What is lifecycle marketing?
As the name suggests, lifecycle marketing is a form of marketing that takes into account where the customer is in the buyer’s journey and tailors its marketing messages and customer experiences accordingly.
If you want a more in-depth understanding of this topic, check out the FAQ section below:
Question #1: Why is lifecycle marketing important?
Lifecycle marketing is important because it allows you to effectively guide prospects who are ‘just looking’ to loyal customers—and, at times, even brand ambassadors—who regularly make repeat purchases from you.
As we have seen earlier, it works by tailoring each marketing message and customer experience to the stage at which a prospect is in.
If they are still in the process of doing research, then lifecycle marketing would provide them with the information they need. If, on the other hand, they are ready to buy, lifecycle marketing would provide them with the best options for their specific needs.
Question #2: What are the objectives of lifecycle marketing?
The key objectives of lifecycle marketing include:
- Gaining insight into the decision-making process and purchase behavior of both new customers and brand loyalists
- Converting prospects to leads
- Converting leads to loyal customers
- Getting inactive customers active again
Check this helpful blog from Marketo, to know more about the best strategies.
Question #3: What are the advantages of doing it?
The advantages of doing lifecycle marketing include:
- It bumps up your odds of converting prospects to loyal customers and brand ambassadors
- It helps position your brand as the top-of-mind choice once your leads are ready to buy
- It allows you to build a strong relationship with your prospects and existing customers
- It increases the lifetime value of each customer
- It saves you time and money because you do not have to keep chasing after customers who would only buy once
Question #4: What is the difference between lifecycle marketing and a sales funnel?
The main difference between lifecycle marketing and a sales funnel is their main focus. The former is more focused on building and nurturing a strong relationship with a customer while the latter, as the name suggests, is more focused on just closing the sale.
Both are valid techniques used by marketers and brands, big and small, across the globe. Your choice would ultimately depend on the type of business you have and your priorities.
Question #5: How does it work?
As we have seen earlier, lifecycle marketing consists of creating tailored messaging and experiences for the customer depending on where they are in the customer lifecycle. It can be broken down into three basic phases:
- Collect. During this phase, you identify your target customers, prepare lead magnets—such as discounts, perks, or exclusive content–that they might find valuable, and get them to willingly give you their contact details in exchange for your lead magnets.
- Convert. During this phase, you provide your leads with a steady stream of information that is meant to help them get rid of their primary pain points, which your products and/or services should be designed to solve. Once you have convinced them that your products and/or services are the best way to get rid of their pain points, it is time to make them an offer they cannot resist—which you should already know by this point because you have already spent a good amount of time building a relationship with them.
- Create. During the third and final phase of lifecycle marketing, the goal is to deliver on all the promises you have made before closing the sale, making sure to wow the customer every step of the way.
This is also the phase where you do your upselling and encourage your customers to not only make repeat purchases but also convince their family and friends to buy from you as well—which you can do by providing them with incentives such as referral rewards.