Boost Revenue by Going After Dormant Buyers
Waking up “sleeping” customers can generate as much as seven times the revenue as boosting retention of loyalty, according to research by McKinsey & Co.
In addition, dormant customers are five times more likely to buy form you than new prospects – and they take less work.
The good news: Reactivating these dormant customers doesn’t have to be expensive.
When should you try to reactivate?
The key to making this strategy pay is capturing all customer and transaction info each time they buy. This allows you to run a report each month to determine which customers haven’t bought recently. When should you try to reactivate buyers after their last purchase? For retail businesses, 60-90 days is appropriate. For b-to-b companies, it depends on the products or services you’re selling.
Proven tactics that work
Once you’ve identified which customers to target, consider sending them a personal letter, postcard or e-mail.
These communications are most effective when they:
- Tell customers they’re missed or especially valued
- Remind customers why they purchased in the first place (e.g. great service, incredible cost savings, etc.)
- Include a special offer or incentive
For dormant customers you can’t bear to lose, it might be worth bringing in the big guns.
A special call from your president or CEO can work wonders.
Source: “How to recapture ‘lost’ customers and clients” by Michael Cage: