Techniques to Build a Reactivation Strategy

Have you ever met a childhood friend after having no contact for at least 20 years? Does it seem like no time has passed and the last time you spent time together was just yesterday? Or, did you want to be on your way right after exchanging pleasantries? This situation is similar to reconnecting with past customers as organizations often face the same reactions. Some customers will be able to behave as if that they had conducted business with you just yesterday whereas some wonder why you are contacting them.

Who is a reactivation candidate?

The process of reactivation requires the complete attention of the business owner. The first step in this process is to define reactivation according to the organization, so it becomes easy to determine which customers need to be reactivated. For most businesses reactivation candidates are determined by their lack of response to marketing efforts made previously.

The marketing efforts need to be made according to a process which starts with acquisition and is followed by resell/upsell/cross-sell/downsell, retention and lastly reactivation.

You need to determine a method to differentiate between customers, since some require reactivation efforts while the others need selling and retention efforts. If you are sure that the customer is no longer interested in your business, said customer belongs in the reactivation group, as your sales and retention efforts have definitely been exhausted.

Who should be selected for reactivation?  

In order to sort customers into the reactivation group you need to be certain the contact information you have is the latest. Past customers whose information cannot be updated even by utilizing third-party resources should not be included in this list.

After creating this list, review the customers and categorize them as controllable and uncontrollable. The categorization needs to be done on the basis of reason for losing the business and if the customer was lost due to your fault, you need to determine if the relation is worth re-establishing.

When reactivation marketing needs to be conducted?

This method should not be a process carried out once in several years or only when times are tough. Reactivation is an on-going process which needs to be your main priority among several other active marketing efforts.

Once you have created a list of customers who meet your requirements for reactivation, implement your campaign. Based on response history, you might be able to generate a response model for reactivation so that the frequency and optimal timing for your efforts can be determined.

After successfully accumulating considerable response history you should build a model based on data attributes, or RFM analysis since they predict purchase propensity.

How to interact with a customer who wishes to reactivate?

Your business changes overtime and so do your customers, thus before marketing to past customers you need to consider the focus of your business as well as your customers’ preferences and requirements, as they may have changed over time.

You can profile customers to establish customized communications for every segment. You can use past data like RFM information or gather information from reliable third parties in order to understand the customer and his/her choices. The income, family condition and age of the customer can be determined by third-party information. Determining the needs of the customers becomes easy by gaining this information making the process of reactivation simple.

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