Lifecycle Stages for the Growth Marketer Part 1 – Activation

Customer lifecycle is a term used to describe the progress of a customer as they go through consideration, engagement, purchasing, and maintaining loyalty to a product or service. It starts from the first time you get a user’s attention to your product and then keeping them as loyal customer. The customer lifecycle is often depicted by an ellipse because the goal of customer retention is to get them to move through the cycle again and again.

A growth marketer’s prime objective is to drive user engagement with the product. The key to driving engagement is understanding the customer’s lifecycle stage and messaging them accordingly over time to keep them as an active customer. The first form of engagement is activating new customers. Activation is a stage when the user completes an action that indicates them getting value out of a product. This goal can be different for different business models e.g. an app like twitter might consider a user activated when they follow a certain number of other users within a given time-period; a retailer might consider a user to be active when they make their first purchase, or on a rolling basis.

Activation is the first step of the customer lifecycle when they fully experience the product or derived value from it. It is important to get users to activate faster because they can experience the product and see the value it provides. Users who don’t get activated quickly might never return since they never derive any value from the product in the time you have their attention. The core product experience is key to higher activation rates and growth marketers can help increase activation rates by extending the experience into marketing channels.

 

Below we go into some detail about the 2 ways in which growth marketers drive activation.

Welcome Series:

Welcome series from Flipboard

Welcome series from Flipboard

Almost every company or app has a welcome series of messages for activating and educating new customers. Such on-boarding emails have a 3X higher click thru rate than batch and blast emails. Growth marketers can take this strategy one step further by including the elements of product or merchandising in their emails or push notifications. A good example of this strategy is the app Flipboard. Their on-boarding process includes asking users about their interest in order to know what they like and personalize their experience in the app accordingly. This way they are able to onboard a new customer, educate them, and deliver a product that is personalized specifically for them. The welcome series is drawing the user deeper into the product and turning them into engaged users.

 

Abandoner re-targeting:

Guiding customers along their journey is very effective to activate them. This can also take the shape of re-targeting the user with a piece of the product or content if they do not activate the first time. Bringing a user back once they have abandoned is comparatively harder than connecting with first time visitors. For growth marketers to be successful at re-targeting they have to engage customers with very meaningful and compelling content to bring them back in the cycle. Abandoned cart items is an easy example of that or in the case of Flipboard it is the reminder of signing up with them to save your preferences in order to access it from the web or a different device.

Here retargeting is not only acting as a trigger to bring them back into the customer journey but also improving loyalty to the brand, stickiness of the product, and their overall lifetime value.

 


Watch out for more posts about growth marketing, and check out our comprehensive guide here for everything you need to know about the subject.

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