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Stop, Think, Reactivate

“A new customer costs 6-7 times more to acquire than an existing one does to retain” ( Companies sometimes fail to realise the enormous potential in reactivating their inactive/lapsed customers. In most cases inactive/lapsed could eclipse even over 50% of their entire customer base. A variety of reactivation techniques can be used to reactivate a lapsed customer into engaging with emails and from there to a purchase.

Key Reactivation techniques:

  • Use historical purchase history and activity – Use hindsight from historical transactional and behavioural data to create a strategy to reactivate lapsed customers

  • Identify an appropriate period for lapsed interaction – For example 3 months, 6 months or 9 months since their last purchase

  • Memorable subject line in communications – A mundane subject line will not help improve open rates, subject lines must be bold and eye catching to re-engage potential customers

  • Be creative - The instant reaction determines how a customer will act. Call to action buttons, aesthetically pleasing creative can drive engagement and re-purchase, fundamentally the creative should be easy for the customer to interact with

Do or Die campaigns are an excellent opportunity to reactivate lapsed customers with a secondary objective, to cleanse your database of customers who you are unable engage with. Do or Die campaigns target inactive and lapsed customers with a creatively crafted email with subject lines that stand out, for example ‘Have we bored you?’. They include call to action buttons aiming to reactivate customers by getting them to engage with the content. Those contacts who re-engage allow companies to setup tailor made reactivation suites to potentially turn clicks and views into purchases. Those who do not respond can be segmented into further sub group e.g. dormant customer. It is then up to the companies as to whether they try out test and learn practices on these customers.

One must also consider why their customers are lapsing in the first place. Before a plan can be devised to reactive customers it’s crucial to gather quality information fro

m those who have lapsed so that history doesn’t repeat itself. Surveys can give companies invaluable insight into why they have lapsed. It could be that a certain product or service is no longer being provided or simply the cost of services was higher than that of their competitors. Whatever the reason once a pattern has been established this must then be addressed head on or a continuous cycle of lapsed customers will continue. Learning from this information, companies can attempt to reactivate its customers by improving the product or service, furthermore they can then communicate back to its lapsed customers letting them know that they have listened to their opinions and improved their product/service.

While not ideal for profit margins, discount offer emails have one of highest response rates in terms of engagements and purchases. Everyone loves a discount and even if they don’t go onto purchase you can be almost certain customers will be lead back to the landing page for at least a browse. It’s key to have engaging call to action buttons which mention ‘Let me know of future offers’. One thing to consider is offering too many discount offers to often will devalue your product/service leading customers to simply disengage until the predictable offer email arrives.

Reactivating lapsed customers is a powerful and considerably cheaper strategy for any company looking sustain revenue streams. Social media also increases the number of channels available to customers, this also gives companies a wider variety of communications to reactivate customers and reach out to them. Customers that are successfully re-activated and nurtured, have the potential to become the most loyal and profitable customers – don’t think of them as being lost and treat new leads as your only source of growing the bottom line!

If you would like to hear more about how we could assist you in regards strategies to reactivate your customer base please don’t hesitate to contact us.

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