How to Reactivate Dormant Customers in Your Lifecycle
In the process of customer lifecycle management, you will come across several dormant customers. Maybe they have been your high-paying customers in the past. For some reason they are now no longer your active customers. But they are not out of your customer lifecycle funnel. They are still there but inactive. However, if you are now strategizing your growth hacking plan, it’s important to reactivate your dormant customers. In this piece, we are going to talk about tried-and-true methods for reigniting connections with inactive customers, ranging from personalized re-engagement campaigns to unique offers and loyalty incentives. Discover how to use customer data acquired from CRM software and automation to reclaim your valuable customers and grow your business.
Studies reveal that about 20–60% of customers become inactive in any given quarter of their business? Surprisingly, SMBs rarely take any action to address this issue. However it’s always advisable to address this issue as early as possible. It helps companies arrange a consistent flow of profit.
Since customers are the nectar of any business, it’s crucial to maintain a cordial relationship with customers as much as possible. In spite of your efforts, some customers intentionally leave, while others find better alternatives. These customers are referred to as dormant or inactive customers. While chalking out your customer lifecycle management strategy, it’s important to find ways to reactivate those dormant customers.
So, what can be done in this phase? Should you focus on acquiring new customers and ignore the inactive ones, or should we make efforts to bring back the dormant ones? The latter option is more cost-effective, as attracting a new customer can be up to five times pricier than retaining an existing one, believe experts.
That’s why it’s crucial for businesses to concentrate on reactivating inactive customers and winning them back. Since these customers have already interacted with your business, you have their data, which can be leveraged to re-engage them. Keeping this in mind, let’s explore some effective strategies to reactivate dormant customers.
Find out why and when your customers are leaving
Find out which of your customers went dormant on the buyer’s journey and the reasons for their abandonment. If you are into strategic customer lifecycle management, you will know at what time your customers are leaving.
Every consumer has various expectations and reasons for leaving. You must examine your customer data and utilize it to establish patterns and determine when and why a customer has been inactive. For customer data, you can take help from enterprise CRM software.
Once you get the data, you will know what made your customers love your brand once. For example, if they open or respond to your emails, or whether they have previously dealt with your customer care. Then consider running a meaningful re-engagement campaign for them.
Run a Loyalty Program
A loyalty/rewards program should be your primary re-engagement tactic. In fact, 75% of customers say they would want to buy from a company that has a loyalty program.
A loyalty program will not only encourage people to buy from your company, but will also motivate them to return. To make your loyalty program more appealing to customers, you might integrate gamified components such as VIP tiers, progress bars, personalized rewards, and presents.
One thing to keep in mind here is to keep the sign-up procedure as simple as possible. The easier it is for your customers to participate in your loyalty programme, the better the results. You can also offer additional points to entice clients to re-engage with your company. For example, you may begin with a 40% discount to entice dormant clients, which could eventually lead to dormant win-backs.
Implement Strategies for Upsell and Cross-sell
Cross-selling is another excellent strategy to get customers to purchase more from your company. Here’s how it’s done:
You display a selection of products to your customers that complement what they have purchased from you or what they are looking for.
For example, if your consumers are buying CRM software, the associated products could be integrated accounting software, ERP or something similar.
These associated items can be displayed during the checkout process or on the product page itself.
Upselling, quite like cross-selling, is a terrific way to urge even an inactive customer to buy more from your brand. Experts consider it to be a crucial aspect of customer lifecycle management. Here’s how it’s done:
Upselling is when you persuade a consumer to buy something other than what they have chosen. This something else is more superior and more beneficial than the original product chosen by the buyer.
You’ve probably seen comparison charts on e-commerce websites that compare two or more products to give you an idea of their features and prices. It’s an up-selling strategy, my friend!
Both of these methods are simple and effective for reactivating dormant consumers. Try them once and you will thank us later.
Reminder about Abandoned Cart
Someone who has added products to their basket but has not finished the purchase will receive an abandoned cart reminder. Stats reveal that the average ecommerce site has a 15% abandoned cart rate. This demonstrates that abandoned carts are a problem that must be addressed during customer lifecycle management. Here’s how you can deal with it:
- Create an abandoned cart reminder to inform your consumers that they forgot to purchase the items. You can even provide an additional discount to entice them to purchase from you this time.
- If a discount has already been applied to the cart, remind your consumers of the expired offer and encourage them to purchase from you.
- If the abandoned cart has a large number of products, concentrate on just one. Customers have been observed to add various things to their cart in order to determine what to purchase later. Instead of diluting the impact of your reminder by discussing all of the products, concentrate on one product and try to entice the buyer once more.
Sending a series of abandoned cart reminder emails is a tried and true method of reactivating dormant clients.
Maintain contact, but for a reason
If a customer does not buy from you right now, it does not mean they will never buy from you. They could simply be waiting for the appropriate product. So, you must stay in touch with your dormant clients by providing them with the most recent product updates, upcoming special discounts, and any interesting news.
So, even if someone is not yet purchasing from you, you must consider them a member of your community and continue to send them your content. You never know what will pique their interest and cause them to return to you!
Wrapping Up
Here’s something you should keep in mind when you implement the tactics listed above. Remember, customer lifecycle management is not an overnight job. It needs nurturing at every level even after the purchase is made. Make it quite obvious to inactive clients that you are eagerly awaiting their return. The reason you are reaching out to inactive customers is to make it obvious that they are also your precious customers. And, you value them today as much as you used to do before. You can start with frequently received emails that state, “We miss you!” or “We have reserved your cart.” Such emails clearly express how much you value your clients, even if they have not purchased anything from your brand in a long time.
Do not let your consumers leave so easily! Your company has earned them, and you must do everything possible to keep them. Give discounts, deliver persuasive messaging, sell what your customers truly require, and make your voice known.
