INSTITUTE: University School of

Business
DEPARTMENT ..Management..
Masters of Business Administration
Subject Name: Customer Relationship Management
Code: BAB-754
Customer Lifecycle
Management DISCOVER . LEARN .
1
EMPOWER
 Customer
Relationship
Management
Course Outcome
CO Number Title Level

Remember
CO1
To answer as to how customer relationship management
works and the factors that influence its success
 
Will be covered in
Understand
this lecture
To understand customer needs, fulfill customer requirements,  
CO2
resolve customer complaints and retain customers

Understand
To understand the approaches to and guidelines used to
CO3 analyze challenges in CRM and make strategies to resolve the
same.

2
 Three reasons to invest in Customer touch point
management

Save Money An increase of customer loyalty of 1 percent is equivalent

to a 10 percent cost reduction (source: Bain & Co.)

The probability of selling to a new prospect is only 5

Increase sales percent to 20 percent while the probability of selling to an
existing customer is 60 percent to 70 percent (source:
Marketing Metrics)
Grow Profitability Customer loyalty accounts for 38 percent of margin, 40
percent of revenue growth and 38 percent of shareholder
value (source: Accenture Research).
Customer Lifetime Value
• The lifetime value of a customer, or customer lifetime value
(CLV), represents the total amount of money a customer is
expected to spend in your business, or on your products,
during their lifetime.
• This is an important figure to know because it helps you
make decisions about how much money to invest in
acquiring new customers and retaining existing ones.
What is customer lifecycle management?
• Customer lifecycle management is a tool or suite of tools
that help ensure that leads and clients are receiving high-
quality, personalized service at all times.
• As a marketing strategy, customer lifecycle management
creates effective one-to-one customer journeys, promoting
improved customer loyalty and better brand reputation, and
tapping into the motivations that help turn leads into brand
evangelists.
• Customer lifecycle management model can be broken down into several key steps:
1. Approach
Businesses locate potential leads, demonstrate the value of the product or service being
offered, and show the leads how they can become customers.
2. Acquisition
The leads enter the sales pipeline. As they progress, businesses will need to be able to
continue to demonstrate product value, while also addressing any concerns that may arise.
3. Development
Leads that reach the end of the pipeline complete their sales and become customers.
Businesses then focus on further developing that relationship, by following up with the
customer and soliciting feedback.
4. Retention
As customers provide information, businesses analyze that data so that they can then create
a more personalized customer experience. This may lead to further sales, often in the form
of cross sales and up sales.
5. Loyalty
The end goal of the customer lifecycle is to create brand advocates who not only continue to
do business with the company, but also promote that company on their own social circles.
Personalize the experience a customer has with the company over time

Retain
Customer
Engagement
Grow

Serve

Onboard
Acquire
Target Customer Lifecycle
 Personalize the experience a customer has with you over time

Target: Deliver the right message at the right

time to the right channel

Phase 1: Recognize:
- Brand management
- Content Targeting
- Customer Segmentation

Phase 2: Anticipate
- Email marketing
- Site marketing
Retain
- Geo targeting
Customer
Phase 3: Engage
Engagemen
t -A/B Testing
- Predictive offers Grow
- Mobile Marketing

Serve

Onboard
Acquire
Target
Customer Lifecycle
 Personalize the experience a customer has with you over time
Acquire: Persuade the customer that you will
meet and exceed needs

Phase 1: Recognize:
- Offer Management
- Persuasive content architecture
Phase 2: Anticipate
- Community
- Recommendations
- *Scenario management
- Rich media
Retain
Phase 3: Engage
Customer - *Behavioral Targeting
Engagemen - Instant Messaging
t
Grow

Serve

Onboard
Acquire
Target
Customer Lifecycle
 Personalize the experience a customer has with you over time
Onboard: Convert prospects into customers

Phase 1: Recognize:
- *Commerce
- *Merchandising
Phase 2: Anticipate
- *Product configurations
- *Rich Visualization
Phase 3: Engage
- Guided Selling
- Contract Management
Retain
Customer
Engagemen
t
Grow

Serve

Onboard
Acquire
Target Customer Lifecycle
 Personalize the experience a customer has with you over time
Serve: Allow customers to self serve in a
collaborative environment

Phase 1: Recognize:
- Account Management
- Customer Feedback
- Ratings
Phase 2: Anticipate
- Issue resolution
- Real time alerts
Retain
Phase 3: Engage
- Click to call
Customer
- Innovation management
Engagemen
t
Grow

Serve

Onboard
Acquire
Target
Customer Lifecycle
 Personalize the experience a customer has with you over time
Grow: Deepen your relationship with your
customer base

Phase 1: Recognize:
- Online Community’s
- Special Pricing

Phase 2: Anticipate
- Cross Sell
- Lifecycle dialogs

Phase 3: Engage Retain

- Sales dashboards
Customer - Event based workflows
Engagemen
t
Grow

Serve

Onboard
Acquire
Target
Customer Lifecycle
 Personalize the experience a customer has with you over time

Retain: Reduce your customer churn

Phase 1: Recognize:
- Enhanced content
-
Phase 2: Anticipate
- Event based dialogs
- Knowledge Base
- Expert location
Retain
Customer
Phase 3: Engage
Engagemen - Click to call
t - Instant messaging
Grow

Serve

Onboard
Acquire
Target
Customer Lifecycle
Customer Lifecycle Management For
Mobile Marketers-A Case Study
Why Customer Lifecycle Management

• Disruption across more industries.

• Retaining customers continues to remain a challenge (only 29% continue to

be active after 3 months)

• Multiple Apps competing for limited mindshare of customer.

• Customers are getting exposed to best-in-class hyper personalized, relevant,

real time messaging.

• As mobile internet penetrates deeper-

- Voice as the preferred mode of search
- Vernacular as the preferred language
- Markedly different consumption patterns than early adopters
*Source: Localytics 2017
Customer Lifecycle Management Framework

CLM is the process of marketing to customers based on the stage they are
in
Building blocks of effective CLM

1. Having a single view of

the customer

2. Real time, automated

customer segmentation

3. Real time,
personalized, automated
Right message to the right customer at the campaigns
right time, through the right channels
Segmentation

Demographics Age | Gender | Marital status | Income | Education

Location City | Cell site

Handset Handset | Browser | Data connectivity | Data speed

Completed any action within the purchase funnel

In-App Install | Sign up | Search | Viewed Product page
behaviour Added to cart (watch list) | Payment failure |Purchase

Recency: Last customer performed action

RFM Frequency: How frequent is this customer action
Monetary value: Aggregate value of customer purchases
segmentation
provides actionable segments ranging from power users
to dormant customers to at-risk customers
Segmentation Essentials

More granular your

targeting, higher
are chances of
success

Segmentation engine
has to run real-time

Automate key use

cases with the
highest impact on
business metrices
Segmentation: use case
Push notifications: best practices

Use deep links for easy

Relevant and personalized
navigation

Providing actionability to Experiment with rich media

customer features

Setting frequency caps at

customer level

Timely

Communication
• Copy: right
length, clear
• Tonality –
conversation
al,
arousing
curiosity
 Onboarding journey

1. Set measurable goals

for the on-boarding 3. Design programs to
journey nudge customers
towards those HVAs

2. Identify high value

actions most closely
linked with goals

1
Onboarding: points to ponder

Get the sign up flow

Vary onboarding flows
right, through
according to acquisition
continuous optimization
channel

Collect customer data points which

will help you personalize user
experience

1
 References:
1.Brealey, R. (1983). Risk and return on common stocks. Cambridge, MA: MIT Press. Brennan, R.,
Canning, L., & McDowell, R. (2010).
2.Business-to-business marketing (2nd ed.). London: Sage Publications. Capon, N., & Glazer, R.
(1987).
3.Marketing and technology” a strategic alignment. Journal of Marketing, 51(July), 1–14. Cui, A. S.
(2013).
4.Portfolio dynamics and alliance termination: The contingent role of resource dissimilarity. Journal
of Marketing, 77, 15–32. Day, G. (1977).
5.Diagnosing the product portfolio. Journal of Marketing, 41(April), 29–38. De Reyck, B., Grushka-
Cockayne, Y., Lockett, M., Calderini, S. R., Moura, M., & Sloper, A. (2005).
6.The impact of project portfolio management on information technology projects. International
Journal of Project Management, 23(7), 524–537. Fournier, S., & Avery, J. (2011).
References:
7. Putting the relationship back into CRM. Sloan Management Review, 52(3), 63–72.
Frei, Frances X. (2008, April 1–14).
8. The four things a services business must get right. Harvard Business Review (Prod.
#: R0804D-PDF-ENG). Friend, S. B., & Johnson, J. S. (2014).
9. Key account relationships: An exploratory inquiry of customer-based evaluations.
Industrial Marketing Management, 43, 642–658. Gabas-Varini, E. (2003).
10. Project portfolio management: Get more value from IT investments. Whitepaper,
available at http://projectmanagement.ittoolbox.com/documents/ document.asp?
i=897
THANK YOU
For queries you can reach me on
Email: [email protected]