User re-activation is nothing but resurrecting inactive users and dormant accounts whom we have lost touch with for some amount of time.
We all make that one last attempt to ignite a spark in a relationship which is almost on the verge of becoming stale or mending a broken relationship which we valued so much in the past!
Market studies reveal that on an average 25 to 50 % of your overall subscriber base gives the cold shoulder and the rate is alarmingly high if not treated well and well-in advance!
A seasoned marketer would always try to battle, win and astutely balance on three warfronts: acquisition, retention and re-activation!
And this is where AI and deep dive analytics with the help of Machine Learning, Predictive Scoring and Advanced Algorithms propel your ‘Re-activation Campaign. It comes as a saviour and is instrumental in having past customers on board. Revival of old bonds is a sure shot way to generate, accelerate and sustain in an otherwise volatile and disruptive emerging markets. “The world is changing whether you like it or not. Get involved or get left behind”- Dave Waters once said in context with adoption of AI solutions to awaken and create valuable and personal touch, at scales.
The Do’s and Don’ts of ‘Re-activation’ can be summarized for your perusal as below
- Pro-active Retention Measures
If the purchase frequency slows down or the average order size shrinks it is an early sign and a wake-up call before you actually end up losing the customer. Anomalies in customer behaviour and eccentric purchasing patterns which differ from the otherwise regular and normal course of shopping tendencies indicate a problem which can be addressed with an early intervention. Abandoned carts provide ample clues to apply preventative measures and avoid potential loss.
- Identifying The Reasons For Break-up
“Your most unhappy customers are your greatest source of learning.”- Bill Gates Before we kick-start any innovative re-activation campaigns we need to introspect and interrogate as to why the subscribers lost interest and left us in the first place. Unless we focus our energies on that there is no point further investing in attracting new customers as they are going to meet the same fate over a period of time because we refused to learn from our past experiences of dealing with our once patronizing customers who are now not in touch! And remember cost of acquiring new business is 5 times more than maintain an existing one.
- Content , Frequency And Relevance Of Our Offers
We could have possibly annoyed them with excessive chase-ups sounding too desperate and demanding and blabbering and blaring out about “ME, I and Myself” as a brand! Did we, for the matter of fact, even try to understand, if that’s making sense, is relevant or matters to the end user? Is the content good enough to arrest their attention and suit their changing tastes and preferences? Forget about the content. Have we paid attention to the subject line? We need to treat our subject line like a movie trailer – give them a preview so they know what to expect! Marketing gurus state that wisely timed frequency of e-mails is needed but a word of caution is that we shouldn’t go overboard with it. Statistics reveal that only a quarter of disengaged customers will open your first attempt-to-win-back e-mail but up to half will open subsequent ones. Multi-channel marketing campaigns are effective –email, mobile, direct, social media platforms and more but e-mail marketing is the most personalized and proven technique of meaningful conversations and engaging partnership with the once active customers! Remember the famous quote by Erik Harbison who once stated – “If Social Media is the cocktail party, then e-mail marketing is the ‘meet-up for coffee’. The original one to one channel!”
- Incentivize Your Customers
Prove your worth. Hold out a hand. Stretch your arms to outreach them. Connect on an emotional level. Give them reasons good enough to re-boot and re-start a relationship with you all over again. Jumpstart your re-activation campaign with stuff like bonus points, loyalty bonus, referral bonus and exclusive discounts. Let your dormant customers know that you value their presence and notice their absence. Keep in mind that this is one more opportunity to woe them back and if do not treat them well your competitors will.
Well… On a concluding note, we would say that we need to incorporate the three R’s of Re-use, Re-Cycling and Recovery to be able to achieve a sustainable and optimally utilized CRM (Customer Relationship Management) for cost-effectiveness in a real sense!