The customer lifecycle
From acquisition to conversion, retention, loyalty and reactivation – how to optimize each stage of the customer lifecycle
Chapter 01
Acquisition
Customer acquisition has never been tougher. With rising ad costs, tightening privacy laws, and an audience bombarded with content, cutting through the noise is a constant battle. Traditional targeting methods crumble as third-party cookies disappear, forcing brands to rethink how they reach and engage new customers. What are the new acquisition rules?
Make the value exchange clear
Today’s customers are well acquainted with the part they play in the value exchange economy: they share their personal information, and, in return, brands offer perks that enhance their experience. Although economic pressures are having an impact on brand engagement, consumers still value high-quality experiences and services that go beyond mere transactions, according to Marigold’s 2025 Consumer Trends Index Report.
What type of benefits are most valuable to you?
discounts and coupons
loyalty points and rewards
unlocking exclusive content
fostering a brand community
Tailor brand experiences to different generations
Although financial incentives are popular as they offer instant gratification, there’s a growing need for experiences beyond a transaction – especially among younger audiences. Offer exclusive videos, behind-the-scenes content, user-generated content opportunities, or dedicated community spaces to acquire consumers who crave more meaningful brand interaction.
Use interactive experiences for creative data capture
Tap into interactive experiences as a powerful way to unlock richer consumer insights. By creatively engaging audiences, brands can seamlessly secure opt-ins, fueling smarter, data-driven marketing strategies. Reward-based mechanics include questionnaires, polls, quizzes, sweepstakes, QR codes at the point of sale, and social stories.
“Marketers must collect data with a clear purpose and a fair value exchange for consumers. Following a strategic approach to data acquisition strengthens trust, enhances experience, and drives long-term loyalty.”
Progressively build detailed user profiles
By continually gathering user preferences, behaviors, and interactions, marketers can anticipate customer needs and deliver highly targeted messaging at the right moment, optimizing campaign effectiveness and reducing wasted spend. These progressively built profiles power up brand differentiation that just gets stronger over time.
Learn more now...
Chapter 02
Conversion
Acquiring a customer and their data is just the start. Getting them to really engage calls for a clear and authentic customer conversion strategy. And that’s a challenge in a crowded digital landscape.
Roll out the red carpet – the power of a great welcome
Carefully planned, relevant, and timely welcome journeys are essential to engage new customers at scale. Effective onboarding strategies typically involve five stages:
01 Personalize
Use customer names in the subject line or email body; curate content and offers that resonate deeply
02 Incentivize
Introduce a special welcome discount to drive higher open and clickthrough rates. A/B test to optimize which type of offers and placement work best
03 Educate
Educational content such as tutorials, how-to guides, or product comparisons will introduce customers to features or product benefits that separate a brand’s portfolio from its competitors
04 Collect data and analyze
Capture key preferences early to create intelligent CX journeys. Build straightforward data collection mechanisms during onboarding emails – think about the power of gamification via surveys, welcome questionnaires, or product preference forms
05 Remind
Offer reminders are a powerful way to convert leads into customers. Create a sense of urgency – include days remaining on the subject line or dynamic countdowns in the email body copy
Deliver a VIP experience
Email timings and frequency should be based on a consumer’s behavioral data and other real-time signals across a brand’s websites, apps, and owned properties, including in-store actions.
Don’t be one of those brands that send 26% of emails to people during a time that doesn’t work for them.
“Conversion and revenue data matter, but true growth comes from listening and analyzing consumer behavior, actions, and responses across channels to refine and evolve your strategy.”
Beyond the inbox
Although email is the top marketing channel for driving consumer purchases, the strongest brands create consistent customer experiences across channels, from email to SMS to mobile apps to websites and beyond.
Seamless, cross-channel experiences are something that today’s consumers simply expect to have.
Nearly a quarter (24%) of consumers say that a consistent digital experience across a brand’s website and mobile app is more important than price when making a purchase decision.
Learn more now...
Chapter 03
Retention
After customers have converted, the challenge is to keep them. Increasing customer retention rates by 5% can increase profits by 25%-95%.
Brand retention is built on value and reliability. Brands need to make customers feel confident and comfortable enough to interact and share data with them continuously. They can do this by acting as a valued advisor – by making personalized recommendations or sending order follow-ups. Then, the pressure is on to make good use of that data, connect the dots, and deliver messages and offers that are timely and always relevant.
of customers say that data privacy is a significant factor in brand loyalty.
Are you talking to me?
The key to winning hearts and minds is personalization. It may seem like table stakes, but some brands still fall short. Forty percent of consumers have been frustrated with irrelevant content or brand offers in just the last six months, according to Marigold’s 2025 Consumer Trends Index Report.
Meanwhile, nearly a quarter (24%) said brand messages didn’t recognize their shopping or loyalty history. That’s a missed opportunity for brands to build on existing relationships and known data.
“Customer retention requires balancing budget and time to meet evolving consumer needs. Invest in seamless experiences across channels, whether personalized emails, responsive customer service, or intuitive mobile apps, to build lasting customer engagement.”
Beyond discounts – audience hook
Exclusive content, early access to new products, and brand-driven initiatives are gaining traction, showing that engagement isn’t just about price – it's about experience. Marigold’s 2025 Consumer Trends Index Report shows:
Brands that align with social and environmental values also have a powerful edge:
- 52% of consumers engage with messages about activism
- This highlights a major opportunity: brands can blend purpose with value-based offerings to create deeper connections
Product announcements are another big win:
- 71% of consumers are eager to hear about new releases
- Newsletters are slightly less engaging (50%), but they still play a key role in keeping loyal customers in the loop, especially when tailored to interests and engagement habits
And when it comes to making consumers feel extra special...
- Exclusive VIP offers (77%) and personalized emails (79%) outperform generic outreach. That’s proof indeed that treating customers as individuals, not just names on a list, drives real engagement
Spotlight on trust in the financial services sector
By nature of the industry, financial services or insurance brands need more personal data than privacy-conscious consumers may feel happy to divulge. This is where the value of conveying a sense of trust comes into play.
This is why top-ranked brands such as Bank of America, Capital One Financial, and Wells Fargo command especially strong consumer relationship ratings in Marigold’s Relationship Marketing Trends: Brand Rankings Report. For example, Wells Fargo’s content hub helps optimize consumer security and delivers interactive experiences through fun challenges like a cyber security quiz.
Learn more now...
Chapter 04
Loyalty
The value of loyalty is massive. But it can be tough to earn. Even if consumers are consistent buyers, it doesn’t necessarily mean they’re emotionally all-in with a brand. Seventy percent frequently buy from the same brands without feeling loyal to them. So, they can easily be wooed away by competitors. That’s why it’s essential to have a thoughtful loyalty strategy that reinforces why they should stick around.
of respondents are willing to pay more for brands they feel loyal to
more costly to acquire new customers compared to retaining current customers
Winning hearts, not just wallets
- Lean into product and service quality: Over three quarters (82%) say it’s critically important for brand loyalty – a need that intensifies with older demographics
- Double down on customer service: it’s the backbone of a positive brand experience. Also, remember how important a seamless digital user experience is, especially to younger consumers
- Make it personal: personalization that reflects unique consumer preferences, such as special offers for loyal customers or access to tailored experiences, creates a more meaningful brand connection
- Give them choices: variety in product choice is important for more than seven in 10 consumers. Expand product lines or curate exclusive collections to give consumers new reasons to stay loyal
- Establish trust with data best practice: data privacy is a significant loyalty factor (70%), especially for older consumers. Be transparent and secure about protecting customer privacy: it’s a key differentiator, not just a box to tick
- Show them what you stand for: By leading with purpose and authentically communicating values such as environmental initiatives or social activism, brands can turn shared values into a foundation for loyalty
“In a world where economic pressures and brand values shape consumer choices, marketers must strike a balance between emotional and transactional rewards to cultivate lasting loyalty and genuine connections.”
Building a compelling loyalty program
Loyalty programs are a great way to deepen a brand’s connection with its audience. Successful programs are based on a mix of monetary and non-monetary components. Mature programs can return between 8-11% on their investment.
Global loyalty programs are set to grow by 12.7%. Typical offerings like points, rewards, discounts, and other value-adds can attract new and existing audiences. More experiential offerings, like offering early access to new products or providing curated feeds based on behavioral insights, will help differentiate a program and keep consumers engaged.
Play on: the power of gamification
Gamification adds an element of excitement to brand interactions, opening an opportunity for memorable experiences and higher levels of customer engagement. It’s like taking the best parts of a video game (points, rewards, challenges) and sprinkling them into the customer experience to make it more fun and engaging. People become more motivated as they get closer to completing a task or reaching an objective.
For example, the Nando’s Rewards program uses a well-known punch card-style system and spices it up with fun, chili-themed rewards. Customers earn a chili each time they make a qualifying purchase, which can be redeemed for various menu items.
Learn more now...
Chapter 05
Reactivation
Despite marketers’ best efforts, customers do sometimes disengage. Over a third (37%) switched away from brands they’ve previously been loyal to, according to Marigold’s Consumer Trends Index Report. And younger generations are the most likely to switch if they feel they’re not getting a seamless digital experience. Half (50%) of 18 to 24-year-olds and 44% of 25 to 34-year-olds have drifted from brands they used to favor.
How can brands navigate attrition and reignite lapsed love?
of consumers would potentially be lured back by more attractive discounts or promotions
would return if the product or service quality improved
of 18 to 24-year-olds would reconsider a brand if it improved its digital user experience
Understand and personalize: reignite the connection
Winning back lapsed customers starts with understanding why they disengaged. Take a holistic view of all relevant data. Use metrics that matter to leverage data-driven insights and then create personalized re-engagement campaigns that feel tailored rather than generic.
Targeted emails or push notifications with special incentives such as exclusive discounts, early access to new products, or a personalized ‘we miss you’ offer can renew interest. Highlighting updates, new product launches, or improved services can also show consumers that the brand has evolved to meet their needs better. The key is to make returning feel effortless and rewarding rather than a sales-driven push.
“To effectively reactivate customers, it’s crucial to understand why they're churning. A great way to re-engage them is by educating them on new initiatives, offering compelling incentives, and targeting them outside traditional churned channels. Gamification can further create an immersive, engaging experience that reignites loyalty and strengthens connections.”
Value beyond discounts
While financial incentives can be effective, long-term re-engagement calls for more than just a coupon. Brands should focus on rekindling the emotional connection by reinforcing their unique value proposition, whether that’s through improved customer service, community engagement, or shared brand values. Gamified loyalty programs, exclusive content, and interactive experiences can reignite excitement and give lapsed customers a reason to stay.
Transparent communication, acknowledging past interactions, and addressing any potential pain points from their last experience can also build trust and encourage them to give the brand another chance.
Learn more now...
Continue reading...
