Win-back campaigns: a 7-point checklist to bring lapsed customers back

Some of your best future sales are already in your customer list: people who liked you enough to buy, then drifted away. Nothing went wrong. Life got busy, a competitor caught their eye, or they simply forgot. A win-back campaign, sometimes called a re-engagement campaign, is how you win back customers who have drifted away by giving them a reason to come back.

Why lapsed customers are worth winning back

Lapsed customers already know where you are, what you sell and how you treat people. You do not have to earn their trust from nothing. You only have to remind them.

That makes them cheaper to bring back than new customers are to find. As Harvard Business Review put it, depending on the study and the industry, acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one. The same article cites research by Frederick Reichheld of Bain & Company showing that increasing customer retention rates by 5% increases profits by 25% to 95%.

Before you start: consent comes first

Only send marketing messages to people who have agreed to hear from you, and make it easy to say no.

The 7-point win-back checklist

• Define what “lapsed” means for your business
• Segment your lapsed customers
• Give them a real reason to return
• Keep every message short and personal
• Make the next step one tap
• Send at the right time, in a short sequence
• Measure returns and revenue, then improve

1. Define what “lapsed” means for your business

Look at how often a typical customer buys. A customer who usually visits every two weeks and has not been back in six weeks has probably drifted. A customer who services their car once a year has not.

A simple rule: start with about twice your normal gap between purchases, then adjust once you see the results.

2. Segment your lapsed customers

Not every lapsed customer is the same, so they should not all get the same message.

3. Give them a real reason to return

The message has to answer one question: why come back now? Good reasons include:

• Something new: a menu, a product, a service or a location
• A reward that is waiting: points from your loyalty programme, a free add-on or a birthday treat
• A reminder that something is due: a check-up, a service or a refill
• A time-limited offer with a clear end date

A discount is not the only option. Points that are about to expire, or a reminder that a service is due, can work just as well and protect your margins.

4. Keep every message short and personal

Use their first name. Mention what they bought before if you can. Say who you are in the first few words, and keep SMS messages to one clear idea.

5. Make the next step one tap

Every message needs one clear action: a link to book, order or claim the offer. If customers have to search for your number or remember a code, many will not bother.

6. Send at the right time, in a short sequence

One message is easy to miss. Pairing a win-back SMS with a win-back email works better, as long as the sequence stays short and respectful.

Send when people are most likely to act: before lunch for a cafe, early in the week for appointments, and never late at night.

7. Measure returns and revenue, then improve

Opens and clicks are useful signals, but the goal is customers coming back.

Change one thing at a time, such as the offer, the timing or the wording, so you know what made the difference.

Make it automatic

Once a win-back sequence works, set it to run by itself. Every customer who passes your lapsed mark gets the same well-timed messages, without anyone on your team having to remember. This is where SMS marketing and email marketing tools earn their keep. Customer engagement platforms such as SalesSpark handle this with a customer database, SMS and email campaigns and birthday and win-back campaigns in one place.

Final thoughts

Your lapsed customers already chose you once. A short, personal, well-timed win-back campaign reminds them why, and it usually costs far less than winning someone new. Start with a clear definition of lapsed, one good reason to return and a simple sequence, then let the results guide the next send. Done well, it builds customer loyalty that lasts.

Sources

• The Value of Keeping the Right Customers, Amy Gallo, Harvard Business Review, October 2014
• Guidance on implied consent, Canadian Radio-television and Telecommunications Commission (CRTC)