More and more businesses are ditching the traditional sales funnel model and adopting the Customer Lifecycle Marketing Model. Customer Lifecycle marketing is a more organic and effective approach. But does this mean that you have to dump the sales funnel completely?
Not necessarily. A good way to think about it is that Customer Lifecycle Marketing builds on the sales funnel concept, but takes it a step further.
Sales Funnel and Customer Lifecycle Marketing Explained
First, let’s compare the two models. The sales funnel is a model that brings leads into your orbit through a wide mouth, and then allows you to qualify leads as they move through. At each step along the way, you make offers and gradually weed out people who won’t buy.
Customer Lifecycle Marketing is based completely on the customer experience. Its three stages are Attract, Motivate, and Delight, and it’s a cycle that can be repeated as many times as necessary. With this model, leads come into the cycle at any stage, so you can make the right offer to meet their needs when it’s right for them.
The Advantages of Customer Lifecycle Marketing
The reason Customer Lifecycle Marketing is working well for businesses is that it meets the needs of a changing market. Today, people expect a more personal experience with the brands they buy from. They don’t just want offers thrown at them, they want to engage with you. Consumers expect a lot more from companies now than they did a few years ago, so you need to deliver on their expectations. They are buying experiences delivered via your goods and services. Those in business who understand this and have their marketing reflect the same, win at engagement and sales conversions.
With a sales funnel, you lose people who aren’t interested in your offer. Unqualified leads are tossed away. Customer Lifecycle Marketing works well because it maintains the relationship you have with your audience. The sale is just the beginning of the relationship.
One weakness of the sales funnel is that it doesn’t adapt well to changes. On the other hand, Customer Lifecycle Marketing is flexible and adaptable. As long as you know your audience and your offerings, you can keep the cycle going.
When to Use a Sales Funnel
Customer Lifecycle Marketing is more appropriate and efficient today, but this doesn’t mean you’ve wasted your time mastering the sales funnel. Even if you make the switch, you should keep the old approach in your repertoire. Sometimes, it’ll come in handy.
One place you might use a funnel is for a one-time promotion. In this case, you’re not concerned with creating a long-term relationship. What you need is to blast out your message and attract the right people to your offer.
A sales funnel is also useful because it’s simple. It can be used to gather market information. Since it weeds out leads through successive offers, you can use it to gain data about your audience by seeing which offers or messages work.
The sales funnel can still be useful, but if you’re not on board with Customer Lifecycle Marketing, you need to be. It’s a highly effective approach for building long-term relationships and turning your customers into lifetime advocates, which is a win-win for all parties.
Want to learn more about how Customer Lifecycle Marketing can increase your income?
5 Reasons to Switch From Sales Funnels to Customer Lifecycle Marketing