What You Need to Know about Customer Lifecycle Management

 

Every good customer service professional knows that these days, businesses such as tow truck Chantilly va does not aim for just closing a deal. Best companies build mutually beneficial relationships with customers that translate to higher customer lifetime value. This means happy customers are going to stick around those businesses for a while. Brand loyalty is of uttermost importance today.

Customer Lifecycle

A customer lifecycle is an outline of the steps taken by a customer as they progress through the marketing and sales funnel. It gives marketing, sales, and customer service teams a complete picture of the customer journey and highlights all areas that need improvement. Here are the stages of customer lifecycle’

Reach

At this stage, a customer first develops awareness of a company’s products and services. This awareness could have come from social media, advertisements, or even by a word of mouth from friends and family. The customer may or may not have an immediate need for the product or service. However, the key objective is to create the association needed between a brand and current or future needs.

Acquisition

While the previous stage was concerned with creating a loose association between a brand and customer needs, the acquisition stage is associated with deepening that association. At this stage, a customer learns more about the company’s offerings from visits to the website, conversations with sales representatives, or even by experienced or testing products available in store.

Conversion

This is the state where a purchase of a product or service occurs. It is very important to develop an understanding of the customer’s key purchasing criteria, and then position your products to have a clear advantage over what competitors can do.

Retention

Now that you have a customer who has already been acquired, the focus now is to help the customer drive satisfaction and value from your products and services. A company can achieve this with the use of surveys and phone calls, with the aim of understanding customer issues and addressing all the issues that arise. Customer retention is so important as we have seen from studies that it costs less to retain existing customers than it does to acquire new ones.

Loyalty

This is normally the last stage. It is where satisfied customers continue using your products or continue renewing their terms for subscription-based offerings. Loyal customers may opt for additional services or even purchase higher-priced options. In addition, loyal customers are very important as they continue recommending your products and services to others.

The customer lifecycle is extremely important, and we all should aim to understand it. Lifecycle should be seen as a whole and not segmented components. A business should not just be concerned about the acquisition at the early stages and forget the post-purchase stage. Doing so will make the business suffer in the long term. A business will successfully acquire new customers, but those customers will become unsatisfied and leave, creating customer churn. Businesses should always aim at improving and optimizing all the five lifecycle stages.

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