Updated: Feb 14, 2020
Being a marketer, you’ll always look to acquire new customers. Of course, the ultimate goal of an organization is to grow. No one wants to stop the engine of revenue.
But, if you think filling up prospects will make your company a huge success, then you are on the wrong foot. Customer acquisition is important. But, it’s not everything.
Many companies are successful in making new prospects, but they are not generating much revenue. Where is it going wrong for them? This is where you may find the need to study the importance of reactivation of dormant customers.
Importance Of Reactivating Dormant Customers
It’s obviously necessary to have new customers for the growth of the company. But at the same time, you need to keep an eye on dormant customers.
According to marketing metrics, the probability of selling a product to a new prospect is 20%, but the probability of selling it to your dormant customer is staggering 60%.
This is where companies are faltering around. In their attempt to make new customers, they are completely ignoring the dormant customers and that’s the reason, their revenue growth is not being skyrocketed despite their huge CRM.
So, there’s every need for you to wake up the dormant customers you may find inactive customers in two forms.
Customers who are dormant a long way back
Customers who brought more often, but are dormant suddenly.
Generally, you abandon the old customers, if they stop responding to you. That’s not the right way to ignore the ones who already done business with you.
There’s no point spending too much on new customers if you already know that dormant customers will most probably make it through for much less amount.
The main concern is, how to reactivate the inactive customers? I’m here to help you with a few strategies to wake up unresponsive customers.
#1 Identify Them
The first and foremost thing you need to do is to identify the reason that made them not respond to you or not keen on your company.
List them out and the duration since they were inactive. This will make you target them with various strategies to get them back.
#2 Email Marketing
The basic way most marketers try to engage with dormant customers is through email marketing.
You’ve already got the list of inactive customers so that you can send emails requesting them to provide the reason which made them to opt-out of your company.
By doing this, the customer may feel like you still value them and thus the customer may prefer you. Generally, 3 series of reactivation emails were proven effective.
You can also send ads related to your company and look at how they engage with them. This will give you an overview of the customer.
#3 Incentives Approach
A simple yet most effective way of reactivating the customers is to offer rewards to dormant customers. Do you know that 75% of customers prefer a purchase through rewards?
Remember, they have already engaged with your company, so they will not step back to reengage if you offer them some sort of discount.
Do you know that many people are fond of discounts in dollars than in percentages? So, go with customer interests and provide them with discounts in dollars to reach them more.
#4 Personalized Messaging
You need to take care that when you are sending mail to the inactive customers, send them in a more personalized way. Mention his name in the email and express them how you value them as an individual.
This will make them very special and make them think that you care for them as a person. Thus, they may regain trust in your company.
#5 Mobile Interaction
Reckon you’re doing most of the things right in the email marketing. But you are not getting enough response. Then, how to sort it out?
Don’t worry. Just go with the trend. Nowadays, almost everyone is using mobiles. So, try to engage with them through mobiles, it will turn out to be more effective than emails. They are found to have 78% more open rates than emails.
Don’t forget to give them frictionless and best mobile experience. No one likes a complex desktop on mobile.
It’s also more convenient for people to read text messages than emails. You can text them and make them a call later if they seem engaging enough.
Use feedback to find out the exact reason why those customers are inactive or not keen on working with your company anymore. And step up your whole customer service strategy to solve the problems that keep your customers away.
The trick is to focus on making loyal customers more than new customers.