In your search to learn more about marketing automation, you may have come across the term “lifecycle marketing.” If the numerous marketing automation softwares out there are unfamiliar to you, it may be another term that you are trying to understand in your attempt to uncover the best marketing tech solution for your business. So how does it work? Below is a visual breakdown of lifecycle marketing followed by ways in which it can strengthen your marketing efforts.
How It Works
Customer Lifecycle Marketing focuses on the individual person or company and their journey with your brand. Each individual is represented by two scores: a profile score and an engagement score. The profile score is determined by demographic or firmographic factors such as revenue, industry, geography, or title; while engagement scores are calculated based upon webinar participation, email opens, inbound phone calls, social media interactions, etc. With these numbers in mind, you have a better idea of who’s a good fit for your business.
Unlike marketing automation, Customer Lifecycle Marketing provides graphical insight into the customer journey – spanning from awareness to brand advocate. Based upon the profile and engagement score, the individual is represented by a dot within one of the various quadrants (lifecycle stages), representing where they are in terms of their relationship with your company. In this case, there are five lifecycle stages; however, the stage names as well as the number of stages are determined by the specific company and their needs and requirements for stage progression.
Depending on where a person or company falls in their lifecycle determines how they are communicated to, by whom, and how frequently. Categorizing and placing individuals into these lifecycle stages allows marketers to deliver more targeted messaging that resonates better with the customer or company. In this example the individual is in the ‘convert’ stage. At this point the person is interested and engaged with the brand, so now we want them to begin seeing the value in the product or service. The content being sent to these individuals will be more targeted, personal, and geared toward their specific product of interest.
So Why is Lifecycle Marketing Important?
- Lifecycle marketing provides insight into the types of content different prospects or customers need/desire, rather than grouping all individuals together and sending them the same email using the “batch & blast” approach.
- Consider the fact that a 5% increase in customer retention can increase a company’s profitability by 75%. Therefore, attention given to customers beyond initial purchase increases engagement and generates an increase in overall customer retention and loyalty.
- An increase in customer lifetime value can lead to better sources of long-term revenue versus short-term sources of revenue.
For more on Customer Lifecycle Marketing, schedule a free demo with one of our lifecycle marketing consultants!