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Understanding and Managing the Customer Relationship Life Cycle

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Graph processing gives credit analysis firms an edge A graph database startup's parallel loading, processing and querying combine to deliver real-time data for fintech firms that However, you do not have a customer until a purchase has been made and money has exchanged hands. Someone who browses your website occasionally is not a customer when you are offering a physical product. You have acquired a new customer only when payment has been taken and the product has been received.

This is your opportunity to not only get a customer but keep that customer and use them to grow your customer base. Once that customers buy from you, you must figure out how to keep them. Keeping a customer is not about building a bigger and better product to keep them coming back for more.

Instead, it is all about building a relationship with them. Customer satisfaction surveys are a valuable tool in customer retention.

Not only do they give the customer a voice but they also allow you figure out what you could be doing better. This is very valuable data for any company. Loyalty programs are another solid way of keeping customers. Customers love to work for greater rewards.

It is partly because they feel like they are getting something for nothing. It is also partly because they feel valued.

A loyalty program has both merits and disadvantages. Still, it is great for retaining customers when it is deployed properly. Customer check-in calls are also essential. This does not mean that you should spam your customer with a call center. In fact, this is a good way to turn customers off in many markets. Instead, you can offer customers an opportunity to speak directly with you about their thoughts and opinions on the product, service and your company. You do not need to call every customer.

But the selection you do call will often be pleased that you asked them about what they really think. This two-way method of communication is great for driving relationships. Growing your customers starts with un-bundling. The ultimate goal of maintaining your customers is to be able to ask them for referrals. But to make it easier on the customers you already have, you should offer a product that is broken down into smaller parts.

Breaking the product down into multiple offers is not a problem. You can also up-sell products. This is an opportunity to let referred customers get in on the action without the risk and then offer them the full product at an ideal price. Cross-selling products is one step up from an up-sell. When you cross-sell your product, you are selling a product that is related to but not a part of a product that the customer previously purchased.

Once you are able to cross-sell successfully sell two separate but related products , you will be able to as for referrals.

These referrals are very valuable because they help grow your customer base. Getting your customers when you offer a web mobile product is different than when you have a physical product. Although you will still use earned and paid media to acquire the customers, there are fewer steps.

When you are using media of any kind to acquire customers, you want to be wary of the cost. You will usually measure this by cost per thousand hits. This means that you want to know roughly how much you spent on media to get around 1, hits. You will want to measure this a few times to make sure that you know where the customers are coming from. This prevents you from investing in media that offers little return. This also allows you to see if your most valuable traffic is organic or if you are paying for it through media activities.

Once you have acquired your customers, you need to activate them. This means collecting their data from them. At this point, you will want to note your cost per action CPA. The cost per action agreement will relate directly to your advertising costs. A cost per action is not a cost per click.

Instead, a cost per action is based on a qualifying action. For example, you might have an agreement that you only pay for advertisements that resulted in registration on your site.

Cost per action is a low risk form of advertising for businesses. But it is still essential to know how much you are paying just to get people to perform an action with your site. Keeping customers is just as important when you offer a web mobile product.

However, you will go about it slightly differently. Outreach programs are a great way to keep customers while still growing them. Outreach programs are great for current customers to share the service on social media and get a reward in return. Loyalty programs also work on the online mobile platform. You can also keep up to date with customers with blogs, emails and RSS feeds. Some companies choose to keep customers by running contests or events. These can also be bundled into your outreach program.

Growing customers is relatively similar on internet mobile products as it is with physical products. You want to give them a chance to pick up a smaller product at smaller price. Then you can up-sell, next-sell and cross-sell to both existing and referred customers.

Ultimately, you want it to be as easy as possible for your customers to send you referrals. When you get these referrals, they should always start back at the acquire phase and make their way back. This viral loop is important for the success of growing your customers. How you measure the success of your Customer Relationship Life Cycle is up to you. It can be simple or it can be complex. You can choose to do it over a number of years or over a number of months.

All of this depends on the kind of business you run. The following metrics can be used in the Customer Relationship Life Cycle to determine your success at varying stages of the program. It is important to perform these measurements throughout the program. However, these are the satisfied customers but still they are in process to evaluate the relationship between the two parties, hence a small mishap could lead to defect these valuable customers.

Core Customers- Customers are said to be core customers when they are fully satisfied with the product value and services provided to them as well as when the supplier is able to maintain a quality relationship with them. These customers are flexible and considerable as they ignore small mistakes which they know, will be efficiently and quickly resolved. Having highest retention rates these customers are the most valuable assets for an organization and it is important to give special treatment to these customers.

Unless and until there is major problem, these customers do not defect. Core Defectors- There comes a stage when the core customers tend to switch to different supplier due to some specific reasons. These reasons include availability of more efficient and competitive products and brands in market, any of the important service not entertained or any defect not rectified within a given time-frame, boredom due to same product usage repeatedly etc.

It is difficult to retain customers if above reasons are pertained.

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In customer relationship management (CRM), customer life cycle is a term used to explain the stages a customer passes through when considering, purchasing, using, and remaining loyal to a .

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Stages of customer life cycle management: Reach – Your content must be properly marketed in places where people/businesses in your market will find your information. This way they will become aware of your company’s existence.

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If in an organization, many customers diverge their way to other organizations and customer acquisition program shows less aggressiveness then the organization faces terrible cash flow problems. This is the time when tracking the number of customers in each stage of customer life cycle becomes essential. The customer life cycle comes from the practice of CRM where it’s traditionally used to map the different stages a customer goes through from considering a product, service or solution to the actual buy and, at least as important, the post-purchase stages (where customer retention, customer loyalty .

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The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC). However, CLC focuses upon the creation of and delivery of lifetime value to the customer i.e. looks at the products or services that customers NEED throughout their lives. In this article, you’ll learn about 1) the primary phases of the customer relationship life cycle, 2) how to measure success, and 3) how the customer relationship life cycle is different for different industries.