What is the Life Cycle ⭐.
The Customer Life Cycle refers to the six stages a person can go through when interacting with your eCommerce.
Life Cycle stages help to understand the relationship between the customer and the company, in order to optimize sales and marketing strategies based on each stage.
There are six states:
- Prospects
These are people who interacted with your eCommerce but did not complete the purchase. This interaction can mean that they registered in your online store, that they left an abandoned cart, that they subscribed to a newsletter, among others. People considered prospects are possible future customers, so it is important to know them better and take them into account when generating communication strategies.
- First purchase / One Timers
These are active customers who have made a purchase with your brand. In most businesses, this number is usually high. Many times businesses go out to acquire customers without regard to whether these people will actually be valuable buyers and if they are worth the investment. We must keep an eye on those customers who made a first purchase and share characteristics with your customers that have a high LTV. Let's retain!
- Second purchase
They are active customers who made two purchases in your online store. The famous second purchase has a great meaning: they are choosing you again! The first purchase may be for a specific situation, a momentary need or desire, however, the second purchase could indicate the beginning of a habit. What strategies will we carry out so that they continue buying?
- Frequent
They are active customers who have made three or more purchases in your business. This is great! What makes them keep buying? What are the products they usually buy? We must continue to retain these customers and for that it is important to analyze in depth their behavior and buying patterns.
These are customers who did not buy again within the repurchase limit period. These people used to be active customers, either having bought once or more. For some reason, they stopped buying. Don't worry! We can develop strategies to go after the reactivation of the most valuable ones.
- Reactivated
These are customers who at some point were inactive but you managed to wake them up. Great! You must pay special attention to their care.
Story mode:
Paula saw on Instagram an advertisement for discounted dog toys. She clicked through and entered the Puppies online store, logged in and added two toys for her dog to her shopping cart that she ultimately decided not to buy.
At that point, Paula became a prospect for the company, which began sending her emails with products and discounts in which she showed interest.
A few days later, Paula decided to make the purchase in eCommerce.
At that time, it went to "One Timer" or "First Purchase" status.
Puppies analyzed how its products performed, so it began sending e-mail communications to its one-timer customers, offering the products that people usually take with them on their second purchase.
The following month, Paula was pleased with the experience. So she made the decision to go back to Puppies, a dog food bag.
At that time, it went to "Second Purchase" status.
Paula started buying monthly dog food from the store, as her experience was very good. Puppies sent her their offers via email on a weekly basis.
At that point, it went to "Frequent" status.
Some time later, due to some financial problems, Paula stopped shopping at Puppies.
During that time, it went to "Inactive" status.
The brand began to develop customer reactivation strategies, sending discount coupons to the most loyal customers, and they managed to get Paula to buy her dog food again from the eCommerce.
At that point, Paula went to "Reactivated" status.