Although CRM is often seen as the department responsible for sending emails, its true function is much broader. CRM is the backbone of brands with access to invaluable customer data and insights. This data enables businesses to understand customer behaviour, preferences, and needs, which should be the foundation for building customer-centric strategies. These strategies should not be confined to just marketing but should influence the entire eCommerce approach. In essence, CRM isn’t just about communication - it’s about using data to manage relationships and drive decisions that shape the overall digital strategy, ensuring that the customer remains at the heart of everything a business does.

Understanding CRM Phases in the Customer Lifecycle

When setting up CRM strategies, it’s essential to focus on the four main phases of the customer lifecycle: Acquisition, Conversion, Retention, and Loyalty. These phases follow the customer’s journey within the business and are activated through CRM systems.

Before we dive into these phases, it’s important to note that the awareness stage - where a customer first discovers the brand - usually happens through channels like social media, PR, or paid acquisition. For this publication, we will focus on the post-awareness phases, managed through CRM strategies.

1. Acquisition: Onboarding New Customers

The first phase is acquisition, or as I like to call it, onboarding. This phase focuses on creating a seamless and welcoming experience for all new prospects and leads entering the database.

During onboarding, it’s crucial to establish personalised touchpoints that introduce the prospect to the brand’s core values, unique selling points, and relevance. At this stage, the goal is to start building demand by ensuring that the messaging aligns with the promises made at sign-up. Clear communication is key to avoid confusing new leads and to ensure they understand why they joined the database in the first place.

2. Conversion: Turning Prospects into Customers

Once leads are onboarded, the next step is conversion—turning prospects into paying customers. In this phase, you need to trigger the prospect’s buying decision. The way you do this depends on the nature of your business and the customer's motivations:

• Problem-solving: Offer a solution that addresses the customer's pain points.
• Impulse/emotion: Create desire by adding excitement or emotion around the purchase.
• Practicality: Provide what the customer wants at the moment they need it.
• Values: Emphasise how the brand aligns with the customer’s personal values and identity.

The conversion window is typically short, with most prospects being “warm” in the first 15 days after they join the database. During this time, you need to identify why the prospect chose your brand and activate campaigns that push them toward making a purchase. If you don’t convert them while they’re engaged, they may seek out alternatives elsewhere.

Additionally, the conversion experience should be smooth and customer-focused. Prospects should feel valued, not like a transaction, which is critical for moving them into the next phase of the lifecycle.

3. Retention: Building Trust and Repeat Purchases

The retention phase comes into play after a customer has made their first purchase. This phase is about building trust and providing an exceptional customer experience to encourage repeat purchases.

To retain customers, it’s important to keep them engaged by reinforcing the brand's values and reminding them of the benefits they received from their first purchase. Retention strategies should include regular touchpoints, such as personalised communication flows, that continue to demonstrate the value of the brand and its products.

Retention isn’t just about pushing for more sales. It’s about fostering engagement, telling stories, and building a sense of belonging or community. When customers feel emotionally connected to a brand, they are more likely to stay loyal and become repeat buyers.

4. Loyalty: Turning Customers into Brand Advocates

Finally, loyalty is the stage where retained customers become loyal advocates for the brand. This is the ultimate goal of the CRM lifecycle—transforming customers into ambassadors who spread the word about your brand and bring in new customers through referrals.

Loyal customers go beyond repeat purchases. They embody the brand’s values and feel a strong connection to it, making them willing to recommend it to others. A well-crafted loyalty strategy should focus on deepening this connection by constantly adding value and maintaining engagement.

Conclusion: CRM as the Engine for Growth

CRM is not just a tool for managing email campaigns; it’s the engine that powers growth by enhancing the entire customer lifecycle. By focusing on the four key phases - acquisition, conversion, retention, and loyalty - businesses can build deeper relationships with customers, driving long-term growth and turning customers into loyal brand advocates.

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