Reactivating customers is a great way to increase your business’s profitability quickly, even though it is often overlooked.
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What would you do if your goal was to attract new clients and increase revenue in the next month’s time?
If you are a business owner or a well-established one, you will experience this at some point. How would you react if you had several clients suddenly leave you? You might also find yourself in a difficult position if you discover that not all of your clients are paying you on time. What happens if your sales leads or pipeline dry up?
In all these cases, it is important to act quickly before your business deteriorates.
A proven but overlooked strategy that brings in revenue
There are a plethora of viable options that help business owners immediately increase their revenue. There are many options that can help increase revenue. These include optimizing pricing strategies, increasing advertising spend and running seasonal promotions campaigns. Another effective way to reactivate customers is Reactivating customers is a great way for business owners to increase their revenues quickly and without spending too much.
Customer activation can be confusing and may vary by industry. Let’s get it out of the way. This article refers to customers as anyone who purchases a product or service from you company. It is not a qualified lead, lead, prospect, referral partner, or other stakeholder. It is a paying customer. A customer can be called a client, patient, or member depending on what profession you are.
What type of customer do you want to reactivate and why? This strategy does not apply to your existing customers. It is all about your past customers. Reactivation outreach is designed to get your former customers back to paying for your products and services. You want to resurrect client relationships from the past and win them back.
Benefits of a customer reactivation campaign
Some organizations refer to former customers as lost, dormant, lapsed, previous or inactive. No matter what you do, don’t call your former clients “dead customers”. Although you may want to “return some inactive customers from the dead”, what if some clients are actually deceased? This has happened to me in client meetings and can be quite awkward.
Regardless of what your preferred name is for a former customer, a well-defined and well-run customer reactivation process produces numerous benefits:
Increased revenue for the short-term and the long-term – The goal is to not have the former customers vanish completely. While quick win-backs can lead to short-term increases in revenue, consistent, timely and relevant communication will help you achieve your longer-term revenue goals.
Decreased customer acquisition costs – Remember, these technically are not new clients. These customers are available to be re-acquired. These customers are familiar with your company and have had positive experiences with you. The majority of them probably left because of reasons that were not related to your product or services or the performance of your staff. It is worth noting that finding and keeping a new client costs five times as much as it does to retain an existing client, or to resuscitate an existing one.
Enriched current customer experience – As you uncover why former customers left you, that knowledge can be applied and new systems and processes can be put in place that better serve the needs and preferences of existing customers so that they become more satisfied and stay with you longer.
Decreased customer churn – having more intel on current customer trends, former customer behavior, their purchase history and the likes or dislikes of other competitor offerings will result in a more seamless end-to-end customer experience that should lead to higher customer loyalty and lower customer turnover.
How to successfully launch a reactivation campaign
Below are the key steps to follow to profitably launch and execute your next former customer reactivation initiative:
Determine your target campaign audience – Identify who you want to go after first. What was their last purchase from you? What made them leave? You should consider that customers who have sent you referrals will be more likely to reactivate if they are satisfied with your service and/or had previous inquiries and escalations satisfactorily and promptly addressed.
Establish your campaign goal and success criteria – Besides getting sales from the former customers again, are you also looking to introduce them to a new product offering or upgrade them to a new release or package?
Create your personalized, compelling content and strategies/responses to win them back – Based on their purchase history and reasons captured for leaving, begin preparing the appropriate messaging and enhancements to highlight in the unique offers for their applicable buyer’s persona.
A/B test various offers – You don’t always have to offer discounts or incentives to earn back a customer. Many times, just offering a new product or service will suffice to entice the customer back to do business with your company again.
Follow-up via different channels – Be sure to use the telephone for a follow-up in addition to email in case your note is somehow going to their junk or spam folder. It is strongly recommended to keep your customers in touch via different channels.
Measure your campaign performance – Track which outreach technique works the best, uncover which segment of your database returns to be a customer with a higher likelihood, and learn which competitors are easiest to take business back from.
Keep accurate and up-to-date records – Industry leaders leverage a centralized and integrated CRM system to track the history of all customer activities, purchases, sales opportunities and service incidents. Instilling a client offboarding process is a must so that customers can remember all the reasons they left. This data can be used to plan for an even more successful reactivation outreach campaign.
If you’re a business owner with an established client list in need of a quick revenue recharge, tap into the power of the customer reactivation strategy. If the best companies in the world are focused on balancing new client acquisition with customer reactivation outreach strategies, why should you be any different? It will be amazing how fast you can win some wins across the board. My clients who need a quick revenue boost before quarter-end or month-end often reach out to former customers. One of my clients shared that he was able to bring in more revenue in two weeks than he does in two months.
Your former customers know you well and have a shorter sales cycle. What are you waiting for?