Here are the ways that customer lifecycle can turn business around…
In many of my previous articles, I have talked about the concept of the customer lifecycle. I described it as a process that a customer passed through from the time that he feels that your product or service can satisfy his needs to the time that he or she actually purchase your product or services.
In this article, I want to talk about four basic things that you have to note when you are considering practical ways if retaining and sustaining your customers while they are passing through your organisation’s lifecycle. Follow me as we look at this together.
#1 Know their reasons for coming
The first main thing that you have to work on if you wish to retain customers in your lifecycle or acquire new ones is to know the reasons why your customers are with you. You have to know the reasons why your customers are still with you and what you need to do in order to retain the customers.
When you have a proper understanding of what customers want and how they want it, it will really help you as an organisation to come up with a strategy on how to give it to them. A good customer-centric enterprise must also be able to personalise products and services in order to meet customers needs.
#2 Personalization and customization
After you might have identified your customers, as well as knowing what they are looking for in your products or services, the next thing is to see how you can deliver it to them. this is where the concept of customer segmentation comes in.
It will always be extremely difficult to come up with a single product for every individual. That is why you have to divide your customer based on the characteristics that they have in common.
This will help you to serve a large customer base at a minimal cost. You can also customize a general product to make it suitable for a particular customer.
#3 Customer equity leverage
The other basic thing that you have to achieve with customer lifecycle is what is been referred to as equity leverage.
We have already established the fact that it is becoming extremely difficult to gain new customers. That is why organisations are looking for ways of retaining existing customers at a minimal cost. You must be able to make your customers make a repeat purchase through customer satisfaction. That is what is been referred to as ” Up-selling”.
If your customers are satisfied, they will be forced to introduce your product or services to others. That is where cross-selling comes into play.
#4 Retention and referral
In many of my previous articles, I have tried to sell this idea that before a new customer can contribute to your lifecycle, it will take up to six months. I also stated it that when you are losing customers, you are practically losing profit. This is due to the fact that you have already spent acquisition cost on those customers.
Organisations must strive to raise the exit barrier for their customers by doing business from their customers perspective. If you are able to satisfy your customers, you will easily attract new customers at minimal cost and build a loyal customer base.