 Customer lifecycle and stages therein

 1-Prospect
 2-First time buyer
 3-Repeat buyer
 4-Core buyer
 5-Defector
1-Prospects
Potential customer in the target market
 Not yet bought the firm’s product/brand
 Being targeted for acquisition

Marketing Tasks
 Create awareness in the target market
 Induce purchase
2-First Time Buyers
• Once decided to buy, the customer enters
the trial stage.
• The customer is now evaluating the firm,
product and the entire purchase and
consumption experience.

Marketing Tasks
 Create an experience for the customer to
repeat his purchase
 Continuously reassure the customer that
his decision was correct
 Reinforce the customer’s belief in the
superiority of the product.
3-Repeat Buyers
 Satisfied with their first experience and
find value in the current offer of the
company.
 Still vulnerable to competitor poaching

Marketing Task
Continuously strengthen the product value
by removing any dissatisfaction
4-Core Customers
 Fulcrum of any company as they account for its
overall profitability.
 Core customers are also those, who despite
competition, prefer to remain with the company and
the product/brand.
 They buy several other products from the company
 Also induce other customers to buy

Marketing Tasks
 Reward or Loyalty Scheme
 Prices need to remain competitive
 Inform these customers first of its new product
launches or promotions
 Sales and service personnel need to recognize such
customers
5-Defectors
Most common causes of defection:
 Poor service of the company;
 Rude, discourteous and indifferent sales personnel;
 Lack of personal touch as the company automates all its
operations and customer interfaces;
 Delayed or no response to customer complaints;
 Actual consumption experience is different from the
promised one- i.e. actual experience is less than the
promised one;
 Super or more efficient product offering form competitors
at a competitive price thus altering perceived value
equation;
 Competition offers lower prices;
 Better service from the competition