5 Ways to Optimise the Customer Lifecycle to Create Lifelong Customers

Customer lifecyle

Getting customers to complete the customer lifecycle (as shown in the graph above) is what a successful business looks like.

But of course, it’s not easy.

As you can see with the distribution curve, most customers drop off after the ‘Acquire’ stage (their first purchase from you).

But despite the challenges of getting customers to the Loyalty stage and beyond…

  • A 5% increase in retention can boost profits by as much as 95%
  • Repeat customers can account for up to 65% of a company’s business

So if you’re losing customers after the first purchase, you’re missing out on a huge chunk of profit.

And that’s a big problem most businesses struggle to fix.

Here’s how you can overcome it:

Understand and segment your customers

You need to know and understand your customers needs, preferences, and pain points.You can gather this information through customer surveys, feedback forms, or by analysing customer data.

You should then split customers into segments and tailor your messaging to suit the requirements of each one.

Develop a customer retention strategy

Once you understand your customers, you can develop a customer retention strategy that meets their needs. This may include offers such as personalised promotions or loyalty programs which incentivise and reward repeat purchases.

Communicate with your customers

Regular and personalised communication with your customers is essential for building and maintaining strong relationships. Sending content which is relevant to your individual customers will help spark interest and maintain engagement. (Email remains arguably the best channel for this.)

Offer excellent customer service

Excellent customer service is crucial to keeping them. Those who rate a company’s service as “good” are 38% more likely to recommend that company. (Qualtrics XM Institute).

Invest in marketing automation

Sending your customers consistent, relevant communications will further strengthen your relationship with them.

Marketing automation helps you plan, deliver, personalise and optimise your retention strategy automatically, requiring minimal time and input from you.


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