3 Reasons Lifecycle Marketing Works


From the Welcome Message to the WinBack Program, lifecycle marketing is a way of communicating with customers that adapts to their changing needs. Why is it so effective?

  1. Because lifecycle marketing acknowledges that customers aren’t static – they evolve.

You could say acquiring a new customer is step one of 100 steps, but it would be more accurate to say that it’s step one of an unknown number of steps. Customers’ needs change; what worked for them in January might be wearing thin by September. Keep in touch. Communication that’s tailored, creative and proactive–whether it’s done through surveys, milestone programs or referral solutions programs–has a positive influence on retention rate.

  1. Because it’s much easier to convert a lost customer than to win a new one.

It may seem counterintuitive that a “lost” customer would be more likely to return to the fold than a new customer would be to sign up, but the numbers don’t lie. Marketing Metrics show that probability of selling to a new prospect is 5-20 percent while the probability of selling to an existing customer is 60-70 percent. And consider it from customer’s perspective. Say the cost to renew a subscription to your favorite magazine increases. Even if you love the content, there’s a good chance you’ll pass. It’s not a rejection of the product; it’s a hold out on the price.

Imagine how much more cost-effective it would be for the magazine to send you a discount offer to renew rather than devise a completely new strategy to get the attention of a prospective customer.

  1. Because it’s more than just an invoice.

Would you want to hear from someone only when they’re asking for money?

OSG offers an array of lifecycle marketing solutions. Get in on them.

 

Tags: , ,

About OSG

OSG is a leading innovator in multichannel communication solutions. For 25 years, we’ve used the most cutting-edge technology to help our clients communicate with their customers – efficiently and securely.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: