Customer Life Cycle Management Process At Starbucks

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4.Customer Life Cycle Customer life cycle management processes includes three stages which are customer acquisition, customer development and customer retention. Customer lifecycle management processes helps companies to determine the methods and strategies to acquire new customers, retaining existing customers and developing customer value. Customer acquisition First of all, customer acquisition is defined as the process of acquiring new customers for business. Customer acquisition management refers to the set of methodologies and systems for managing customer prospects and inquiries that are generated by a variety of marketing techniques (Galeto, 2016). Many companies concerned with issues like acquiring customers at lower cost, acquiring customers who are business oriented and so on. So, Companies always take the cost of customer…show more content…
Many transactions at Starbucks are made with loyalty cards (starbucks card). In practice, Starbucks used data mining for the purposes of customer development. Data mining recorded customer’s transactional histories and purchasing habit. In other words, it provides Starbucks with the probability that a customer will buy other products based on their transactional history or psychographic profile. On the other hand, Starbucks also used data mining to track transnational histories record to identify and determine existing customer preferences. They combine this information with other data, like promotions and inventory into local events so that that can deliver better service to other customers. Based on the data provided, Starbucks able to segment its customers and then sets up rules based on their purchase behavior. In addition, Starbucks also can easily predict their sales volume and amount of materials needed and hence, Starbucks exposes to less risk in budget shortfalls and shortage of

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