Customer
2 min read

What is Customer Lifecycle and How to Use it for eCommerce

Written by Andriy Boychuk
Customer
2 min read

What is the customer lifecycle? Why do you need it, and how will it help you in your marketing efforts?

In this video, you’ll learn:

– different customer lifecycle stages and what they mean

– how to use customer lifecycle in email marketing to drive more sales

– how you can leverage the understanding of customer lifecycle for other marketing activities

From our experience, putting the customer lifecycle at the core of each email marketing campaign guarantees its success. Try these tips for your business today and see for yourself.

So what is customer life cycle? Customer life cycle it’s a process through which a person go through before buying something from you and after.

There are five main stages through which each person go through. So five stages are:awareness, consideration, action, retention, and advocacy. Let me explain you each one and how you can improve your marketing and customer experience at each stage.

I’ll show it on my computer on the diagram we created here internally, and I’ll show you from email marketing perspective, but also I’ll give you example of how you can leverage this understanding of customer life cycle and improving other areas of your marketing.

Stage #1 – Awareness

So when persons just learn about your brand, let’s say they’re scrolling Instagram or they’re checking Facebook or maybe they’re working and see a billboard about, X, Y and Z company, they are becoming aware about your company and trying to … like it sparks their interest like, “Oh, what is the X, Y, and Z company?”

So from email marketing perspective, or actually it doesn’t matter, like from any other perspective, it’s a person when they visit your website, they subscribe to your email newsletter, your emails, and they start to receive nurturing, also known as nurturing sequence where you will try to tell them about your company and they also start browsing and checking out different projects you have on your website.

Those two sequences or automations or flows we called welcome and also browse abandonment. Those two are awareness stages. So they just checking out. They didn’t express any interest to buy from you. They just trying to learn. So this stage we call awareness. People are just getting familiar with your brand and who you are. Are you legit or you’re just, I don’t know, like some company who scam people. Just kidding. So this awareness.

Based on what you just learned, think how else can you improve? I just showed you two automations that you can leverage in your email marketing. But maybe there’s other things. Let’s say, if you have a brick and mortar store, like when they walk into your store, like how can you improve that awareness. Maybe ask instead of the question like, “How can we help you,” maybe you should ask them like, “Have you ever been here before?” Because the conversation will be different versus, “How can I help you?”

If you’re strictly online, think about first time visitor to your home page. Maybe the home page will look differently the first time versus returning visitor.

Stage #2-3 -Consideration and Action

Okay so, the next two steps, consideration and action, I will put them together. Why? Because they will go hand in hand.

Let’s assume they are aware about your brand, they are regular on something, and they considering buying from you. So what they do? They typically start checking out and maybe they didn’t finish their purchase. So this is why we have abandonment cart automation, to sound like, “Hey, Mr. Client, you started the checkout the process, but you started buying with us but you didn’t finish your purchase.” So this is why we have cart abandonment. So they start considering buying from you and they start taking some kind of actions. Actions are like, they already purchase from you. So for that, we have those … Yeah.

So those three automations are abandonment cart, new customers, so we just want to thank them, and the review request. If you have that kind of automations, you can do as well.

Again, I just showed you example from email marketing perspective, but what can you do differently in consideration or action stages? Not about email marketing, but as a marketing perspective, like from advertising or maybe you can re-target them from those different kinds of message. Maybe you can communicate with them differently. Maybe you want to invest more money. Let’s say when they start checkout and they didn’t finish, maybe instead of sending them email, you want to send them direct mail.

Stage #4-5 – Retention and advocacy

The last two stages are retention and advocacy. So during retent, like when you have a customer from one time to two times buyer, there’s like 10% to 20% chance that they will convert to two times buyer. So the chance is very, very, very small. However, from two time buyer to three times buyer your chances is, if I remember correctly, is like 30%, 50% chance.

So you have to put a lot of effort to convert one time buyer into two time buyer.
In email marketing, we use strategies like up-sell, cross-sell, or win-back, or sunset inactive, or again browser abandonment, cart abandonment, but for returning customers.

So think about how you market to people who are your customers and you want them to buy again from you.

On our channels we have a few videos how we’re suggesting to modify your abandonment cart, browser abandonment, how to leverage your loyalty program, to ask people and offer them something to buy again from you. And part of the retention is loyalty program as well.

And the last but not least stage is advocacy. You want your current customers to be marketers, sales person. I mean, of course, you have to have a great service or a great product, but when you do, you want your current customers to market to other people.

So there’s few ways how you can do it, but the most popular one is referral program is typically, is a part of your loyalty program or there’s additional tools you can use to refer people. In other words, they share links or some coupons with their friends, and their friends will get benefits or discounts and person who share it will get benefits and discounts. So this is part of what loyalty referral program.

So this was explanation of the customer life cycle. 

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