Guide to Lifecycle Marketing
What is Lifecycle Marketing? What differentiates it from standard marketing approaches? How do you market based on stages of the lifecycle? What types of businesses benefit from lifecycle marketing? And what are some easy steps for getting started with Lifecycle Marketing? Read on to find out!
What is Lifecycle Marketing?
Lifecycle Marketing is a marketing approach that takes into account the different stages of a customer's relationship with a brand or product. Lifecycle Marketing is designed to target your marketing messaging to customers at the most appropriate point in their journey or 'lifecycle' with your brand or product. This is different from traditional marketing which is designed to get the marketing messaging in front of as many people as possible, regardless of where they are in the customer journey.
The main stages of a typical customer lifecycle include:
Awareness: This is when a potential customer first becomes aware of your brand or product, often through advertising, word-of-mouth, or a search process. They have a problem they need to resolve or a need they are looking to fulfill.
Interest: Once aware of your brand, a customer might start to show interest in your products or services. They might start following your brand on social media, sign up for your newsletter, or visit your website frequently. The goal is to figure out whether your product or service can fulfill their need or solve their problem.
Evaluation: At this stage, customers are considering whether to make a purchase from you. They're likely comparing your products or services to those of your competitors.
Purchase: The customer decides to buy your product or service. This is often the main goal of traditional marketing efforts, but when it comes to lifecycle marketing it's not the end of the lifecycle.
Post-Purchase: After a customer makes a purchase, your marketing efforts should focus on creating a positive experience to increase customer satisfaction.
Re-Evaluation: After the purchase, the customer decides whether to continue with the relationship, usually when they’re considering another purchase. They might consider other factors such as the customer service they received or the quality of your products or services.
Repurchase: The customer decides to make another purchase, essentially restarting the cycle. Building customer loyalty and encouraging repeat purchases is a key goal in lifecycle marketing.
Lifecycle marketing is about delivering messaging that is most appropriate for each person based on where they are in their lifecycle with your business, and it works! Truly effective Lifecycle marketing campaigns understand the customer's needs at each stage and provides them with any necessary info to help them feel supported and confident about shopping with your business.
How is Lifecycle Marketing different from Traditional Marketing?
That Super Bowl ad you see while scarfing down nachos? That’s traditional marketing. The idea behind traditional marketing is to get that message in front of as many people as possible. In the case of a Super Bowl ad, it has the potential to be seen by a billion plus people for 30 seconds. There are very few businesses willing to place so much of their marketing budget on a single 30 second ad, so what they do is spread their marketing spend over multiple channels (TV, radio, print) and through volume hope to get enough people to see their marketing messaging.
What about that email welcoming someone who visited your site and signed up for your newsletter? That’s a textbook example of a Lifecycle marketing message!
How Traditional and Lifecycle messaging differ:
Customer focus: Traditional marketing often focuses on attracting as many customers as possible without specific regard to their individual needs or where they are in their purchasing journey. The goal is to get their attention and then deliver your message. Lifecycle marketing takes a much more customer-centric approach. It seeks to understand customer needs based on where they are in the customer journey, including their problems they are trying to solve, behavior or steps taken up to this point, preferences based on actions taken to this point, and where they are in the purchase process —whether they're just discovering the brand or product, considering a purchase, have already bought something, or are returning customers.
Marketing stages: Traditional marketing tends to segment the process into disparate parts, such as creating awareness, promoting products, and driving sales. However, lifecycle marketing views the customer journey as a continuous cycle, which involves stages such as reach, acquisition, conversion, retention, and loyalty.
Personalization: Lifecycle marketing emphasizes personalization, or taking what you know about the person and only sending them appropriate messaging. It tailors messaging to individual customers based on their lifecycle stage. In contrast, traditional marketing tends to use broad, one-size-fits-all messages.
Long-term engagement: Traditional marketing can often prioritize short-term sales over long-term customer relationships. The messaging is most commonly centered around taking a specific action, but is also used to build brand affinity. In contrast, lifecycle marketing aims to engage customers over the long term, fostering loyalty and encouraging repeat business. With traditional marketing, the customer has little say over when they will receive messaging. In the case of lifecycle marketing, messaging is often based on an action the customer has taken to indicate some level of interest in interacting with the brand or product.
Data-driven decisions: While traditional marketing can and does use data, lifecycle marketing is heavily reliant on customer data to determine where a customer is in their lifecycle and how best to engage them. This means making extensive use of analytics, predictive modeling, and other data-driven tools and techniques.
Multi-channel approach: Lifecycle marketing typically involves a multi-channel approach, communicating with customers across a range of platforms (social media, email, SMS, etc.) in a coordinated, consistent manner. Traditional marketing can also use multiple channels, but may not always coordinate the approach as closely.
These differences make lifecycle marketing more adaptable to the current digital marketing environment, where customers expect more personalized, relevant interactions with brands. That said, traditional marketing methods can still be effective when appropriately used and can exist alongside lifecycle marketing strategies in a comprehensive marketing plan.
How do you use Lifecycle Marketing?
Traditional marketing is typically geared towards building awareness and brand affinity. Pay per click advertising leverages customer data (search terms, link clicks, likes given and pages followed) to help drive customer awareness. Once a customer becomes familiar with your product or service, it’s time to begin using your lifecycle marketing campaigns to build that relationship!
Examples of Campaigns Based on Customer Lifecycle
Here are some examples of the types of marketing campaigns that work best for each stage of the customer lifecycle:
Stage 1: Awareness
Goal: as the name suggests, the goal of the awareness stage is make consumers aware of your products or services. You want to attract attention and build trust. Selling is not the primary goal at this stage of the customer lifecycle.
Marketing Examples for the Awareness Stage
Content Marketing: Share valuable content that can help solve problems or inform your target audience about a relevant topic. This can include blog posts, infographics, eBooks, white papers, and videos. The goal is not to sell directly, but to provide value and establish your brand as a trustworthy expert in your field.
Social Media Advertising: With advanced targeting options, social media platforms like Facebook, Instagram, Twitter, and LinkedIn can help increase brand visibility to a highly targeted audience. The aim here is to create engaging posts and ads that increase your brand visibility and encourage social shares.
Search Engine Optimization (SEO): This involves optimizing your website and content with relevant keywords so your business appears in search engine results when potential customers are looking for information related to what you offer.
Pay-Per-Click (PPC) Advertising: Platforms like Google AdWords allow you to create ads that appear at the top of search results for certain keywords. This can be very effective in getting your brand in front of people who are actively searching for related products or services.
Influencer Marketing: Partner with influencers in your industry who can introduce your brand to their followers. This can be a great way to build trust and awareness, as recommendations often carry more weight when they come from trusted sources.
Public Relations (PR) and Media Coverage: Earned media coverage in magazines, blogs, and other publications can greatly increase your brand visibility and credibility.
Webinars and Virtual Events: Offering free online events on topics of interest to your target audience can attract potential customers who may not yet be familiar with your brand.
Email Marketing: While this is typically more effective in later stages of the customer lifecycle, a well-executed newsletter campaign can also be used to increase brand awareness and deliver valuable content to prospective customers.
Stage 2: Interest
Goal: help the consumer to understand your offering and how it can help them solve their problem or fill their need. The goal here is not quite selling, at least not usually, it is more about helping the customer on their path to making the decision that ultimately leads to buying.
Marketing Examples for the Interest Stage
Content Marketing: Educating your potential customers about the industry, the problem you're solving, and how your product or service fits into the solution is crucial. This can be done through blog posts, whitepapers, e-books, webinars, and other forms of informational content.
Email Marketing: Once a potential customer has shown interest in your product, email marketing can be a powerful tool to nurture that interest. You can send more detailed information, case studies, customer testimonials, and more.
Retargeting Ads: Retargeting ads on social media platforms or through Google Ads can help keep your product or service top of mind as the potential customer researches their options. This can be particularly effective if the ads highlight your product's benefits, unique selling points, or customer testimonials.
Social Media Engagement: Posting regularly on your social media channels about your product, its benefits, and how it compares to competitors can keep potential customers engaged and interested.
Case Studies and Testimonials: Showcasing successful customers who have benefited from your product or service can provide potential customers with the confidence that your offering will meet their needs too.
Product Demos and Free Trials: Offering a demo or a free trial allows potential customers to experience your product or service firsthand, giving them a better idea of how it works and why it might be the right fit for them.
Stage 3: Evaluation
Goal: at this point, you want to establish your product or service as being credible, reliable and as such it should be viewed as a suitable choice for fulfilling a customer’s need or resolving their problem.
Marketing Examples for the Evaluation Stage
Content Marketing: At this stage, consumers are hungry for information. High-quality, relevant content that answers their questions can drive interest. This could be blog posts, whitepapers, e-books, infographics, or video content. This will not only provide them with valuable information but also position your brand as an expert in the field.
Email Marketing: If potential customers have given you their contact information, you can nurture their interest with email marketing. Share relevant content, case studies, and testimonials. Also, be sure to personalize emails as much as possible for better engagement.
Social Media Marketing: Sharing your content on social media can also pique interest. In addition to your regular content, use platforms like Instagram and LinkedIn to share customer testimonials and behind-the-scenes looks at your company.
Webinars and Workshops: Webinars and workshops provide value to the consumer and position your brand as an expert. These can be live, recorded, or even in a Q&A format to engage your audience and answer their questions directly.
Retargeting Ads: Retargeting (or remarketing) allows you to show ads to people who have already interacted with your brand online. This helps keep your brand top of mind as they continue to research solutions.
SEO: At the interest stage, many consumers turn to search engines for more information. Make sure your website is optimized for search engines so that these users can find your content when they need it.
Influencer Marketing: If it's suitable for your brand and audience, consider working with influencers who can showcase your product and share their experiences. It can be an effective way to build trust and credibility.
Remember, the goal at the interest stage is not necessarily to push for a sale, but rather to educate potential customers, build trust, and position your brand as the best solution to their problem or need.
Stage 4: Purchase
Goal: now is the time to reassure the customer that they are making a wise decision to use your product or service and help convince them that they are ready to convert!
Marketing Examples for the Purchase Stage
Promotional and Discount Campaigns: Special offers, discounts, or promotional campaigns are highly effective at this stage. They can push potential customers to complete their purchase by creating a sense of urgency or by increasing the perceived value of the product or service. Udemy does a nice job showing discounted rates with expiration dates to help nudge those who are ready to purchase to make their decision on the course they are interested in buying.
Remarketing/Retargeting Campaigns: These campaigns can be extremely effective at targeting users who have shown interest in your products but haven't yet made a purchase. Display ads, social media ads, or email marketing campaigns can serve as reminders and can provide additional incentives to complete the purchase.
Trust-Building Campaigns: Customers may need reassurance about product quality, payment security, or your company's reputation before they finalize their purchase. Share testimonials, product reviews, secure payment badges, and guarantee seals. Make sure that your website design also conveys professionalism and trustworthiness. Third party sites like Trust Pilot can also help the customer feel comfortable with their decision.
Abandoned Cart Email Campaigns: If you're an e-commerce business, consider setting up an automated email campaign for customers who leave items in their shopping cart without completing a purchase. These emails remind customers of what they left behind and can provide extra incentives (like a small discount, free shipping, or a bonus item) that could convince them to complete their purchase. These campaigns have very high open and conversion rates!
Personalized Recommendations: Use customer data to offer personalized product or service recommendations. This can be done via email, through website product recommendations, or via personalized ads. When customers see products that align closely with their interests and needs, they're more likely to make a purchase.
Trial or Demo Campaigns: If your product is complicated or high-investment, offering a free trial or demo can help customers understand the value of what you're selling, and can move them toward making a purchase.
Content Marketing: Providing useful, relevant content can build a relationship with potential customers and convince them to buy. This could take the form of blog posts, how-to guides, webinars, videos, and more.
Stage 5: Post-Purchase
Goal: once you have completed the sale, you want to make sure your customer has a great experience with your product and is happy with the purchase. The key to successful post-purchase campaigns is to make sure the customer feels great about their experience with your product. Any sales content should feel very natural and tie into the product or service the consumer has purchased. This is a great spot for free support content as it reduces any lingering distrust or doubts the customer may have had when placing their order.
Marketing Examples for the Post-Purchase Stage
Replenishment Reminders: For products that run out (like cosmetics, groceries, or supplements), a reminder email or notification to repurchase can be very helpful. Automated emails that remind customers when it's time to reorder can help increase repeat purchases.
Cross-Selling and Upselling: Promote complementary products (cross-sell) or higher-end products (upsell) based on the customer's past purchases. This can be done via personalized emails, app notifications, or targeted ads.
Loyalty Programs: Rewards or loyalty programs can help increase repeat purchases by providing incentives for continued patronage. Points systems, VIP benefits, exclusive deals, and gamified rewards can all be effective.
Customer Satisfaction Surveys: Sending out a survey to gather customer feedback shows that you care about their experience and are actively working to improve. It also provides valuable insights for your business.
Educational Content: Depending on the product, customers may benefit from continued guidance on how to use, maintain, or make the most of their purchase. This can be done through blogs, webinars, how-to videos, tutorials, or even automated email sequences.
Referral Programs: Encourage customers to refer friends and family to your business by offering a discount or bonus to both the referrer and the referred.
Community Engagement: Foster a sense of community among your customers. This could be through social media groups, forums, or customer events.
Personalized Recommendations: Use data about a customer's past purchases and browsing behavior to provide personalized product or service recommendations.
Special Offers on Future Purchases: Offering a discount or special deal on a customer's next purchase can help to bring them back to your business. The customer may have had their eye on another product but didn’t make the purchase, so an incentive can bring them back to buy that item they held off on during their most recent purchase.
Re-Engagement Campaigns: If a customer hasn't made a purchase in a while, you can send out re-engagement emails to remind them of your brand and encourage them to come back. Tread lightly, let your typical purchase cycle be your guide here.
Stage 6: Re-Evaluation
Goal: to understand the customer’s current satisfaction with their purchase and your company or brand. Doing so can help you understand your chances at a renewal for your services or for which customers would be the best ones to ask for a referral or testimonial.
Marketing Examples for the Re-Evaluation Stage
Customer Satisfaction Surveys: This campaign allows you to measure and understand the level of customer satisfaction with your product or service. The survey can provide insights into areas of improvement and opportunities for up-selling or cross-selling. A Net Promoter Score is an example of a satisfaction survey.
Loyalty Programs: These campaigns reward repeat purchases and foster customer loyalty. Rewarding customer loyalty might involve offering exclusive discounts, early access to new products or services, or other incentives.
Email Marketing: Regularly communicate with your customers via newsletters, product updates, helpful content, and personalized recommendations. This keeps your brand at the forefront of their minds and makes them feel valued.
Re-Engagement Campaigns: These are targeted towards customers who have not engaged with your brand in a while. Re-engagement campaigns might include "we miss you" messages or special offers to encourage them to return.
Upselling and Cross-Selling Campaigns: Provide relevant product recommendations based on the customers' previous purchases to upsell or cross-sell. It's not only about selling more, but also about providing value by showing customers products or services that complement what they already have.
Social Media Engagement: Encourage customers to interact with your brand on social media. This could involve sharing user-generated content, holding contests, or providing customer service through these platforms.
Educational Content: Share helpful content that educates your customers about your products or industry. This could be in the form of blogs, webinars, eBooks, or video tutorials.
Personalization: The more you know about your customers, the more personalized your marketing can be. Use data and analytics to deliver messages that resonate with their unique interests and needs.
Stage 7: Repurchase
Goal: while the repurchase stage is clearly about generating that next sale, it is also incredibly important to focus on deepening the relationship, as repeat customers and customer lifetime value (CLT) are the bedrock of any successful business.
Marketing Examples for the Repurchase Phase
Loyalty Programs: Customers who have already made a purchase are more likely to do so again, especially if they're rewarded for it. Create a loyalty program that offers points, discounts, or special perks for repeat customers. It's a great way to make customers feel valued and incentivize them to come back.
Re-engagement Emails: If a customer hasn't made a purchase in a while, send a personalized email reminding them of your products or services. This email could include a special offer or discount to entice them to come back. If they don’t engage or buy, honor their decision and focus on the customers who are engaged with your brand.
Cross-sell and Upsell Campaigns: Recommend relevant products or services that complement what the customer has already purchased. This not only increases your sales but also enhances the customer experience by making their life easier or better. Be smart here, only offer recommendations that truly make sense.
Feedback Campaigns: Ask customers for feedback about their previous purchase. This shows you care about their opinion and are willing to improve. It also gives you valuable insights into how to improve your product or service.
Referral Programs: Encourage customers to refer friends or family members to your business. This can be done by offering them a discount or other incentive for each successful referral.
Exclusive Access: Offer your repeat customers exclusive access to new products or services before they're available to the general public. This makes them feel special and appreciated, which can encourage them to make more purchases.
Personalized Offers: Use the data you have about the customer's preferences and buying habits to offer them personalized deals or products. This can be done through email, social media, or your website.
What Types of Businesses Perform best with Lifecycle Marketing?
While Lifecycle Marketing makes sense for a wide variety of businesses, here are a few industries where Lifecycle Marketing has made a very big impact:
Retail Businesses (Both online and brick-and-mortar stores): These businesses have a huge potential for upselling, cross-selling, and repeat purchases. A well-structured lifecycle marketing strategy can help them identify the right timing and product to suggest to their customers, and in turn, increase their overall sales and customer lifetime value (CLT).
Subscription-Based Services (Such as streaming services or Software as a Service companies): These businesses thrive on maintaining a loyal customer base over a long period of time. Lifecycle marketing can help them minimize churn and maximize customer lifetime value by continually delivering relevant content and offers, and addressing potential issues before customers decide to cancel their subscription.
Financial Services (Like banks or insurance companies): These businesses have long-term relationships with their customers. Lifecycle marketing can help them enhance these relationships and provide relevant services at the right moments in a customer's financial life (like offering a home loan to a recently married customer).
Businesses with High Customer Acquisition Costs (Such as car dealerships or luxury brands): In these industries, retaining existing customers is often more cost-effective than acquiring new ones. Lifecycle marketing can help them stay in touch with their customers and make them feel valued, which can drive repeat business and referrals.
Tech Companies (Including tech startups): For companies that provide technology products or services, customer education and adoption are key. Lifecycle marketing allows them to nurture customers throughout their journey, from onboarding to advanced usage, and to promote upsells and upgrades when the time is right.
Travel and Hospitality Industry: This industry can benefit by targeting customers at different stages in their life or year, for instance, offering honeymoon packages to newlyweds or reminding customers of summer vacation packages.
How to get Started with Lifecycle Marketing
Two words: start small! Then slowly grow your campaigns. The nice thing with many of these campaigns is they can be automated to send personalized, relevant messaging when a customer takes an action on your site. It makes sense to start with the following campaigns:
Welcome or Onboarding Campaign
The Welcome or Onboarding campaign is sent automatically when a customer signs up for your email or SMS campaign. It serves two purposes: it confirms this person has successfully opted into receiving messages from you and it gives you a chance to introduce your brand and products or services. It is not uncommon for this message to have a greater than 50% open rate, which is very successful when it comes to email messages.
You can start off with a single Welcome message with a CTA that sends the customer back to your website, and then build this campaign over time. It is not uncommon to have 3 messages in this series. But to keep things simple, start with that first Welcome email.
Cart Recovery Campaign
If you have a shopping cart on your website, you should have an automated campaign that notifies someone when they have left something in their shopping cart. This message has an extremely high open rate, oftentimes over 60%, and the conversion rate is also well above any other message you send. This is why it should be one of the first lifecycle campaigns you run.
Start simple with a single message. Send this customer back to the shopping cart to complete the order! You can eventually build this into a multiple message campaign but that first message is the most important one. Get it up and running!
Building your Lifecycle Marketing Campaigns
From there the sky is the limit! There are a wide variety of Lifecycle Marketing messages that are effective based on where the customer is in their lifecycle with your business. Build them out and before you know it your list of first time customers, repeat customers and customer lifetime value will grow.