How Your Business Can Succeed With Lifecycle Marketing
If you look around at today’s marketing environment, you can easily see which businesses are desperate for short-term gains.
These companies dramatically slash prices, give away shipping, and market to audiences far outside their target demographics in desperate attempts to hit their sales goals for that day or week. They’re not thinking about the long run, which means they’re going to continue struggling in the future.
If you find yourself in this desperate cycle of sales tactics and want to focus on long-term solutions -- keep reading. We'll look at how tapping into lifecycle marketing can help you develop strategies that grow your sales and keep customers engaged with your brand.
What Is Lifecycle Marketing?
Lifecycle marketing is the process of marketing to prospective and existing customers as their needs evolve over time. It focuses on re-engaging customers and marketing to them in different ways.
Lifecycle marketing addresses what happens after customers buy your products, and works to continue providing solutions for them.
Think about your target audience. What are their needs right now that lead them to your brand? Now picture them a year from now. How has their behavior changed? What are their new needs?
With lifecycle marketing, brands grow with their customers and create messaging based on these changes.
7 Ways Brands Can Harness the Power of Lifecycle Marketing
Once you understand lifecycle marketing and how it can help your brand, you can take steps to improve your marketing strategy. Here are seven steps you can take today to grow the health of your lead generation pool and create messaging that connects with your target audiences.
1. Highlight the Top Reasons You Lose Your Customers
No company wants to take a deep dive into their failures, but the first step to improving your lifecycle marketing is to understand what makes your customers leave. Did your product offerings drive them away, or do you just not have the items or services they want?
To study this data, look at customers who suddenly stop doing business with your brand after stretches of loyalty. You can also look at customer complaints or returns to see what your biggest issues are.
If you can solve these problems, your company can reduce the number of customers lost each month.
2. Seek Post-Purchase Customer Feedback
Engaging customers after they complete a purchase can be as simple as sending a customer feedback survey once their package arrives. With just a few questions, your customers can voice their concerns or highlight what they like about your brand.
Some brands take this a step further and offer coupons to incentivize customers to complete feedback forms. This brings them back into the sales funnel by giving them a reason to return.
Customer feedback can also be used to improve your business operations.
For example, 79% of customers say they would switch brands within a week of experiencing poor customer service. American companies lose $1.6 trillion in business annually because of lost business. If your brand can identify problems within your products, purchase process, or people early on -- you can take steps to improve them and prevent lost business.
3. Adjust Your Remarketing Strategy
Evaluate your remarketing strategy to make sure it aligns with your customer’s goals.
For example, if a customer buys running shoes from your brand, are you emailing them more offers for running shoes a week later? In all likelihood, they would be more interested in buying leggings or fitness gadgets.
Lifecycle marketing means focusing on the customer’s needs as a whole. Evaluate how you communicate with customers after they complete their purchase to make sure it matches their goals. Otherwise, you’re just sending irrelevant messages that they will tune out.
4. Work to Increase Repeat Purchases
Lifecycle marketing should be a top goal for your company if only to increase the efficiency of your advertising budget. Repeat customers are easier to market to and more affordable. Most businesses spend five times more to nurture a lead and close a sale than to bring a repeat customer back.
Additionally, repeat customers have a 60-70% chance of converting when they visit your website, while new customers average a less than 13% chance.
Brainstorm ways within your company to market to repeat customers, and even consider creating buyer personas for new vs. returning buyers. This will stretch your marketing budget and improve your overall ROI.
5. Challenge Your Marketing Team to Build Loyalty
Repeat purchases aren’t just beneficial because of their cost-saving properties, they also increase your revenue and build customer loyalty. One Harvard study found that a customer’s 6th purchase is 40% higher than their first one, and their 8th purchase was 80% higher on average than their earlier purchases.
The more customers return to your brand, the more they trust it, and the more they’re going to spend.
This data is why companies like Kohl’s, Starbucks, and CVS all put so much effort into loyalty programs. If your business doesn’t have a loyalty program, even if it’s a simple punch card or digital coupon option, then you’re missing out on the profits of bringing customers back.
6. Develop Core Buyer Personas
Your marketing should reflect the needs of your customers, not just their demographics. Consider creating 2-5 buyer personas that answer who your customers are, what they buy, and how they spend their money.
You can then use this information to create comprehensive marketing plans that match their needs. Plus, as your personas grow, you can adjust your marketing to their different grouping.
Hubspot has a great “MakeMyPersona,” tool to start with. Just by answering a few questions, you can develop detailed personas that your whole company can use.
7. Give Up Short-Term Marketing Tactics
The final step to embrace lifecycle marketing is to banish short-term marketing tactics. Instead of desperately trying to bring in any customer to spend any money, you should have a marketing strategy in place to re-engage lost business and convince loyal customers to return.
Acquiring new customers is important, but you want to make sure you bring them to your brand with long-term loyalty in mind.
Create a Lifecycle Marketing Plan with MyArea Network
If you’re struggling to attract the right customers or bring your existing customers back, reach out to MyArea Network today. We can set up a consultation and review of your brand to figure out what you need to wow your buyers and grow your business.