In marketing, the customer lifecycle defines the different phases through which the customer will pass in their relationship with a company, product, or service. This lifecycle shows the process by which the customer goes from “prospect” to “loyal customer.”
For a brand, it’s important to know the lifecycle of its customers and more specifically the buyer’s journey.
The data collected, such as conversion rates and lifetime value, can be used to take a customer-centric approach and optimize processes and facilitate the act of buying and loyalty. You can also use customer relationship management (CRM) software to help you manage your customer information.
Like the conversion funnel, the customer lifecycle enables you to identify the stage the customer has reached in their relationship with the business.
Depending on the stage the customer is at, the company can then adapt its strategy to improve the customer experience and facilitate the transition to purchase.
By analyzing the customer lifecycle, companies can do the following:
- optimize the performance of communication initiatives, marketing initiatives, etc., by adapting to the customer’s current phase;
- better control their budgets by calculating the investments required for customer acquisition, customer relationship development, and customer loyalty as accurately as possible; and
- offer a quality customer experience that is above all adapted to the needs of each stage of the customer’s lifecycle.
The customer lifecycle can be broken down into five stages:
- Reach: the aim here is to attract and incite emotion, using cross-channel marketing levers to convince site visitors or potential prospects to become customers.
- Acquisition: at this stage, the prospect begins their relationship with the company, having just made a purchase, requested a quote or made contact.
- Development: now that the customer has passed through the company’s door (physical or digital), it’s time to develop the relationship so as to retain them for as long as possible. This is also an opportunity to get to know them better or to cross-sell or upsell.
- Retention: at this stage, the aim is to ensure that the customer remains loyal to the brand and continues to buy from the store or website.
- Advocacy: satisfied customers may become advocates for your brand, sharing their positive experiences with others and potentially attracting new customers through referrals.
