Everything You Need to Know About Customer LifeCycle Management - CASA Retail AI

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There are lot of lenses to look at Retail customer behaviour data but Customer LifeCycle Management is at the core of it all. CASA  AI believe CLM is the fundamental element that needs to be in place for you to drive good ROI on your marketing or growth efforts. Once you have a defined CLM framework, you can start focusing on the other aspects. Let's dig a little deeper.


What is Customer Lifecycle Management?

Customer lifecycle is a term used to describe the progression of steps a customer goes through when considering, purchasing, using, and maintaining loyalty to a product or service.

Customer Lifecycle Management (CLM) is a framework to facilitate a smooth movement of users(non-purchasers) from acquisition towards loyalty (repeat active customers) , preventing Drop-Off customers and improving customer retention by maximising the value delivered at each customer engagement touchpoint and removing all friction in conversion.

Why is it important to manage Customer’s Lifecycle?
  • It is much easier to convert and retain an existing customer than to acquire a new one.

  • A happy customer will not only purchase more, they will also spread the word for you and bring additional customers.

  • Easier mechanism of acquiring new customers while reducing acquisition cost.

Or put it other way,
“You can’t build a sustainable Retail business without repeat customers”

Designing The Customer Lifecycle

While there’s no standard way to define a customer lifecycle for an Retail/transactional business, in my experience We’ve found these flow to do the job well.


Customer Lifecycle


We find this representation useful because it gives a more in-depth view of what exactly is happening in each lifecycle stage. Also, by splitting various lifecycle stages by their purchase activity you get a better sense of how many customers are active, at risk of getting dropping off and have already dropped off.

Defining Lifecycle Stages

Before we jump to the metric, let’s quickly understand what each stage means.

Definition of Various Lifecycle Stages

In this content, a couple key definitions one must understand are

  1. At Risk  — Number of days for which if a customer doesn’t purchase/ Declining average ticket size they are at risk of dropping off.
  2. Drop Off — Number of days for which if a customer doesn’t purchase they are Dropped Off.

A Drop Off customer is one who hasn’t purchased for long enough that we can consider them to be lost.

Repeat and Loyal Customers

There isn’t a definite way to define repeat and loyal customers. For simplicity, we’ve defined repeat customer as anyone who has placed more than one order. Similarly, Loyal customers can be defined in multiple ways (orders/revenue etc) but We’ve defined them on the basis of number of orders (Z orders).

Depending on the nature of business, our AI engine understand the values of X,Y and Z


Customer Engagement Metrics that matter

Customer engagement metrics measure how your audience is interacting with your marketing. For an email campaign, the key engagement metrics might be open and click rates.




However, at CASA we believe through a strategic view of customers. We widely use this customer engagement metrics.

1. Repeat Ratio - Trend of converting a single time customer to repeat customer.

2.Activation - Trend of reactivating drop off customers to loyal customers.

3.Net Promoter Score - Used to measure the customer loyalty, how likely are your customers are to recommend your brand to others.

4. Frequency Ratio- Improving the number of times an average customer buys a product in a given period.

5. Customer Value - Improving the average ticket size of the customer.

CASA Retail AI offers major advantages for traditional stores, by boosting footfall and enhancing the in-store customer experience with new digital technologies.

With the Customer Lifecycle in place, we now have to define our goals and make plans to achieve them using CASA Retail AI.

Thanks for reading this draft. To learn more CASA Retail AI




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