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The customer lifecycle is a term in customer relationship management (CRM) that’s used to describe the series of steps that a customer goes through with a new product or service—from initial discovery to ongoing loyalty.
The customer lifecycle can be broken down into five constituent steps: reach, acquisition, conversion, retention, and loyalty:
Reach
When a customer first becomes aware of a product or service and develops an association between it and current or future needs.
Acquisition
When a prospect learns more about the product or service and begins considering whether it’s the right solution for their needs.
Conversion
When a prospect becomes a customer by purchasing a product or service.
Retention
Focuses on helping the customer derive value from the product or service by using or implementing it.
Loyalty
The final stage where happy customers continue using the product or service in the long term, potentially making additional purchases.
The customer lifecycle represents the stages a customer goes through from initial awareness and acquisition to retention, loyalty, and advocacy. The customer lifecycle forms the basis for targeted marketing and sales strategies.
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