It can be potentially expensive to lose a customer. According to studies, the average cost of a lost client is can be detrimental to your business. Assume your firm earns $2,000 per client each year, it costs $500 to acquire them, and those customers have a 10-year average lifespan. The CLV of your firm would be $2,000 x 10 – 500 = $19,500. That implies that for every customer lost due to a poor experience, you are losing $19,500 in addition to the cost of the product or service. While 70% of businesses believe that retaining customers is less expensive than finding new ones, just 30% make attempts to get back consumers they haven’t seen in a long time.
Fortunately, with a little marketing assistance, you can design customized marketing campaigns that target lost clients and persuade them to return to your firm.
Find Out Why You Lost Them
Find out why they stopped ordering or replying in the first place. You’ll have a much simpler time determining your next line of action if you can get to the root of the problem.
For example, if someone stopped buying from you because they found a better value on a competitor’s website, you could send them a coupon code for a discount on their next transaction. Small incentives go a long way toward client retention.
Sending an exit survey to email subscribers is a simple way to learn why consumers are departing. Send a brief survey with focused questions when someone goes a certain amount of time without completing a purchase or quits their membership. You might inquire as to what your organization could do to get them to stay.
Alternatively, you might design a form that appears when a consumer is about to quit their shopping basket. These forms should include no more than one or two questions. Both queries should be about their choice to leave and what you can do to persuade them to reconsider.
Give Lost Clients a Reason To Return
Give clients a cause to return if they have left. Nothing entices consumers to buy like a good bargain, so try offering a special discount to inactive clients.
You may send this campaign to inactive customers directly. Because you’re segmenting your audience, you may tailor your message to this specific group. Send a promotion, such as “We Miss You,” by text message or email. “Come in this week for a 25% discount on your complete order.”
Try To Concentrate On The “best” Lost Consumers
Your re-engagement plan should not attempt to bring back every single lapsed consumer to your website or app.
Some clients, like regular marketing efforts, are better to target than others. If a client does not meet your ideal criteria, has a poor lifetime value, or contributes only a little amount to your MRR, they are probably better off elsewhere.
There’s little use in wasting money on consumers who aren’t going to return the second time.
According to the Journal of Marketing study, your most valued past clients are those who:
- Have referred people to your brand
- Left for financial reasons rather than service quality
- Had grievances that were handled properly
All in all, your lost or inactive clients are not worth your time and effort. Concentrate on the “best” customers that remain, and use these findings to improve your re-engagement plan. We hope these strategies work for you!