The customer lifecycle involves stages that define the relationship between a customer and supplier, starting with attracting potential customers and ending with securing their loyalty. Each stage can deepen or deteriorate the relationship. The attract, acquisition, and conversion stages are important for building trust and loyalty, but the relationship can end if the supplier fails to maintain quality and integrity.
The customer lifecycle is the series of stages that identify the dynamics of the relationship between the customer and the supplier over a period of time. While there are many different approaches to defining the stages of a customer relationship, most methods start with trying to capture the interest of a potential customer and culminate in securing that customer’s continued loyalty. In all its incarnations, each phase or stage of the lifecycle has the potential to deepen the connection between the customer and the supplier, or cause the relationship to deteriorate and finally end.
A typical customer lifecycle begins with what is known as the attract or reach stage. Here, the vendor takes proactive steps to secure consumer attention and generate interest. It is during this process that trust begins to be established between the two parties, providing a basis for ongoing dialogue.
The next phase of the customer lifecycle is focused on customer acquisition, providing incentives to make a purchase. Assuming the interaction to date has been productive and the vendor has been honest with the consumer, this initial purchase is likely to be pleasant for the consumer. If the purchase proves to deliver on all promises made by the vendor, the relationship is likely to move to the next level. Otherwise, the client’s lifecycle is likely to end at this point.
Once the attract and acquisition stages are complete, the next phase of the customer lifecycle is about converting the customer. At that point, the consumer commits to continue purchasing goods and services from the supplier, based on the success of the initial purchase. During this phase, the consumer is likely to become an advocate for the supplier, promoting the goods and services to third parties in their social network. As the consumer remains satisfied with the relationship, stronger bonds of loyalty are established and the customer remains connected to the supplier for a longer period of time.
It is important to note that it is possible to end the customer lifecycle at any point in the process. Even after strong ties have been established and the customer has shown a lot of loyalty, the supplier’s failure to maintain quality, acceptable prices, and display integrity and honesty can damage the relationship. When events of this nature occur, the customer lifecycle is typically over and extremely difficult to revive.
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