Customer Lifecycle Optimization

There are different stages involved in the customer lifecycle, from when they are first acquired up through referral. It is important to remember that conversion happens at every stage of the customer lifecycle. By optimizing each lifecycle stage, you will begin to see increased user engagement and flow from one stage to the next. Your business will see free trial users turned into paying customers and loyal customers turned into vocal brand advocates.

Read on to see how each stage of the customer lifecycle can be optimized.

1. Acquisition: In this first stage, the main goal is to turn a lead into a customer. In this stage, many will not convert right away. They are mainly there because they are looking for help with the specific need they have at the moment. It is important to focus on creating stronger conversion funnels at this stage. It is your job to quickly let your lead know that you can help and guide them towards conversion on your most relevant solution. Knowing your types of customers at this stage, how they got to you, and what the solutions they are looking for, will help create effective conversion rates during the acquisition stage.

2. Activation: The activation cycle begins right after a lead converts into a customer. However, it does not end there. New customers need to find value in your product and service in order to optimize growth. The best way to optimize during this stage is to engage your new customer. This can be done in steps and calls-to-action in order for your new customer to get the whole user experience and become fully immersed in your business. It would be of no benefit to acquire your customer and have them leave before they can see how valuable your product or service can be for them.

3. Retention: In this stage, you now have a fully activated customer. You need to keep your customer engaged so they continue to gain value from your product or service and have them remain a loyal customer. Driving customer engagement is important to prevent customer fallout. The main goal in this stage of the customer lifecycle is to optimize calls-to-action and user flow in order for customers to have an enjoyable experience and keep them on board.

4. Revenue: It has been proven that 80% of your future revenue will come from only 20% of your existing customers. This revenue can come from product upgrades or up-selling. Offering this to customers who have already grown their customer lifetime value could be one of your biggest opportunities. At this stage, business growth depends on how well you can nurture and convert your existing customers into buying more.

5. Referral: At this stage, you have a loyal customer but want to focus on having your customer base recommend and bring in new leads.  A social media share button, an email invitation, or simply asking customers to talk about you are all important points to focus on in order to optimize conversions at this stage.

Understanding which stage of the lifecycle your customer is in is vital. It is also important to know what key factors to focus on in each stage to better Customer Lifecycleoptimize conversion. SPIN is experienced and ready to help your business thrive. Contact us today to see how we can help you!

Untitled drawingCustomer Lifecycle

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