The Honeymoon of the customer life cycle

The Honeymoon of the customer life cycle

Turning newcomers to loyal customers – How we make our magic work.

The beginning of the customer life cycle (your relationships with the customer) is called Honeymoon. The customer makes the first purchase, and then we have two possible scenarios: the customer either make another purchase or leaves you permanently.

The next purchase makes customers ‘promising’ one or even loyal if you are lucky. The Honeymoon is essential for the start of company-customer communications. Many things depend on it, e.g. next purchases, duration of your relationships, etc.

During this period, the customer is more likely to purchase something from you. They have the highest consumption rate comparing to other cycle phases.

Let us use the coffee machine as an example. Just as you purchased it, you search for different recipes, brewing technics, etc. that would improve your usage of this coffee machine. However, as soon as the Honeymoon ends it becomes a part of your routine – you drink one specific cup of coffee every day not bothering yourself with other options. That would go up to the moment when the machine breaks down or will be replaced by a new improved model.

Why the Honeymoon?

First – the higher consumption level you provoke in your customer s- the higher will be your income during other phases of the customer life cycle.

Attract your customers with a new coffee machine, tell them about the history of coffee machines, share interesting recipes, engage them in the culture of coffee consumption, and let them feel like participants of the sacrament. As a result-create a new habit of drinking coffee and let your coffee machine become part of it. This does not mean that the buyer should start drinking more coffee – no, but let him drink his favorite coffee from your machine as long as possible and with pleasure!

The Honeymoon is possible for any business. The owners of the restaurant or bar during this period can do everything to make the guest want to come to them as often as possible. Then they will begin to come less frequently but will do it with pleasure and for years, this bar would be his usual place. Even an online publication lives such a period with its subscribers-at first they read all their letters and articles, later they develop an individual reading schedule – once a day, week or month. Nevertheless, it depends on the publication – how long they will do it.

Of course, you can leave everything as it is and some of the customers themselves will reach the level of marginal consumption. However, experience shows that only 10% of all customers follow this way. After all, the client may not fully understand the settings of your coffee machine, necessary to achieve the best taste and aroma, or did not learn about the interesting recipes of coffee, which could fully satisfy them. As a result, the consumer does not use the machine 100% from the very beginning and finishes using it earlier than they could.

Besides, the second reason is the investment you have made in attracting a new client. After all, they became your buyers due to your effort. Therefore, if during the Honeymoon the client does not make a second order, the very probability of continuing your relationship is significantly reduced. Then the money you invested in this client was wasted. It is important to act as fast as possible!

How long does your business’ Honeymoon last?

The answer to this question is individual and you can find it by tracing the purchase history of your customers who have already become loyal. Analyze their behavior when they just made their first order. You will see the pattern of their behavior and the length of time when they are extremely active: make repeat orders, read newsletters and articles on the site; as well as the time after which their activity decreases. This analysis will help to understand how long “your” Honeymoon lasts and what indicators of customer behavior to monitor during this period. Moreover, you will be able to develop a system for assessing the potential of new consumers. This will help in the future to recognize which of the new customers will be loyal, and who exactly will leave.

How to develop loyal customers using the Honeymoon?

Honeymoon is an important period when you can develop customer loyalty. How?

1. Develop a system that will collect data about the behavior of your customers. Accumulate information about their orders: dates, composition, response to the newsletter and data about the buyer

2. Analyze the collected data and set the Honeymoon period for your company and how the behavior of customers after the end of the ‘first love’. Develop RFM segments and study customer behavior from each segment. Your goal is to determine the typical customer behavior scenarios, as well as the desired ones, according to which you will lead them, avoiding deviations.

3. Develop a system of evaluation of the result. Determine how many new customers you have and how quickly they repeat their orders. A good indicator of the right action on your part should be the growth of buyers who make a repeat order and the reduction in time between the first and second orders. This can also include both Open Rate and changes in RFM segments.

4. Use this knowledge. Once you understand the desired behavior patterns of your customers, launch a set of communications that will target customers according to the scenarios you need.

The Honeymoon communications complex

Your task is to interest the customer as much as possible in this short period when they are ready for the maximum level of consumption. This is possible using automated communications, as new clients appear constantly and each of them is at a different stage of the honeymoon.

The complex of communications for a new client is a Welcome Program. The main objectives of the program are to provide knowledge and engage.

The customer needs to know everything about you, your products/services and benefits. Also, to be as involved as possible in communication with you: receiving letters and transitions, reading content on the site and repeat orders.

Welcome Program is a chain of communications with a given sequence, as well as a system that monitors the reactions of customers (clicks, orders, transitions), analyzes and responds to certain programmed actions (sends a special offer, SMS instead of email or redirects to a call center). More details about this important tool of tying relationships tell in a separate article.

The Honeymoon of the customer life cycle

Turning newcomers to loyal customers – How we make our magic work.

The beginning of the customer life cycle (your relationships with the customer) is called Honeymoon. The customer makes the first purchase, and then we have two possible scenarios: the customer either make another purchase or leaves you permanently.

The next purchase makes customers ‘promising’ one or even loyal if you are lucky. The Honeymoon is essential for the start of company-customer communications. Many things depend on it, e.g. next purchases, duration of your relationships, etc.

During this period, the customer is more likely to purchase something from you. They have the highest consumption rate comparing to other cycle phases.

Let us use the coffee machine as an example. Just as you purchased it, you search for different recipes, brewing technics, etc. that would improve your usage of this coffee machine. However, as soon as the Honeymoon ends it becomes a part of your routine – you drink one specific cup of coffee every day not bothering yourself with other options. That would go up to the moment when the machine breaks down or will be replaced by a new improved model.

Why the Honeymoon?

First – the higher consumption level you provoke in your customer s- the higher will be your income during other phases of the customer life cycle.

Attract your customers with a new coffee machine, tell them about the history of coffee machines, share interesting recipes, engage them in the culture of coffee consumption, and let them feel like participants of the sacrament. As a result-create a new habit of drinking coffee and let your coffee machine become part of it. This does not mean that the buyer should start drinking more coffee – no, but let him drink his favorite coffee from your machine as long as possible and with pleasure!

The Honeymoon is possible for any business. The owners of the restaurant or bar during this period can do everything to make the guest want to come to them as often as possible. Then they will begin to come less frequently but will do it with pleasure and for years, this bar would be his usual place. Even an online publication lives such a period with its subscribers-at first they read all their letters and articles, later they develop an individual reading schedule – once a day, week or month. Nevertheless, it depends on the publication – how long they will do it.

Of course, you can leave everything as it is and some of the customers themselves will reach the level of marginal consumption. However, experience shows that only 10% of all customers follow this way. After all, the client may not fully understand the settings of your coffee machine, necessary to achieve the best taste and aroma, or did not learn about the interesting recipes of coffee, which could fully satisfy them. As a result, the consumer does not use the machine 100% from the very beginning and finishes using it earlier than they could.

Besides, the second reason is the investment you have made in attracting a new client. After all, they became your buyers due to your effort. Therefore, if during the Honeymoon the client does not make a second order, the very probability of continuing your relationship is significantly reduced. Then the money you invested in this client was wasted. It is important to act as fast as possible!

How long does your business’ Honeymoon last?

The answer to this question is individual and you can find it by tracing the purchase history of your customers who have already become loyal. Analyze their behavior when they just made their first order. You will see the pattern of their behavior and the length of time when they are extremely active: make repeat orders, read newsletters and articles on the site; as well as the time after which their activity decreases. This analysis will help to understand how long “your” Honeymoon lasts and what indicators of customer behavior to monitor during this period. Moreover, you will be able to develop a system for assessing the potential of new consumers. This will help in the future to recognize which of the new customers will be loyal, and who exactly will leave.

How to develop loyal customers using the Honeymoon?

Honeymoon is an important period when you can develop customer loyalty. How?

1. Develop a system that will collect data about the behavior of your customers. Accumulate information about their orders: dates, composition, response to the newsletter and data about the buyer

2. Analyze the collected data and set the Honeymoon period for your company and how the behavior of customers after the end of the ‘first love’. Develop RFM segments and study customer behavior from each segment. Your goal is to determine the typical customer behavior scenarios, as well as the desired ones, according to which you will lead them, avoiding deviations.

3. Develop a system of evaluation of the result. Determine how many new customers you have and how quickly they repeat their orders. A good indicator of the right action on your part should be the growth of buyers who make a repeat order and the reduction in time between the first and second orders. This can also include both Open Rate and changes in RFM segments.

4. Use this knowledge. Once you understand the desired behavior patterns of your customers, launch a set of communications that will target customers according to the scenarios you need.

The Honeymoon communications complex

Your task is to interest the customer as much as possible in this short period when they are ready for the maximum level of consumption. This is possible using automated communications, as new clients appear constantly and each of them is at a different stage of the honeymoon.

The complex of communications for a new client is a Welcome Program. The main objectives of the program are to provide knowledge and engage.

The customer needs to know everything about you, your products/services and benefits. Also, to be as involved as possible in communication with you: receiving letters and transitions, reading content on the site and repeat orders.

Welcome Program is a chain of communications with a given sequence, as well as a system that monitors the reactions of customers (clicks, orders, transitions), analyzes and responds to certain programmed actions (sends a special offer, SMS instead of email or redirects to a call center). More details about this important tool of tying relationships tell in a separate article.

The Honeymoon of the customer life cycle

Turning newcomers to loyal customers – How we make our magic work.

The beginning of the customer life cycle (your relationships with the customer) is called Honeymoon. The customer makes the first purchase, and then we have two possible scenarios: the customer either make another purchase or leaves you permanently.

The next purchase makes customers ‘promising’ one or even loyal if you are lucky. The Honeymoon is essential for the start of company-customer communications. Many things depend on it, e.g. next purchases, duration of your relationships, etc.

During this period, the customer is more likely to purchase something from you. They have the highest consumption rate comparing to other cycle phases.

Let us use the coffee machine as an example. Just as you purchased it, you search for different recipes, brewing technics, etc. that would improve your usage of this coffee machine. However, as soon as the Honeymoon ends it becomes a part of your routine – you drink one specific cup of coffee every day not bothering yourself with other options. That would go up to the moment when the machine breaks down or will be replaced by a new improved model.

Why the Honeymoon?

First – the higher consumption level you provoke in your customer s- the higher will be your income during other phases of the customer life cycle.

Attract your customers with a new coffee machine, tell them about the history of coffee machines, share interesting recipes, engage them in the culture of coffee consumption, and let them feel like participants of the sacrament. As a result-create a new habit of drinking coffee and let your coffee machine become part of it. This does not mean that the buyer should start drinking more coffee – no, but let him drink his favorite coffee from your machine as long as possible and with pleasure!

The Honeymoon is possible for any business. The owners of the restaurant or bar during this period can do everything to make the guest want to come to them as often as possible. Then they will begin to come less frequently but will do it with pleasure and for years, this bar would be his usual place. Even an online publication lives such a period with its subscribers-at first they read all their letters and articles, later they develop an individual reading schedule – once a day, week or month. Nevertheless, it depends on the publication – how long they will do it.

Of course, you can leave everything as it is and some of the customers themselves will reach the level of marginal consumption. However, experience shows that only 10% of all customers follow this way. After all, the client may not fully understand the settings of your coffee machine, necessary to achieve the best taste and aroma, or did not learn about the interesting recipes of coffee, which could fully satisfy them. As a result, the consumer does not use the machine 100% from the very beginning and finishes using it earlier than they could.

Besides, the second reason is the investment you have made in attracting a new client. After all, they became your buyers due to your effort. Therefore, if during the Honeymoon the client does not make a second order, the very probability of continuing your relationship is significantly reduced. Then the money you invested in this client was wasted. It is important to act as fast as possible!

How long does your business’ Honeymoon last?

The answer to this question is individual and you can find it by tracing the purchase history of your customers who have already become loyal. Analyze their behavior when they just made their first order. You will see the pattern of their behavior and the length of time when they are extremely active: make repeat orders, read newsletters and articles on the site; as well as the time after which their activity decreases. This analysis will help to understand how long “your” Honeymoon lasts and what indicators of customer behavior to monitor during this period. Moreover, you will be able to develop a system for assessing the potential of new consumers. This will help in the future to recognize which of the new customers will be loyal, and who exactly will leave.

How to develop loyal customers using the Honeymoon?

Honeymoon is an important period when you can develop customer loyalty. How?

1. Develop a system that will collect data about the behavior of your customers. Accumulate information about their orders: dates, composition, response to the newsletter and data about the buyer

2. Analyze the collected data and set the Honeymoon period for your company and how the behavior of customers after the end of the ‘first love’. Develop RFM segments and study customer behavior from each segment. Your goal is to determine the typical customer behavior scenarios, as well as the desired ones, according to which you will lead them, avoiding deviations.

3. Develop a system of evaluation of the result. Determine how many new customers you have and how quickly they repeat their orders. A good indicator of the right action on your part should be the growth of buyers who make a repeat order and the reduction in time between the first and second orders. This can also include both Open Rate and changes in RFM segments.

4. Use this knowledge. Once you understand the desired behavior patterns of your customers, launch a set of communications that will target customers according to the scenarios you need.

The Honeymoon communications complex

Your task is to interest the customer as much as possible in this short period when they are ready for the maximum level of consumption. This is possible using automated communications, as new clients appear constantly and each of them is at a different stage of the honeymoon.

The complex of communications for a new client is a Welcome Program. The main objectives of the program are to provide knowledge and engage.

The customer needs to know everything about you, your products/services and benefits. Also, to be as involved as possible in communication with you: receiving letters and transitions, reading content on the site and repeat orders.

Welcome Program is a chain of communications with a given sequence, as well as a system that monitors the reactions of customers (clicks, orders, transitions), analyzes and responds to certain programmed actions (sends a special offer, SMS instead of email or redirects to a call center). More details about this important tool of tying relationships tell in a separate article.

 

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