One of the best ways to drum up new business or sales is to reengage past clients. Former customers who haven’t done business with you for a while are an excellent source of leads and sales.
Getting sales from people who already know, like, and trust your business is easier and less expensive than finding new customers. Reengaging past clients also helps boost your customer retention rate, which can lead to higher profits and more long-term success.
We’ll highlight four tips for reengaging past customers and explain how former customer reengagement can save your business money.
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Every customer is unique. However, specific market segments tend to exhibit similar behaviors and respond to the same things. For this reason, you’ll discover commonalities among previously loyal customers as you begin your reengagement strategy.
Here are four ways to reengage past customers via email marketing.
Your first step is to identify which past customers are candidates for reengagement. Not every former client is worth pursuing just because they did business with you in the past.
Generally speaking, look for promising customers who still exhibit signs of interest in your brand. For example, check your email open rate data to identify former customers who have opened your emails multiple times over the past six months.
You’ll also have better results targeting customers in your target audience who made multiple purchases in the past versus those who’ve only been involved in a single transaction or deal.
You don’t want to overdo communication with past clients or make them feel like you’re invading their privacy by contacting them too much. However, stay on the lookout for good excuses to put your brand in front of them.
Try reaching out on special occasions such as holidays, big industry events, anniversaries and seasonal events. Email marketing software will make it easy to customize email templates with your logo, special offers for returning customers and personalized details.
Tap your CRM software to learn what products your former client purchased in the past. Then, send upselling or cross-selling offers based on similar or complementary products they’ll likely be interested in.
If you want a good chance of reengaging past customers, you must stay on their minds. The more familiar they are with you, the more likely they are to think of you when they experience a need or want.
A straightforward email drip campaign is one of the best techniques for customer reengagement. A drip campaign is a series of emails you send over a specific period to slowly build trust and move the recipient to action.
Email marketing software lets you send strategically timed emails to past clients to keep you on their minds. While every business differs, sending one or two monthly emails is a good starting point. You can increase this number after studying email analytics and identifying trends in email open rates, read rates and click-through rates.
Giving customers a reason to return is crucial. The onus is on you — not the customer — to provide incentives and value. You can incentivize customers to return and earn repeat business in the following ways:
Examine your data and take some time to craft a reengagement strategy that will appeal to your dormant customers.
Hanging on to existing customers is always less expensive than chasing new ones. The most commonly cited statistic says acquiring new customers is six to seven times more expensive than keeping an existing one. Additionally, returning customers spend more than new customers.
This makes sense when you consider the following:
However, the previous statistic may actually be on the conservative side. According to research from Bain & Company, a 5 percent increase in customer retention can result in more than a 25 percent increase in profit.
That’s because as customers continue buying from you, your operating costs decline. And loyal customers are more likely to refer your business to other people, which saves you money on marketing.
Taking time to understand why customers left your business in the first place — called your churn rate — is crucial. A churn rate refers to the percentage of customers who no longer engage with a business within a specified period. Most churn rates are measured in years, quarters or even months.
The formula for determining your churn rate is simple. Based on the period you’re measuring, take the number of customers who stopped engaging with your business and divide it by the total number of customers you had in the beginning.
Once you understand this number, work on ways to actively reduce the churn rate, drive repeat business, and significantly increase your profitability. For example, you can gather survey data from former customers via email or text about why they stopped buying from you.
Some reasons customers may have left include the following:
When you understand why some customers left in the first place, you can take steps to prevent current and future customers from leaving.