Tips to win back the ones who got away.
In the past two issues of LEAD, we’ve been discussing how to create a win-back strategy for lost customers. We began with segmentation, or, as we called it, buckets. Last month, we talked about marketing strategies to consider. Now let’s talk budget.
Don’t overspend on win-back programs
It can sting your pride to have a customer leave your company for another, but don’t let a bruised ego drive bad strategy decisions. If the numbers don’t work, they don’t work.
Compare the costs of your win-back program against acquisition. You may find that you get more bang for your buck by rolling your win-back spending into your lead generation, acquisition or retention budget.
And speaking of retention, give this some thought: why do customers leave in the first place? What could you be doing to retain them? Ironically, if you did everything possible to retain customers, then your win-back programs should produce lousy results because the only customers who ever left you would do so for reasons beyond your control.
On the other hand, if your win-back program is a gold mine, you should probably be very worried about your retention strategies and customer service.
Winning back lost customers can be a powerfully profitable way to stretch your marketing dollars. It’s something to consider as an ongoing process for long-term success.