CUSTOMER LIFECYCLE MARKETING: Best Strategies to Grow Your Business
Updated: Jul 28, 2022
Building a community of loyal customers is essential for any business, no matter how big or small. In order to do so effectively and efficiently, you need an understanding on the most common ways that people grow their customer base through interactivity with them which will result in long-term success, not just this year, but over time as well.
The first step to encouraging community growth is knowing the journey that your customers take across all of your websites and other digital properties. Every potential buyer can be at a different place while dealing with you, so it helps if you know where each one stands in relation from you - their current state, as well as what's left before they become loyal customers. Understanding lifecycle stages will help maximize overall buying experience by helping turn one-time spender into a loyal customer.
Let's take a look at what the customer journey is, and how it can help your business grow.
What is Customer Lifecycle Marketing
Customer lifecycle marketing is the term that defines all strategies that businesses use to attract clients, convert, retain, and leverage with the purpose to boost revenue and grow their brands. All such strategies engage customers throughout their buying journey.
The customer lifecycle is a well-known marketing strategy that takes into consideration the different stages of customers from first acquaintance with your product or service through purchase, loyalty and retention.
Customer Lifecycle Stages
Since we’ve mentioned customer lifecycle stages that are included in the marketing funnel, let’s discuss them in more details.
1. AWARENESS STAGE
When a customer first approaches your brand, they are in the awareness stage. You've got to work hard in this stage. The key is getting your name out there and making sure people know who you are before they come up on that website of yours. So, take advantage of any opportunities like social media or word-of mouth marketing because those little things can go a long way toward establishing an early connection with potential clients.
2. CONSIDERATION STAGE
At the consideration stage, potential customers have an interest in buying but are still assessing your value. They're looking for proof that you solve specific problems which prompted their search and will ultimately lead them to make a purchase with all of its benefits attached.
This means one thing - it's time you start providing more information about your business so these people know exactly why they should choose you over any other company out there.
Positive customer reviews are a great way to show how your offerings stand out from other brands. Podcast interviews with clients or SME's can be an interesting content option for this stage of the marketing funnel because it gives people something interactive that they may not get anywhere else.
3. PURCHASE STAGE
Customers are more likely to buy your product if you provide them with maximum support at this stage. More than 80% of buyers abandon their purchase without getting answers about what they need or want from a company's customer service team, so make sure that all questions can be answered quickly in order for people not only finish buying but also recommend it. Live chat is a great way to solve for the need of providing customer assistance in real time, without having your team constantly busy with questions. Your customers will be happy when they get answers quickly and easily because it minimizes any work on their end as well.
4. REPEAT PURCHASE
If a customer has already worked with you once, consider ways content can get them to stick around or up their investment. Offers like discounts, rewards programs or newly expanded features based on their input will show them that the company appreciates what it takes for an effective customer service experience as well as thoughtful feedback from previous clients who have already been through this process with you before. Exclusive content like newsletters and insider guides can be a great way to provide your customers with unique information. You might also consider cross-selling emails or specials in order the introduce complementary products. The content you create for every stage of the customer journey has an impact. Maximize customer attention without overwhelming their consideration by being mindful of the content shared at each stage.
Finally, brand advocacy is the new way to increase sales and create fans for your brand. Brands are turning their customers into advocates by asking them to spread the word about your products, leave reviews, share your content such as Instagram stories (which often include links back at viewers); join social media channels where they can promote your offers via email newsletters--the list goes ever longer! Brand ambassadors do this work so that businesses may reap benefits too: creating loyal consumers who will continue buying what you offer without fail because these people feel invested in supporting your business.
Goals of CLM
The goals of customer lifecycle marketing align closely with the stages explained above:
Nurture prospects into making their first purchase on your site.
Turn one-time buyers into repeat purchasers.
Convert returning customers into your loyal, long-term buyers.
Provide quality support to new and repeat customers.
Reactivate “at risk” customers (buyers that have passed the time when they were expected to complete an order) before they lapse.
Reactivate lapsed customers into active buyers.
Engage with the customer base and keep tabs on whether they are seeing value.
How does CLM increase marketing profit?
Data shows that 80% of a company’s future profits come from just 20% of its existing customers. And this means marketing strategies which improve loyalty and engagement throughout the customer lifecycle can have dramatic effects on how much people buy again - so it's crucial not only for your bottom line but also their happiness. If you’re wondering how to boost full lifecycle marketing, here is a quick checklist of ideas:
Keep track of the percentage of clients that return to make more purchases on your site. Such information will help measure customer loyalty. To determine the share of repeat buyers, compare new clients versus returning ones.
When a person reaches your site for the first time, try to collect contact details by offering the option to subscribe to your email updates. This can help you grow share of mind and encourage customers to make their first purchase on your site.
Measure how much return customers spend on repeat purchases. If you see a trend toward smaller purchases, experiment with loyalty offers that can help increase spend.
Share email newsletters even after customers make a purchase. This will help buyers remember your brand and keep it top of mind for future purchases.
Make every customer feel special. The VIP touch makes customers feel like they’re part of your brand. This can be revealed through exclusive offers and memberships. When a customer feels that a brand values him/her, it’s more likely they’ll return again and again.
To Sum It All Up
The customer journey is constantly changing, so you have to be on your toes. It may not matter what sector of business or industry that we're talking about- resilience will always pay off in this fast-paced world where trends come and go at breakneck speeds (think: Snapchat). But there’s one thing I know with absolute certainty; it pays off big time when customers feel heard by their brands. For more information about some of these customer lifecycle principles and to discover more about how Montalvo Marketing could help you optimize your customer experience marketing strategy, book a Free Growth Strategy Call here.