KPI’s for Customer Life cycle in Marketing

For any company or brand to survive Customer Life cycle is important.

Lead Nurturing- Trying customers to make interest in your product.

Customer life cycle means starting from leads generation to customer churning out of the system.

Let’s have a look at Sales force Customer Life cycle

There are mainly 5 stages of Customer Life cycle

1.Approach — Lead generation its nothing but Customer engagement

Leads — While acquiring leads we have hot leads, warm leads and cold leads

2.Acquire — Here how much we spend to Acquire a new customer which is (CAC) Customer Acquisition Cost.

3.Development — Customer Nurture, here lead becomes a customer

4.Retention — Retaining the customer to churn out

5.Loyalty — Customer became Advocate

Customer Life cycle can be defined in Early, Mid and late stages.

Approach & Acquire comes under Early stage.

Development comes under Mid stage.

Retention comes under Late stage.

In Marketing KPI’s play a major role.

There are different KPI’s like

1.NPS- Net Promoter Score =(Promoters-Detractors)\Total Responses .It is used to check the brand loyalty and how it is performing in the market.

2.CRO — Conversion Rate Optimization also known as Funnel Optimization.

3.MQL- Marketing Qualified Leads.

4.SQL- Sales Qualified Leads

5.Funnel Conversion Rate

6.ARPU- Average Revenue Per User

7.Brand Awareness- Making aware of brand

8.Customer Engagement- Interacting with customers

Nurture Cycle — When leads convert to nurture.

Gamification strategy in the App usage led by product manager roles to bring users back.

Up selling is upgrading the customer more

Crosselling means selling other products along with their products.

Eg : Microsoft started selling surface laptops along with MS office and other products .

Metrics for a new product launch in E-commerce site

Approach

Promotional Ads, Campaigns, Sample distribution and influencer marketing

Acquire

Cashback offers,Referrals Eg: Gpay, Phone pay

Development

Up selling and Crosselling when lead becomes a customer Eg: Amazon prime account

Retention

Retention engagement, Feedback,Wallet and Retention focused campaigns

Loyalty

Brand advocates, Loyalty points and brand ambassadors

Metrics for a new product launch in E-commerce site

Approach

Promotional Ads, Campaigns, Sample distribution and influencer marketing

Acquire

Cashback offers,Referrals Eg: Gpay, Phone pay

Development

Up selling and Crosselling when lead becomes a customer Eg: Amazon prime account

Retention

Retention engagement, Feedback,Wallet and Retention focused Campaigns

Loyalty

Brand advocates, Loyalty points and brand ambassadors

Based on Business Buying cycle we can predict the churn of customers.

The most important Algorithm used in the E-commerce sites is Market Basket Analysis.It is an Unsupervised Algorithm which is also an Association rules.This MBA is used in Product Bundling and Frequently brought together.

For example MBA is used to show the items which are purchase together like milk and bread. This Association rules technique is highly used for Cross selling and Up selling. Cross selling means bringing from a product vertical .Up selling means Upgrading the product which drives the revenue.

This MBA is also used in Recommendation Engines for Product Recommendations.Amazon ,Flip kart uses Collaborative Filtering Techniques, which is item-item for user to user for product recommendations.

NPS score is used to measure the Sentiment Measurement of the customers. Customer Behavior Analysis- based on A/B testing tool for optimization in terms of menu order for online sites.

Vyshnavi www.linkedin.com/in/vyshnavi-v-36b40190/

An enthusiastic Data Scientist..still learning.. An Post Graduated in PGDM in Business Analytics

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