What Are the Stages of the Customer Lifecycle?
Learn different customer lifecycle techniques to keep your customer happy and dropouts, better sales, and more profitable, long-term customer relationships. The 6 stages of the customer lifecycle represent the journey from first learning about a brand to telling others about it. While every company has its own unique customer life cycle, the core framework remains the same. This five-stage model is the basic.
Magazine Understanding and Managing the Customer Relationship Life Cycle Over the last few decades, business has moved away from focusing solely on products and services. A new paradigm has entered almost every market place. This shift now focuses heavily on the customer, less on the product.
The Customer Development model created by Steve Blank is only one part of this change in how success is defined. Blank teaches businesses of all types how to find, validate and create their customers.
The Customer Relationship Life Cycle will teach you how to move on past the initial Customer Development phases and learn how to make sure that the customers you create end up being the customers you keep. But what do you do once you have successfully identified and created your main customer base? When you reach this part of the life of your business, you can employ the Customer Relationship Life Cycle.
Understanding Customer Life-cycle Management
Like the Customer Development model, this life cycle focuses on customers rather than products. There is a product life cycle that you can follow but it should never replace the customer life cycle.
Get Customers Keep Customers Grow Customers While there are only three basic steps, these steps change depending on the kind of product that you are working with. This difference is generally found between physical products like electronics or apparel and web mobile products those you cannot physically hold in your hand, like Netflix. And get regular tips and tricks on topics such as marketing, financing, strategy, and management, so you can start and grow your company more successful.
Get Customers When you have a physical product to offer your customer, you will begin to get your customers through both earned and paid media. Both of these types of media are useful for you and both should be utilized. When deployed correctly, this media will drive awareness to your product and to your company.
This awareness is not enough to get customers. It must go one step further. It must create demand and drive interest. You do not just want to send your name or your product out into the media for the public to be aware of.
It needs to be attached to a value proposition that will drive customer interest. This interest will then drive customers to consider the value of your product. This consideration will ideally lead to them becoming customers.
Defining Customer Life Cycle Stages with CRM
However, you do not have a customer until a purchase has been made and money has exchanged hands. Someone who browses your website occasionally is not a customer when you are offering a physical product. You have acquired a new customer only when payment has been taken and the product has been received. This is your opportunity to not only get a customer but keep that customer and use them to grow your customer base. Keep Customers Once that customers buy from you, you must figure out how to keep them.
Keeping a customer is not about building a bigger and better product to keep them coming back for more. Instead, it is all about building a relationship with them. You can do this through several means: Customer satisfaction surveys are a valuable tool in customer retention.
Not only do they give the customer a voice but they also allow you figure out what you could be doing better. This is very valuable data for any company. Loyalty programs are another solid way of keeping customers. Customers love to work for greater rewards. It is partly because they feel like they are getting something for nothing. It is also partly because they feel valued. A loyalty program has both merits and disadvantages. Still, it is great for retaining customers when it is deployed properly.
Customer check-in calls are also essential.
- Understanding and Managing the Customer Relationship Life Cycle
This does not mean that you should spam your customer with a call center. In fact, this is a good way to turn customers off in many markets.
Instead, you can offer customers an opportunity to speak directly with you about their thoughts and opinions on the product, service and your company. You do not need to call every customer. But the selection you do call will often be pleased that you asked them about what they really think.
This two-way method of communication is great for driving relationships. There are some metrics to consider during this phase: You need to be considering your churn rate during this phase.
Your customer churn rate signifies how many clients you have lost once you have reached this phase. This means that have secured a sale but now the customer has dropped out of the customer life cycle. The lifetime value of a customer is the prediction of a net profit that is attributed to your relationship with that customer. If your customers are making a single purchase before disappearing, the lifetime value of the customer is small.
Grow Customers Growing your customers starts with un-bundling. The ultimate goal of maintaining your customers is to be able to ask them for referrals. But to make it easier on the customers you already have, you should offer a product that is broken down into smaller parts.
Breaking the product down into multiple offers is not a problem. You can also up-sell products. This is an opportunity to let referred customers get in on the action without the risk and then offer them the full product at an ideal price. Cross-selling products is one step up from an up-sell. When you cross-sell your product, you are selling a product that is related to but not a part of a product that the customer previously purchased.
Once you are able to cross-sell successfully sell two separate but related productsyou will be able to as for referrals. These referrals are very valuable because they help grow your customer base During this phase, you will want to consider the following metric: Customer lifetime value, at noted before, is the estimate of how much money your customers will spend with you over the life time of your relationship. You can calculate this with the following equation: You then take the Lifetime figure and put it into the following equation: Web mobile Customer Relationship Life Cycle 1.
Get customers Getting your customers when you offer a web mobile product is different than when you have a physical product. Although you will still use earned and paid media to acquire the customers, there are fewer steps. When you are using media of any kind to acquire customers, you want to be wary of the cost.
You will usually measure this by cost per thousand hits. This means that you want to know roughly how much you spent on media to get around 1, hits. You will want to measure this a few times to make sure that you know where the customers are coming from. This prevents you from investing in media that offers little return.
This also allows you to see if your most valuable traffic is organic or if you are paying for it through media activities.
Once you have acquired your customers, you need to activate them. This means collecting their data from them. At this point, you will want to note your cost per action CPA. The cost per action agreement will relate directly to your advertising costs. A cost per action is not a cost per click. Instead, a cost per action is based on a qualifying action. For example, you might have an agreement that you only pay for advertisements that resulted in registration on your site. Cost per action is a low risk form of advertising for businesses.
But it is still essential to know how much you are paying just to get people to perform an action with your site. Keep Customers Keeping customers is just as important when you offer a web mobile product. However, you will go about it slightly differently.
Outreach programs are a great way to keep customers while still growing them. Outreach programs are great for current customers to share the service on social media and get a reward in return.
Loyalty programs also work on the online mobile platform. You can also keep up to date with customers with blogs, emails and RSS feeds. Some companies choose to keep customers by running contests or events. These can also be bundled into your outreach program. Grow Customers Growing customers is relatively similar on internet mobile products as it is with physical products. You want to give them a chance to pick up a smaller product at smaller price.
Then you can up-sell, next-sell and cross-sell to both existing and referred customers. Ultimately, you want it to be as easy as possible for your customers to send you referrals. When you get these referrals, they should always start back at the acquire phase and make their way back.
This viral loop is important for the success of growing your customers. It can be simple or it can be complex.Customer relationship life cycle (female)
You can choose to do it over a number of years or over a number of months. Also, it is imperative to understand the needs of customers at each stage. Let us have a look at five main stages of customer life cycle. Reach This is the initial stage of customer life cycle. Primarily, this stage requires performing marketing activities to promote your brand or services.
This will invite the customers or audience to know and learn more about your product. It helps in generating more leads. Marketing activities can be performed through various sources such as social media, banner advertising or content writing.
It is important to identify the effectiveness of each event at this stage. It also helps in adjusting the marketing activities if required.
This initiates relationship building with prospect customers and take it forward. Conversion This is the stage where your prospective customers will turn into an actual paying customer i.
At this point, it becomes obvious that you are able to convince the customer that they need goods or services and are ready to give you a deal. An important thing to focus at this stage is to make sure your customer has a pleasant and satisfied buying experience.