Contents
- What is customer lifecycle management?
- Why use CLM?
- How marketers work with each stage of the lifecycle
- Conclusion
What is customer lifecycle management?
Customer Lifecycle Management (CLM) is a strategy aimed at guiding the customer through all stages of their interaction with the company. This process encompasses the entire journey - from the first encounter to the end of the relationship. The main goal of CLM is to establish and maintain long-term relationships with customers, which, in turn, fosters the creation of a loyal customer base.
The customer lifecycle can be represented as a sequence of stages, at each of which the company has the opportunity to interact with the customer. Even when a customer becomes loyal, it is necessary to offer new products and maintain interest in the brand to minimize the risk of losing the customer to competitors.
Why use CLM?
Companies often focus on attracting new customers and increasing one-time sales. However, the primary task of CLM is to create loyal customers and ensure stable demand. The CLM strategy focuses on meeting customer needs at every stage of their interaction, helping to move them to the next stage of the lifecycle.
To achieve this goal, various tools are used, such as offering bonuses after the first purchase, which motivate the customer to return to the store. For example, after making their first order at the Rendez-Vous store, the customer receives bonuses that must be used within a limited time. This not only stimulates repeat purchases but also forms a habit among customers.
CLM also allows companies to gain deeper insights into their audience by researching and analyzing customer behavior at different stages of their lifecycle. This provides the opportunity to collect valuable data for improving marketing strategies and adapting products to meet customer needs, thereby creating a positive customer experience.
How marketers work with each stage of the lifecycle
Attraction (Reach)
At the initial stage, the customer begins to familiarize themselves with the company. The main task at this stage is to make a lasting impression on the potential customer. This can be achieved through advertising or search queries. If the customer is looking for a solution to a specific problem, it is important that information about the company is accessible and appealing. The success of this stage is determined by whether the customer expresses interest in the company after the first interaction.
Interest (Acquisition)
At this stage, marketers need to "hook" the potential customer and prevent them from turning to competitors. The customer analyzes information about the brand and decides if they are ready to make their first purchase. It is important for the company's offers to be visible and interesting to the target audience. For instance, if the target audience consists of students, marketers may place advertisements in locations where they can be easily noticed, such as near universities.
Conversion (Conversion)
At this stage, the potential customer becomes a real one. The marketer's task is to convince them of the value of the deal by highlighting benefits such as free shipping and product quality. Persuasive messages placed across various channels help to alleviate the customer's doubts and objections, leading to their first purchase.
Retention (Retention)
After the first sale, the marketer's task is to turn the customer into a regular one. To achieve this, it is necessary to create a positive interaction experience and establish an emotional connection with the brand. Quality service and personalized offers play a key role at this stage. Additionally, it is important to work not only with new customers but also with those who have previously made purchases but have stopped doing so. For example, companies can use promo codes to win back lost customers.
Loyalty (Loyalty)
At this stage, the company's goal is to cultivate brand advocates. This requires identifying loyal customers and strengthening relationships with them by rewarding their loyalty. This may include gifts, thank-you letters, and a personalized approach. For instance, loyal customers may be offered the opportunity to publish user-generated content on the company's official channels, fostering a sense of belonging to the brand.
Conclusion
A key aspect of customer lifecycle management is maintaining long-term relationships with customers, which contributes to the stability and growth of the business. Implementing a CLM strategy not only helps increase profits but also strengthens the brand's reputation, creating a positive image and enhancing the chances of successful survival in the long term.