Blog Post | Aug 01, 2023
Winning Back a Customer is Difficult, Here is How You Do It Right
We've all heard the saying about it being easier and more cost-effective to keep a customer as opposed to winning one back.
We've all heard the saying about it being easier and more cost-effective to keep a customer as opposed to winning one back – and it's also a lot more profitable since existing customers spend up to 67% more than new customers. But the reality is that most businesses see customer churn of up to 25% a year. That's a significant figure, so even if you're welcoming new customers, it could be worthwhile to win back some of those who’ve left. Here's how you do it – and get the added benefit of strengthening your relationship with current customers.
Determine Why They're Former Customers
Your win-back efforts will be determined by why customers no longer purchase from you. Ex-customers generally fall into one of these three categories:
The key to winning these customers back is understanding which of these three categories they fall into. It's helpful to use a variety of methods to figure out where your customers fall on the continuum, including
A broadly worded survey about customer experience and products can help you craft a win-back strategy, learn about current customers, and glean insights that can help you improve your offerings.
Determine Your Win-Back Strategy
Another saying you've probably heard about being in business: you can't please all the people all the time, but it’s easier and cheaper to win back lapsed or switching customers. Try these tactics:
Deploy a properly timed offer or special discount. This may be all you need to activate lapsed customers. Ideally, the offer will be timed to the purchase cycle.
Create a "new and improved" campaign. Almost nothing stimulates consumer interest more than the word “new.” Devise a campaign focusing on new products or changes that have occurred since the customer last shopped with you. This may help them see you in a new light, especially those customers who've started shopping with a competitor.
Admit you were wrong and ask how to make it up to them. These campaigns target those consumers who've left you for another brand and those who've had a negative experience with your products or services.
When It Comes to Retention, Prevention is Best!
As noted earlier, a certain amount of customer churn is normal. However, it doesn't have to cost a lot to stay in the good graces of your existing customers. Your customers want to hear from you and, for many customers, marketing messages deployed at regular intervals can be enough to keep them active. We've developed marketing campaigns to help businesses of every shape and size, including direct-to-consumer and business-to-business clients, hold onto happy customers. We can help do the same for you. Get in touch to discuss ideas.
Determine Why They're Former Customers
Your win-back efforts will be determined by why customers no longer purchase from you. Ex-customers generally fall into one of these three categories:
- Lapsed or inactive customers who just aren't purchasing your products but could be re-activated with the right incentives.
- Those who have actively sought out an alternative from a competitor. Perhaps they were curious about what was out there or found comparable products for less money.
- Former customers who are actively/aggressively avoiding your products or business. Perhaps they had a bad experience with either your offerings or your service.
The key to winning these customers back is understanding which of these three categories they fall into. It's helpful to use a variety of methods to figure out where your customers fall on the continuum, including
- Social listening
- Surveys
- Calling and asking them yourself, especially if they're a high-value client
A broadly worded survey about customer experience and products can help you craft a win-back strategy, learn about current customers, and glean insights that can help you improve your offerings.
Determine Your Win-Back Strategy
Another saying you've probably heard about being in business: you can't please all the people all the time, but it’s easier and cheaper to win back lapsed or switching customers. Try these tactics:
Deploy a properly timed offer or special discount. This may be all you need to activate lapsed customers. Ideally, the offer will be timed to the purchase cycle.
Create a "new and improved" campaign. Almost nothing stimulates consumer interest more than the word “new.” Devise a campaign focusing on new products or changes that have occurred since the customer last shopped with you. This may help them see you in a new light, especially those customers who've started shopping with a competitor.
Admit you were wrong and ask how to make it up to them. These campaigns target those consumers who've left you for another brand and those who've had a negative experience with your products or services.
When It Comes to Retention, Prevention is Best!
As noted earlier, a certain amount of customer churn is normal. However, it doesn't have to cost a lot to stay in the good graces of your existing customers. Your customers want to hear from you and, for many customers, marketing messages deployed at regular intervals can be enough to keep them active. We've developed marketing campaigns to help businesses of every shape and size, including direct-to-consumer and business-to-business clients, hold onto happy customers. We can help do the same for you. Get in touch to discuss ideas.