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At Databox, we put our company values at the forefront of everything we do. Prioritizing customer impact is one of the values we focus on the most, so taking the time to really understand our customers is paramount and we employ multiple strategies, frameworks, and initiatives on a daily basis to achieve this. One of those strategies is our Customer Lifecycle Framework (CLF), which reflects our dedication to prioritizing the needs of our customers at every stage of their interaction with us.
The CLF is an internal framework that emphasizes cross-team collaboration and helps us systematically acquire, onboard, and retain more customers throughout their journey with Databox. It helps us to better measure and track the effectiveness of the growth strategies, by providing a clear framework for monitoring customer behavior and engagement over time as well as helping us identify patterns and trends in customer behavior and use that information to make data-driven decisions about how to engage with customers and drive growth across all teams.
This blog explores how our CLF guides our approach to customer engagement and fosters sustainable growth for both our customers and our company.
In the realm of customer lifecycle frameworks, product-led growth (PLG) is a strategic approach that prioritizes the use of the product as the primary means of acquiring, activating, and retaining customers. This method has become increasingly popular and successful among a wide range of companies in recent years.
Contrary to what the name implies, being product-led actually emphasizes the importance of involving members of various teams in the product development process and highlights the need for a deep understanding of our users and their respective phases in the customer journey.
A common thread among these companies is the use of a well-defined Customer Lifecycle Framework (CLF) to effectively identify and engage with users at each phase of the journey. With the hopes of achieving the same results, we have developed a functional framework, that enables all teams to understand their role in the Customer’s Lifecycle and how they influence and serve users best at different stages. Furthermore, we have established a comprehensive overview of tactics and strategies utilized by all teams that foster collaboration across the organization.
In order for it to be effective, the framework has to fully reflect the user base and needs to be optimized for the distribution of users across all stages. With data-driven insights, all teams can perform and measure their performance effectively.
When creating our CLF at Databox, we have specifically addressed critical customers, who require immediate attention to prevent churn or to identify opportunities for upgrading. By including these customers in the framework, we ensure that all teams have the information and tools necessary to effectively engage with these customers and drive growth. To get more clarity, we used the Product Qualified Lead (PQL) Score and Customer Score metrics to assess the readiness of our prospects to become paying users based on their engagement with the product. These metrics provided valuable insights that enable us to prioritize and allocate resources among potential and existing users effectively.
Overall the framework promotes transparency and collaboration within the company by clearly outlining the actions and tactics necessary for effectively engaging with users at each stage. As a result, this enables us to onboard new users better, retain paying customers more effectively, and quickly identify and resurrect critical customers who may be at risk of churning.
Ultimately, the primary goal of the framework is to improve customer retention and reduce revenue and customer churn by developing optimal conditions and tactics for engaging with our users throughout the customer journey. This can be achieved only if CLF is fully adopted by everyone in the organization.
Before delving into the tactical approaches our teams employ, it’s crucial to understand the foundational structure of the Customer Lifecycle Framework (CLF), which consists of three main components:
Understanding customers’ journey when interacting with our product is essential for providing a seamless and satisfying experience for them. This journey is broken down into three phases: Setup, Usage, and Inactivity. Each phase includes users in different account stages, which we’ll explain later on. Insights into each phase provide a better understanding of the customer journey and explore strategies for optimizing engagement and retention at every step.
When users first join Databox, they embark on what we fondly refer to as the Setup phase, which aims to provide them with the best setup experience possible and achieve an Activation Score that turns the user into a Product Qualified Lead (PQL). This increases the likelihood of them subscribing to one of our paid plans. This phase includes users in New, Trial, and Active Free stages. We use a series of feature activation sequences and setup offers, to help users reach their AHA moment as soon as possible, allowing them to grasp the value of our product and understand the potential benefits of our paid plans.
After the users complete the setup and activate the product, they move into the Usage phase. This phase is tailored for paying customers and focuses on creating a habit of using Databox. Users receive support and assistance from Account Managers for any setup-related issues, ensuring a seamless onboarding process. Being product-led, we prioritize feature adoption through targeted campaigns. These aim to increase usage and show the value of our product to our customers. The Customer score, which measures product adoption, helps us identify customers with expansion and retention opportunities, guiding our growth strategies.
The “Inactivity” phase means a customer has stopped using the product or has churned. Our attempt at reactivating those customers depends on the cause of their inactivity. For customers who are at risk of churning, we address the root cause and prevent further churn by either using specific messaging, getting in touch with the user or using other product-related strategies. For churned or inactive Free users, we aim to reengage and encourage them to return to using our product. Generally, we allocate fewer resources to inactive users compared to active customers with a higher likelihood of resurrection.
To align our efforts and resources with the specific needs of our users at each phase of the customer journey, we have defined detailed Customer Lifecycle strategies. These strategies outline the main objectives for each activity that is targeted towards users in different account stages, enabling us to effectively engage with them with the aim of increasing their satisfaction with our product.
The Activation strategy targets new sign-ups, and active free and trial users, whereas the Adoption strategy targets newly acquired customers. The goal is to ensure that these users are properly introduced to Databox and have the opportunity to explore and utilize as many features as possible, understand the value and capabilities of our product, and are more likely to become paying or well-setup customers. These two strategies use tactics such as feature activation series, onboarding campaigns, and user education resources that are designed to help users quickly understand the product and its benefits.
The Retention strategy is focused on maintaining the engagement of paying customers who have been with us for at least three months. These customers are considered to be of high value, and our primary goal is to retain them and move them to a more engaged stage. This phase includes tactics such as personalized campaigns, upsell and cross-sell opportunities, and customer success managers to help customers continue to see value in our product and increase their usage and engagement.
The Expansion strategy is focused on the top 10% of our paying customers who have reached the Power stage (explained later on). These customers have the highest retention and satisfaction rates and are considered to be of high value. The goal of this phase is to take advantage of this opportunity by expanding their usage of our product and increasing the value they receive from it.
The Resurrection strategy is focused on customers and users who have canceled their subscriptions or have become inactive. Our approach to resurrection varies depending on the underlying cause. The goal of this strategy is to re-engage these users and encourage them to return to using our product. However, we allocate fewer resources to these users, as our priority is to prevent customers from reaching this stage in earlier stages of the customer lifecycle. This phase includes various tactics such as win-back campaigns, personalized messaging, and missed feature promotion campaigns to re-engage customers, but these activities are generally less intensive than those used for active customers.
The Customer Lifecycle Framework includes various account stages. By classifying users into these stages, we are able to communicate with them in a personalized manner and implement tailored tactics for each stage.
Let’s dive into each one.
New accounts are accounts created in the last 14 days and are on a Free plan.
The main goal is to demonstrate the value of Databox to these users through guidance and help them realize why Databox is beneficial. Here is what our teams do to reach this goal:
Active Free accounts are accounts on a Free plan that are older than 14 days and have recorded at least 1 activity in the last 28 days.
Active Free users have not yet converted to a paid plan but continue to use the product actively. When communicating with these users, the main goal is to demonstrate the value of shifting to a paid plan by highlighting the additional features that paid plans offer and how they can benefit their performance. Here is what our teams do to reach this goal:
Trial accounts are accounts on a Trial plan with an active trial period.
The trial period is a crucial stage in the customer lifecycle as it serves as an opportunity to convert users into paying customers. During the 14-day trial period, users have access to all features of the product, providing them with an opportunity to fully evaluate its value. Therefore, it is crucial to effectively onboard and engage these users during this time to increase the chances of converting them into paying customers.
The main goal is to achieve the highest possible Activation Score and guide the users to subscribe to a paid plan. Here is what our teams do to reach this goal:
Evaluator accounts are accounts on any Paid plan that became paying in the last 3 months.
In this stage, new customers mostly evaluate the product to see if it’s suitable for their business needs. This stage is focused on the first 90 days of the customer’s journey after subscribing to a paid plan, where a significant percentage of customer churn occurs. The main goal is to help customers develop a habit of using Databox and reach a certain level of activation, leading them to the Core and later Power stage. Here is what our teams do to reach this goal:
Casual accounts are active accounts on any Paid plan that became paying more than 3 months ago and have occasional activity (Monthly Active Users or MAU) with low feature adoption.
After 3 months of paid subscription (Evaluator phase), accounts are classified based on their level of feature adoption and usage. Casual accounts demonstrate minimal engagement with our product, infrequent app usage, implementation of basic features, and low adoption rates. This constitutes approximately one-third of our paying user base. The main goal for this group is to effectively communicate the value and benefits of Databox and encourage increased engagement and feature adoption. Here is what our teams do to reach this goal:
The Technical Support team is responsible for resolving users’ issues before further escalation and conducting Priority Support Calls. All of these teams work together to ensure that Casual customers are presented with the benefits and value of Databox, encouraged to become more active with various activities, and adopt and engage more of our features.
Core accounts are active accounts on any Paid plan that became paying more than 3 months ago and have regular activity (Weekly Active Users or WAU) with medium feature adoption.
Core accounts demonstrate a high level of engagement, utilizing Databox on a weekly basis, and showing a strong adoption of features. The main goal is to retain these customers by providing exceptional service and support, as well as offering opportunities to upgrade to higher-tier plans and purchase additional features. All teams within the organization work in collaboration to support and nurture Core customers throughout their journey with our product.
Power accounts are our top 10% active accounts on any Paid plan that became paying more than 3 months ago and have intensive activity (Daily Active Users or DAU) with high feature adoption.
The Power accounts are the top 10% of our customers who have demonstrated high retention and advocacy for our product. We want to maximize their usage of additional features and add-ons. These customers are also valuable resources for product feedback, testimonials, and case studies. The main goal is to maintain a strong and long-lasting relationship with these high-value customers. Here is what our teams do to reach this goal:
Dormant accounts are accounts on any Paid plan that became paying more than one month ago but have not been active in the last 28 days.
Customers who have not been active in the last 28 days and have an active paid subscription are classified as Dormant accounts. The main goal is to increase the activity of these accounts. Here’s what our teams do to reach this goal:
Churned accounts are accounts that were canceled or no longer have an active paying subscription and did not downgrade to a Free plan.
Churned accounts refer to customers who had an active paid subscription but have since stopped using Databox. Their account setup remains unchanged, and they are not downgraded to a Free plan. The main goal is to re-engage these customers using resurrection campaigns that highlight changes and updates to the product. Addressing their specific cancellation reasons allows for a more personalized approach and increases the likelihood of re-acquiring their business. Here’s what our teams do to reach this goal:
Inactive Free accounts are accounts created more than 14 days ago, are on a Free plan (expired Trial, downgraded to Free), and have not been active in the last 28 days.
The Inactive Free accounts are the largest group of users. Communication with these customers primarily takes place through email, product newsletters, and occasional product promotions to present the latest improvements and features available. The main goal is to re-engage these users and encourage them to return to the app through various incentives such as second trial offers and highlighting the benefits of using the product. While the likelihood of converting these customers to a paid plan is low, efforts are made to keep them informed and engaged with the product.
To fully utilize the potential of our Customer Lifecycle Framework, it is crucial for teams to collaborate effectively. By understanding the specific tactics and strategies used by each team to influence a specific stage in the customer journey, we drive significant improvements and work towards a common goal. It is essential for the framework to be fully embraced by everyone in the company, with each team member contributing their expertise to ensure a successful outcome. The stages above already list the teams that are involved in each one, but for a better overview of each team’s involvement, here is more insight into the tasks that each of them overtakes.
PRODUCT TEAM
The Product team is presented throughout the whole customer lifecycle by continuously improving the product’s user experience and interface, providing support through in-app campaigns, improving scoring metrics such are PQL score and Customer score for better outreach, implementing the PLG methodology for feature activation and adoption, personalizing the onboarding experience, and conducting growth experiments to increase the customer base.
PRODUCT MARKETING TEAM
The Product Marketing Team plays a key role in implementing the Customer Lifecycle Framework by guiding users through the various stages with targeted nurture campaigns and regular product updates. These campaigns are delivered through a variety of channels, including email and in-app messages, and are designed to provide relevant and valuable information to users, such as how to use the product, the benefits of using it, and real-world case studies. Additionally, the Product Marketing Team uses newsletters, emails, and blog posts to keep users informed of product updates and new features, while also supporting other teams by promoting setup services and driving feature adoption.
TECHNICAL SALES CONSULTING TEAM
The Sales Engineering team is responsible for guiding prospects through the Trial period by prioritizing outreach based on PQL score, conducting video calls to understand their technical requirements and business objectives, assisting with plan selection, and offering account setups, new features, and paid services before handing off to the Customer Onboarding team to continue the setup process and evaluation of the product.
SALES ENGINEERING TEAM
The Sales Engineering team focuses on working with paid accounts (Evaluator, Casual, Core, Power) to identify their needs and requirements through video calls, providing proof of concepts and sales proposals, upgrading customers to annual plans, and helping them build custom integrations and metrics.
CUSTOMER ONBOARDING TEAM
The Onboarding team focuses on working with new Evaluator accounts (new customers in the first 90 days) through outreach and providing assistance and training to help them achieve their business and technical objectives, collecting customer feedback to update the roadmap and dedicated Asana project, offering complimentary kickoff calls and free setup services, and assisting and training new customers during their first 90 days to ensure they progress to the Core or Power stage while also addressing at-risk customers and scheduling calls to eliminate at-risk conditions.
ACCOUNT MANAGEMENT TEAM
The Account Management team is responsible for working with customers after the initial 90-day evaluation period. Each customer is assigned an Account Manager who proactively engages with them to introduce new or missing features, offer assistance to improve their usage of the product, and promote feature spread. The team communicates with customers through email and in-app messaging, schedules calls to discuss upcoming renewals, and collects feedback to inform updates to the product roadmap. Additionally, the team offers complimentary setup services and works with customers who have been identified as at risk of churning to eliminate any potential issues and ensure a positive customer experience.
CUSTOMER SUPPORT TEAM
The Customer Support team proactively reaches out to users through manual emails and in-app chat, answering questions with high responsiveness, collecting and sharing user feedback on the roadmap, troubleshooting cases, and escalating issues to the Technical Support team, leading the conversation towards setup services or booked calls, offering setup services, driving the adoption of new users, creating leads and facilitating handoffs to Technical Sales consultants, and contacting 100% of new users to ensure a smooth customer experience. With paying customers, the primary goal is customer retention through setup services, feature adoption, and value positioning while analyzing customer accounts to identify gaps in setup and features, making sure accounts are being used to their fullest potential, and helping new customers fully utilize the product and develop a habit.
TECHNICAL SUPPORT TEAM
The Technical Support team is responsible for working with all accounts, including Free and Paid customers, by effectively resolving customer issues before escalation, escalating product issues to the Engineering support teams, maintaining communication with users during the issue resolution process, reducing the time gap between Customer Support and Engineering Support, collecting and sharing user feedback on the roadmap, conducting priority support calls, prioritizing users with priority support or those with a high probability of churn, and involving the Customer Onboarding or Account Management team, building stronger relationships with customers that report multiple issues by one rep taking ownership of all their inquiries, resolving customer issues and identifying UX product improvements.
Effectively implementing the Customer Lifecycle Framework company-wide is not only essential for fostering success and driving business growth but also embodies our core customer-centric values. At the heart of our company culture lies a deep commitment to prioritizing the needs and experiences of our customers, and the CLF serves as a tangible manifestation of this dedication, helping us optimize every interaction with our customers and cultivate meaningful experiences that propel business growth.
By leveraging the CLF, we understand where customers are in their journey and can actively tailor each stage of the customer lifecycle to enhance their experiences. This approach not only strengthens customer relationships but also maximizes opportunities for revenue generation. Ultimately, the CLF empowers us to uphold our customer-centric values while driving tangible results for Databox.
Our Customer Lifecycle Framework analysis is part of a series of technical articles that offer a look into the inner workings of our technology, architecture, and product & engineering processes. The authors of these articles are our product or engineering leaders, architects, and other senior members of our team who are sharing their thoughts, ideas, challenges, or other innovative approaches we’ve taken to constantly deliver more value to our customers through our products.
Žiga Potočnik is a Product Manager in the Product team at Databox, who has been involved in the setup of the customer lifecycle framework for our product and ensuring our product meets the evolving needs of our customers at every stage of their interaction with Databox. He has played an important role in optimizing our onboarding strategies to maximize customer activation and retention.
Stay tuned for a stream of technical insights and cutting-edge thoughts as we continue to enhance our products through the power of data and AI.
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