Online #CustomerLifecycle Management

If there were a way of thinking about your online business that would quite literally guide your visitors into making another purchase, how would you know?

Understand where in the Online Customer Lifecycle your customers are at any point in time and you will.

A customer life cycle includes metrics for reach, acquisition, conversion and retention. This framework gives you a business model for understanding the nature of your business in relation to other businesses.

In today’s business environment, the trend is for most businesses to use both online and offline channels in their marketing plans. The broad categories of reach, acquisition, conversion and retention can be used to further clarify the metrics you measure.

Whereas in the past, marketing managers could simply report that they got 30 percent more visitors who bought 10 percent more widgets. Now, using a customer life cycle framework to interpret the powerful reports in web analytics solutions, managers can pinpoint the initiatives that brought more visitors or the optimal sales path that increased sales. You can identify the marketing activities that succeed and those that don’t, fine tuning your marketing activities.

The following are definitions for the metrics in the customer life cycle. These metrics will be used when you create your Key Performance Indicators, the means for achieving your business goals.


Reach is defined as the likelihood of gaining someone’s attention. This can be interpreted in a number of ways, depending on how you are looking at it.

  • The number of searches completed for your paid search keyword phrases.
  • The number of reads an article written by someone representing your company received.
  • The number of users who view banner impressions served on a website.
  • The number of subscribers to a newsletter you sponsor or that contains your ad.
  • The number of readers who subscribe to a newspaper or magazine and will see your ad.
  • The number of views your billboard ad receives.
  • The number of views your TV spots secure.

Each can be both easy and difficult to measure. A banner network, for example, can tell you how many banner impressions were served or the number of times your search phrases were used.

Likewise, any magazine or newsletter can tell you how many readers they have. Any marketing vendor can tell you how many valid addresses your direct mail piece was sent to.

But how could you know how many people read your article or actually received your piece of mail? And if they did receive it, how do you know they opened it?

Reach can sometimes be difficult to measure. No matter how powerful your web analytics solution, the number of people who actually read and think about your marketing message is always inaccurate at best – and wildly inaccurate at worst.

For that reason, reach is tied to acquisition. Whilst we cannot accurately measure the number of people who read a message, we can infer this value from the percentage of people you are able to acquire – or the number of people visiting your website as a result of reading your message.

So when thinking about reach, keep in mind that it is correlated to the actual acquisition of visitors.


If reach is defined as the likelihood of gaining someone’s attention, then acquisition can be defined as how well you got it.

Did they make it to your site? Did they click on a link or type your domain in their browser and bring themselves to your site?

That’s acquisition!

To many, acquisition is measured in terms of a visitor not only arriving, but also engaging in some sort of action, like a purchase, or an opt-in to a list.

Acquisition stats are focused on your source of traffic. This can be the referring domain, a search engine or a search key phrase. Using something like Google Analyticss can extend this measurement, allowing for the qualification of visitors.

In so doing, it leads to the measurement of Conversion.


Conversion and the activities leading to this action should be the raison d’etre for your website.

Conversion is the successful completion of specific activities by your site visitors that result in a positive contribution to your bottom line.

Conversion can be measured differently for different activities.

Conversion does not have to equal a sale. It can be visiting a specific site to learn more about Sales and Marketing Automation, the act of submitting information to generate leads, finding information related to a particular topic or pricing information, the specific amount of time spent on a website, the viewing of a specific number of pages, or accessing key pages like the features page or Accelerated Results page.

Studying the sales path to conversion will help you make changes to your website and influence marketing initiatives that will impact your visitors’ ability to complete desired goals. This means that any decisions you make about how your website needs to changes are informed.

It also means that this a win-win situation because it leads to customer satisfaction and increased profits for your business

It is important to measure all the conversion rates that matter, but do not compare your rates to those of others. Research firms have published studies about conversion rates by business category, and this information is interesting, but it should not be used to gauge your own success.

Your measure of success needs to be the increase (or intentional decrease) in your site’s key performance indicators over time. If you’re seeking to achieve a 3-fold increase in online sales, then establish a baseline and use that as your measure for success.

Select the top three or four KPIs for your website (or marketing campaigns) and measure these over time. Track progress and make changes that will improve future conversions.


The Reach, Acquisition and Conversion phases in the customer life cycle are designed to get a customer to buy for the very first time. Now you need to concentrate on keeping those customers and encouraging repeat sales.

Research indicates that an existing customer is worth more than a new customer and costs less to sell than a new customer. Since your competitors are but a click away, you need to really focus on creating a relationship that adds value – over and over again.

If you sell a product, someone can make it cheaper. If you provide a service, someone can always do it better or faster. Unless your products and services are well branded or very unique, your business will always be subject to churn.

That is why it is important to measure retention. Retention measures the activities of your repeat customers, tracking everything they do on your site whether it is a purchase or any other activity. By watching the individual actions of your repeat customers, you can respond optimally to their needs, then up sell and cross sell products and services to them. Visitor segmentation tools are an important aid to understanding your repeat customers.

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About the Author

SemantiaSemantia is a strategic technology services and advisory company. Through its specialty business divisions the company provides a comprehensive range of software development, systems integration, semantic web development, business process outsourcing, digital marketing, online marketing automation, conversion rate intelligence and business IT insights and advice. Semantia collaborates with clients to deliver solutions optimised for business success including increasing performance in sales and marketing, reducing errors and processing times for data & identifying new insights from analytics for leaders to make better informed business decisions.View all posts by Semantia →

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