Gaining new consumers is costlier than augmenting existing business, and the concept of lifecycle marketing emphasizes the significance of training, maintaining, and assisting existing customers to harvest more business from them
Tracking digital practices, labeling segments post-acquisition, engaging around your contribution, and developing advocacy – all aid in leveraging lifecycle marketing.
According to Gartner, about 80% of a company’s future earnings come from 20% of its existing consumers. The possibility of converting an existing customer is 60%-70%, while the probability of converting a new prospect is only 5%-20%.
Lifecycle marketing is a powerful method for businesses to make the most of the new possibilities available in the post-purchase part. As more and more brands tap into involvement with consumers across the adoption, development, maintenance, and support touch points, a large number of shoppers start to anticipate those experiences from others.
It isn’t hard to accomplish the lifecycle marketing best practices provided businesses know how to implement it and understand the differences in selected consumers’ post-purchase experience.
Collecting post-purchase information and using it to segment notifies how to engage with these customers, find advocates, and assure that they have the platform and the ground to share why they prefer your brand and your customer experience.
Four lifecycle marketing methods
Here are a few best practices for businesses to start planning and strategizing lifecycle marketing to boost sales.
Track digital practices
To understand if a digital product is successful, CMOs must have a qualitative or quantitative pointer that indicates a distinct quality and product success level. Quantitative pointers are easier to track and are used more often.
Label segments pre-and post-acquisition
With the information from stage one; brands can fragment customers from the post-purchase activity and pre-purchase activity. Sections might include engaged / not-engaged, regular buyers/ infrequent buyers, responsive users / unresponsive users, loyal consumers / not loyal.
Engage around the targeted audience
Concentrate on blog content and website traffic-driving marketing strategies. The call to action can be more effective and more direct as consumers are pulled towards the brand on a deeper level.
Develop promotional programs
Incentivize advocates and followers to post reviews on neutral sites. But these incentives must be fair with the end goal to drive genuine reviews.
Savvy lifecycle marketers will drill into creative acquisition techniques, including:
- To use the website as an imperative channel.
- To leverage various channels to increase their audience.
- Lookalike social targeting to gain a new audience who match existing database connections
- Behavioral science
- Offline-to-online changes
There’s a 27% probability of first-time customers returning, so giving them a purpose to return is essential to concentrate on lifecycle marketing. Repeat consumers are nine times more inclined to convert than new customers and spend an average of 67% more when they have more than two years of loyalty to the brand.