Customer Life Cycle Modelling

Added on:
17 November 2020

Identify your customer’s life stage and adapt your offer to it

The customer’s life cycle varies from industry to industry. The number of stages that can be distinguished, their duration and the periods between them vary. Sometimes the life cycle is more linear, sometimes the individual stages are repeated. However, it is almost always possible to indicate moments in a customer’s life that determine the change of their needs and habits. Managers in each industry are usually aware of their customers’ life cycle. This knowledge often comes from qualitative research and experience. The problem is to indicate the stage of life of a particular customer to whom you want to address the offer. With the help of advanced data analytics, combining information from multiple sources such as transaction data, loyalty program data, website traffic, qualitative and survey research, we can model the life cycle and forecast the flow of customers between different stages. The customers usually send signals indicating their readiness to move to the next stage. Early recognition of such signals is possible thanks to machine learning and analytics, which allows to reach the customer with a suitable offer before the competition does.


  • Understanding of the customer’s behaviour, which shows that they are transitioning to the next stage of their life cycle
  • The ability to identify the life stage of a particular customer
  • Better tailoring of the offer to the situation and needs of a specific customer

Clients: Leading marketer from retail industry