5 ways to win back lost customers
Understanding why customers leave and how to win them back is vital knowledge. A lost customer or a lead that has fallen through still holds significant value. Because you have a 20 – 40% chance of selling to lost customers, compared to a 5 – 20% chance of selling to new prospects, creating an effective customer win-back campaign will keep your business growing.
How to develop a customer win-back campaign
While your campaign should center around the customer you are trying to win back or the prospect you are trying to re-engage, it also should be tailored to your business model. For example, a transaction-based business trying to earn a second purchase from a past customer may use different strategies from a subscription-based business trying to get a customer to resubscribe.
The length of your buying cycle will also affect how much time should pass before you push the win-back campaign, which needs to be convincing and enticing.
1. Get to the root of the problem
Use customer data, especially surveys and reviews, to identify common complaints, such as a customer service or product issue, that may have caused them to leave. If you already know a customer’s pain points, resolve them prior to reaching out so you can center your win-back campaign on how you’ve improved. Only 4% of customers actually complain to the company itself. The other 96% simply leave and spread negative word-of-mouth.
2. Step up your game
Your customer may have left your company because your competitors offered something more appealing, so you will need to work hard to win them back. Remember, 86% of customers are willing to pay more for a superior customer experience. Engage with the customers you are trying to win back to find out what it would take to bring them to your company again.
3. Get personal
If your business model allows for personal calls to customers, doing so will go a long way in repairing a damaged relationship. It’s important a customer sees you are making an effort at reconciliation, and the gesture could earn you a second chance. An apology alone can increase customer satisfaction by 10 – 15%. Be sure to act quickly, before another brand has a chance to lure them away.
4. Give a good reason
Offer incentives like an exclusive webinar download, a discount or an extended trial period for a service to encourage them to reconnect with your brand. Incentives such as these can show you are emphasizing better experiences. If available, consider offering a price-sensitive downgrade or a feature-driven upgrade. Integrating loyalty programs can also increase customer retention. In fact, 75% of customers are more likely to make another purchase after receiving an incentive.
5. Remind them why you’re a better choice
Developing a personal relationship with your customers helps you keep track of their business goals and accomplishments — and how you play into them. Take this information into account when looking at their history with your company and you can personalize a win-back campaign. Sixty-four percent of customers expect you to do just that. Use the campaign to highlight your value to them and their goals.
Losing customers or letting leads go cold can be costly, stalling your business growth and reducing sales. However, analyzing customer data you’ve already collected can help you understand why your customers left and how to win them back.