According to the Harvard Business Review, it can cost anywhere between five to 25 times more to acquire a new customer than to retain an existing customer. Yet brands continue to spend an average of 88% of their budget for customer lifecycle marketing in awareness strategies.
Instead of driving new customers to the top of your funnel and encouraging them to make a purchase at the end, brands that understand and address the various stages of the customer lifecycle can achieve a greater impact.
For a fashion brand, this makes a lot of sense. A customer may become aware of your brand through a pop-up sale resulting in a $40 value to the brand. But if that customer continues to be engaged, and returns five times per year and with an average spend of $40 each time, then in five years, the customer is worth $1,000.
Customer Lifecycle Marketing for Retail Success
Understanding the progression of steps a customer goes through when considering, learning, purchasing, using, and maintaining loyalty to a brand is important to your retail success.
To learn how to craft the right strategies that will get a potential customer’s attention, turn her into a paying customer and nurture her to loyalty, download our paper, “Adapting Marketing to the Customer Lifecycle in Fashion Retail”