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April 15, 2022

If you’re looking to grow your business, understanding Customer Lifecycle management is key. But, what is Customer Lifecycle Management??? How do you apply it in your business?

This article explains what is Customer Lifecycle Management?? and how to apply it for the growth of your business. So read on!  

Customer Lifecycle management is the process of managing a customer’s journey from awareness all the way through purchase and retention. By understanding each stage of the cycle, you can better tailor your marketing efforts to meet their needs – ultimately driving more sales and growing your business.

A good customer service professional understands that business is more than just closing a deal. The best companies create mutually beneficial relationships that result in a higher customer lifetime worth. in other words, they ensure that customers will stay with them for a long time.

This is because they pay attention throughout the customer’s lifecycle. Analyzing the customer’s lifecycle will help you prepare your marketing, sales, customer service and marketing teams to convert one-time customers into loyal promoters.

We will walk you through the definition and process of Customer Lifecycle analysis, the best tools to manage it, and the best lifecycle marketing strategies to increase customer lifetime value and retention.

What is Customer Lifecycle Management?

the Customer Lifecycle.is the process by which prospects become aware of a product and make a purchase. Ideally, they will be a long-term customer. the Customer Lifecycle.is comprised of five stages: acquisition, conversion, retention, loyalty, and reach.

It simply outlines the customer’s journey through the flywheel, sales funnel. It provides a complete picture of the customer’s journey, highlights areas for improvement, and gives marketing and sales teams an overview.

Your team can use the Customer Lifecycle.to create lead content and deliver customer experiences that delight customers at all stages.

Customer Lifecycle management involves tracking customer’s stages, assigning metrics to each stage, and measuring success based upon those metrics. The goal is to monitor the business’ performance over time in relation to the Customer Lifecycle.

Every company has the ability to direct and control the customer journey.

customers follow a similar path when choosing products or services from a brand and eventually become loyal to the brand. Instead of leaving it up to chance and hoping customers will choose you instead, guide them in the right direction.

Prospects are not being manipulated. Instead, you are providing prospects with the content they want and providing value. You demonstrate that you are a trustworthy, transparent brand that values customers and visitors.

It’s useful to see how customers behave throughout the Customer Lifecycle. Let’s dive into each stage below.

Customer Lifecycle stages

The Customer Lifecycle Stages are 5. They include acquisition, conversion, retention and loyalty. Although it is the same as the buyer’s journey the lifecycle also considers the customer’s experience. This includes what happens long after a prospect has made a purchase.

These Customer Lifecycle Stages will be covered one at a time.

1. Reach

After identifying a problem or issue, the customer will search for a product in this stage. This stage is known as “reach” since it’s your chance reach the customer while they are still deliberating.

This stage is where your customer compares products from different brands \(including yours), conducts research and reads customer reviews. Your brand should be on the customer’s radar through social media marketing, SEO, and search engine marketing.

This stage is when the customer contacts you to get more information or a final price.

2. Acquisition

The customer has entered the acquisition stage when they visit your website or call you on the phone.

depending on the channel used to acquire the customer, this stage may look different. For example, if they call you over the phone, you will need to answer their questions and concerns as well as inquire about the customer’s requirements. You will then be able to offer the best products and services to satisfy their needs as well as educate them about the benefits of those products or service.

They should find helpful, educational content if they have found you through your website. Every content presented, pricing page or blog post should provide the information the customer needs to make a purchase decision.

Some of this content should have a password so that you’ll be able to access customer information. Remember that your service team should be available via chat to answer any urgent questions. All interactions can be considered customer service experiences. Even simple things like someone accessing your site and using it is a customer service touchpoint.

3. Conversion

After obtaining all the information they need and being satisfied with the customer experience of your brand, the prospect makes a purchase. They have officially converted to your customer.

This stage is where you need to show that you are giving sound customer satisfaction. They have entered into a relationship with your company, not just made a purchase.

The work does not end there. It’s important to retain customers so they return to your brand often.

4. Retention

Customer retention begins with understanding how customers feel. Ask them how they are enjoying their new product or service. To improve customer service, conduct customer service surveys and measure your Customer Satisfaction Score.

You can improve your products and services by obtaining information directly from customers.

you’ll want to offer exclusive perks to your customers during this retention stage. You can turn your customer into a brand promoter by offering perks such as 24/7 support, product discounts, or referral bonuses.

5. Loyalty

This stage is where the customer becomes an asset to the brand through additional purchases. They may post on social media about their experience and write product reviews to inform future customers during this stage.

Brand loyalty is vital. Here’s an example.

There are many brands that sell similar vehicles for the same purpose in the automotive industry. what helps a customer decide between Toyota and Chevrolet for an SUV?

The answer lies in brand loyalty. A Toyota Camry may have been the customer’s first car back in the 90s, and it proved to be reliable all through college and beyond. If they are now an experienced car-buyer looking for a new SUV, it makes sense to stick with a brand that has been there for them for three decades, rather than choosing one that is completely new to them.

Unless they have had bad experiences with the company’s customer service, of course.

after being influenced by the four previous stages, your customer will reach this stage. You can’t just create brand loyalty by merely doing it. It must be nurtured and instilled by customers through service experiences that solve problems and demonstrate the value of your product \(and your brand).

these are the most common stages a customer will go through when they first start to work with a brand. However, it is possible for this Customer Lifecycle process to change. Customers can learn about a brand through many sources: friends, family, advertisements, research and even social media.

It is essential to understand the Customer Lifecycle.in order to manage it effectively. A mapping tool can help with this.

Customer Lifecycle map

A Customer Lifecycle map, a visual tool used by marketers to track where customers are at each stage of their buyer journey, is called a Customer Lifecycle map. It is important to understand the customer’s behavior as they move through various stages.

You can create a buyer journey by mapping out the actions that correspond to each stage of the lifecycle. This will allow you to differentiate between them and help you build trust with your prospects.

Let’s now talk about analysis.

Without a Customer Lifecycle analysis. Managing the customer’s lifecycle will not be possible. This analysis will show you where your customers are at the moment in the pipeline.

Conducting a Customer Lifecycle assessment

It is crucial to know how your brand is doing at each stage of the customer journey.

Below is a list with questions that will help you to analyze the customer journey. These questions will help you identify issues in the customer journey and provide solutions that will improve customer experience.

Analyzing the Reach Stage

You’ll want to determine if prospects can find you company by Analyzing the reach phase in your Customer Lifecycle.

these are the questions you’ll need to answer:

  • How did a prospect hear about your company first? Television channels, social media platforms or search engines?
  • How are you performing in these channels? Click-through rates and impressions can indicate reach.
  • What are your competitors doing in order to reach customers that you are not?
  • Are you well-known for providing excellent service?
  • Do you regularly post on social media?

Analyzing the acquisition stage

The acquisition phase revolves around the information and tools that you offer. The information you provide allows prospects to become leads, and make a purchase decision.

these are the questions you’ll need to answer:

  • What content on your website is most likely to influence a customer’s decision?
  • Do you have a blog or website? Is it easy for people to navigate and read?
  • Are you able to create content offers that will entice prospects to convert?
  • Is pricing information on your website available? customers have the option to call your sales team if they need or wish to.
  • Is your website easy to navigate? Are you able to reach your service team easily?

Analyzing the Conversion Stage

Your goal in analyzing the conversion phase is to identify any obstacles that might prevent you from purchasing.

these are the questions you’ll need to answer:

  • Is the purchase process simple and straightforward? If applicable, Do you offer guest checkout?
  • Are there any obstacles to completing a purchase? Are there any issues with the site?
  • Have you developed a privacy policy to protect your customers from theft and abuse?
  • Do you have a clear refund policy, product guarantee, or try-it-before-you-buy-it program that makes it easier to do business with you?
  • Based on the product descriptions, Can your customers determine the quality of your product?

Analyzing the retention phase

You’ll want to identify areas where you can improve your customer’s experience so they stay with you longer.

these are the questions you’ll need to answer:

  • What do your customers think about your business?
  • Are you making it easy for customers again to do business with your company? Do you have a one-click reorder option in your user portal?
  • Are your customers assigned a customer success manager who can help them navigate the new product?
  • What do customers think of your new product?
  • Are you able to personalize the customer’s experience so they feel valued and seen by your brand? Do you offer product recommendations based on previous activity?

Analyzing the loyalty stage

It is not easy to inspire customer loyalty. this phase of the lifecycle can be difficult to improve. You’ll need to determine how likely the customer is to return for another purchase.

these are the questions you’ll need to answer:

  • Are you putting social media buttons on your website or in your marketing emails?
  • Are you able to engage with customers through your social media profiles?
  • Are your customers getting special perks like discounts, birthday gifts, and exclusive offers?
  • Is there a referral program that allows your customers to bring more prospects to you?
  • Are you making your company accessible via email, phone and live chat to your customers?

Now that you have an understanding of how to analyze each stage in the Customer Lifecycle. let’s discuss how you can manage it.

Customer Lifecycle stage: reach

Before customers find your company, it is important to identify who you are trying to reach. Instead of marketing to everyone, identify a targeted audience to help you create content that is relevant to your customers.

The best way to identify your target audience is by creating buyer personas. Buyer personas are fictional characters that represent the demographics and behavioral characteristics of your customers. They can be identified by their names, backstories, or even hobbies. These personas contain all the information you need about your customers. These personas are fictional and may change as your customers’ needs change.

Before your customers invest in you, give them a reason to trust and respect you. By putting out lots of useful, engaging, search-engine-optimized content, your company will pop up more frequently when customers are searching for related topics.

You can create content by writing original blog posts that provide industry information, creating templates for email, infographics and other marketing tools, or enroll in online courses such as the HubSpot Academy.

your company will be the first to come up when customers search for specific products or services later. This is the foundation of inbound marketing.

Customer Lifecycle Stage: acquisition

Once customers have become familiar with your brand and its content it is time to offer self-service resources that cover every aspect of your product. By providing as much information as possible, you will make it easier for potential customers. This will make it easier for potential customers to contact your customer service team, and help them make informed purchasing decisions.

you can create a knowledge database, which is a central online database that contains detailed information about your products and answers to common questions. Customers prefer to manage the entire purchasing process themselves, so giving them a way to learn will help you attract more customers.

Even if they haven’t purchased your product, they may still be curious about your company and its products. Potential customers may be unable to understand the product or its functions, which can lead them to abandoning a purchase.

Your sales team should not rely on self-service tools alone. They should also be proactive. They should be reaching out and offering demos or trials to help customers get to know your products. This not only promotes the product, but also establishes a personal connection with the customer.

Conversion is the next stage in the Customer Lifecycle Stage

Create an easy online ordering system. The customer entering their credit card number is the most difficult part in the purchase process. it may seem obvious, but the easier it is for a customer to add items to a shopping cart, add shipping information, and click “submit”, the higher the likelihood that they will make a purchase.

depending on the product you are selling, the purchase stage can be stressful for customers. Buyer’s regret is something that No one wants. This can cause friction in the customer experience.

Support options can be provided during the purchase process to help counteract this. you can add a chat widget to your website that connects to a support rep. This will allow customers to easily reach out to you when they have questions. Instead of leaving the page they are on, customers can click on the chat widget to ask a question and return to the purchase page.

Customer Lifecycle stage: retention

After a customer has made a purchase, don’t forget about them. This will ensure that they are a repeat customer.

As much as possible, Make the customer feel as valued after purchase as they felt before. Establish an automated email system to thank customers for their orders after purchase. You can also personally contact customers after the product has been shipped to make sure they get exactly what they ordered and are satisfied with their purchase.

It’s easy to personalize your post-purchase engagement when you only work with a few customers per day. To keep up with customer demand, however, you will need to scale your efforts as your customer base grows.

Marketing Automation is here to help. It can be paired with your CRM and contact base to quickly access user data and create personalized content.

You can create a workflow that automatically emails customers when a new product or service becomes available. This will keep you in constant communication with your customers and help you maintain a strong relationship with them.

Customer Lifecycle Stage: Loyalty

customer will need that final push to motivate them to do more for your brand. Make it easy for happy them to share their customer experiences. Send them short surveys, link them with your Yelp and Google Reviews sites, then offer discounts or compensation for referring friends.

to guide customers to your brand, it is important to manage your Customer Lifecycle. These steps will help you maximize the impact of Customer Lifecycle management.

To get the most out of every stage, it is important to follow these five best practices.

1. Personalize your interactions with prospects and clients

A key part of managing the Customer Lifecycle.is ensuring that every interaction–including calls, emails, and chats — are personalized to each lifecycle stage. you wouldn’t send a customer in the early stages of their lifecycle a discount code to buy your product, even though they might still be researching and considering other products. Instead, you would send your prospect helpful resources that will help them understand the problem they are having and how they can solve it.

a CRM like HubSpot can help you personalize your interactions. It can allow you to look at the browsing history of your customers on your website. You can see what type of research they are doing and whether they are close to purchasing a product by how they look at certain blog posts.

2. to reach customers wherever they are, create an omnichannel experience.

Being there for your customers is key to great lifecycle management. you won’t be able manage the lifecycle efficiently and effectively if you don’t offer an omnichannel experience for your customers. You will have gaps in your understanding of Customer Lifecycle if you act inconsistently or only on certain platforms.

3. Ask customers about their current experiences to identify friction points during the lifecycle.

Customers who have purchased from you are your best source for truth when it comes to analyzing and improving Customer Lifecycles. Send surveys to find out what customers think about you, what they think about your brand, or where they felt there was a gap in the acquisition process.

Customers might tell you that they need a website that is up-to-date. This means you should make it a priority in your next quarter.

4. Survey prospects who have never converted to help determine what stopped them from buying.

The next best source for truth? Prospects who have never purchased. It is crucial to understand what stops your audience from buying. they might prefer a competitor’s product for its ease of use or they may feel that they can’t find enough information online about your product to make a buying decision. It doesn’t matter what it is, it will allow you to address their concerns and bring more customers into your flywheel.

5. Continue nurturing customers post-purchase.

As we have already mentioned, customers’ lifecycles continue even after they make a purchase. retaining customers is often more important than acquiring new customers.

You want your customers to feel valued for their business, so you can send a new perk each quarter or a check-in email each month. they don’t owe you their business, but they chose you over a lot of other competitors. It is a great way to keep in touch with customers after a purchase and not let the lifecycle run its course \(and possibly end prematurely).

Listening to your customers is key to managing the customer’s lifecycle effectively. This will help you to refine your strategy at each stage of the Customer Lifecycle. reach, acquisition conversion, retention, retention, and loyalty.

Let’s now look at some tools that you can use to manage customer relationships and encourage customer engagement.

Software for Customer Lifecycle management

Customer Lifecycle software can be used to automate the customer management process. Your software will take care of all the details so you don’t have to remember each customer individually.

Here are some software options you might need:

1. Content Management System

Customer Lifecycle Stage: Reaching, Acquisition, Conversion

customers find companies online most of the time. This means that you will need a website and more specifically a Content Management system. A CMS will allow you to reach customers through search engines, offer targeted content, and convert them using a simple-to-navigate website that facilitates the buying process.

It should allow prospects to access your service team immediately. It should allow you to add live chat, lead capture forms and click-to call buttons.

2. Marketing Automation Tool

Customer Lifecycle Stage: Reaching, Acquisition, Conversion and Retention

Once you have acquired or converted a prospect into customer, it is time to nurture them and keep them. a Marketing Automation tool will allow you to send emails, gate information, create personalized customer experiences, and segment your customer base based on their behaviors and attributes.

3. Customer Relationship Management System (CRM)

Customer Lifecycle Stage: acquisition, conversion, retention, Loyalty

A CRM is a system that keeps track of prospect activity and information in a single database. You’ll be able to access their name, email address, phone number, and activity on your website in their contact card.

After a customer signs up on your site or submits a form, a CRM will be used. It will be used after the customer has reached the reach stage. It should be able to collect leads, assign contacts, and create automation workflows.

HubSpot makes it easy to keep all your prospects’ information in one platform. It also allows you to keep all conversations in one email inbox and automate follow up emails. Start with our all-in one CRM free of charge and then grow your business.

4. customer service (Help Desk Software)

Customer Lifecycle Stage: Conversion and Retention, Loyalty

You will also need a customer service tool. Although it is only applicable to the last three Customer Lifecycle Stages, help desk software is undoubtedly the most important tool for managing the customer’s lifecycle. customer service experiences can discourage customers from returning to you. Worse, they may tell others to stay away from you.

customer service software tools should allow you to create tickets and communicate with customers across platforms. You can also conduct customer experience surveys and build a knowledge base.

Conclusion

So, what is Customer Lifecycle Management??? It refers to customer-specific, data-driven customer management.

This will increase customer retention and customer lifetime value (CLV) by creating targeted campaigns that are tailored to each segment of your audience.

Your business will see increased sales, better profits, customer satisfaction, and a competitive edge.

We hope you found this guide article useful. 

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