Six Tips to Reactivate Dormant Customers
While attracting new customers and taking care of existing ones is essential to the success of any business, there is another important opportunity to convert sales that businesses often ignore. That opportunity is reactivating dormant customers.
While it is always disappointing when a customer becomes dormant, it is crucial that you not give up on such customers-no matter how much time has passed. If you are not spending at least some time and money on reactivating these customers, you are likely missing out on a potential income stream. The key is to know how to engage these customers and bring them back into the fold.
Of course, the success of such efforts will rely greatly on timing, remembering that the longer these customers have been away, the more difficult it will be to reengage them. Therefore, at the first sign of defection, it is important to begin work on reengagement.
If you are looking to reactivate dormant customers, here are some tips that will help you to be successful.
- Analyze. Determine what was the last sale the customer made or what was the last contact you had with the customer. This may shed some light on why that customer walked away. Consider sending a survey or making a call to get a feel for that customer’s perception of your business.
- Append. As is the case with many dormant customers, your data on a customer may be out of date or incomplete. Consider appending your database so that you know the best way to reconnect with dormant customers.
- Motivate. Look at a customer’s past purchases and sweeten the deal. A discount on the product the customer last purchased is one example. You also could offer free shipping. In short, you need to have a winning message that will grab the customer’s attention.
- Segment. As is the case with almost anything to do with marketing, segmenting is the key to success. Consider variables such as the original source of acquisition; channel and product usage; customer value; and length of inactivity when trying to win a customer back.
- Test. A/B test any reactivation messages or offers to see which are most successful. No matter how on-point your message is, it can always be better.
- Update. Make sure that your customer database is up-to-date. Outdated or inaccurate data is the enemy of any reactivation (or retention) efforts.
Once you have gotten the attention of a dormant customer, it is crucial that you make it easier for that customer to come back. Decrease the number of clicks required to re-activate their account or pre-populate the customer’s information. If they choose to call, make sure that they do not become frustrated with an automated phone menu. It takes a lot of work to entice a dormant customer back so don’t waste those efforts when you are at the finish line.