LIFE CYCLES OF CONSUMERS AS A TOOL FOR MAXIMIZING THE POTENTIAL PROFITABILITY OF THE BRAND

Abstract

Introduction. A critically important aspect of strategic operations in terms of planning, shaping and obtaining the economic and financial effect of a business is the effective management of the consumer life cycle. The ability to navigate every stage of the life cycle provides business with opportunities to improve the customer experience and, as a result, maximize potential profitability. Understanding and measuring LTV and CLV correctly (depending on the business model) provides an opportunity to help business actors adapt marketing efforts, optimize the costs of attracting and retaining consumers, identify and develop high LTV (CLV) segments, ensuring growth and sustainable brand success in a competitive market and allowing informed and strategic decisions.

Purpose. The purpose of the presented study is to analyze the life cycles of consumers in order to maximize the potential profitability of the brand.

Materials and methods. The study used analytical and evaluation studies by Growth Marketing Metrics [6], FirstPageSage [5,13], The American Customer Satisfaction Index [12,14] and scientific studies by Joosten David [9], Leblanc D. [10] and Taddeo J. [11], which can be the basis for analyzing consumer life cycles to maximize potential brand profitability and understanding further brand development. In the process of research, scientific methods of theoretical generalization and grouping were used (to systematize methods and methodologies); formalization, analysis and synthesis (for interpretation of analytical materials); logical generalization of results (formulation of conclusions).

Results. The scientific article examines the issue of the peculiarities of the analysis of consumer life cycles in order to maximize the potential profitability of the brand and proves that focusing on the vital value of regular consumers is focusing mainly on strategies focused on profit maximization. The conducted research shows that by increasing LTV, businesses have the opportunity to increase the budget in order to attract new consumers, outperform competitors and gain more market share coverage, which as a result allows them to retain consumers longer and leads to an overall increase in LTV.

Discussion. In further scientific research, there is a need to focus attention on the analysis and features of the use of conversion-oriented channels, and the attraction of potential consumers and retention that exists, as well as on algorithms for the formation of brand loyalty.