Sunteți pe pagina 1din 15

For: CMo

& Marketing
Leadership
professionals

Embed The Customer Life Cycle Across


Marketing
by Corinne Munchbach, January 22, 2013

key TakeaWays
Marketing Must evolve To align With a Fragmented path To purchase
The explosion of personal technologies and social network connections has
ruptured the formerly linear customer purchase path, disrupting what it means to
have a seamless brand experience. Marketers must evaluate the influence of each
touchpoint on particular customer groups to redefine and support the new brand
experiences that customers have.
its Time To Replace The Marketing Funnel With The Customer Life
Cycle
The benefits of the marketing funnel are no longer valid, as the complexity of the
customer journey mandates marketers embrace 21st century consumer behaviors.
Marketing efforts undertaken in the new model better influence that behavior,
result in better data, and provide the platform for superior experiences and better
business outcomes.
Customer obsession Will drive Marketers adoption of The new
Model
The only companies that will be successful in the age of the customer are those that
obsess about their customers, marrying digital engagement, traditional marketing,
and data to create complete brand experiences from need identification to ongoing
loyalty. The customer life cycle puts the customers fundamental needs at the center
of the strategy.

Forrester research, inc., 60 acorn park drive, Cambridge, Ma 02140 usa


tel: +1 617.613.6000 | Fax: +1 617.613.5000 | www.forrester.com

For CMO & Marketing Leadership Professionals

January 22, 2013

Embed The Customer Life Cycle Across


Marketing
Vision: The Customer Life-Cycle Marketing Playbook
by Corinne Munchbach
with David M. Cooperstein, Luca S. Paderni, and Samantha Merlivat

Why Read This Report


Todays empowered customer has the world at her fingertips literally through the multiple keyboards
and connections to opinions all throughout her day. The challenge for todays marketer is to get through to
these well-informed audiences. Marketers who follow the traditional marketing funnel are not designing
their marketing efforts for this new consumer who lives in a less linear environment than in the past.
Forresters customer life cycle provides a better model for modern marketing, as it places the customer at
the center of the effort, which forces marketing to deliver the right approach to that customer at the right
time, in the format and via the channel of her choice at any moment. The customer life cycle involves
the entire brand experience and describes an ongoing relationship with customers, making it the only
approach that will drive success in the age of the customer. This report will help CMO and marketing
leadership professionals discover the vision that guides the strategy to transition their organizations to
customer life-cycle marketing.

Table Of Contents

Notes & Resources

2 The Marketing Funnels Linear Approach Is


Outdated

Forrester interviewed 14 vendor and user


companies, including dunnhumby, KimberlyClark, LOral, Macys, MePlusYou, and
SapientNitro.

3 The Customer Life Cycle Better Serves 21st


Century Marketing
The Customer Life Cycle Recognizes That
Marketing Is Continuous
The Customer Life Cycle Helps Companies Map
Marketings Core Challenges
WHAT IT MEANS

8 The Customer Life Cycle Will Propel


Marketing Into The Future
9 Supplemental Material

Related Research Documents


Evolve Your Approach To Acquisition And
Retention
December 12, 2012
Competitive Strategy In The Age Of The
Customer
June 6, 2011
Its Time To Bury The Marketing Funnel
October 28, 2010

2013, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available
resources. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar,
and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To
purchase reprints of this document, please email clientsupport@forrester.com. For additional information, go to www.forrester.com.

For CMO & Marketing Leadership Professionals

Embed The Customer Life Cycle Across Marketing

the marketing funnels linear approach is outdated


After more than a century of providing the basic framework for marketers to think about customer
persuasion and engagement, the marketing funnels ability to represent that relationship has become
outdated. Its simplification of consumer psychology, marketing mix measurement, and business value
of marketing worked well in the unidirectional advertising environment of the 20th century. But it
fails to represent the far more complex landscape that 21st century consumers and marketers face.1
Even in the two years since Forrester proposed its alternative to the funnel, the customer life cycle,
weve seen the further breakdown of the linear marketing-centric approach the funnel offers, as:

Consumers purchase and decision journeys have become ever more fragmented. Sixty-

nine percent of US online consumers say that they have researched products online in the
past three months, up six percentage points from 2010.2 By researching products online and
with mobile devices, consumers expose themselves to brands they might not have previously
considered, enlarging their consideration set at exactly the point where, according to the
traditional funnel, it should narrow. Even that exploration phase is fragmented by channel
and context, as mobile phones link prepurchase and in-store research together and social
media provides unexpected comments and reviews. Likewise, consumers dont reach the end
of a simple linear funnel after a purchase. They can seek out more information about their
purchase, and if they are repeat customers, they will loop back into the purchase journey
without the marketer necessarily having to rebuild awareness.

Customers are now the only source of sustainable competitive advantage. 2010 marked

the start of what Forrester calls the age of the customer, an era in which firms can no
longer compete on traditional sources of competitive advantage and instead must place
the customer at the center of the business to succeed against the competition.3 Marketers
must elevate retention and loyalty over acquisition in the strategy and particularly since the
recession. Weve seen progressive marketers, from Kimberly-Clark to Caterpillar, meet profit
goals by increasing sales within the customer segments with the greatest lifetime value.4 By
investing additional spend on retention marketing to increase share of wallet with existing
customers, marketers are placing their money on a much surer bet people who have already
demonstrated some level of affinity for the product or brand than an indiscriminate cast out
to the wider pool of potential shoppers or buyers.

The funnel fails to distinguish between the relative influence of different interaction

points. A whopping 80% of US online adults credit communication with people they know
personally for helping them discover new brands, products, or services. More importantly,
94% of those respondents actually purchased or tried a new brand or product after hearing
about it through the grapevine.5 And yet the funnel does not call out the connection between
repeatedly delighting customers who then advocate for the brand with positive word of mouth
(WOM). This leads marketers to bias their marketing mix toward each individual sale, not the
longer-term brand experience that would make customers more likely to share and discuss

2013, Forrester Research, Inc. Reproduction Prohibited

January 22, 2013

For CMO & Marketing Leadership Professionals

Embed The Customer Life Cycle Across Marketing

with others. With so many more potential touchpoints along a consumers consideration
journey today, marketers need to map the myriad interaction points at each phase for relative
influence on various desired outcomes, including but not limited to sales. For example, with
social elements such as ratings-and-review functionality on nearly all manufacturer and retail
sites, consumers are able to take advantage of what Bazaarvoice calls C2C consumer-toconsumer platforms. Procter & Gambles Tide brand has written and video review capabilities
embedded into its site, which it can also syndicate out to retailers.6
the customer life cycle better serves 21st century marketing
Forrester believes that the customer life cycle provides a better guide to modern marketing, as it
aligns marketing activities with customers path to purchase (see Figure 1).
We define the customer life cycle as:
Customers relationship with a brand as they continue to discover new needs, explore their options,
make purchases, and engage with the product or service experience.
The customer life-cycle model is a better fit for how leading marketers conceive, execute, and
measure marketing because it:

Puts the customer at the center of marketing. At the heart of the customer life cycle is the

customer, the target for all of the dollars spent and programs created, which intentionally
makes the phases about customer action, not marketing objective. Modern marketers focus
on their customers continuously, obsessing about their experiences and lifetime value. The
grocery chain Kroger and its analytics partner dunnhumby segment the chains most loyal
shoppers and customize engagement accordingly, anticipating future need based on previous
shopping behavior. Krogers Loyal Customer Mailer reaches more than 10 million households
across direct mail and email and at the till, and each one is 97% unique. The program has up to
a 70% redemption rate.

Involves the entire brand experience. Everything the company does in the store, on

a website, or at the call center affects the customers perception of the brand. A large
beauty retailer tracks sales by customers, not channels, and uses a score to track customer
satisfaction in stores, which affects individual store performance more than sales. A range of
other influences from customer reviews to media coverage and competitor actions also
colors that picture. By expressing the full scope of modern marketing, the customer life cycle
encourages marketers to focus on the total brand experience, not just traditional activities.

Describes an ongoing relationship. Smart marketers realize that a successful sale doesnt

automatically generate loyalty its something they must earn and work to retain. When
marketers do this well, they can inspire satisfied customers to share their experiences with
their peers further strengthening the brand. For example, Delta Air Lines has a program

2013, Forrester Research, Inc. Reproduction Prohibited

January 22, 2013

For CMO & Marketing Leadership Professionals

Embed The Customer Life Cycle Across Marketing

for its loyal fliers called Middle Seat Mondays where Delta proactively reaches out to address
any displeasure caused by sitting in a middle seat. The flier gets an email apologizing for
the inconvenience, and Delta deposits miles into the fliers SkyMiles account on top of it.7
The customer life cycle emphasizes that marketers must earn and retain this goodwill in an
ongoing way by investing in customer relationships.
Figure 1 The Customer Life Cycle Is A Better Fit With Modern Marketing
Awareness

e
or

pl
Ex

Consideration

er
ov
c
is

Preference

ge

ga

En

Purchase

Bu

Loyalty

Source: Forrester Research, Inc.

89261

The Customer Life Cycle Recognizes That Marketing Is Continuous


The customer life cycle surrounds the customer with the total brand experience across four
relationship phases. Because consumers today have so many options with which to fulfill their needs,
marketers must be agile to respond to any stimuli at any channel that their customers put out. By
understanding what takes place for a consumer and why across the phases, marketers will be better
positioned to meet those needs (see Figure 2):

Discover. Every customer must discover a brand or product category that can meet their

fundamental needs for comfort, connection, variety, and uniqueness. These four needs, which
manifest both consciously and subconsciously in response to perceived opportunities and
threats, drive all consumer behavior, and marketers must start with an understanding of
how to meet those needs and build marketing in response (see Figure 3).8 This ability to help
consumers discover the initial trigger will lead consumers to a new need or repeat purchase
of an existing need. The encounter can be active or passive, and different channels prove to be
better at facilitating active and passive discovery. In our research, 68% of US online adults who
discover or find out about brands via Facebook say that they come across information about
new products on Facebook rather than seeking it out, while for those who discover or find out
about brands via ratings-and-review sites, 81% actively seek out the information.9

2013, Forrester Research, Inc. Reproduction Prohibited

January 22, 2013

For CMO & Marketing Leadership Professionals

Embed The Customer Life Cycle Across Marketing

Explore. In this phase, customers explore your brand and their other options. When they visit
the online store and read product information, compare ingredients or performance metrics, or
handle products in a well-crafted brick-and-mortar store, they are immersing themselves in the
explore phase. The amount of time spent in this phase will vary by category. Armed with mobile
phones throughout their exploration process, consumers now have information at the final
decision point. Forrester has found that 11% of US online adults who own a cell phone say that
they use their phones to look up product information while in a physical store.10

Buy. Customer experiences during this phase include product availability, inventory lookup, and

satisfaction with the checkout process. It also includes the actual price paid, the perceived value,
and the experience with the sales channel if there is a problem. Indeed, when asked about an
online purchase that left them very dissatisfied with the experience, 62% of US online consumers
say that they will likely avoid that website again, and 52% say that they will likely avoid that
companys physical store as well.11 Synchronizing the brand experience across channels, even on
those owned by partners, will facilitate purchase and help alleviate shopping cart abandonment
online, which happens between 50% and 70% of the time due to shipping costs alone.12

Engage. After buying a product or service, customers engage with brands in many ways. To

inspire loyalty and WOM, companies must engage the customer regardless of the touchpoints
the customer uses owned properties or third-party platforms. More than 60% of consumers
who interact with brands they like do so with multiple channels, so its critical that brands
provide a consistent cross-channel experience.13 Furthermore, successful engagement
promotes rediscovery and can serve to accelerate the customer through the cycle for additional
purchases. BMWs four-year guarantee of free maintenance now common among luxury
vehicles engages BMW owners by bringing them in to their dealership for service, both
ensuring post-purchase interactions and catching consumers right at the beginning of their
next discovery phase as they see new models in the showroom while they wait.

2013, Forrester Research, Inc. Reproduction Prohibited

January 22, 2013

For CMO & Marketing Leadership Professionals

Embed The Customer Life Cycle Across Marketing

Figure 2 Agile Marketers Map Responses To Customer Needs Along The Life Cycle

e
or

pl
Ex

er
ov
c
is

En
ge
ga

Customer trigger
Discover

Explore

Bu

Marketing response

Customer exposed to new fundamental need

Ensure that the brand positioning conveys how


it meets needs.
Align marketing content with needs met.
Align product and marketing strategy to
capture and message need clearly.

Delves into options available by brand, price, or


location

Map your customers path to purchase.


Identify key conversion points to prioritize for
marketing collateral.
Ensure comparison and review information is
widely accessible across touchpoints.

Buy Completes purchase in the most convenient


channel at zero moment of truth

Ensure seamless purchase capability from


channels used in explore phase.
Provide consistent experience and data about
customer across online, offline, and third-party
channels.

Engage Connects to services or provides feedback post- Capture customer service data.
sales; engages with user community for support Solicit reviews with incentives.
Identify new needs that can lead the customer
to discovery of a new need to accelerate the
cycle.
89261

2013, Forrester Research, Inc. Reproduction Prohibited

Source: Forrester Research, Inc.

January 22, 2013

For CMO & Marketing Leadership Professionals

Embed The Customer Life Cycle Across Marketing

Figure 3 The Four Fundamental Human Needs


Needs optimized to prepare us for:

Subconsciously

Threats

Opportunities

Comfort
Needs addressed:
reassurance, serenity,
security, and safety

Variety
Needs addressed:
excitement,
novelty, diversion, and
positive uncertainty

Connection
Needs addressed: touch,
conversation, shared
experiences

Uniqueness
Needs addressed:
preparation for
possible opportunities or
improvements to
ones situation

How needs
are expressed

Consciously

Source: February 4, 2010, What People Really Need, Forrester report


Source: Forrester Research, Inc.

89261

The Customer Life Cycle Helps Companies Map Marketings Core Challenges
Marketers can use the customer life cycle to simplify three key marketing issues: consumer
psychology and behavior, measurement, and creation of business value. This model forces marketing
to adapt, but each of these areas is deeply complex, both strategically and operationally. Marketers
must embrace this complexity and use the customer life cycle to show links between the overall
strategy and specialized thought in each of these areas, which includes:

Customer journey mapping to understand relative influence of interaction points. The

customer life cycle simplifies a marketing principle, but what takes place in each of the phases
is vastly more complicated and varied. Marketers should use tools such as customer journey
and path-to-purchase mapping based on ethnographic and qualitative research to identify key
touchpoints along and within the customers life cycle. The insights from these exercises will
make messaging and engagement initiatives better targeted and more relevant for the customer,
enhancing the experience and likelihood to move to the next phase. Kimberly-Clark uses its
own life-cycle model called the Commercial Platform to understand its consumers journeys
and identify white space where the brand can make a real impact.

2013, Forrester Research, Inc. Reproduction Prohibited

January 22, 2013

For CMO & Marketing Leadership Professionals

Embed The Customer Life Cycle Across Marketing

Incorporation of metrics into the whole marketing mix. As consumers move seamlessly

from channel to device to touchpoint, marketers have the enormous task of planning,
deploying, and measuring marketing efforts across a fragmented landscape. One consumer
packaged goods marketer told us that marketers rarely pay attention to the changing path
to purchase, paying lip service to the concept and basing their budgets on last years plan
and performance metrics. CMOs should use the customer life cycle to call out conversion
events that are critical to the customer journey to track how the consumer moves through the
experience and appropriate marketing spend accordingly.

Customer lifetime value management to guide the overall brand direction. One of the keys

to deriving more value from marketing is to focus on the customers who offer the greatest
lifetime value.14 As more CMOs start using the customer life cycle to understand each of these
customer groups, the natural next step is to focus on the life cycles that show the greatest
opportunity to increase lifetime value. FreshDirect, the online grocer, has identified key
consumer segments that demand different types of relationships from the brand and delivers
the particular value and unique experiences with a centralized marketing team, allowing the
company to remain nimble when scaling. CMOs need to assess who their most important
consumer groups are and target them based on an understanding of their process of discovery
and exploration.

W h at I t M e a n s

the customer life cycle Will propel marketing into the future
The age of the customer has firmly closed the door on the marketing funnel and ushered in an era
where relationships and engagement with customers will be the only way companies achieve success.
In the next five years:
1. Successful companies will disrupt themselves to meet customer needs. The power of
digital is such that it enables organizations to create better experiences that will build
stronger customer relationships and do so in a way that enables those experiences to be
brought to market faster and at lower cost.15 To capitalize on this opportunity, CMOs must
engage with the rest of the C-suite to address how digitally-ready the organization is and
begin taking the necessary steps to incrementally disrupt themselves before a competitor
does. As Bill Kanarick of SapientNitro puts it, CMOs should not be trying to predict what
is next but ask, What does readiness look like? in the face of this digitally disruptive
landscape. This could manifest itself like the following: Whirlpool, as it adds the ability for
its refrigerators to track the freshness of their contents, will be able to propose recipes and
shopping lists based on the content and family makeup. It could then communicate with
the brands and allow shopper marketers to presell complementary offers or replenishment
of staples.

2013, Forrester Research, Inc. Reproduction Prohibited

January 22, 2013

For CMo & Marketing Leadership proFessionaLs

embed the Customer Life Cycle across Marketing

2. Shopper marketers will be replaced by customer life-cycle marketers. Today, many


companies have shopper marketing teams that work with distribution partners and
focus on converting consumers into shoppers. But the reality is that consumers must
be understood holistically, and their purchase behavior is just one part of what needs
to be a 360-degree view. Shopper marketers will bring their knowledge of how to drive
transactions into a marketing organization aligned by consumer segment and provide the
crucial link between brand marketing and marketing communications.
3. Consumers will manage their own data, forcing true customer obsession from
companies. The fervent discussion about how to manage ownership and use of rapidly
growing information about consumers will lead to a movement toward individuals owning
their data and putting calls into the marketplace when a need arises. Consumers will be
able to solicit offers that meet their needs, turning the idea of 1:1 marketing around to
favor people who buy, not brands that sell. Truly customer-obsessed companies will be
those that are agile enough to respond to those needs and facilitate a transaction that is by
definition hyper-relevant and hyper-targeted.
suppLeMenTaL MaTeRiaL
Methodology
Forrester conducted the North American Technographics Retail Online Survey, Q2 2012 (US),
fielded in April 2012 of 4,491 US individuals ages 18 to 88. For results based on a randomly chosen
sample of this size (N = 4,491), there is 95% confidence that the results have a statistical precision
of plus or minus 1.46% of what they would be if the entire population of US online individuals ages
18 and older had been surveyed. Forrester weighted the data by age, gender, income, broadband
adoption, and region to demographically represent the adult US online population. The survey
sample size, when weighted, was 4,358. (Note: Weighted sample sizes can be different from the
actual number of respondents to account for individuals generally underrepresented in online
panels.) Please note that this was an online survey. Respondents who participate in online surveys
have in general more experience with the Internet and feel more comfortable transacting online.
The data is weighted to be representative for the total online population on the weighting targets
mentioned, but this sample bias may produce results that differ from Forresters offline benchmark
survey. The sample was drawn from members of MarketTools online panel, and respondents
were motivated by receiving points that could be redeemed for a reward. The sample provided
by MarketTools is not a random sample. While individuals have been randomly sampled from
MarketTools panel for this particular survey, they have previously chosen to take part in the
MarketTools online panel.
Forrester conducted the North American Technographics Consumer Deep Dive: Investigating
The Customer Life Cycle (Buy Phase) Survey, Q1 2012 (US), fielded in March 2012 of 4,501 US
individuals ages 18 to 88. For results based on a randomly chosen sample of this size (N = 4,501),

2013, Forrester research, inc. reproduction prohibited

January 22, 2013

For CMO & Marketing Leadership Professionals

Embed The Customer Life Cycle Across Marketing

10

there is 95% confidence that the results have a statistical precision of plus or minus 1.5% of
what they would be if the entire population of US online individuals ages 18 and older had been
surveyed. Forrester weighted the data by age, gender, income, and region to demographically
represent the adult US online population. The survey sample size, when weighted, was 4,501.
(Note: Weighted sample sizes can be different from the actual number of respondents to account
for individuals generally underrepresented in online panels.) Please note that this was an online
survey. Respondents who participate in online surveys have in general more experience with the
Internet and feel more comfortable transacting online. The data is weighted to be representative for
the total online population on the weighting targets mentioned, but this sample bias may produce
results that differ from Forresters offline benchmark survey. The sample was drawn from members
of MarketTools online panel, and respondents were motivated by receiving points that could
be redeemed for a reward. The sample provided by MarketTools is not a random sample. While
individuals have been randomly sampled from MarketTools panel for this particular survey, they
have previously chosen to take part in the MarketTools online panel.
Forrester conducted the North American Technographics Consumer Deep Dive: Investigating
The Customer Life Cycle (Engage Phase) Survey, Q2 2012 (US), fielded in June 2012 of 4,506
US individuals ages 18 to 88. For results based on a randomly chosen sample of this size (N =
4,506), there is 95% confidence that the results have a statistical precision of plus or minus 1.5%
of what they would be if the entire population of US online individuals ages 18 and older had
been surveyed. Forrester weighted the data by age, gender, income, and region to demographically
represent the adult US online population. The survey sample size, when weighted, was 4,506.
(Note: Weighted sample sizes can be different from the actual number of respondents to account
for individuals generally underrepresented in online panels.) Please note that this was an online
survey. Respondents who participate in online surveys have in general more experience with the
Internet and feel more comfortable transacting online. The data is weighted to be representative for
the total online population on the weighting targets mentioned, but this sample bias may produce
results that differ from Forresters offline benchmark survey. The sample was drawn from members
of MarketTools online panel, and respondents were motivated by receiving points that could
be redeemed for a reward. The sample provided by MarketTools is not a random sample. While
individuals have been randomly sampled from MarketTools panel for this particular survey, they
have previously chosen to take part in the MarketTools online panel.
Forrester conducted the North American Technographics Consumer Deep Dive: Investigating
The Customer Life Cycle (Discover Phase) Survey, Q3 2012 (US), fielded in September 2012 of
4,506 US individuals ages 18 to 88. For results based on a randomly chosen sample of this size
(N = 4,506), there is 95% confidence that the results have a statistical precision of plus or minus
1.5% of what they would be if the entire population of US online individuals ages 18 and older had
been surveyed. Forrester weighted the data by age, gender, income, and region to demographically
represent the adult US online population. The survey sample size, when weighted, was 4,506.
(Note: Weighted sample sizes can be different from the actual number of respondents to account

2013, Forrester Research, Inc. Reproduction Prohibited

January 22, 2013

For CMO & Marketing Leadership Professionals

11

Embed The Customer Life Cycle Across Marketing

for individuals generally underrepresented in online panels.) Please note that this was an online
survey. Respondents who participate in online surveys have in general more experience with the
Internet and feel more comfortable transacting online. The data is weighted to be representative for
the total online population on the weighting targets mentioned, but this sample bias may produce
results that differ from Forresters offline benchmark survey. The sample was drawn from members
of MarketTools online panel, and respondents were motivated by receiving points that could
be redeemed for a reward. The sample provided by MarketTools is not a random sample. While
individuals have been randomly sampled from MarketTools panel for this particular survey, they
have previously chosen to take part in the MarketTools online panel.
Companies Interviewed For This Report
Booz

LOral

Brick Meets Click

Macys

dunnhumby

MePlusYou

Etailing Solutions

ProjectVRM

FreshDirect

Rockfish Interactive

G2 EMEA

SapientNitro

HubSpot

Shopper Sciences

Kimberly-Clark
Endnotes
More than a century after its first use, marketing leaders still turn to the marketing funnel to describe three
key aspects of their work: consumer psychology, marketing mix measurement, and the business value
of marketing. However, as marketing has grown more complicated over the past decade, the funnel has
struggled to continue to reflect reality. Forrester believes the funnels value as a framework is finished, and a
new model the customer life cycle provides a better fit with modern marketing, as it puts the customer
at the center of the effort, involves the entire brand experience, and describes an ongoing relationship with
the customer. Just as the funnel infused every aspect of marketing historically, the customer life cycle will
transform how marketers talk and think about their discipline in the digital world. See the October 28,
2010, Its Time To Bury The Marketing Funnel report.

Source: North American Technographics Retail Online Benchmark Recontact Survey, Q3 2012 (US); North
American Technographics Online Benchmark Survey, Q2 2010 (US).

Weve entered a new era that Forrester calls the age of the customer. While companies have always, to a
greater or lesser extent, called themselves customer-centric, this is different. This is not about customercentric thinking or the customer is always right instead, the new power of customers means that
a focus on the customer now matters more than any other strategic imperative. See the June 6, 2011,
Competitive Strategy In The Age Of The Customer report.

2013, Forrester Research, Inc. Reproduction Prohibited

January 22, 2013

For CMO & Marketing Leadership Professionals

12

Embed The Customer Life Cycle Across Marketing

The impact of a conservative business environment, brought about by the global recession of 2008 to 2009,
forced many marketers to rethink an acquisition-heavy customer strategy. Firms woke up to the fact that
long-term enterprise value requires not just aggressive top-line growth but an equally strong bottom-line
performance putting the attention back on customer retention efforts. See the December 12, 2012,
Evolve Your Approach To Acquisition And Retention report.

Source: North American Technographics Consumer Deep Dive: Investigating The Customer Life Cycle
(Discover Phase) Survey, Q3 2012 (US).

Source: Procter & Gamble (http://www.tide.com/en-US/product/tide-to-go.jspx).

Source: Sheryl Pattek, Stuck In The Middle . . . Delta Makes It A Remarkable Journey, Sheryl Patteks Blog,
December 11, 2012 (http://blogs.forrester.com/sheryl_pattek/12-12-11-stuck_in_the_middle_delta_makes_
it_a_remarkable_journey).

Its clear that human needs are neither simple nor straightforward. Yet we can summarize such complexity
with just four distinct needs because these four can combine in infinite ways and in response to local
circumstances, they can produce the wide range of feelings, desires, and urges we feel each day. Thats why it
has been so hard for product strategists to consistently serve consumer needs they are a moving target, at
both the aggregate and the individual levels. Yet that doesnt mean that it is impossible to build a successful
product strategy on them. See the February 4, 2010, What People Really Need report.

Source: North American Technographics Consumer Deep Dive: Investigating The Customer Life Cycle
(Discover Phase) Survey, Q3 2012 (US).

Source: North American Technographics Retail Online Survey, Q2 2012 (US).

10

Source: North American Technographics Consumer Deep Dive: Investigating The Customer Life Cycle
(Buy Phase) Survey, Q1 2012 (US).

11

Source: David Moth, 55% Of Shoppers Abandon Carts Due To Shipping Costs: Infographic, Econsultancy,
August 7, 2012 (http://econsultancy.com/us/blog/10490-55-of-shoppers-abandon-carts-due-to-shippingcosts-infographic).

12

Consumers connect with brands throughout the customer life cycle they engage, discover, explore, and
buy using a variety of channels. Companies today understand that engagement and positive customer
experiences breed loyalty, and they utilize a variety of channels to interact with their customers. However,
it is not always clear how, why, and where consumers prefer to engage with their favorite brands. This
document is part of a four-part series of Forrester reports on how consumers progress through the
customer life cycle. It examines the reasons for, channels for, and benefits of customer brand engagement.
See the September 18, 2012, Brand Engagement The Consumer Way report.

13

Source: North American Technographics Consumer Deep Dive: Investigating The Customer Life Cycle
(Engage Phase) Survey, Q2 2012 (US).
Customer lifetime value is a powerful metric that potentially affects marketing execution across the
entire life cycle customer acquisition, targeting, and retention and ultimately drives firm equity and

14

2013, Forrester Research, Inc. Reproduction Prohibited

January 22, 2013

For CMO & Marketing Leadership Professionals

13

Embed The Customer Life Cycle Across Marketing

shareholder value. It enables marketers to make resource allocation decisions with greater certainty and
forces differential treatment of customers based on profitability. See the June 3, 2011, Navigating The
Customer Lifetime Value Conundrum report.
Digital disruption is about to tear down and rebuild every product in every industry. Thanks to digital
platforms, your customers live in a world of heightened expectations and abundant options; they can get
more of what they want in more places at more times than ever before. Seizing this opportunity, digital
disruptors threaten to make you irrelevant by delivering a more compelling product and service experience
than you can and at a lower cost, often without even knowing that theyre upending you. To beat them, you
must join them. See the October 27, 2011, The Disruptors Handbook report.

15

2013, Forrester Research, Inc. Reproduction Prohibited

January 22, 2013

About Forrester
Global marketing and strategy leaders turn to Forrester to help
them make the tough decisions necessary to capitalize on shifts
in marketing, technology, and consumer behavior. We ensure your
success by providing:
Data-driven insight to understand the impact of changing
consumer behavior.

Forward-looking research and analysis to guide your decisions.

Objective advice on tools and technologies to connect you with


customers.

Best practices for marketing and cross-channel strategy.

for more information


To find out how Forrester Research can help you be successful every day, please
contact the office nearest you, or visit us at www.forrester.com. For a complete list
of worldwide locations, visit www.forrester.com/about.
Client support
For information on hard-copy or electronic reprints, please contact Client Support
at +1 866.367.7378, +1 617.613.5730, or clientsupport@forrester.com. We offer
quantity discounts and special pricing for academic and nonprofit institutions.

Forrester Focuses On
CMO & Marketing Leadership Professionals
As the person responsible for the brand experience, you
ensure that digital and traditional marketing channels provide
a consistent message to the customer, and empower your
organization to bridge the gap between marketing and customer
service. Forrester helps you create forward-thinking strategies to
justify decisions and optimize your individual, team, and
corporate performance.

MELISSA LAKEN, client persona representing CMO & Marketing Leadership Professionals

Forrester Research, Inc. (Nasdaq: FORR) is an independent research company that provides pragmatic and forward-thinking advice to
global leaders in business and technology. Forrester works with professionals in 17 key roles at major companies providing proprietary
research, customer insight, consulting, events, and peer-to-peer executive programs. For more than 29 years, Forrester has been making
IT, marketing, and technology industry leaders successful every day. For more information, visit www.forrester.com. 89261

S-ar putea să vă placă și