Reactivate Your Dormant CustomersBanker Resource
February 1, 2013 — 2,267 views
Your business can benefit to great extent if you take the effort to reactivate your dormant customers. There may be several reasons as to why a particular section of the market may have discontinued the use of your services. In a world filled with companies competing with each other and scrambling for market share, it is important to retain your existing customers and make sincere efforts to re-attract the lapsed ones if your business is to be successful. Customers’ buying behavior is influenced by reactivation strategies, which contribute towards bringing back old customers who haven’t engaged in business with your company for a while. Following are a few such strategies that may help renew your dormant customers’ interest in your organization.
Get an Early Start
The best method of ensuring that your customers retain their loyalty is to engage them in quick second sales. You may begin by offering immediate incentives and bonus schemes that will get them to come back to your company in the near future. Special offers can help attract new customers as well as reactivate customers who have been inactive for a long period of time.
Online Customer Engagements
If you have a large customer base that has been inactive, you must identify them and prompt them to make purchases through appropriate messaging. Update your website regularly and advertise for special offers for new customers or “Welcome Back” offers for your dormant customers.
Time-sensitive and immediate offers are the best way to receive quick customer response. If you present banking customers with offer such as low interest rates or high returns, making the offer available only for a short period of time, there is a good chance you will reactivate a good section of your dormant market.
Individual customers must be identified in order to deliver a personal touch, which may help you win back an old customer. The frequency and recency of a customer’s engagement with your business must be analyzed. To do so, you may use email channels to recover customer information, merchandise preferences, demographic information, and all other data that will help you better the customer’s experience when he/she gets down to business with your company. You may also send personalized mails to customers and make them aware of special offers in merchandise that may interest them.
Alternative Strategies to Segmentation
Data service companies can be of great help in reactivating your dormant customers. If you have connections with cooperative databases, it is easy to mathematically model the customers and identify the ones with the highest levels of inclination towards making purchases. If there is no participation in cooperative talks from your company’s end, your merge/purge provider may be the only hope of recovering lost customers. Merge/purge providers can find out the data overlays which will contribute to attracting your lapsed customers again. These data mining strategies have been tried and tested, and guarantee a higher rate of response in comparison with randomly selecting a small group of customers within your reactivation territory.