“Thank you for the purchase, please do visit us again”.
This sentence that customers almost always hear at the end of a transaction is not simply a polite formality. In fact, the “visit us again” part is vital because recurring customers are imperative for businesses to maximize their revenue. This is where the concept of the Artificial intelligence customer lifecycle comes in.
The Customer Lifecycle
The customer lifecycle broadly highlights three stages that a customer goes through, namely: Acquisition, Engagement, and Retention. Essentially, this lifecycle begins the instant a person comes in contact with your product or service. It ends up at the point where that potential customer is converted into a loyal, repeat customer. About 25% to 40% of the total revenues of the most stable businesses come from returning customers. Repeat customers drive 3-7 times the revenue per visit as one-time buyers!
Why are We Talking About it?
The ultimate goal of a company is to engender strong brand loyalty among consumers. This can only be done through repeat customers who consciously or subconsciously become advocates of said company. To attain this customer loyalty and increase retention, it is necessary to understand the stages of the customer lifecycle. After that, businesses must take the necessary steps to deliver an engaging and personalized experience to the customers.
Artificial Intelligence to the Rescue!
It is important to note, however, that manually creating a personalized experience for every customer is nearly impossible. It demands an immense amount of time and labor that large businesses cannot curate. Fortunately, here is where Artificial Intelligence intervenes with its infinite abilities and bridges the gap between humans and machines. AI can do in the blink of an eye, what takes humans substantial amount of time to analyze. AI can optimize your business and set you miles ahead of your competitors in the digital landscape. This is why efficient companies worldwide use AI in various stages of the customer lifecycle to produce optimum results. Recent studies show that currently, 22% of marketers are using AI-based applications while an additional 57% are planning to use in the next two years. Some of the ways in which AI intervened in the customer lifecycle are:
Targeting Potential Customers
The initial stages of the customer lifecycle are all about reaching and acquiring potential customers. Thus, the focus is around identifying the prototype ideal customer and devising marketing strategies that appeal to the target audience. At this stage, companies use AI to sieve through customer demands and characteristics and find the ideal customer. This analysis is extended to target other individuals that possess traits similar to those of the ideal customer. This extends the addressable audience.
Creating a Personalized Experience
Once the potential customers have been targeted, the next stage in the lifecycle is to engage with them in a way that assures a positive response. Personalization is an imperative step while converting potential customers into repeat customers. A research study conducted by Demand Metric indicated that 80% of marketers vouch for the effectiveness of personalization. Various studies have revealed that consumers are more likely to purchase when they are offered personalized experiences. Thus, catered according to their specific needs and demands.
Thus, personalization AI automates decisions about which content or offers to present to a customer. This decision is based on individual attributes, context, and behavioral patterns. For example, Barneys NY created an app that serves personalized editorial content to customers while they shop in the store. Barneys also utilizes AI through a clienteling system that connects the customer, the product, and the inventory data. This helps the sales representatives to serve each customer based on his or her unique history.
Retaining the Customers
If the products or services make the customer feel satisfied and valued, it is likely they come back for another purchase. This is essentially the retention phase of the customer lifecycle. In this stage, AI is used mainly to re-engage with the existing customers. For instance, electronic companies often use apps that present the customers with relevant content and information. Such systems ensure that the customers are getting maximum utility from their purchase. Meanwhile, they also establish a direct relationship across the customer lifecycle ensuring loyalty.
These are just a few of the many ways in which AI has embedded itself across the entire marketing landscape. It is now significantly more effective, consequently, allowing marketers to focus on the strategic parts of marketing and deliver profits.
Lucrative is an autonomous AI with the ability to fully optimize your campaign, yielding unprecedented profits and growth. It is the one-stop solution to all your marketing concerns!
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