What Is Customer Life-cycle Management?
Implementing customer relationship management (CRM) software requires understanding of customers and their purchasing behaviors, as it will create a base to planning your strategy for the true goal. These behaviors differentiate within the customer life cycle and it is a must to identify its stages. Also, you have to understand the needs of customers at each stage. There are five main stages of customer life cycle.
This is the initial stage of customer life cycle. Primarily, this stage requires performing marketing activities to promote your brand or services. This will invite the customers or audience to know and learn more about your product. It helps in generating more leads. Marketing activities can be performed through various sources such as social media, banner advertising or content writing. It is important to identify the effectiveness of each event at this stage. It also helps in adjusting the marketing activities if required.
At this stage, you start receiving prospect’s information such as email address, contact number and other details. This initiates relationship building with prospect customers and take it forward. Engaging prospective customers with email marketing, sales calls or sending personalized messages work well at this stage of the customer’s life cycle.
This is the stage where your prospective customers will turn into an actual paying customer i.e. you can start expecting revenue from them. At this point, it becomes obvious that you are able to convince the customer that they need goods or services and are ready to give you a deal. An important thing to focus at this stage is to make sure your customer has a pleasant and satisfied buying experience. This also is the time to analyze the effectiveness of your marketing techniques up to this point. It also helps in determining what strategies are working best to bring revenue.
Converting prospects into customers does not end the customer life cycle. From this stage, building customer relationships with regular engagement helps to keep your brand fresh in their mind. This will also help you to get repeat business or references or cross sell.
Having advocates for your company will help you in the long run. They not only give repeat business to you, but also are also willing to promote your goods or services to more prospective customers. This will be done by developing strong relationships through entire customer life cycle. They will refer your products or services to their friends and family members.