase as an entrance to a relationship rather than simply a transaction. <\/p>\n\n\n\n

Step 4: Retention<\/h3>\n\n\n\n

Once a customer makes a purchase, it\u2019s not the end. Only working toward conversion is where some companies stop, and it fails to help them develop loyal customers. Working through the entire customer lifecycle helps you stay competitive and have loyal customers. <\/p>\n\n\n\n

After you\u2019ve acquired customers and converted them into repeat buyers, your next step is to retain these customers. This means that you need to find ways to keep them happy and coming back for more. Check in with customers regularly to see what they enjoyed and what you can do to improve. Offer them customer-only perks that keep them interested in your services. For example, you can offer them referral points, 24\/7 support, bonuses, and other perks to boost retention. <\/p>\n\n\n\n

Step 5: Maintain Loyalty<\/h3>\n\n\n\n

After you\u2019ve acquired customers and converted them into repeat buyers, you\u2019ve now established a relationship. This means that you\u2019ve earned the right to ask for a bit more from these customers. They might write your reviews or post about your company on social media to recommend your products or services to their friends and family. <\/p>\n\n\n\n

Your goal here is to maintain this relationship and turn your customers into brand advocates. To do this, you need to stay in touch with your customers and make them feel appreciated. Offer them rewards and incentives that make your customers feel special. Let them know you appreciate them and what they\u2019ve done for your company. <\/p>\n\n\n\n

Brand loyalty can\u2019t happen out of nowhere. You need to nurture your customers through the entire lifecycle to reach this point of loyalty and maintaining loyalty. Remember that you\u2019re creating and nurturing a relationship with your customers. <\/p>\n\n\n\n

What Is Customer Lifecycle Management?<\/h2>\n\n\n\n

Customer lifecycle management is tracking the stages of the customer lifecycle and assigning metrics and measuring metric success. It\u2019s a way for you to understand your lifecycle as a big picture and optimise it for the best customer experience. Here are a few metrics to consider for customer lifecycle management: <\/p>\n\n\n\n