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LIFE STAGES

Life Stages

Life Stages are the distinct phases that all Customers, to a greater or lesser degree, move through during their lifecycle. As Customers migrate through these Life Stages, they are either gaining potential value or losing it. Segmenting Customers by Life Stage is essential for developing an effective Marketing Strategy to reach them.

Customers are segmented into one of four Life Stages.

  1. Stage 1 Customers are one-time buyers with positive Expectancy.
  2. Stage 2 Customers are multi-buyers with positive Expectancy.
  3. Stage 3 Customers are multi-buyers with negative Expectancy.
  4. Stage 4 Customers are one-time buyers with negative Expectancy.

You can scroll below the table for suggested marketing strategies.

Click on the column headings for a definition of the terms.

LIFE STAGES
(DEMO)

Life
Stage
Customer
Count
Customer
Percent
Stage 1
2,143
10%
64
1.00
$351
0.18
81
$351
$72
74.4
Stage 2
3,596
18%
41
5.34
$2,549
1.28
51
$477
$526
86.5
Stage 3
6,939
34%
374
4.35
$2,290
1.97
-274
$527
$319
53.7
Stage 4
7,743
38%
562
1.00
$347
1.54
-416
$347
($183)
24.3
Total
20,421
100%
354
2.90
$1,395
1.50
-233
$481
$140
50.0
Suggested Marketing Strategies for Each Life Stage
Stage 2 Customers
"High Value, and Rising Potential"

Stage 2 Customers are your most valuable asset. They are loyal customers that need to be retained. They will respond well to frequent marketing that features your newest products and bundles. They like to be rewarded for their loyalty, and asked for suggestions and testimonials. The goal is to keep them in Stage Two

Stage 3 Customers
"High Value, but Falling Potential"

Stage 3 Customers are a depreciating asset. They are customers that need to be reactivated. They aren't responding to your marketing. Have they moved or died? Are they shopping elsewhere? Have they experienced problems with your company? The goal is to find out what's wrong, and fix it if possible.



Stage 1 Customers
"Low Value, but Rising Potential"

Stage 1 Customers are an appreciating asset. They are new customers that need to be resold. They will respond well to early marketing that features best selling products with instructions on how to use them. They trust the use of testimonials from satisfied customers. The goal is to move them to Stage Two.

Stage 4 Customers
"Low Value, and Falling Potential"

Stage 4 Customers are a liability, not an asset. They are lost customers that need to be replaced. They have not responded to your marketing in a long time. The goal is to direct resources away from them toward the retention and acquisition of more valuable customers.

 

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