Buyer Lifecycle informs and improves your marketing strategy and enables effective one-to-one marketing.
Buyer Lifecycle identifies and predicts when critical events that affect customer value will occur, at the individual customer level. Use Buyer Lifecycle to target individuals at each stage, and tailor your message with exceptionally actionable customer intelligence.
- Prospects - Consumers who have not yet made a purchase
- The prospect indicator identifies potential customers on your list who have not bought from your brand yet.
- Actives - Customers who recently purchased
- The Actives Algorithm identifies customers who are new to your brand and your repeat customers. They have made a relatively recent purchase and exhibit behaviors consistent with the expectations of active buyers in terms of purchase cadence.
- Appreciate & Sell: Thank them with service and personal touches. A customer who made a purchase recently is more likely to make a purchase again. Recognize them as a good customer using a templated email that differentiates the communication between their emails and all others. Consider the “VIP” program at Zappos. Pages on website and email treatments are branded as such. Benefits include free shipping with every purchase. The strategy is to keep them buying, on the right cadence.
- In Market - Customers expected to make a purchase
- The “In Market” Algorithm identifies customers that are currently in their expected purchase window. The algorithm uses historical buying behavior and time series data to make this prediction.
- Engage & Connect: Updates and Thought Leadership touches are usually just the right nudge to get a customer at this stage to buy again. There are many effective ways of accomplishing this such as showing these customers new products, positive reviews of items related to what they bought, and best sellers of the brand. Give them the confidence to make a decision and encourage these customers to enjoy purchasing again.
- Faders - Customers who have missed their expected purchase.
- The Faders Algorithm identifies Customers who have statistically missed more than one expected purchase window. These are not inactives, Faders have a significantly higher probability of becoming active again vs. an inactive customer.
- Stimulate: Stimulate and inspire these customers to improve their purchase cadence. These customers typically need an effective reminder of the brand and it’s products. Combine brand reminders with effective promotions, such as free shipping, to get the most likely sales from this target.
- At Risk - Customers who have stopped buying, yet have some likelihood of being reengaged
- These customers are at risk of abandoning the brand, ie. total attrition. These individuals can and have to be reactivated. Similar to Inactives, but with a higher probability of success in reactivating.
- Reactivation: Engage these customers with messaging and experiences to win them back. Specific strategies such as developing an independent email series should be considered for At Risk Customers. Highest value At Risk Customers may respond to a personal touch, highly personalized direct mail, or phone call.
- Inactives - Customers that have effectively ended their relationship, and lapsed into attrition
- These customers are not buying at all, and historically this group is a challenge to reactivate through the same channels you have previously used.
- Winback: Successful reactivation to this specific group use “channel-hopping” strategies --moving from online to offline touches, and recognizing their former value to the business, as well as unique incentives. They are however, the most difficult group to market or effectively sell to, thus requiring segmentation to improve reactivation results at almost any level of investment.