Increasing sales is often associated with gaining newer customers, but customer acquisition statistics show it is much easier to sell to your existing clientele. It costs at least five times more to gain a new customer than it does to sell to an existing one.
Looking at your existing clients, segment them into active and inactive clients. To be able to make a clear distinction between the two types of customers, it’s necessary to figure out what is the average lifecycle of an active client. The lifecycle of a customer will depend on the types of products or services you offer.
Before you count out the inactives as part of your company’s natural churn percentages, try these five steps to re-engage them.
- Define who those inactive customers are. Once you have this list, there will be additional segmentation you will be able to do. If you have collected information about what they purchased from you, you can group them by product. This will help you tailor a meaningful approach to re-engage them.
- Determine why they left. A good way to find out why a customer has stopped or paused their buying is with a survey or a phone call. Some companies start these phone conversations by saying they are part of quality control program and would like to find out how the products are working out or are calling to update their existing contact information. Whatever approach you choose, the important thing is to be able to reconnect and find out if you can address their reason for leaving.
- Set up a contact strategy. Once you have reached out, you should be able to determine which of these customers is open to being engaged again. You can add them to your monthly mailing lists for printed communications, text messaging strategy, or even a personalized message tailored specifically for them.
- Develop a “win back” offer. There are many different offers you can test when it comes to winning back your inactive customers . For example; offer exclusive discounts for returning customers or provide a free trial for a newer product. If you have segmented the group of inactive customers by products purchased, you can conduct A and B testing with your offers and to each group offer something different. This will allow you to see which offers perform the best.
- Take care of your newly re-engaged customers. Now that you have gained the attention of some of your inactive customers, it’s time to focus on their needs. Use different strategies to show them you are grateful for their time and business and always deliver a positive customer experience. Some companies use personalized postcards to thank clients for their business. Others use loyalty programs that accumulate points and offer rewards every time the customer makes a purchase.
Find out more about reviving inactive customers by contacting Allegra Marketing Print Mail. Allegra offers a variety of business services to help your company grow. Together we can establish strategies that support your business goals. Contact your local Allegra location to discuss the options available to step up customer loyalty, retention, and re-engagement programs!