The Importance of Customer Life Cycle Management for your Bussiness

The Importance of Customer Life Cycle Management for your Bussiness

Customer life cycle management is required to customize an online experience over time. This is very important for your business growth. Understanding the client’s momentum is necessary for any company that aims to succeed.

The customer life cycle

Reach

It involves reaching out for prospects and make them aware of you product, brand or firm. As a marketer, you make them aware of your products and then assess the possibility of converting them to active customers. In this stage, you provide them with confidence , security or that they require to overcome any challenge that may prohibit them from becoming active customers.

Acquisition
After capturing your potential customer’s attention, your next objective as a marketer is to make them repetitive buyers. The way you communicate with your customers and the quality of your products will determine your success in converting them prospective or one time buyers to loyal customers.

Conversion
It is the stage where you convert the interested client into an actual customer.
It is advisable to establish a good relationship with the customer at this stage as this will have a long term effect in retaining the customer

Retention
It involves maintaining the relationship through establishing contact and communicating from time to time at this stage you do everything in your power to retain your relationship with your client

Loyalty
At this stage, your customer has become a pal and he recommends your brand to other consumers .It is important to note that not every customer will reach this stage and hence you should obtain few loyal customers at every product life cycle.

Stages of product life cycle and their impact

Introduction:
At this stage a product is introduced to the market for the first time. At this stage, the sales growth is usually slow. Early innovators or adopters are the primary buyers.
It affects the pricing decision as at this stage, prices are set higher in order to recover the cost of investment in the product. The level of promotion is high in the process of
making the product known.

Growth stage:
At this stage , the sales are quickly rising and copycat products are being introduced to the market. Early adopter and innovators are still buying the products and are joined by the followers.
It affects the pricing decision in that the prices are reduced to attract customers. The level of promotion is still high but the focus know is to make the customer know the benefit of buying from the company as opposed to competitors. The number of distribution outlets increases

Maturity stage:
At this stage, competition is fierce, sales are steady and it becomes difficult to determine the differences between rival products. The supply is more than the quantity demanded.
It impacts on pricing strategy as prices are stabilized to maintain market share. On promotional decisions, advertising major objective is to remind the customer of the existence of the given products. The business modifies the product to appear new.

Decline stage:
The sales decreases as a result of unfavorable change in the external environment such as technology or consumer preferences. At this stage, the product is removed from the market.
The prices are lowered to get rid of stock , the level of promotion trails off and the manufacturers drops the product from their offering.

I understand that behind a happy consumer, there is always a team working hard to make it possible. As an entrepreneur, I want to facilitate and provide ways for companies to deliver an incredible experience for their customers.

Willian Becher – who has written posts on loyalnow.


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