Introduction
Customer lifecycle is a central concept in a company’s customer relationship management, encompassing all the interactions and experiences a customer has with a brand throughout their relationship with it.
It’s a model that describes the different stages a customer goes through from their first interaction with the company to the end of their life as a customer. It thus traces the evolution of their engagement in their relationship with the brand.
Understanding and analyzing the customer lifecycle is essential for companies wishing to optimize their customer loyalty strategy.
I- Definition
Customer lifecycle marketing is a continuous, long-term process of guiding the potential customer through a series of stages that identify the dynamics of their relationship with the company over a period of time.
Lifecycle marketing aims to tailor messages based on the customer’s current stage and meet their needs to move them to the next step.
Adopting a customer-centric approach and implementing data-driven initiatives can lead the business to long-term success and growth.
II- Interest in customer lifecycle analysis
Analyzing the customer lifecycle allows the company to :
- Improving customer relationships through better understanding of their needs and preferences, which must be met. This allows the company to create a stronger bond and a deeper relationship with them;
- Customize the lifecycle marketing strategy to make it more effective, adapting it to the phase the customer is in;
- Delivering on brand promisesat each stage of the cycle of customer life in order to facilitate the transition to purchase and improve the customer experience;
- Rationalize spending through careful selection of investments necessary for customer acquisition, development of customer relations or even customer loyalty;
- Monitor the profitability of these actions in terms of return on investment and adapt them accordingly.
III- Customer lifecycle stages
Although there are several different approaches to defining the stages of a customer relationship, most methods begin by trying to attract the interest of a potential customer and result in ensuring its loyalty continue.
Moreover, the customer lifecycle, which is a basic concept of business strategy, shows the process that takes the customer from a prospect to a loyal customer before reaching the churn stage as shown in the diagram below :
In this context, the stages of the consumer life cycle, each of which represents a key moment in the relationship between the customer and the company, can be subdivided as follows :
1- Prospecting
It is about seducing and arousing emotion using different methods such as online marketing, advertising, promotions and events in order to convince visitors to a site or potential prospects who are not yet customers, to become one.
2- Transformation
This is the phase of converting the prospect into a new customer, which occurs when the customer makes a first purchase from the company, this means that he trusts the company and is interested in what it offers.
At this step, the company must work to ensure that he becomes a repeat customer by providing him with a positive experience to encourage him to continue his relationship with them.
So, the sooner the customer makes further purchases, the sooner they will reach the loyalty stage.
3- Loyalty
At this stage, which is when a customer enjoys a product and brand so much that they continue purchasing products from that company.
The customer begins to develop an attachment to the product, and the company must take care to maintain their satisfaction by adopting loyalty programs and strategies through continuous interactions, rewards, complementary services, special discounts on new purchases, and personalized offers designed to maintain customer interest and loyalty. This is why the role of proactive customer service becomes very important at this stage.
4- Recommendation
At this most powerful stage, the customer becomes an advocate and ambassador for the brand, with recommendations and testimonials they provide to their family and friends, and shares on social media. These actions are extremely valuable because they attract new customers into the lifecycle, allowing the process to begin again.
5- Disinterest
This is the customer attrition period, when they begin to lose interest in the brand and become less and less active, buying less and less, or even stopping buying al together.
Faced with this critical phase of the life cycle, the company still has the opportunity to act to win back the customer before they permanently leave for the competition, at the same time working to understand why the customer is losing interest in its brand, in order to take the necessary measures to remove the blockages and relaunch the purchasing dynamic.
Just as a map can help locate a location, understanding these steps will help the business segment its customer base and target their specific needs, whether they are prospects, existing customers, returning customers or customers who have lapsed and are at risk of changing their minds.
Conclusion
The life cycle is a story that is built daily and a relationship that evolves over time, that strengthens and above all that requires constant maintenance to become solid and lasting.
The company’s success and prosperity depend on satisfied customers. The company’s sales, marketing and customer service teams strive to build strong, long-term relationships with customers rather than focusing on one-off transactions.
Thus, the company can, through the customer lifecycle marketing strategy, identify the needs and expectations of its customers at each stage of the cycle and offer them a personalized experience. This not only helps retain existing customers, but also transforms them into brand advocates to attract new customers through positive word of mouth.
Moreover, for a multinational company, this cycle takes on a particular dimension due to the diversity of markets, cultures and regulations.
It must therefore adapt its approach to the customer lifecycle to each market, taking into account the specific cultural and linguistic characteristics and preferences of local consumers.