Customer Lifecycle Models

Getting-Keeping-Growing Customers

Before setting up a Lean-Case project, you should understand the concept of customer lifecycle models and related key questions. The Customer Lifecycle describes the lifecycle of a customer in 2 phases with its key metrics:

  • Getting Customers
  • Keeping-and-Growing Customers

Getting-Customers: The Get Customer Phase engages users and lets them do something you have planned for them to do. The key metric describing the Get Customer Phase is the Cost-of-Customer Acquisition (CAC).

Keeping Customers: Most startups forget that it is much more expensive to get than to keep a customer. Retaining a customer or ensuring that a customer doesn't churn is therefore the major business objective to keep customers. The Key Metric of the Keep Customer Phase is Churn.

Growing Customers: Growing the customer finally maximises the Gross Profit return (which is revenues minus Cost of Goods Sold) over the entire future relationship with a customer (the customer lifetime). The key metric is the Customer Lifetime Value (CLV or often CLTV).

Key Questions for your Customer Lifecycle 

If you understand your Customer Lifecycle well, you can answer 3 key questions

  1. 1
    How do you create leads?
  2. 2
    How do you convert leads into paying customers?
  3. 3
    And, how do you grow your paying customers?

Having those answers in mind, Lean-Case becomes a "lean" business model simulator - and profit planner ... that allows you to model the customer lifecycle model of your business, so that you can

  • understand the key assumptions and metrics about your business
  • present and explain them LOGICALLY on just one page and…
  • answer the key questions which decision makers have about your business revenue potential, its business viability, profitability and funding requirements