The Customer Lifecycle

Introduction to Customer Lifecycle

The customer lifecycle encompasses the stages a prospect traverses into becoming a customer and ultimately advocate of your product or service. The customer journey isn’t a linear path but a complex and interconnected series of stages. From the initial awareness to the ultimate goal of turning customers into enthusiastic advocates, every step along the way demands careful consideration and strategic action. Make the most of every touchpoint to drive growth, loyalty and brand advocacy. Although it may differ some from industry to industry, the six stages of the customer lifecycle are: awareness, consideration, conversion, purchase, customer service and advocacy. Companies may choose to add additional stages to their customer’s lifecycle or may choose to combine stages. Your final lifecycle becomes your Marketing and Sales Funnel.

Stage 1: Awareness

The awareness stage marks the initial step in the customer lifecycle, where potential customers become acquainted with your brand, product or service. It’s about creating that first impression that sparks curiosity and interest. At this point, individuals might not be actively looking for solutions yet, but they should remember your brand when the need arises. Understanding the awareness stage is crucial because it sets the foundation for all subsequent interactions. Marketing is how you introduce yourself to the world about your product.

Strategies to Capture Audience Attention

• Content Marketing– Create valuable and engaging content that resonates with your audience’s pain points and interests
• Social Media Engagement– Leverage platforms where your potential customers spend their time and initiate meaningful conversations
• Search Engine Optimization (SEO)– Ensure your brand and content are discoverable when people search for relevant topics

Stage 2: Consideration

In the customer lifecycle, the consideration stage transitions the prospect from initial awareness to a deeper level of engagement. During this phase, potential customers are actively evaluating their options and seeking more information. It’s the moment when your audience is weighing the benefits and value your product or service can offer. Understanding this stage is pivotal because it allows you to tailor your messaging and content to address their specific needs and concerns, positioning your offering as the ideal solution. The goal of this state is demonstrating your expertise and building trust along the way.

Strategies to Nurture Potential Customers

• Provide Valuable Information– Offer educational content like e-books, webinars or informative blog posts
• Tailor Your Communication– Personalized emails, product recommendations and content suggestions can go a long way in solving pain points
• Be Top of Mind– Email drip campaigns that provide insights, case studies, and answers to common questions can also be highly effective

Stage 3: Conversion

At this point, prospects have moved beyond initial interest and are seriously considering making a purchase or taking a desired action. Understanding this stage requires businesses to recognize the significance of compelling these prospects to take the next step; whether it’s signing up for a newsletter, download an ebook or filling out a contact form. If your prospect goes straight to purchase then you can eliminate this stage. It’s about moving them from being interested observers to active participants in your product or service.

Strategies to Increase Conversion Rate

• Landing Pages– Create informative pages that remove friction from the buying decision
• Call To Action (CTA) Buttons– CTAs should be clear, enticing and strategically located within all of the content you produce
• Build Trust and Remove Objections– Utilize FAQs, live chat support or well-crafted content to provide answers and overcome any hesitations that could hinder conversion

Stage 4: Purchase

At this stage in the customer lifecycle, individuals have evaluated your product or service versus your competitors, made a decision and are now ready to make the investment. Understanding this stage involves recognizing that customers may still have reservations and it’s essential to make the buying process as smooth and transparent as possible to instill confidence and ensure they complete the transaction.

Strategies to Close the Deal

• Simplicity– This entails designing intuitive and user-friendly interfaces, streamlining checkout procedures and offering a variety of secure payment options
• Time or Limited Quantity Pressure– Try to make your product more valuable by limiting its availability or offering promotional discounts if they act before a certain date
• Warranty or Refund Policy– Provide a best-in-class warranty for your product or a hassle-free return and refund policy to give customers peace of mind

Stage 5: Customer Service

This stage of the customer lifecycle marks the ongoing relationship between your brand and your customers after the initial purchase. Always remember, retaining existing customers is often more cost-effective than acquiring new ones so focus heavily on post-sales support. High retention rates not only ensure a steady revenue stream but also lead to increased customer lifetime value. In this stage, businesses must focus on keeping customers engaged, satisfied and loyal to the brand.

Strategies to Service your Customers

• Excellent Customer Service– This includes addressing issues promptly and assisting customers with any post-purchase inquiries or problems
• Build Brand Loyalty– Building brand loyalty involves consistently delivering on your brand promise, offering unique value and fostering a sense of belonging or community around your brand
• Build a Community– Loyalty programs, Facebook (or other platforms) groups, personalized experiences and exclusive offers connect your customers with your company

Stage 6: Advocacy

The advocacy stage marks the culmination of the customer lifecycle journey. Your customers have not only made purchases but have become true brand ambassadors or influencers. This stage is a testament to the success of your previous efforts in creating a positive customer experience. Advocates willingly and enthusiastically spread the word about your products or services, becoming invaluable assets in your marketing efforts. When your customers actively promote your brand, they help you acquire new customers at a lower cost than traditional marketing channels. Harnessing this advocacy can significantly impact your brand’s growth and reputation, making it a vital stage for businesses seeking sustained success.

Strategies to Building Brand Ambassadors

• Proactively Pursue Reviews– Encourage your satisfied customers to share their positive experiences with others
• Engage with your Advocates– Listen to their feedback and show appreciation for their loyalty
• Generate Social Proof– Promote the creation of user-generated content where customers create and share content related to your brand

Conclusion

It’s important to remember that the customer lifecycle is not a one-size-fits-all approach. Every business is unique, as are its customers. The key is to adapt and refine your stages and strategies to meet the needs of your business. Always keep the customer at the center of your design process. Listen to their needs, address their pain points and continually strive to exceed their expectations. Brainstorm how you can nurture the relationship in each stage to build a lasting and loyal community of advocates. Start by adapting this framework and then building out each stage to deliver value and create memorable experiences.

Additional Reading

1. “Customer Success: How Innovative Companies Are Reducing Churn and Growing Recurring Revenue” by Nick Mehta, Dan Steinman and Lincoln Murphy- This book provides insights into the critical importance of customer success and how it can impact your business’s growth. It offers practical strategies for reducing churn and increasing recurring revenue.
2. “Customer Lifecycle Marketing: A New Business Model for the New Economy” by Lars Birkholm Petersen, Ron Person, and Christopher Nash- This book takes a deep dive into customer lifecycle marketing, providing practical strategies and case studies to help businesses effectively engage customers at every stage of their journey.
3. “Building a StoryBrand: Clarify Your Message So Customers Will Listen” by Donald Miller- While focused on storytelling, this book is instrumental in understanding how to communicate with customers effectively at all stages of the customer lifecycle. It offers a framework for creating clear and compelling messaging that resonates with your audience.