In the modern business world, effective Customer Lifecycle Management (CLM) is crucial to not only attract customers, but also retain them long-term and maximize their value. A holistic view of CLM means optimally supporting the customer in every phase of their life cycle – from the first contact to long-term loyalty. The following diagram shows how CLM is divided into different organizational levels and specific phases and how companies can optimize their customer approach through data-driven strategies and AI-supported approaches.

The organizational levels of customer lifecycle management

The CLM can be divided into three higher-level organizational levels: attract and acquire, activate and incentivize and maintain and retain. Each of these levels is in turn divided into specific phases that accompany the customer through the entire life cycle.

Holistic view of customer life cycle management

1. Attract and acquire

This first level of CLM focuses on acquiring new customers. This draws the attention of potential interested parties to the company and paves the way to conversion. The phases within this level are:

• Advertisement: In this phase, the focus is on targeting potential customers through personalized advertising. Typical approaches include the use of target group profiles on social networks and Google campaigns. By using data models such as lookalike audiences and lead scoring, the efficiency of advertising measures is maximized.
• Nurture leads: As soon as the first contacts have been made, it’s about qualifying them further. Email lead retargeting is a crucial lever to increase the conversion rate. The AI-based analysis of user behavior enables a targeted approach and ensures higher completion rates.
• Convert: The final step of this organizational level is converting the lead into a customer. Optimized landing pages and conversion funnels are used here, which are continuously improved with the help of AI, e.g. individual funnel steps for personalization based on previous campaign information in order to increase the probability of completion.

2. Activate and incentivize

The second level of CLM focuses on activating the customer early and creating incentives for intensive use. The first 90 days (EMOB) are particularly crucial here, as they lay the foundation for the later customer relationship. The phases within this level include:

• Activate: In this phase, the customer is motivated to actively use the product. Welcome series, app installations and special activation incentives such as EMOB campaigns play a central role here. According to Mastercard studies, customers who receive EMOB messages are three times more valuable over their lifetime.
• Increase usage: Usage intensity is increased through personalized offers and rewards. Data models are used to determine the “next best category” offer that appeals most to the customer. Automating these approaches ensures continuous optimization of the user experience.
• Cross-Sell/Upsell: In order to increase the value per customer, targeted cross-selling and upselling measures are used. This includes special offers from partners and upselling to higher-quality products. Cashback programs and bonus incentives further motivate customers to use other products.

3. Care and hold

The third level aims to retain existing customers in the long term and prevent them from leaving. The relationship with the customer is strengthened through continuous care and targeted measures. The phases in this level are:

• Service: In this phase, a particular focus is placed on customer service. Customer concerns are addressed quickly and in a targeted manner, and satisfaction is increased through proactive service offerings. Personalized recommendations and next-best product suggestions keep the customer engaged.
• Prevent Churn: Preventing churn is the main goal of the final phase. Measures such as offering early renewals, switching to contract terms that are more advantageous for the customer or special reactivation campaigns are crucial to retaining customers.

Conclusion

A holistic view of the CLM enables companies to strategically support and optimize every step of the customer life cycle. The combination of the right data, appropriate AI approaches and automated processes ensures that customers receive personalized experiences and added value that strengthen their loyalty to the company. The targeted use of the phases “attract and acquire”, “activate and incentivize” and “maintain and retain” offers a structured approach to making customer contact effective and scalable. By consistently implementing these CLM strategies, companies create a strong foundation for sustainable growth and deeper customer loyalty.

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