E-commerce companies invest a lot of time and resources to acquire new customers. While growth by acquisition is the fastest way to expand customer base (especially if you are new in business), but if you’re not investing in customer retention, then you are just being short-sighted. Now the best way to gauge whether you have successfully retained your customers so far is to look at your inactive customers.
While a full-fledged retention strategy discussion is for some other time, the first step to making amends (that is if you start just as we speak) is to bring the dormant customers back in the fold. According to Bain & Company, A 5% reduction in the customer defection rate can increase profits by 5 – 95%.
Besides, the probability of selling to an existing customer is 60 – 70% while the probability of selling to a new prospect is only 5-20%. So, it’s in your business best interests to get hold of the defecting customers before they’re gone forever.
Now the question is how to reactivate your inactive customers?
Well, win back emails are a perfect approach to reactivating past purchasers. Below are few tips to optimize your win back emails for successful reactivation.
Take advantage of customer data and segment
Not every defector is the same. Segment intelligently to identify those who are most likely to come back and make a purchase again. And, instead of sending a generic email to all the defectors, use data to personalize your messaging based on their past behavior.
One way to segment your lapsed customers is by the number of times they’ve purchased from you. This information can be used to help determine the value of incentive you would offer to these customers. For example, if someone has purchased from you two or more times and became inactive then you could provide a different (better) incentive to them than those who have shopped just once and became inactive.
Be straightforward with your communication
A long and vague email subject line can have a disastrous impact on your open rates. So you need to make it short and direct to capture your recipient attention and compel them to open it. Also, there are few proven words which you can use in your subject line to get better results. For example, phrases like “come back” and/or “miss you” have proven to have a better read rate.
Take a cue from these short & succinct win-back subject lines:
Pitch them one last time
Don’t assume that if someone hasn’t opened your emails for months or haven’t bought anything from your site for months weren’t interested in your brand. Maybe they’ve simply forgotten about you, and a simple reminder of who your brand is, what it stands for, and what they’ll get from it is enough to pull these inactive customers back to your site.
Choose the incentive that will maximize profit
Giving an incentive is a great way to retain customers, and it’s more so in the case of lapsed customers. But be clever about it. An incentive doesn’t necessarily have to be a discount. It can be anything like free shipping, a small gift with purchase, store credit, or a special membership card, etc. But, whatever you offer don’t forget to add value to their inbox and it should not hurt your bottom line too.
Remember, if you manage to give your inactive customers a good reason to return, they will not only buy from you once again but will also reward you with their loyalty in future.
Use a clear call to action
Every email you send to your subscribers should focus on one clear call to action and more so in the case of win back email. Make sure your calls to action is located in prominent spots and communicate the action you want your recipients to take.
Here’s an example:
Don’t try to trick your customers with your CTA, be transparent and tell them precisely what they will get after they click on your CTA.
So there you have it: Five tips to win back your lost customers. By embracing these tips you can go a long way in winning over your inactive customers. And, yes using these tips require effort but the payoff will be well worth it.