Customer Life Cycle – What is it?
Posted: Mon Jan 27, 2025 10:00 am
In order for a business to be profitable, effective management and strategic planning are necessary. One of the stages of establishing business processes is attracting a client and turning him from a casual buyer into a regular one. This entire path in marketing is called the "customer life cycle".
At the same time, in order to attract a buyer, you diabetes mailing list need to invest money once (as a rule), and then spend money on maintaining customer loyalty from time to time, but these are much smaller amounts. It is the share of regular customers that usually accounts for the largest amount of profit for the company. Therefore, properly planned work with them is the basis of any successful business project.
The customer life cycle is the process by which a consumer becomes a regular customer of a company. It can be divided into five stages: acquisition, interest, evaluation, purchase, loyalty.
The life cycle can be complete and last for quite a long time (for example, the entire time the company exists) or be partial (for example, ending after the first or any other stage).
Managers must plan the customer life cycle in such a way that at each of the listed stages the needs of buyers are satisfied and there is a desire to move on to the next stage. The effectiveness of the specialist's work is assessed by the number of clients who return to make a purchase again.
Customer Life Cycle – What is it?
Source: Black Salmon/ shutterstock.com
The usual business model is focused on attracting a large number of customers and increasing sales through one-time purchases. But the CLM model focuses on completing all stages of the consumer's life cycle, turning them into a regular customer who will return for purchases over many years. That is, the point is not in the number of customers, but in their quality and stability of demand.
When planning an advertising and marketing budget, it is important to understand how the customer life cycle proceeds. Knowing how to influence consumers of different age and social groups, you can optimize the costs of attracting new customers and increasing the loyalty of existing ones.
At the same time, in order to attract a buyer, you diabetes mailing list need to invest money once (as a rule), and then spend money on maintaining customer loyalty from time to time, but these are much smaller amounts. It is the share of regular customers that usually accounts for the largest amount of profit for the company. Therefore, properly planned work with them is the basis of any successful business project.
The customer life cycle is the process by which a consumer becomes a regular customer of a company. It can be divided into five stages: acquisition, interest, evaluation, purchase, loyalty.
The life cycle can be complete and last for quite a long time (for example, the entire time the company exists) or be partial (for example, ending after the first or any other stage).
Managers must plan the customer life cycle in such a way that at each of the listed stages the needs of buyers are satisfied and there is a desire to move on to the next stage. The effectiveness of the specialist's work is assessed by the number of clients who return to make a purchase again.
Customer Life Cycle – What is it?
Source: Black Salmon/ shutterstock.com
The usual business model is focused on attracting a large number of customers and increasing sales through one-time purchases. But the CLM model focuses on completing all stages of the consumer's life cycle, turning them into a regular customer who will return for purchases over many years. That is, the point is not in the number of customers, but in their quality and stability of demand.
When planning an advertising and marketing budget, it is important to understand how the customer life cycle proceeds. Knowing how to influence consumers of different age and social groups, you can optimize the costs of attracting new customers and increasing the loyalty of existing ones.