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.
One 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 mine 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:
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.
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
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.
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 take another shot.
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.
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:
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Until then, I hope you have an amazing day!