Customer lifecycle management (CLM) is the process of tracking the steps a customer takes on their entire journey to making a purchase. Prioritizing CLM will provide help businesses offer better support and retain customers.
As technology and best practices evolve rapidly, it can be challenging for businesses to stay on top of their customer relationships.
Existing customers are huge assets for every business. To be successful, you need to take care of them, understand their needs and meet them so that they remain loyal to your company.
“Customer-centric brands report 60% higher profits than those that fail to focus on CX.”
Businesses can harness data to determine best practices for each phase of the customer lifecycle that will optimize lifetime customer value with the right tools and knowledge.
Let us explore the different stages of Customer Lifecycle Management (CLM) its benefits, strategies and examine how using CLM can help business owners maximize customer retention rates to improve overall customer satisfaction.
Customer life cycle management (CLM) is defined as a business strategy focused on developing, optimizing as well as maintaining long-term relationships by understanding the customer journey and their current needs.
CLM processes use automation to track every interaction with a customer so that businesses can better identify and respond to changing market trends as well as customer demands with tailored solutions.
The main goal of CLM is to create an environment where happy customers become repeat buyers who recommend your services or products to others.
In CLM strategies, businesses should strive for continuous improvement so that they can create meaningful engagements with their customers by effectively anticipating their needs or responding immediately to any issues they have.
Confused between CLM (Customer Life-Cycle Management) and CRM (Customer Relationship Management)?
They seem to be very similar however, the differences are subtle but important! Let us discuss on to get a better understanding of these two systems and their related benefits.
The customer life cycle describes the different phases of the journey of a consumer from initial contact with your business through to their eventual conversion into a paying customer.
Each phase is designed to engage potential customers and provide more information about your products/services, while also convincing them that you are the best choice for their needs.
Understanding each step of the customer lifecycle helps brands identify opportunities where they can be further nurtured across their purchasing journey and drive conversions.
Customer Lifecycle Management is an important process that helps businesses to nurture customer relationships, boost customer base as well as conversion rates and ensure satisfaction throughout the entire customer journey.
One of the major benefits of CLM is its ability to help build stronger brand perception. By tracking engagement with both current customers as well as prospects you can better understand how to keep them engaged with your brand over time. A deeper understanding will help to tailor the approach resulting in effective marketing campaigns.
Loyal customers are worth up to 10x as much as their first purchase. CLM also helps to identify loyal customers by tracking customer lifetime value (LTV) as well as behavior-triggered events and helps gain insights into their preferences so that you respond accordingly with targeted campaigns. It will help encourage them to stay loyal for a longer period of time.
CLM also enables you to better target prospective customers by giving you a much clearer picture of who they are and what they want. It helps in developing effective campaigns making it more likely that they will be converted into paying customers from leads or subscribers than if you used generic messaging alone.
CLM helps improve the overall quality of your customer service experience by providing an individualized approach that goes beyond just responding quickly or solving issues efficiently. Automated processes powered by CLM can be used proactively so customers receive timely assistance for their concerns and deliver a better customer service experience.
Customer lifecycle management is one of the most important aspects of any successful business. Every customer likes knowing that you are committed to them. Customer lifecycle analysis allows businesses to create consistent touchpoints showcasing that their focus is to support customers through every lifecycle stage.
While it is quite difficult to get it right 100% companies that lose customers should revisit their customer lifecycle strategy and ensure it aligns with the below customer lifecycle management best practices.
Let us dive in to learn more on how you can effectively manage your customer lifecycle.
Understanding the different customer profiles is an essential step in creating effective marketing strategies for managing a customer lifecycle model.
71% of companies that exceed revenue and lead goals have documented personas compared to 37% that meet goals. Businesses that have adopted customer persona strategies are seeing significant boosts in ROI and developing a better understanding of their customers.
Understanding the differences between your customer’s profiles, you can use the insights in tailoring marketing activities that will align with their needs better, delighting them and increasing lifetime value (LTV).
Best practices:
Analyzing your existing customer data is just as important as understanding your customer profile in order to effectively manage their journey through the lifecycle.
Analyzing key performance metrics such as purchase history over time, average order duration, response rates, etc. will help you determine how much value each type of customer contributes to your business. In addition to gauging performance, analyze how successful your current campaigns are in achieving their desired objectives by looking at ROI and other important measures so you can adjust or optimize them as necessary.
Utilizing technological tools such as segmentation and analytics based on specific criteria (location/channel/time period) are helpful in extracting insights from data points so you can optimize your efforts for each type of customer profile accordingly.
Best practices:
The customer lifecycle has evolved significantly in the past few years and businesses are increasingly adopting automated technologies to make the customer experience more efficient.
According to Gartner, chatbots will become the primary customer service channel for roughly a quarter of organizations.
Deploying chatbots can help businesses in customer life cycle management and drive business revenue as well.
Best practice: It is recommended to utilize a combination of both automated chatbot technology and human support can help you reach customers faster as well as provide them with timely resolutions to their problems.
Achieving long‐term customer loyalty requires developing an effective loyalty program tailored to the needs of each individual customer segment or segmented group. To retain customers and entice them to stay with their brand, companies have turned to the prospect of loyalty rewards.
54% of consumers say that they would consider doing more business with a company for loyalty rewards.
Note: Build strong relationships with your best-performing clients so they continue to prefer your business over time.
Best practices:
To effectively manage the customer lifecycle process, it is essential to make sure that each customer experience is as unobtrusive and effortless as possible.
It means ensuring all interactions are enjoyable, whether it’s through an automated customer support tool or in-person contact. Offering personalized experiences show your customers you care about them, making them more likely to stay engaged with your business.
Best practice: Deploy technologies such as AI chatbots, live chat to help provide a more efficient and engaging experience for customers.
As part of managing the customer lifecycle strategy, it is important to track the satisfaction rates for customers regularly. Knowing how satisfied current users are helps companies understand which areas need improvement when interacting with customers, so policies can be implemented or improved upon to ensure successful customer retention and future success.
Surveys and feedback forms can give an accurate impression of how customers feel about your product or service.
Brands should also keep track of key performance information like license renewals as well as time spent using your product/service to gauge loyalty levels among prospects and current customers alike.
Best practices:
Customer Lifecycle Management (CLM) encompasses all the activities involved in influencing customer behavior throughout the customer lifecycle stages.
Let’s discuss the stages of CLM and how businesses can benefit from implementing CLM.
The initial stage when a new customer finds out about your product or service. During this stage, the focus is on building a relationship with potential customers by educating them about your business and letting them know what makes your brand unique.
During this stage, potential customers begin to consider whether they need your product or not, as well as research different options available in the market to make an informed decision. By providing helpful content and engaging them you can help influence their purchasing decisions.
Companies need to keep their customers engaged in order to make sure they’re receiving value from their products/ services. Examples of engaging activities can include hosting online events such as webinars, creating content across digital channels inviting customers to take surveys and providing helpful information on support channels.
Once clients have been engaging with the company’s offerings for some time it may be necessary to provide updated versions to motivate clients to stay connected with the brand. Upselling is a great way for clients to get additional value from their existing experience while encouraging brand loyalty through loyalty programs.
The final stage involves maintaining ongoing relationships with loyal customers. Companies can do this by keeping their current offers up-to-date based on ideal customer feedback and giving loyal customers access to exclusive content or offers that demonstrate how important those customers are for growing profits.
Every business, no matter the size, needs to have a customer lifecycle management strategy in place. By choosing the right customer lifecycle management tool for your business, you can improve customer engagement, streamline your sales process and ultimately increase your revenue.
Here are some of the top customer lifecycle management tools available:
Omni24 is an omnichannel customer experience management platform that helps businesses engage with customers at every stage of their journey. It offers a range of features including live chat, email marketing, knowledge management to help businesses create personalized and effective customer experiences.
Key features:
Veemo offers a conversational customer engagement suite for businesses to manage their customer interactions effortlessly. From attracting new leads to nurturing them through the entire lifecycle, Veemo helps businesses keep track of their customer journey in a single, easy-to-use platform.
Key features:
Adobe Experience Platform is a cloud-based platform that unifies data from multiple sources across marketing, advertising and commerce teams in real time. With AI-powered insights, this tool helps users predict customer behavior and create relevant personalization tactics for every part of the customer journey.
Key features:
HubSpot is another popular tool modern businesses use to manage their customers’ lifecycles efficiently. The platform provides users with powerful automation capabilities so they can create tailored sequences that personalize each step in the buyer’s journey throughout their entire lifecycle – from the lead acquisition stage right through to loyalty campaigns.
Key features:
The ultimate goal of any CLM process should be to provide better CX by producing customized experiences for individual customers throughout their lifecycle journey.
It’s important for businesses to continuously improve CLM processes on an ongoing basis in order to remain competitive and ensure that they’re providing their customers with high-quality services at all times. Making small modifications or adding new features can make a huge difference when it comes to delivering exceptional CX experiences on a consistent basis.
Why is customer lifecycle management important?
Customer Lifecycle Management is important because it acts as a vital tool for the Customer Success team as it frames the customer’s journey. It helps in supporting customers as they move through the buying journey. By creating awareness, nurturing customers and creating an exceptional customer experience at each stage of the journey, you can turn your prospects into lifelong advocates for your brand.
What are the five stages of the customer life cycle?
The phases a customer passes through during the course of an ongoing relationship with a brand vary on a case-by-case basis, but here are five basic stages of a customer lifecycle: Awareness, Consideration, Purchase, Retention, and Advocacy. The different stages of the customer lifecycle represent the journey a customer takes to move from first learning about a brand to being the one telling others about it.
How can a CLM strategy help businesses optimize their customer acquisition, retention, and loyalty efforts?
An effective Customer Lifecycle Management (CLM) strategy helps manage customer relationships to provide a strong customer experience. By deploying advanced technology such as AI chatbots, businesses can address customer concerns instantly. By outlining an effective strategy and implementing the right CLM software, you can gain and retain customers for a longer time. Thus, helps businesses by creating real time customer engagement leading to happy customers.
What are the benefits of using customer lifecycle management software for businesses?
The key benefits of leveraging lifecycle management software for any business are that it provides data as well as insights to build a stronger sales pipeline, personalize customer experiences and run precision marketing campaigns. The insights prove really important in understanding the customer’s journey and providing them with exactly what they are looking for. Additionally, provides customer data for process improvements, and drives collaboration across the organization.
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