Life-Stage Marketing and CRM

Updated: April 30, 2009

Issue

If you have a CRM system, you probably use it to track sales and measure profitability. It's likely that you store customer data according to frequency, amount of purchases and credit limits as well. But are you making full use of CRM's capabilities?

An important dimension to a good CRM database design is tracking the demographics of customers and their needs at various times in their lives. Such a tool allows you to sort by customers' immediate necessities, age or economic status. Are they recent graduates, retirees or something in-between? Recognizing your customers' various life stages goes beyond knowing who's a regular and who's a seasonal shopper. It requires understanding the unique needs each life stage presents.

Analysis

Many enterprises only look at the here and now when trying to attract new customers. They focus on what their customers are buying today, without any thought of what customers might need in upcoming years. Life-stage planning will help you retain loyal customers and get new ones.

Being cognizant of life stages enables you to:

  • Guide the development of your product lines
  • Cost-effectively advertise to a particular group
  • Design meaningful promotions
  • Mature your product lines to follow your customers' needs

Develop New Customers and Products


There are several wants and needs unique to a customer's stage of life. For example, a person who has recently entered the work force might be interested in furnishing a first apartment, or buying business attire and a gym membership. If someone is newly married, he or she might be interested in a new home, vacation packages, spas or time-shares. After having children, the needs become baby furniture; an IRA and college fund; summer camp; and a mini-van. And savings, health care and relocation become important just before retirement.

Evolving your products to fit these life stages will encourage long-term loyalty and predictable profits. Clothing needs, for instance, may move to the more conservative or practical. Household goods may become more upscale. Vacations could change from romantic getaways to family outings. Whatever your product line is, there should be an evolution whose objective is keeping customers long-term.

The benefit of this approach is that you can plan product development according to predicted customer needs and trends. Your pipeline can be projected to several demographics. Life-planning marketing encourages your various departments to coordinate product and service profiles. Your marketing, finance, product-development and service-and-support teams can work with sales to attract and retain a solid customer base.

Life-stage planning offers the additional benefit of attracting former customers who have left due to lifestyle changes. Your service department will identify whether disappointment with a product area has been at fault, and feed that information to the product-development team. Advertising and promotions can also be directed to the demographic that you choose.

The Bottom Line

Life-stage planning is a cost-effective way to retain a customer base, attract new customers and ensure your enterprise stays relevant in the marketplace. Make sure that your company isn't left behind.

Related Briefs


What is a CRM System and Do I Need One?

5 Fast Steps to Better Relations (and Results) Between Sales & Marketing

How Good Marketing and Stellar Customer Service can Keep Small Businesses Alive

Featured Research
  • 12 Must-Have CRM Features

    Having a CRM is absolutely essential to any modern day business's success. In fact, 91% of companies with 11+ employees now utilize a CRM solution in their business. When making the decision to purchase or upgrade your CRM solution, it can be quite overwhelming determining which features are essential to your success versus those that pack more fluff than punch. more

  • Making the Case for a New CRM

    Did you know that having an outdated CRM is just as bad as not having one at all? Do you find yourself working even just a little too hard to make your current CRM work to maintain your contacts and relationships? While it is increasingly more difficult to reduce customer churn, modern CRM tools are much more powerful and provide much more opportunity to develop stronger relationships with your clients that can provide more stability and revenue to your company and bottom line. more

  • Don't Make These 10 CRM Mistakes

    Finding and buying a CRM is exciting. It is also quite daunting as you want to be as prepared as possible so as to avoid making a costly mistake. We have seen that many businesses fail when implementing a CRM, as they repeatedly make the same errors over and over again. more

  • The 2017 CRM Comparison Guide: Q2 Edition

    If you’re in the market for CRM software, we’ve got good news. We’ve updated our CRM comparison guide for Q2. more

  • Are You Using These 8 CRM Features?

    One of the biggest mistakes that businesses make when it comes to their CRM software is the features they don’t use. This happens because they invest in CRM with a handful of problems in mind, so they’re content as long as it solves them. But if you want to maximize your ROI, you should be utilizing every feature available to you. more