5 steps to bring back lost customers
“It’s easier to retain existing customers than winning new ones.”
This is because your relationship with a current customer—whose needs and preferences you’re already familiar with—is easier managed than with one you still have to build a connection with.
But what if you lose your current customers?
A recent study shows that it’s still easier to get them back. Statistics reveal that businesses have a 20 to 40 percent chance of winning back a former customer, compared to a 5 to 20 percent chance of gaining a new one.
Customers defect to a competitor for different reasons. It can be because of a poor product, inefficient customer service, pricing, or sometimes, threats on data privacy and security.
But don’t lose heart! Here’s a set of tips to bring your former customers back into the fold:
1.Get the facts straight
Before taking on any endeavor, make sure to determine the root of the problem first. Are your products losing its quality? Are your items becoming more expensive than others? Or maybe your customer service arm is becoming inefficient?
Take a 360-degree view of your business and identify all possible problem areas.
2. Create a plan
Once you have determined the factors that might be causing you to lose your customers, take necessary steps to bring them back through a win-back strategy. First, form a cross-functional team to discuss the situation. This team may include your business’ executives, sales team leader, communication/marketing head, and the operations/production chief.Together, determine the proper approach to address the problem/s and design a concrete action plan.
The win-back program may consist of a number of initiatives, ranging from rebranding, incentivizing by giving out deals and discounts, or providing special services to a targeted group of customers.
3. Communicate the plan directly with customers
Now that you’ve got the plan, how do you implement it?
Find the right channels to interact your initiatives to boost the business’ product/services with the public. You may want to talk about your offerings through traditional means, that is through a press release, or through today’s digital platforms—your company’s website, official social media pages, email, or short messaging services (SMS).
Along with this, the business should boost their customer service team by giving them a heads up on the win-back initiatives, and train them on best practices in communicating effectively with customers.
4. Monitor your customer win-back strategy
Observe how effective your customer win-back strategy is, and see if it is making a significant impact to your business’ sales or marketing efforts. If you’re going digital, you can do this by using a customer relationship management platform that can track prospects, conversions, and campaign activities. An example of this CRM application is Salesforce Pardot which we offer at IPC.
5. Return to the drawing board
After some time of implementing your customer win-back strategy, huddle with your marketing and sales teams and re-evaluate your efforts. Even when a crisis or trouble dies down, don’t forget to sit down and analyze what happened and properly document your team’s course of action. This can be used in the future as a guide in how to more efficiently and effectively execute your company’s win-back strategy.
Don’t give up on trying to bring back lost patrons in your haste to attract new ones. Take time to discern why the former left your brand/business and make the necessary changes to win them back.
By paying attention to what your current and former customers have to say about your business, you stand to strengthen and enhance your brand so that it aligns perfectly with what matters to them.
For more information about digital tools that can help you manage, keep, and grow your customer base, visit http://ipc.ph/en/.