"I need more customers - Sales are down! Please help me with marketing!” is a common call I get. My standard response is great, yes, of course we can do that, but before we spend money, time and energy getting new customers - what are you doing with your existing customers? What is your current conversion rate? (lets face it, if you're only converting 20-40% no point you burning more potential customers!). Another question I always ask is - How about those who no longer buy from you, they once liked and trusted you, lets look to reactivate them.
Obviously the first option of increased marketing to get more customers is expensive and if done incorrectly you’ll only end up with bargain hunters with no long term loyalty to you or your business. In another article we’ll talk about the value of your current customers and increasing conversions etc, but for today lets focus on those who you believe maybe be lost or inactive.
Did you know that a staggering 68% of customers leave because of poor service and their “perceived” indifference with staff or management - Wow! Remember, they once knew, liked and trusted you - lets get them back.
The best part - its simple and profitable! Plus they stay for the long term. Ok, so how do you do it?
Firstly you’ll need to determine what a lapsed customer is and what a lost customer is, this will vary based on industry and traditional spending habits. As an example, a maternity wear store has a limited life cycle of a customer and perhaps only 3-4 purchases over a few months, whereas a hair dresser should have a life cycle until the customer is no longer with us on this earth returning every 6-8 weeks. So .. you determine the life of your customer and the frequency of how often they should re purchase. As an example if they should purchase every 4 weeks and you haven't seen them for 8 I would consider that a lapsed customer, if you haven't seen them for 6 months to a year, consider them as lost.
Once you have determined the parameters, its time to get top work on the database identifying them, but wait - don't just flick out a “special” we want to get back in touch in a nice and unthreatening way. You would also need to know what your “offer” for them to return is (could be a gift of some sort). Once you have these, determine the method and frequency of contact.
Why not poor through your database this week and make a list of those customers who have lapsed and are lost, get your team involved and come up with ways to bring them back to your business.
To Your Business Success