Increase Revenue and Customer Retention with Buyer Lifecycle Analytics

Drive Your Buyer Lifecycle Today

Buyer Lifecycle informs and improves your marketing strategy and enables effective one-to-one marketing.

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Buyer Lifecycle Analytics depicts the stages of Buyers throughout their lifecycle with your brand, constantly optimizing and maximizing sales and loyalty.

What is a Buyer Lifecycle?

A Buyer Lifecycle is the unique stages of Buyers throughout their life cycle with your brand. The lifecycle of a buyer is a fluid and dynamic process – buyers move through the lifecycle stages based on their individual purchase behavior and timing. Buyers in a specific stage can now be marketed to based on where their relationship with your brand actually is, in order to maximize sales over time.

There are 6 distinct behavioral stages in the Buyer Lifecycle:

  1. Prospects
  2. Actives
  3. In Market
  4. Faders
  5. At Risk
  6. Inactives

What is a Prospect?

Prospects are those who have not purchased with your brand. They can be those who simply signed up on that ever-larger email signup popup on your homepage, or those who put items in a cart and “almost” purchased, but abandoned.

A level of investment and communications will be required to drive them to the next step. This cannot be overlooked without consequence. Prospects, regardless of the level of engagement or targeting, have a massive, and in some cases, a predictable difference from the buyers you seek to drive incremental sales from — they lack the most powerful signal of all behaviors — actually spending with your brand. Commonsensical enough, perhaps — but the prospect ‘batch and blast’ marketing that pervades retail emailers typically makes the challenge harder. Customer Intelligence is required to target, learn and test your way into viable prospect conversion strategies.

What is an Active Customer?

Active Customers are the individuals who are currently spending with you. They have made purchases in recent history and are always comprised of two high-value groups. Those who made their first purchase, and those who have begun to develop loyalty and make subsequent purchases. One-time buyers can present a unique challenge to retailers who are focused on acquisition, but lack a functional strategy to develop loyalty.

Your objective for active buyers is to keep them buying. Do so by identifying the purchase cadence they have exhibited and using that intelligence to inform communications when they are likely to buy again.

What is an In-Market Customer?

In-Market Customers are the buyers in your database that are prepared or  likely to buy again. Logically, that kind of customer intelligence would materially reduce missed opportunities. Marketers are beginning to use more sophisticated models, like a “Next Most Likely Purchase,” that pinpoint the window in which a customer is most likely to buy.

When you do identify those customers who are moving to “In-Market,” you’ve got the highest-performing segment of your database primed for spending. That’s not only based on who they are or what they bought in the past — but who they are to your brand at a given, and pivotal point in time.

This can be accomplished through the statistical methods that look across your customer base and the purchases. It can use peer groups based on buying behavior and timing of purchases for various groups of customers. These models can be very effective and have stunning ROI when the lowest cost touch is used first, and escalating touches and offers are used subsequently.

What is a Fader?

Fader Customers are individuals who we expected to have bought — but did not. We may not know why, but the interrogation of a segment and other market conditions can help us understand. In one instance, a brand stopped a seasonal sale that it formerly had every year at the same time. Loyal customers looked forward to a chance to “shop the sale” — and it had become a part of the brand experience they knew. The sale wasn’t replaced — and the “Fader” metrics spiked accordingly. Having the customer intelligence to see this and quantify the impact is invaluable in developing pricing, promotion and general marketing strategies.

What is an At-Risk Customer?

At-Risk Customers are buyers that fall into what we call the “At-Risk” category and are statistically most likely to fall into attrition. They have missed multiple purchase windows. “At-Risk” customers can be rescued. Like all other stages in the buyer lifecycle, this is a behavioral view — which means there is behavioral (buying) evidence that those who are “At Risk” can be rescued, and moved all of the way back to “Actives.”

What is an Inactive Customer?

Inactive Customers are those who have missed numerous likely purchases and have not purchased on cadence or off. They have stopped buying. Inactives rarely convert back to buyers. Oftentimes, the buyer is a one-time buyer who wasn’t the “right customer” for the brand, price point, value proposition and may have engaged in a trial with your brand, but subsequently disengaged.

Strategies and expectations for the inactive are limited. One simple strategy is to be treated as prospects, because they are statistically not buyers any more.