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Lifecycle stages refer to various phases customers go through during their purchases. Simply put, this a client’s journey from point A to point B, which results in him buying a certain product or service from a company.
Stages of a customer lifecycle
There are various approaches that businesses can use to achieve growth in their customer base. Phases of customer acquisition depend on the industry and strategies designed by enterprises individually. Still, a classical model of the customer lifecycle consists of 5 basic stages:
- Reach. This is a stage when the company is developing marketing content and place it on different social channels, where a potential customer can see it. Reach is considered the first stage because it aims to initially build awareness.
- Acquire. After the company gathers data regarding the target audience and what interests its existing and potential clients the most, the sales department can start reaching out to potential customers and begin the process of acquisition. It is important to provide relevant content and messaging at this stage, as well as personalized communication because it increases the odds of conversion.
- Nurture. This stage is also called “Develop” because at this stage company is building relationships with a recently acquired customer. Here business can offer the buyer to make additional purchases based on his first purchase and browsing history and also ask for feedback whether he/she was satisfied with the buying process.
- Retention. When a company receives feedback from customers it can work on the improvement of product and service. This strengthens the relationships between customers and the business, as well as improves the quality of a product or service. Apart from that, companies should also focus on sending customers relevant information and content, which may encourage them to make purchases in the future.
- Advocacy. This is the final stage of a customer lifecycle and also the most important stage to stimulate business growth. When the business has acquired loyal customers, these clients can recommend it to other people using a traditional word-of-mouth technique. If customers are truly satisfied with the products and services the business provides, they will be more than glad to become brand advocates and help to spread awareness across social circles. The more customers have a positive buying experience from the retailer, the more extended network can be created.
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