A reactivation strategy is a marketing effort made by a business to manipulate behavior of certain customers that have not made a purchase from the organization for a long period of time. There are no particular guidelines to determine this period of time and it varies from one organization to another. While one company might consider 2 years as the ideal time to reconnect some organizations might want to establish contact after just two months. This period of time might vary with the assortment of goods available as well as customer buying cycle thus; this decision relies on the business owner’s decision.
The ideal way to determine your situation is to consider the purchase behavior of your best customers. If you want all your customers to be behaving in this manner, you need to create marketing programs as they manipulate customers’ decisions convincing them to make a purchase.
In order to improve the health of your business you are required to focus completely on this task, which is why you need to follow the tactics listed below.
The best technique is to prevent your customers becoming dormant by convincing first-time buyers to become second-time buyers quickly. Incentives like ‘purchase now and get $x discount the next time you shop with us’ can be offered. This offer can be made through a catalog, a bind-in card, blow-in card or included in their confirmation email for the first purchase. It can also be included as a part of their shipment.
The offer mentioned can be varied according to you financial conditions and also based on customer opinion. This offer is great for convincing current buyers as well as potential customers.
If your products are purchased by customers as gifts, then it becomes your responsibility to remind them at the right time of the year. All you need to do is generate an order form which contains the list of gifts purchased the previous year and if the customer wishes to reorder a particular gift, the check-box by its side needs to be checked and the order form sent back to you.
In order to increase customer response rate for this technique you could offer each gift to be delivered on a separate date. If the gift from last year is not available you could offer suggestions and also convince them to purchase gifts for themselves or an extra gift for someone else. These competed order forms should be available to the customers so that they can place their order online with complete security. You could also send reminders through emails as the shipping dates approach.
The segmentation strategies which surround reactivation are considered to be surgical, as they need to be developed precisely where the campaigns are customized to suit individual segments. In order to make reactivation highly effective it needs to be segmented at a granular level.
If you do not have time for segmentation, you can rely on data service vendors to implement your reactivation strategies. You can mail customers who are more likely to make a purchase based on database entries and an advanced mathematical model.