- What is customer life cycle?
Why do we need this
and how it will help you with your marketing efforts.
(upbeat music)
Hi, if you are a first time on my channel,
my name's Andriy.
I'm the founder of
email marketing agency called Flowium,
the email marketing agency which help
eCommerce businesses to grow sustainably
via channel, The all.
So what is customer life cycle?
Customer life cycle it's a process
through which a person go through
before buying something from you and after.
There are five main stages through which
each person go through.
So five stages are awareness, consideration,
action, retention and advocacy.
Let me explain you each one
and how you can improve your marketing
and customer experience at each stage.
I'll show it on my computer on the diagram
we created here internally
and I'll show you from email marketing perspective,
but also I'll give you example of how you can leverage this
understanding of customer life cycle
and improve it as areas of your marketing.
So one person just learn about your brand.
Let's say they're scrolling Instagram
or they're checking Facebook
or maybe they're working and see Bill Bert about,
X, Y and Z company.
They are becoming aware about your company
and trying to like it's sparks the interest like,
"Oh, what is that X, Y, and Z company?"
So from email marketing perspective,
right actually doesn't matter,
like from any other perspective,
it's a person when they visit your website,
they subscribe to your email newsletter, your emails
and they start to receive nurturing.
Also known us nurturing sequence
where you will try to tell them about your company
and they also start browsing
and checking out different projects you have
on your website.
So those two sequences or automations or flows,
we called, welcome and also browse abandonment.
Those two are awareness stages.
So they just checking out.
They didn't express any interest to buy from you.
They just trying to learn.
So this stage we call awareness,
people are just getting familiar with your brand
and who you are and are you legit
or you're just like some company who scum people.
Just kidding, but so this awareness.
Based on what you just learned,
think how else can you improve?
I just showed you two automations that you can leverage
in your email marketing,
but maybe there's other things
let's say, if you have a brick and mortar store,
like when they walk into your store,
like how can you improve that awareness.
Maybe ask instead of the question like,
"How can we help you?"
Maybe you should ask them like,
"Have you ever been here before?"
Because the conversation will be different versus,
"How can I help you?"
If you're strictly online,
think about first time visitor to your home page.
Maybe the home page will look differently
if the first time versus returning visitor.
Okay so, the next two steps consideration and action,
I will put them together.
Why? Because they will go hand in hand.
Let's assume they are aware about your brand,
they are regular on something
and they are considering buying from you.
So what they do,
they typically like start checking out
and maybe they didn't finish they've purchase.
So this is why we have abandonment cart automation
to sound like, "Hey, Mr. Client,
"you started the checkout the process,
"but you started buying (mumbles)
"but you didn't finish your purchase."
So this is why we have carts abandonment.
So they start considering buying from you
and they start taking some kind of actions.
So actions are like, they already purchase from you.
So for that, we have those.
Yeah, so those three automation are abandonment cart,
new customers.
So we just want to thank them and the review request
if you have that kind of automations, you can do as well.
Again, I just showed you example
from email marketing perspective,
but what can you do differently
in consideration of all action stages?
Not about email marketing, but as a marketing perspective,
like from advertising or maybe you can re-target them
from those different kinds of message,
maybe you can communicate with them differently,
maybe you want to invest more money.
Let's say when they start checkout and they didn't finish,
maybe instead of sending them email,
you want to send them direct mail.
The last two stages are retention and advocacy.
So during retent like when you have a customer
from one time to two times buyer,
there's like 10 to 20% chance
that they will convert to two times buyer.
So the chance is very, very, very small.
However, from two time buyer to three times buyer
your chances is, if I remember correctly,
is like 50, 50% chance.
So you have to put a lot of effort to convert
one time buyer into two time buyer.
In email marketing, we use strategies like
up-sell and cross-sell or win-back or sunset inactive,
or again browser abandonment, cart abandonment,
but for returning customers.
So think about how you market to people
who are your customers
and you want them to buy again from you.
On our channels we have a few videos
how we're suggesting to modify your abandonment cart,
browse abandonment, how to leverage your loyalty program,
to ask people and offer them something to buy from you.
And part of their retention is loyalty program as well.
And the last but not least stage is advocacy.
You want your current customers
to be marketers, sales person.
Of course you have to have a great service
or great product, but when you do
you want your current customers
to market to other people.
So there's few ways how you can do it,
but the most, uh, the most popular one is referral program
Is typically, is a part of your loyalty program
or there's additional tools you can use to refer people.
In other words, they share links
or some coupons with their friends
and their friends will get benefits or discounts
and person who share it will get benefits and discounts.
So this is part of what like loyalty refer program.
So this was explanation of customer's life cycle.
If you have any additional questions,
please leave them below, under this video.
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