Win Back Lost Customers: Strategies and Tools for Effective Reengagement
Regain lost customers with our proven strategies and tools. Learn how to effectively reengage your audience and boost your business growth.
It's just as essential to winning back lost customers as it is to gain new ones for your organization. Research has also shown that retaining existing consumers is 5X less expensive than acquiring new ones. Under this information, retaining customers on the verge of leaving is important for your company's growth, revenue, and sustainability.
According to a study by Marketing Metrics, companies have a 20-40% chance of regaining a lost customer while only having a 5-20% chance of turning a prospect into a new customer.
According to the Client WinBack Benchmark Study, reactivating old customers can increase ROI by 32X or more and result in 26% of customers returning after a planned win-back effort. According to the same report, win-back initiatives bring in an average of $485K for small firms.
Here are some steps to follow to regain lost customers:
-Data should be your guide
-Learn the reason the client left
-Create a plan for customer retention
-Remind your former clients of the things they are missing
-Offer retention perks
In this article, we will further discuss these points and also walk you through a few steps you need to do in order to gain more regular consumers and win back any lost customers.
Why do customers churn?
If clients are cancelling their memberships, backing out of deals, or cancelling their subscription plans, there is most likely a deeper-level issue that is causing them to abandon you.
To identify the elephant in the room, you need to discover answers to the following questions as a company:
- Is the price model really source of the issue?
- Is it because the products aren't providing enough value to the customers?
- Have your customers discovered a more cost-effective alternative?
- Is it because they had a terrible experience with the company, such as frequent outages or a lack of support?
- Is there something else going on?
You can add more questions to the list, but the next step is to ask these questions directly to your clients who are on the verge of leaving. Simple surveys can be created using online survey platforms like Google Forms, SurveyMonkey, or Typeform to uncover a definitive trend for client turnover.
A root cause analysis (RCA) is a wonderful technique to get a better understanding of your consumers' mindset. To figure out what's causing a problem, you ask a sequence of progressive "why" questions. RCA doesn't stop at the first sign of a problem; it digs deeper into a reported issue to uncover the root cause.
5 effective strategies for regaining lost customers
You can build relevant solutions to get them back once you've identified the primary reasons why clients are leaving your company. Here are some techniques for regaining lost customers:
1. Identify appropriate customers
While each and every customer is valuable, it is sometimes necessary to priorities which customers require a little more time and effort in order to maintain their business. Attempting to reclaim all of your clients is a poor customer retention strategy that will cost you money and time. Customers with a high lifetime value and who contribute to your MRR should be targeted. Examine your consumer data to see who has stayed longer and spent more money with you.
If a customer complains frequently about your business, on the other hand, they are unlikely to return. As a result, focus on customers who are likely to return and stay with your business.
2. Make your communications more personalized
According to research, 80 percent of clients prefer to do business with a company that provides individualized service. To communicate directly with your customers, you can send customized emails and messages via chat. To make customers feel valued and improve your client experience, start your interaction with their name. A chatbot can also be used to provide individualized customer service. Customer data from your CRM platform may be easily retrieved by chatbots, which can then provide proactive and exit intent messages to your customers to encourage them to return.
Instantprint is a fantastic example of individualized and sympathetic customer care in these difficult times like COVID.
Instantprint has launched a new video consultation service to allow concerned consumers to speak with a live employee one-on-one. Customers may arrange a video consultation at a convenient time and connect with agents over Zoom thanks to the team's integration of meeting scheduling app Arrangr with Freshdesk Messaging. They were able to raise their NPS to 72 because to this tailored treatment.
3. Gather feedback and find a solution to the problem
Customers are valued when feedback is collected from them. Customer feedback allows you to learn what they like and hate about your products and services. Instead than sending out surveys and forms, use a chatbot to collect feedback and communicate with customers.
After you've gathered your customer feedback, take action on the unfavorable comments. Create a win-back strategy based on your customers' complaints. Make sure to thank your customers for their positive remarks while you're dealing with the bad ones. Customer retention will improve as a result of this.
4. Provide incentives in order for their return
Offer incentives for their return to strengthen your win-back campaign. In fact, 86% of customers are willing to pay a higher price for better customer service. Discount coupons, premium features, early access to offers, and free stuff are all examples of this. Sending customized communications with incentives to your consumers may persuade them to do business with you again. Service recovery is the process of regaining consumers who have churned.
Service recovery is a phenomena in which a customer's happiness with a company increases following a successful service recovery. Having a service recovery plan in place can assist you in regaining your clients quickly. It will also increase client happiness and loyalty. Also, make sure the promotion is valuable and not just a low-cost client acquisition tactic.
5. Track your progress.
The ability to track results is critical for any marketing or strategy activities. Track your campaign's engagement and reactivation rates to improve your campaigns and strategy. These figures will assist you in better planning your time and money for customer retention initiatives. Customers who reactivate and then quit are also possible. As a result, keeping track of their activities and lifetime value is critical. This will provide you with a thorough knowledge of your reactivation campaigns as well as their success rate.
What are the various channels you can use to regain customers?
1. A live chat service
On your website or app, live chat is the ideal tool for facilitating real-time contact with customers. Ideally, you should use live chat to its full potential even before clients depart. Assume they shift their cursor to the leave tab or do particular actions like clicking the "unsubscribe" or "cancel membership" buttons. In that situation, you can send them pertinent chat messages straight away to persuade them to reconsider their decision to relocate.
You may also conduct a CSAT survey on a regular basis or monitor your brand's NPS via live chat to have a better understanding of customer sentiment and minimize churning in real time. Another advantage of live chat is that your representatives are right there analyzing the problem and seeking to learn more about what caused the potential attrition, as well as looking for customer-friendly solutions.
Freshdesk Messaging is used by e-commerce enterprises like PoundIt.com to prevent customers from leaving their carts before it's too late. Poundit uses Freshdesk Messaging to send triggered messages to visitors on their website in order to inform them about a deal or an offer. The message's call-to-action (CTA) directs users to a homepage where they can check the most recent specials, making navigating and purchase easier. Poundit saw a 50% boost in visitor response and a 50% rise in sales as a result of these initiatives.
Freshdesk Messaging Campaigns can be used in similar situations to prevent customers from cancelling their plans or unsubscribing from your services.
The third way to re-engage lost consumers with live chat is to utilize it in conjunction with emails or retargeting advertisements. Give them a honorable welcome when they return, for example, if you've made a compelling argument for bringing lost clients back to your website via banner advertisements or tailored emails. To entice them back, personalize your live chat messaging and provide appealing quick gratification. It's not just about what you're selling when it comes to a successful marketing campaign; it's also about how you're selling it.
2. Retargeting ads
Retargeting ads are commonly used by marketers to convert new website visitors into consumers since they can help convert up to 70% of new website visitors into buyers. Because retargeting advertising need you to put web cookies on a visitor's browser (with their consent) and follow them around the internet, they are effective. It generates a recollection that moves from thought to action.
Grammarly is a wonderful illustration of this. For the next several weeks after removing Grammarly's Chrome extension from a browser, you'll notice banner advertising on websites you visit. Here's an email that Grammarly sends to divorced users along with those ads:
If done correctly, retargeting advertisements might help you recoup lost consumers. You must package it nicely, ensure that the advertising aren't overbearing, and provide a compelling incentive for customers to return to your business. There's a thin line between a well-executed remarketing strategy and blasting them with advertisements. If you constantly bombard people with advertisements, they will grow more disengaged from your brand.
When it comes to regaining lost clients, email can be a more direct, personalized, and effective method. For customers who have abandoned your brand, you can build a one-time email campaign or treat it as a drip campaign. You can also utilize text messages to test this method, or combine it with your email re-engagement campaign.
While the message idea applies to all strategies—offer an appealing reward, generate a sense of urgency, or remind them of what they're missing out on—your email strategy should go above and beyond. Your copy shouldn't be a generic advertisement disguised as a marketing email. It must evoke a sense of awe, elicit an emotion that makes customers feel special, and persuade them to reconsider their decision to abandon your company.
Do it in style, and take advantage of the opportunity to add some humor to your email. Here's an illustration:
4. Messaging and social media channels
One of the most effective ways to resolve client complaints is through social media marketing. You can keep churned users interested with your content by posting blogs, videos, and other relevant information — the educational value you provide keeps them engaged even after they churn.
Social media ads, like retargeting, are a terrific method to hyper-target and engage with your customers, both new and old. It provides you with a platform to engage with your customers in a unique way. You can play around with a few different ad formats.
- Ads with photos
- Advertisements on a carousel
- Advertisements in video
- Story ads
- Collection ads
These ads can be run on a wide variety of platforms, including Facebook, Instagram, and Twitter. These advertisements will allow you to be where your customers are and inspire them to return to your business. These are also very useful for lowering cart abandonment.
Messaging channels are the next big thing when it comes to communicating directly with your customers. With 2 million active users, WhatsApp is the most popular messaging programme, followed by Facebook Messenger with 1.3 million users. To deliver messages to your clients on their preferred communication channel, you may combine your live chat with messaging channels like Facebook Messenger and WhatsApp.
Restore customer trust by strengthening relationships
Losing clients means losing their trust in various ways. As a result, your company must take steps to avoid this from happening. Create brand stickiness to keep customers and improve brand loyalty to keep them from abandoning you.
However, customers continue to flee your brand, it's important for your company to reflect on the reasons for their departure and devise strategies to restore their trust in it. To rebuild their faith in your company, use the methods listed above and continue to develop new ones that work for you. For a greater impact on lost customers, track and adjust your re-engagement campaigns.
Catalogs are quite useful for small businesses and aspiring entrepreneurs without websites.
WhatsApp marketing is a great approach to develop enduring relationships with customers and improve your brand.
For greater results, branch out from WhatsApp and become an authority on all the mediums your customers use.
Try Telegram and Facebook messaging as well, and bolster your marketing strategy with email and push notification campaigns on the web.
Signup with Chatdaddy to start exploring these features.