Analytics Blog Pt. 3

It's no secret that the world's most successful companies have the most loyal customers. These companies have realized that it makes economic sense to invest not only in new customers, but also in existing customers.

When it comes to providing your customer with an individual and personal (purchase) experience, it is important to know what a person’s relationship with your company is and how it changes over time. The Customer Life Cycle is a concept that covers the customer relationship from the moment the customer learns about your brand to the moment that the relationship ends.

Our customer base analysis shows you in what phase your customer relationship is. For example, you can identify your potential for up or cross-selling or discover “sleeping” customers where it is worth investing in reactivation. Knowing each phase will enable you to develop phase-specific strategies to increase customer value. Because, depending on the phase, another speech is meaningful and successful.

1. Acquisition phase 
This is the moment when a person comes into contact with your brand for the first time. Either classic via paid media or relevant content on social networks, blogs etc. Here it is important to arouse interest in your brand and to get the potential customer or the customer to deal more closely with your offer. Here you also get first likes, you win new followers or for example a newsletter subscription.

2. Initiation phase 
After the first contact it is now time to deepen the first experiences with your brand. Encourage potential buyers to try your product. During this phase, for example, promotions with free samples, one-time low entry prices or the use of the test for a specified period of time can be carried out.

3. Socialization phase
You have managed, a person or a company have bought from you for the first time. Now you have to take steps to build a proper bond with your brand. In order to long-term customer satisfaction, this phase requires large investments in time and money. You should focus on individual customer experiences to convey to the person that they are important to your business.

4. Growth phase 
With exclusive promotions and up and cross-selling strategies, you can increase customer value during this phase. Use customer loyalty programs and attach great importance to customer service and satisfaction.

5. Tire Phase
The tire phase is, on the one hand, a very pleasant phase, as your customers have evolved into “cash cows”, and yet the strength of the bond is very volatile. Competitors are attracted everywhere with attractive offers for new customers. Products and markets continue to evolve. It’s a bit like in a long-term relationship – now it’s for the other to stay attractive! Maintaining the customer relationship is now a top priority, so that customers do not become “cardmarks”.

6. Termination phase
This is the time when a person or company begins to quit your brand. Present your innovations and developments, sometimes long-time customers are not even aware that you have evolved.

7. Abstinence phase
In this phase we find inactive customers. You have a last chance here to reactivate the relationship with targeted measures. Discover the needs of your customers in more detail, understand the challenges of your clients and show them the solutions they have.

8. Reactivation phase
Now with clever recovery measures you can turn the blade again and reclaim your customers in the best case. For successful reactivation campaigns, we create a special Reagier Scoring model for companies. For this purpose, data from previous reactivation campaigns are analyzed. The inactive customers who have responded to such campaigns are classified in 10 score classes based on countless criteria. Using a lift chart, the optimization potential is then shown, i.e. with which score class the best response ratio is achieved. This method saves cash and brings the most return. And if you also want to minimize the return rate, let us clean the addresses first before your campaign starts – nothing more harmful to your marketing budget than writing an outdated address.
 

If you are interested in having your customer analyzed on the individual phases of the customer life cycle, then our Head of Data & Analytics Roger Dobler is the right contact for you. Roger is an expert in Advanced Analytics and Data Driven Marketing. He also has an in-depth understanding of Data Science, Digital Marketing and Business Intelligence. With over 20 years of professional experience in dialog marketing, he is the specialist in our industry. Contact him, he will be happy to advise you.