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Customer Lifecycle Marketing: Retention Strategies to Increase Profit

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❶This is the strongest metric for measuring customer loyalty in terms of willingness to purchase again.

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Their product spread virally through word of mouth due to the free diamond ring you received with every candle. The friends of customers often commented on the rings and were subsequently made aware of diamond candles. They made their product into a marketing tool. A viral loop directly related to buying a product Viral marketing built into your online assets: Website, Mobile site, App.

Primary Goal - To convert Prospects and Leads into customers. Secondary Goal - To convert prospects into Leads by gathering personal information such as their email, gender etc.

Many people think that you need to activate visitors into customers straight away with a macro conversion - i. For example, people may need to learn the value behind your products and brand before converting. Try to focus on encouraging micro conversions that you know increase the likelihood of a prospect eventually becoming a customer. You can find this out through careful analysis of your customer behaviour data. Without that information you have no way of individually targeting those individuals again until they come back of their own accord - which of course many will never do!

To improve average CLV. You want to know the value customers give you over their whole lifecycle, not just at one point in time. Find the behaviour which caused previous customers to become a loyal customer and optimise your site for it. Segment your customers by behaviour and create highly targeted marketing campaigns for specific segments of customers based on development stage and buyer persona.

There are some personas that are relevant to the majority of online businesses, and others which will be specific to yours alone. It is very beneficial to focus on engaging and nurturing your best customers. Give them the tools necessary to promote your brand in order to encourage and easily facilitate word of mouth marketing. These customers have a tendency to only purchase when you offer steep discounts.

Having said that, there will always be price sensitive customers. Consider sending targeted offers just to this selection of people so you can obtain better margins from your less price sensitive customers. These individuals have a very high AOV value but purchase very infrequently. It is likely these individuals have a lot of disposable income. Send special promotions based on their purchase behaviour to try and gain a larger share of wallet.

This stage is a combination of targeted marketing efforts and customer service and brand development. A mix of highly targeted personalisation and promotions with helpful, interesting, and brand-building content.

You need to continually optimise throughout the buying cycle and take care of your best customers. The ultimate goal would be for all your customers to be hero customers! Therefore the goal is not to optimise for only hero customers, but for numerous different segmentations of valuable customers which make up your repeat and loyal customer base. Many customers will never become heros or evangelists, but enough will if nurtured properly.

Optimise your average CLV by finding the behaviour, such as triggers and micro conversions, which funnel them towards your goals.

Thanks for reading - f you enjoyed this post, please sign up to our blog or newsletter for more related content. Customer lifecycle marketing , Ecommerce marketing strategy , Ecommerce marketing tips. Because this is one of the ultimate goals of CLM: Which takes us on to The Customer Development Stages These are the core phases of evolution that will occur as customers are guided through your Customer Lifecycle Machine from a visitor to a loyal customer. The longer-term life cycle is simply the shorter-term life cycles viewed consecutively.

CRM is a term that is often referred to in marketing. However, there is no complete agreement upon a single definition. This is because CRM can be considered from a number of perspectives. In summary, the three perspectives are:.

Our model is a hybrid of many other commonly cited models from a number of sources. If you are undertaking higher-level academic work you need to clarify with your tutor, the nature of his or her preferred model.

It is marketing orientated rather than product orientated, and embodies the marketing concept. HSBC has a number of products that it aims at its customers throughout their lifetime relationship with the company.

Here we apply a CLC. You can start young when you want to save money. When you begin work there are many types of current and savings account, and you may wish to buy property, and so take out a mortgage.

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Customer lifecycle marketing applies to all areas of marketing, but it is particularly important to consider email marketing, because email offers a unique ability to contact your customers at given moments with personalized messages.

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Effective customer lifecycle management (CLM) can enable powerful customer interaction strategies that power significant business growth and profitability. What we do. McKinsey helps clients maximize revenue and margin at every step along the consumer decision journey, from acquisition to upsell/cross-sell to loyalty and retention to debt management.

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The customer lifetime value (CLV) is a financial metric used to look at customer profitability and, when properly calculated, a potential impact on the different marketing efforts across the customer’s life cycle. Just like marketing ROI or Return on Marketing Investment it is a financial value. The customer life cycle is the journey buyers take from prospects to loyal customers. Marketing to each stage of the life cycle is known as life cycle marketing. It's about delivering the right message for each stage of the journey: reach, acquire, develop, retain and advocacy, or inspiration. Reaching customers in the first stage is getting the word .

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Customer lifecycle marketing can be defined as strategies that aim to attract, convert, retain, and leverage customers in order to increase revenue and drive business growth. Also known as lifecycle marketing, these strategies target customers throughout the . This post covers customer lifecycle marketing, a vital strategy to maximise profitability for any ecommerce store.. It is intended for ecommerce marketeers, Heads of Ecommerce or anyone running an ecommerce store. You will learn the fundamentals and tactics behind becoming a lifecycle marketeer.