The Stages Of The Customer Lifecycle

July 26, 2019

Featuring Margaret Gorin, Head of Growth Strategy at Custora

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When we think about customer life cycle stages here at Custora, we think about three different stages.

Active customers, those are customers who we predict are going to be coming back to you for another repeat purchase.

Members, those are customers who haven't purchased with you yet, but you have their contact information.

Then inactive members or inactive customers who probably aren't going to be coming back to you.

What we see when we work with retailers is that many marketers think about personalization as being about what kinds of creative or products really resonate with this segment, but I think when you think about individualized one-to-one engagement, what that really means is customers want to be understood, they want to be recognized, they want to be appreciated for where they are [in their customer journey].

If you're treating a customer who might be fading away from you as if they were the same as an active customer who's buying from you every week, they're going to wonder why is it that you're not recognizing the fact that I might not be so happy with your brand, and they want to be seen for where they are in their own journey.

That's why having that ability to predict, not just, okay, this person hasn't purchased with me for a year but this person is really off of their normal cadence and they might actually be fading away.

You can tailor that message much more specifically to where they are. Maybe instead of just a generic "We miss you," it's, "We noticed you haven't been back to us in a few weeks, would you like to repurchase those socks that you usually buy every few months?" I think that becomes a much more resonant message with that customer.

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