{"id":4038,"date":"2019-01-08T17:25:25","date_gmt":"2019-01-08T15:25:25","guid":{"rendered":"https:\/\/www.lending-express.com\/blog\/?p=4038"},"modified":"2020-07-29T11:05:18","modified_gmt":"2020-07-29T08:05:18","slug":"5-customer-retention-strategies-for-winning-back-dormant-customers","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/5-customer-retention-strategies-for-winning-back-dormant-customers\/","title":{"rendered":"5 Customer Retention Strategies for Winning Back Dormant Customers"},"content":{"rendered":"\n

\u201cHow many leads have you acquired today?\u201d

<\/p>\n

It\u2019s the question on every business owner and marketers mind at the end of the working day. You want that number high, and rightly so.

<\/p>\n

But what about that other word, you know the R-word – R E T E N T I O N. We seem to place so much attention on the acquisition phase that we often forget about retention.<\/p>\n\n

What is customer retention?<\/h3>\n\n

Customer retention is defined as the business practice of keeping existing customers coming back to purchase your goods or services. The overall idea of customer retention is to put effort into strengthening and maintaining relationships with clients so that they don’t venture off to spend their hard-earned money elsewhere.<\/p>\n\n

There are a number of ways to actively retain customers, and we’ll cover those below. First, have a look at how to calculate customer retention rate<\/a>:<\/p>\n\n

\"\"<\/p>\n\n

Customer retention statistics<\/h3>\n\n

Smart marketers and business owners know that focusing on retention and customer loyalty<\/a> is only half the job. Research by Harvard<\/a> Business School found that when a company improved its customer retention rate to re-engage customers by just 5%, their profits soared by 25-95%! Moreover, selling to an existing customer is far easier than recruiting a new one. But don\u2019t take our word for it\u2026<\/p>\n

\"\"<\/p>\n

Source: <\/i><\/b>invesp<\/i><\/b><\/a><\/p>\n

\u00a0<\/p>\n

The probability of selling to an existing customer is 60-70%, whereas the probability of selling to a new customer is 50-20%. Just let that sink in. <\/span><\/p>\n\n

So why, oh why do only 18% of companies have a greater focus on customer reactivation strategies as opposed to 44% of companies who have a greater focus on acquisition?<\/span><\/p>\n

\"\"<\/p>\n

Source: <\/i><\/b>invesp<\/i><\/b><\/a><\/p>\n\n

Even if a customer hasn\u2019t engaged with you in a while, it may be that marketing dollars are better spent drawing dormant customers back in rather than trying to acquire new ones. Of course, there\u2019s a little art and science to it and you need to find a balance. <\/span><\/p>\n\n

You probably now understand that customer retention is important for long-term success, now it\u2019s time to find out some solid customer reactivation strategies. <\/span>Here, we\u2019ll take you through a few tried and tested methods on how to win back inactive customers. <\/b><\/p>\n\n

1. Personalize, personalize, personalize <\/span><\/h2>\n\n

One way to re-engage customers especially after the busy holiday season when it all starts to die down a bit is to work on personalization. Emails are a well-known customer retention strategy, but making those emails personalized will go a long way. <\/span><\/p>\n\n

It\u2019s not effective to write separate emails to individual customers, however, what you can do is divide your customers into groups based on factors such as their location, history or preferences. For example:<\/span><\/p>\n