Customer Lifecycle
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.
How to Map the Customer Lifecycle Journey:
Customer Lifecycle FAQs
What is the customer lifecycle in sales and marketing?
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.
What are the stages of the customer lifecycle?
The customer lifecycle can differ between brands. Generally speaking, the standard customer lifecycle will involve the following stages: need, awareness, interaction, purchase, engagement, and advocacy.
How does customer lifecycle inform sales methodology?
Brands can use insights from their customer lifecycles to tailor their messaging, offers, and customer interactions based on where customers are in the lifecycle, focusing on building relationships and delivering value at each stage.