Is this the most profitable marketing campaign you can run?

By far one of the largest untapped opportunities is to create and regularly run a customer reactivation program.

A well-researched, strategic reactivation campaign can recapture lost customers and create a huge surge in extra money in a very short period of time. Most reactivation campaigns can be launched in a couple of weeks and bring in large sums of money.

A project I did for an online printing services company will serve to illustrate. They wanted me to help with getting more traffic to their website which I was happy to do. However, I mentioned that one of the first things we should consider is making sure we get all that is possible from their CURRENT list first. (By the way, there’s no industry I’ve encountered which can’t benefit from a reactivation campaign. The key criteria are a sizeable list and been in business for a few years.)

The business owner agreed with my logic and off we went.

This short campaign grossed an additional $300,000+ in the first 4 weeks. This was unexpected revenue… many of these customers had not ordered in a few years, drifted away and forgot about the company despite receiving regular direct mail and email programs.

The reasons why (which we learned via Survey) ranged from:

  • “We loved the product but everyone forgot who we ordered from!” (At that time the company wasn’t including brochures/flyers in their outgoing packages).
  • Lateness or mishandled customer services issues. (We included a specific paragraph in the reactivation letter and email apologizing for any mistakes, noting improvements in personnel and technology and asking they give us another try with the free shipping coupon we provided)
  • They had settled on another vendor but given the impact of this letter wanted to try this company again.
  • and, others… note that these were discovered BEFORE we created the reactivation campaign by small survey and we used the information to craft the campaign so it had maximum impact.

Further, we used this list of “inactive” clients to run reactivation campaigns across several online ad platforms which boosted the profits even more.

All told, they attribute over $2M in extra revenue to this single campaign which cost them a mere fraction of what they were used to spending.

If you have a company that has accumulated a sizable customer list and you know that a sizeable proportion of that list has NOT ordered in a while you might be on the verge of a huge shot of extra revenue.

How to Maximize the ROI on a Reactivation Campaign

First, how not to do it… Many companies simply send a “we want you back” email with a coupon begging their previous customers to try them again and use the discount mainly for tracking purposes. This is sloppy and lazy and will not get all the available revenue out there.

Step 1 is to define what an inactive customer is. This is usually done by looking at the time since their last purchase or coming up with some other criteria that makes sense. This will also vary by product. For example: in the printing industry there are people who ONLY buy calendars. If they haven’t ordered in 6 months that’d be fine… but, if they were brochure buyers you might conclude they were inactive.

After defining “inactive customer” the second step is a survey that discovers the top 3-4 reasons a person (or company) has stopped doing business with you. This could be due to poor quality… it could be that some other competitor just dialed in their marketing better… it could be poor customer service… or, one of dozens of other possibilities.

The key is to survey and tabulate the results until you have the top reasons that drive the defections.

Step three, you base your campaign on 1) acknowledging the previous issues and 2) demonstrating how they’ve been resolved so their next experience will be better.

(In cases where it wasn’t poor service, you can simply handle the same way you would with a standard objection, by offering demos/proof/data and reiterating the guarantee and benefits as they specifically apply to that objection).

That opens up space in the former customer’s mind to reconsider using your services.

Step four depends on the size of your list. If it is large enough you can section off 10% of the inactive customers and run a test and see what kind of feedback you get in terms of actual responses AND reactivated customers.

If all looks good then Step five is to roll it out. Otherwise, you might revisit step two and use the data to improve the campaign.

Step six is to put it on automatic so that it gets done on a regular basis. That means a new list is generated every quarter per the defined “inactive” definition and the marketing campaign is run again. This makes sure you catch problems early AND you keep reactivating customers and boosting lifetime value for your company.

Get Started Here

We can help you capture that opportunity in as little as a month in most cases.

Of course, the size of the opportunity depends on quite a few factors but I’ve rarely seen a campaign that did not generate huge ROI in short periods.

And, this is something that can be automatically run as people (or companies if B2B) drop off your “active list” and into “inactive” status.

I do my absolute best work and provide the highest value for clients who meet the following criteria:

Criteria 1: You run a quality operation, honor refunds, and ship on time. (I don’t care to be associated with sub-par or unethical operations.)

Criteria 2: You’re not spending your last dime hoping and praying for a marketing miracle. It’s too much pressure on both of us. I don’t mind people being aggressive but if this is going to be the difference between you making rent next month or not, I suggest you wait until you have a bit more of a bankroll before embarking on a project like this.

Criteria 3: You can move fast and are the primary decision maker. Nothing kills a project like layers of management, thinking, multiple required approvals and “everyone gets a say.” I like to move fast, make decisions fast and get the show on the road.

Criteria 4: Your product or service can actually do what you say it can do and you have proof.

To book your strategy session simply click the “Schedule Strategy Session” and pick from the available time slots. You’ll get a confirmation email and a brief summary describing the types of questions I ask in case you want to do some preparation beforehand.

Until then, I hope you have an amazing day!

Jason Bedunah

Jason Bedunah
 

Jason writes direct response copy for some of the best direct response marketers in the world since 2005. He's also spent several years building entire marketing departments for fast growing companies so he has a 360-degree view of what it takes to successfully execute winning campaigns.