Take total control of the Customer Lifecycle Flows
Developing and expanding your customers’ committment with your company increases additional revenue and profitability. The customer lifecycle is the toolkit that helps you allocate the resources, which is why it is such an important sales and marketing tool.
The objectives with a CRM strategy is to acquire, retain, develop and recover profitable customers. In order to influence customer flows and ultimately Customer Lifetime Value (CLV), you need to know which customers to spend time on and when specific offers should be communicated to certain customers.
Therefore, you need to be in total control of the Customer Lifecycle Flows. In parallell, you need to find out which are, or could be, profitable customers.
The various stages of the customer lifecycle
To retain and develop engaged and profitable customers, you need to identify how your customer flows look in detail and then apply actions and activities to each stage.
Somewhat simplified, the customer lifecycle consists of the following;
New customer phase > Loyalty phase > Reactivation and renewal > Recovery phase
All businesses want new customers to become more active, faster. You don’t want to waste your resources on unprofitable customers without potential.
Do you know which customers that are profitable?
Systematic sales and marketing efforts based on customer lifecycle requires a clear segmentation. You need to know the value of the customers in order to be able to prioritise. Which customers purchase most frequently, for the most amount of money and duration? Who rarely make any purchases? In short, it’s about finding out who your best customers are, which customers that can become more active and which are, frankly, unprofitable and should be phased out. Re-run this analysis regularly to ensure that you recruit the right customers and that the priority of customers to develop over time is relevant. Segmentation of large databases can be tricky, so we will return to this in future blog posts.
How to manage customers depends on stage of the customer lifecycle
By looking at where a certain customer is in the customer lifecycle, you can customise activities and offers based on facts instead of gut feeling. What do you want to achieve? Additional sales, cross-sell, better relationships, higher frequency or duration, recovering or winding-up? The customer analysis should also show which customers are loyal and return and what characterises these customers, and which customers leave and are in the position to become inactive. It’s time to change your approach, focus on the customer journey to deliver growing profitability.