The 10 Most Effective Tips for Customer Reactivation
Are you looking for the best ways to reactivate dormant customers and reduce churn? Here’s a roundup of the 10 most effective practices today, in both business and consumer markets. Consider which of these may be the most applicable to your business, your customers and your objectives. And don’t forget to set aside some budget for ongoing retention and reactivation marketing. It’s the best money you can spend.
1. Move Quickly
The longer a customer is inactive, the more likely an eventual defection. Early action is arguably the single most effective technique in reactivation marketing. But, you can take this principal a step further if you examine customer behavior patterns to predict inactivity before it even starts. For example, if purchase frequency slows, or order size shrinks, inactivity is likely to follow. Analyze the characteristics of your purchase cycle. Anomalies in a particular customer’s behavior may indicate a problem that, with early intervention, can be addressed.
2. Segment Your Dormant Customers, and Treat Them Differently
As marketers well know, different customers have different needs, and represent different levels of value to the firm. Applying segmentation is a key success factor in the reactivation effort, just as it is elsewhere in marketing.
Ruth P. Stevens consults on customer acquisition and retention, and teaches marketing at companies and business schools around the world. She is past chair of the DMA Business-to-Business Council, and past president of the Direct Marketing Club of New York. Ruth was named one of the 100 Most Influential People in Business Marketing by Crain's BtoB magazine, and one of 20 Women to Watch by the Sales Lead Management Association. She is the author of Maximizing Lead Generation: The Complete Guide for B2B Marketers, and Trade Show and Event Marketing. Ruth serves as a director of Edmund Optics, Inc. She has held senior marketing positions at Time Warner, Ziff-Davis, and IBM and holds an MBA from Columbia University.