Customer Relationship Manager(CRM) Question:
Explain what is Customer Life Cycle?
Answer:
Customer Life Cycle is used to describe the phases through a customer goes. Here are the important stages of a customer life cycle −
► Reaching − It is the phase where a business communicates with its target customer. It is mainly done through advertisements.
► Acquisition − Attracting and influencing the target customer. The marketing team decides the scope of the target audience and convinces the customers about the benefits of its products/services.
► Conversion − It is when customers decide to purchase a product or service.
► Retention − In addition to flawless products/services, the business offers some extra facilities to the customer such as priority treatment, beautiful store ambience, free parking, etc., to retain existing customers.
► Inspiration − To inspire a regular customer into a loyal one by establishing a sound relationship. When a business puts efforts on providing polite and quick service, personal attention from the staff, knowledgeable sales staff, then the customers are automatically inspired to buy a product/service from a particular vendor.
Customer Life Cycle
Let us now try to figure out what differentiates a customer from a consumer.
► Reaching − It is the phase where a business communicates with its target customer. It is mainly done through advertisements.
► Acquisition − Attracting and influencing the target customer. The marketing team decides the scope of the target audience and convinces the customers about the benefits of its products/services.
► Conversion − It is when customers decide to purchase a product or service.
► Retention − In addition to flawless products/services, the business offers some extra facilities to the customer such as priority treatment, beautiful store ambience, free parking, etc., to retain existing customers.
► Inspiration − To inspire a regular customer into a loyal one by establishing a sound relationship. When a business puts efforts on providing polite and quick service, personal attention from the staff, knowledgeable sales staff, then the customers are automatically inspired to buy a product/service from a particular vendor.
Customer Life Cycle
Let us now try to figure out what differentiates a customer from a consumer.
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