Win Back Old Clients Without Taking a Revenue Loss
Returning to your favorite local business can feel like coming home. We all have that one store we love, one supplier we can count on, or one office whose service is just a cut above the rest. As business owners, being able to say "welcome back!" to returning clients is one of our greatest successes when it comes to generating revenue, furthering brand dependability, and ensuring the longevity of our place within the industry.
Loyal customers are the foundation of any sustainable business model. Many small to midsize businesses overlook the potential revenue in reengagement and over focus on securing new prospects instead. In fact, boosting customer retention by a mere 5% can dramatically increase profits from 25-95%. The success rate of selling to an old customer is 60-70%, while the success rate of seeing a sale through to completion with a new customer is only 5-20%. Lastly, acquiring new clients can cost five times more than winning back existing clients.
The odds are in a business' favor when it comes the untapped value of reengaging old customers. There's a wealth of existing profit in winning back -- and keeping -- clients who've previously utilized our services. Check out these cost-efficient incentives to reengage old clients, improve brand recognition, and secure loyalty and satisfaction alongside boosting revenue.
Analyze and Plan
Take a look at your key performance indicators (KPI) over the last five years. What patterns have changed or shifted? Next, run a thorough analysis on your customer base from prior years. Take a look at the purchase history, demographics, and trends common in old clients that have yet to return. Consider what improvements can be made to reengage these clients in light of adjusting your current business model.
Drawing in old clients has a high ROI. Send out a survey and ask for suggestions. Be ready to tackle criticism head on and improve any failures noted such as late delivery of goods, poor customer service, or not enough inventory. You might be surprised what elements clients identify as working and not working for their needs!
Open Communication
A common mistake businesses make is failing to keep in touch with their loyal customer base. When clients drop off, there is often no follow-up or continued communication to win these clients back.
Don't wait to reach out! Send a "we miss you" email campaign to all of your former clients. Include new products, services, and exciting changes that will pull your customers back in and remind them that you're still the best in the business. For private firms and small businesses, a personal phone call may even be appropriate to reconnect with old clients.
Looking for a more festive approach? Send out personal holiday greetings and birthday wishes. Everyone loves a handwritten postcard from their favorite business!
Incentivize Returns
Old friends deserve a VIP discount. Run a targeted marketing campaign designed to pull in returning customers by offering deep discounts, free shipping, and promotional swag as a tempting incentive. Returning customers often feel as if there must be a reason worth their while in order to come back to a business they haven't frequented in a few months. Not only do incentives empower the consumer to feel that the action their taking is justified, but they're a great way to say thank you for your loyalty and make old customers feel extra special.
The return in revenue is well worth the investment in providing a few additional kudos to reengage with prior clients.
Looking for more hidden revenue sources? Stacey Hylen loves using her expertise as a business success coach to help business owners optimize profits. Start seeing your best returns today and get started on your future success!