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All about Customer Lifecycle Management you need to know in 2022

On 28 Apr, 2022 | No comments
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All about Customer Lifecycle Management you need to know in 2022

In recent years, we have shifted to a more customer-centered economy, and a business is not about closing one-time deals anymore. Customer lifecycle management (CLM) allows you to better prepare your marketing, sales, and customer service teams to turn one-time purchasers into returning customers through analysis. You can measure customer satisfaction through the Net Promoter Score (NPS) ranking through NPS solutions in India.

What is Customer Lifecycle Management?

CLM is the process of tracking the stages of the customer lifecycle, assigning metrics to each one, and measuring the company’s success based on them. You would want to provide the best customer experience in India which can be done through efficient CLM. As a matter of fact, CLM is the reason why Toyota can predict customer desires and sell more vehicles, with a shorter trade cycle and higher repurchase rate (over 60%), at significantly lower costs. 

Stages of Customer Lifecycle Management

Reach

This is the first stage of the customer lifecycle, where a customer searches for a product. This is when your company can reach them while they compare products across competing brands and carry out their research.

Acquisition

This is a company’s approach to understanding the consumer’s needs to in turn promote their brand in a manner that proves how it best fills in the vacancy caused by the needs. Companies focusing on customer acquisition need to prove how they stand out in the market.

Conversion

If your prospect makes a purchase after the acquisition stage, they have converted into your customer.

Retention

In the retention stage, you will want to offer exclusive perks that only your customers have access to. You need to find out how the customer feels about your product and make improvements. Increasing customer retention by 5% can increase profits from 25-95%.

Loyalty

Repetitive customers become important assets to the brand by making recurring purchases. They post on social media about their experience or write great product reviews online. Your loyal top 10% spend 3 times more per order than the lower 90%, and your top 1% of customers spend 5 times more than the lower 90%.

The 6 CLM steps

Once you have your stages figured, your company needs to perform the following 6 steps for a successful customer lifecycle management process.

Target audience identification

Determine who you are trying to reach. Rather than marketing to everyone, identifying a specific target audience will help you create content that is relevant to your customers.

Content relevancy

By putting out useful, engaging, SEO-optimised content, your company can become more visible when customers are searching for related topics online. Plus, publishing industry-related content on your site can make you more reliable.

Self-service resources

Customers like to handle as much of the purchasing process on their own. Hence, provide them with a means to guide themselves. Do not hesitate to put up detailed information, instruction-guides and answers to FAQs about your products.

Customer service proactivity

Potential customers walk away from a purchase if they do not get to know enough about your product. Your sales team must reach out to leads, offering them demonstrations to help with product familiarization. The tech giant, Apple has implemented impeccable customer service which helped them to retain a customer loyalty rate of 90% for the past several years.

Friction elimination

Building a simple and smooth ordering system will result in more purchases. This is because no one wants to experience the buyer's remorse, and this fear of regret can act as a major point of friction during the customer experience. Provide support options during the purchase stage to counteract this hesitation.

Customer experience personalization

If you forget about your customer after their purchase, they probably won't be back. Make the customer feel just as cared for post-purchase as they are pre-purchase. You may set up an automated email system that immediately thanks customers for their orders, reach out to them asking about their experience, or send them special discounts for their next purchase. Providing the best CXM services in India will help your brand achieve that extra boost.

Conclusion

According to Starbucks, if a customer’s average weekly value is about INR 1833, they may be worth nearly INR 11 lakhs over the next 20 years.Customer lifecycle management is customer-specific and data-driven. It is critical to guide customers to your brand and provide the best CXM services in India. You can maximize the effects of customer lifecycle management and measure your NPS through the available NPS solutions in India.



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