Lifecycle Marketing – The Ultimate Guide to Engaging Customers

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8 min read
Customer buying products

Key Takeaways

Customer lifecycle marketing is essential for building lasting relationships and maximizing the value of each customer. This guide is your ultimate resource for navigating its intricacies and will equip you with the tools and knowledge to achieve your marketing goals.  

Here's everything we'll cover

What is Customer Lifecycle Marketing?

Customers move through various relationship stages with a brand, from when they first become aware of the brand, to engaging with or considering it, to making a purchase, to a number of possible post-purchase paths. Customer lifecycle marketing focuses on understanding where in their lifecycle a customer is, and delivering relevant, targeted experiences to keep them engaged and growing with your brand.  

If keeping customers engaged is the name of the game, then customer lifecycle marketing is like a GPS that guides your customers through twists and turns from when they first encounter your brand, to when they become your biggest fans. Delivering the right message to the right person at the right time on the right channel is your roadmap to turning one-time shoppers into loyal enthusiasts.

But this is easier said than done. Marketers face a variety of hurdles on the path to understanding where customers are in their lifecycle journey and achieving successful lifecycle marketing.  

Effective customer lifecycle marketing relies on a deep understanding of your customers' behaviors, preferences, and needs at each stage. It involves using data-driven insights and tools to craft personalized experiences that resonate with your audience. Integrating effective lifecycle marketing with a solid cross-channel marketing strategy will ensure consistency and coherence across various touchpoints, enhancing the overall customer experience.

Ultimately, customer lifecycle marketing is about building lasting relationships by continuously delivering value, addressing pain points, and exceeding expectations. It’s a strategic approach that not only drives immediate sales but also cultivates long-term loyalty and advocacy, propelling your brand toward sustained success. The benefits of effective customer lifecycle marketing—from short-term marketing cost reductions and incremental revenue lifts to customer retention and long-term revenue boosts—make it worth the effort.

Lifecycle Marketing Stages

Customer lifecycle models can vary by organization, industry or audience. While we employ a proprietary SmartJourney® lifecycle framework, most models include a version of the following stages:

Awareness

Objective: Make potential customers aware of your brand.

Example: Running social media ads, influencer partnerships, and content marketing campaigns to reach a broader audience. You might also use seasonal promotions or sponsorships at events to create buzz and attract new customers.

Engagement

Objective: Engage customers with relevant content and interactions.

Example: Sending personalized email newsletters with product or service recommendations, offering interactive quizzes on your website to help customers find the right solution, or hosting events with exclusive previews or workshops.

Consideration

Objective: Encourage customers to consider your products or services.

Example: Sending targeted email campaigns with testimonials, product or service comparisons, customer reviews, and special offers. You can also use retargeting ads to remind customers of items they’ve viewed or services they’ve shown interest in but haven’t yet committed to.  

Purchase

Objective: Convert engaged prospects into paying customers.

Example: Providing limited-time discounts, seamless checkout experiences, simplified sign-up processes, and compelling call-to-actions. You might also use offers like BOGO (buy-one-get-one-free) or free shipping to encourage immediate purchases.

Retention

Objective: Keep customers coming back for more.

Example: Implementing loyalty programs that offer points or rewards for repeat business, personalized follow-up emails with tips or suggestions for continued use, and providing exceptional customer service. Offering exclusive early access to new products or services can also help retain loyal customers.

How to design and measure the success of a loyalty program – Download Free Guide.

Advocacy

Objective: Turn satisfied customers into brand advocates.

Example: Encouraging customers to leave reviews, share their experiences on social media with branded hashtags, and participate in referral programs. You might also feature customer stories or user-generated content (UGC) on your website and social media channels.

Churned/Lapsed/Dormant

Objective: Re-engage customers who haven’t interacted with your brand in a while.

Example: Sending win-back email campaigns with special discounts, personalized recommendations, or a reminder of loyalty points about to expire. Surveys can be used to understand why customers have disengaged, and targeted promotions can be offered to encourage them to return.

Benefits of Customer Lifecycle Marketing

Lifecycle marketing is the strategic roadmap that guides your customers from their first interaction to being a loyal customer. Get it right, and you’re promised higher engagement with your customers, increased purchase behaviors, and long-lasting relationships.

Here are some of the key benefits of effective Lifecycle Marketing:

Engaged, Loyal Customers

Providing personalized, relevant, and timely interactions makes customers feel valued and understood, making them more likely to stick with you and engage with your brand.

A study by Salesforce found that 84% of customers say being treated like a person, not a number, is very important to winning their business.


Boost Revenue

Effective communication isn't just about words; it's about dollars and cents. Engaged customers spend more, which means more revenue for your business, both in the short- and long-term.


Grow Customer Lifetime Value

Engaged and satisfied customers are more likely to make multiple purchases over time, have higher transaction values, and stick with your brand. Delivering the experiences your customers want at the right time makes them happy. It’ll keep them coming back for more, which makes your brand happy. Sounds like a win-win.

A study by Bain & Company found that increasing customer retention rates by just 5% can lead to an increase in profits by 25% to 95%.


Use our free Customer Lifetime Value (CLV) calculator to see how you can maximize profits.


Optimize your budget

According to Harvard Business Review, acquiring a new customer is 5 to 25 times more expensive than retaining an existing one. If you want to reduce customer acquisition costs, improve acquisition spend ROI, or reduce your promotions budget, lifecycle marketing should be at the forefront of your marketing strategy. Marketers can realize significant cost-savings by understanding where a customer is in their relationship with the brand, what their patterns are, and using that information to deliver tailored messages and promotions only when needed.  

Shiny Brand Reputation

Good communication makes customers happy, and happy customers spread the word. Research by Nielsen shows that 92% of consumers trust recommendations from friends and family over any other type of advertising. With word-of-mouth being some of the best advertising a brand can earn, building brand advocates will help your brand's reputation—and sales—shine brighter than ever.

The Risks of Poor Lifecycle Marketing

While the upside of proper lifecycle marketing looks great, there’s also a lot at stake if your customer communications aren’t hitting the mark. To name a few:

  • You’re leaving money on the table by missing out on opportunities to up-sell and cross-sell
  • You may miss an opportunity to engage or re-engage a customer before they decide to completely leave your brand  
  • You may be blowing your budget on offers and promotions for customers who don’t need them

Effective customer lifecycle marketing isn't just a strategy—it's a necessity. By understanding and addressing the specific needs and behaviors of your customers at every stage of their journey, you can drive engagement, boost revenue, and create a community of loyal brand advocates.

Lifecycle Marketing Challenges

Navigating the landscape of lifecycle marketing can be as complex as it is rewarding. While the benefits of a well-executed strategy are clear, there are numerous obstacles that marketers must overcome to keep customers engaged and loyal. Here are some of the most common challenges:  

Complex Customer Journey Maze

Customers interact with brands across various channels, making it challenging for marketers to gain a holistic view of their journey. Without clear insights into each touchpoint, delivering timely and relevant messaging becomes difficult, leading to generic or mis-timed communications.  

Scattered Customer Data

Disconnected systems and siloed teams create fragmented customer profiles. This lack of data integration hampers the ability to provide personalized experiences, as marketers struggle to track and understand customer behavior across different platforms.

Only Looking in the Rearview Mirror

Relying solely on historical data can result in outdated strategies that miss the mark. Customer preferences evolve quickly, and without leveraging predictive analytics and real-time data, marketers risk falling behind. Proactive, forward-looking approaches are essential to anticipate and meet changing customer needs.

Channel Overload  

Managing multiple communication channels—email, social media, SMS, and more—can be overwhelming. Each requires a unique strategy, and customers expect a seamless experience across all of them. Inconsistent messaging across channels can confuse customers and weaken your brand’s message, making a well-coordinated communications strategy crucial.  

Limited Resources and Budget Constraints

With budgets shrinking for both personnel and program spend, marketers need more than ever to retain the existing customers they have. Implementing a comprehensive lifecycle marketing strategy requires significant investment in technology, talent, and time, which can be challenging with limited resources. The best way to make your limited budget go further is by using smart automation platforms to ensure the right messages are going to the right people at the right time, minimizing wasted communications. By prioritizing initiatives and leveraging automation tools, marketers can mitigate some of these challenges, creating efficient and effective campaigns that drive customer retention and maximize the impact of every dollar spent.  

The solution? Leverage smart automation platforms to personalize your lifecycle marketing to each customer’s behavior. These tools allow you to adjust your strategy in real time, ensuring that your messages are not only personalized but also delivered at the optimal moment. This approach minimizes wasted communications, allowing you to stretch your budget further by making every interaction count. By prioritizing initiatives that are data-driven and using automation to respond to customer needs instantly, you can create more efficient and effective campaigns that maximize your return on investment and drive customer retention.

Customer Lifecycle Marketing Strategy

Navigating the complexities of customer lifecycle marketing can be daunting, but with the right strategies and tools, you can overcome these challenges and create seamless, effective communications. Here’s how you can streamline your approach and ensure your marketing efforts hit the mark:

Bring Your Data Together

Make sure you’re considering all relevant customer behaviors when painting a picture of who they are. Your customer engagement and personalization software should integrate with your other systems so that you get the full picture for a holistic understanding of customer journeys and can tailor your marketing efforts for every customer.  

Timing is everything

Consumers are individuals with different behaviors, patterns and preferences. While one person may buy shampoo every two weeks, another may buy a larger size every two months. Getting the timing right for each customer based on their individual behavior is critical to truly achieving 1:1 personalization. Understand their buying cycles and tailor your communication to match these unique patterns.

Know what your customer will do before even they do

Embrace predictive analytics and AI to help you understand your customers' behavior today and predict what they’ll do tomorrow. To keep customers engaged and stay ahead of their expectations, you need to be agile and adaptable, and respond to their changing behaviors in real time. These tools allow you to foresee potential churn, predict future purchases, and deliver timely and relevant messages that resonate with your customers.

Automation—Your Time-Saving Sidekick

It would be humanly impossible to monitor all of your customers’ behaviors and respond in real time to changes, like missing a purchase or decreasing spend. Leveraging AI and automation can take all the data being generated and derive valuable intelligence and insights, like which customers may churn if you don’t act quickly or where you have opportunities to offer additional products or services. Automation helps ensure that no customer interaction slips through the cracks and that everyone receives the attention they need to drive engagement and loyalty.

Unsure if you’re martech stack is working for you? Sign up for a free audit and we’ll tell you what’s working, what’s not, and what you’re missing.  

Lifecycle Campaign Examples

Implementing effective lifecycle marketing campaigns can transform how you engage with customers, improve retention, and drive revenue. Here are some real-life examples and ideas to inspire your strategies:

1. Onboarding Campaigns


Example: Spotify

Spotify's onboarding campaign helps new users get the most out of their subscription with a personalized sign-up experience to tailor their recommendations by sending a series of emails that explain how to create playlists, discover new music, and connect with friends.


2. Re-engagement Campaigns


Example: Netflix

Netflix sends personalized re-engagement emails to users who have stopped watching on the platform, highlighting new shows and movies they might enjoy based on their viewing history.

3. Cross-sell and Upsell Campaigns


Example: Amazon

Amazon excels at cross-selling and upselling by recommending products related to past purchases and frequently bought together items on their website, mobile app, and through email.


4. Win-back Campaigns


Example: Gap

Gap runs a win-back campaign targeting customers who haven’t made a purchase in a while. The campaign includes personalized emails with the subject line "We Miss You” along with an attractive 40% off coupon to encourage customers to return.


5. Loyalty Programs


Example: Sephora

Sephora's Beauty Insider program rewards customers for their purchases with points that can be redeemed for exclusive products, discounts, and early access to sales. The program uses a tiered structure—Insider, VIB, and Rouge—where customers earn more benefits as they spend more, encouraging repeat purchases and fostering brand loyalty. Sephora also personalizes offers based on the customer’s preferences and purchase history, making the rewards even more enticing.


6. Educational Content Campaigns


Example: Bank of America

Bank of America's "Better Money Habits" platform offers a variety of educational resources aimed at helping users improve their financial literacy. The platform includes articles, videos, and interactive tools on topics like budgeting, saving, credit, and home ownership. This initiative not only educates consumers but also positions Bank of America as a trusted advisor in their financial journey.

7. Seasonal Campaigns


Example: BestBuy

BestBuy leverages seasonal campaigns, such as their annual Black Friday and holiday sales, to drive engagement and sales. These campaigns are syndicated across all channels from their website to personalized emails and social media ads.

Lifecycle Marketing Success Stories

The following real-world examples illustrate how several of our customers have successfully implemented lifecycle marketing solutions and strategies to engage and retain customers.  

  • Exxon Mobil leveraged deep analytics to move from purely transactional relationships to creating clear differentiators for why customers should choose Exxon over competitors. This resulted in a 615% ROI from personalization efforts across channels.
  • Globo revamped their loyalty program moving from a punch card program to a data-driven digital solution that allowed them to personalize offers. The result was a 31% increase in spend for loyalty program members vs. non-members.

Customer Lifecycle Marketing Software

There is no shortage of software solutions that claim to deliver higher customer engagement and improved customer experience. Having a martech stack filled with underutilized, complex software is a significant barrier for marketers. According to a study by Gartner, 63% of marketing leaders reported that their martech stack is underutilized. Here are the tech solutions you need to power your lifecycle marketing strategy.

Advanced Analytics and Reporting

Advanced analytics tools help you make decisions based on data, not just gut feelings. These tools enable intelligent, data-driven decision-making and predictive analysis, helping marketers anticipate customer needs and behaviors. The right analytics tools can process and analyze enormous amounts of data at incredible speeds to forecast when customers are likely to transition to the next lifecycle stage, so you can take action at the right time.

And these tools need to be simple. Marketing teams often depend on data and analytics teams to translate customer data into useful reports. But priorities and timelines for these different teams may not align. Effective lifecycle communication means engaging customers in the moments that matter, not the next day, week, or month. This means that you may not be able to wait for monthly reports that show you what your customers have done. You need to know today whose behavior has changed, who you should activate, and who’s at risk for churning. Having simple, real-time, marketer-friendly reporting is a must.  

Omnichannel Automation

Streamline your marketing efforts with omnichannel marketing automation. With these tools, you can automate and personalize customer communication across channels at an individual level ensuring that you never miss those important engagement opportunities. From welcoming new customers to post-purchase surveys and offers, automation ensures consistent, seamless communication with your customers.

Kognitiv Ignite: Our Ignite software offers robust omnichannel automation capabilities. By integrating your customer data across all channels, Ignite helps you deliver personalized experiences at scale, ensuring that every interaction is relevant and timely.

Intelligent AI

All AI is not made equal. In a saturated market where everyone is sprinkling AI into their software, it’s crucial to understand the power of AI-native solutions. These will take you from backward-looking diagnostics to predictive and prescriptive insights. AI-native tools can analyze customer data in real time, providing actionable insights that help you anticipate customer needs, identify potential churn, and optimize engagement strategies.

Kognitiv Pulse: With Pulse, you get an AI-native solution designed to enhance your marketing efforts. Pulse leverages proprietary Kognition AI/ML engine to provide predictive and prescriptive insights, allowing you to engage customers with precision and maximize the impact of your marketing campaigns.

Why marketers should choose AI-native technology to get the best outcomes – Read Article.

Bringing It All Together

Combining these tools—advanced analytics, omnichannel automation, and intelligent AI—creates a powerful martech stack that can drive your lifecycle marketing strategy forward. By leveraging these solutions, you can gain a holistic understanding of your customers, engage them at the right moments, and foster long-term loyalty. Don't let underutilized software hold you back. Equip your team with the right tools and transform your customer lifecycle marketing.

Curious if your martech stack is up to par? Sign up for a free audit and discover what’s working, what’s not, and what you might be missing.

Maximizing Customer Lifetime Value

In the era of endless choices and customer-first marketing, mastering customer lifecycle marketing is your secret weapon. It's the roadmap to nurturing lasting customer relationships and driving business growth.

By addressing the challenges and utilizing the right tools, businesses can navigate the complex landscape of customer lifecycle marketing with confidence to truly deliver hyper-personalization at scale. The rewards are substantial—enhanced engagement, stronger customer loyalty, increased revenue, optimized budgets, and a brand that shines brightly in the eyes of its customers. So, what are you waiting for? It's time to start your journey towards customer engagement excellence!

Contact us today to learn how Kognitiv can help you increase your customer lifetime value by at least 20%. Visit our demo page to schedule a consultation.

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