Are You Missing the Silent Signs of Customer Churn?
Imagine this: a shopper walks into one of your retail partners, scans the QR code on the shelf, eagerly signs up for your latest promotion, makes a purchase—and leaves satisfied. ?
But that’s the last you hear from them. ?
No follow-up visit, no further engagement. They’re gone.?
Or consider this scenario: a customer joins your loyalty program, claims their welcome discount, and you haven’t seen or heard from them in over six months. ?
That’s six months of potential sales, engagement, and brand loyalty, all slipping through your fingers.?
These aren’t isolated incidents. ?
In fact, they are the silent signs of customer churn, and they’re impacting your profits more than you might realize.?
Every churned customer is a missed opportunity—an opportunity to build loyalty, drive repeat purchases, and increase customer lifetime value. ?
And for FMCG brands, where purchase cycles are often short, churn can hit even harder.?
Research shows that it typically takes three or more purchases to start building genuine brand loyalty. ?
Yet it’s often the loyalty program members—the ones who were once engaged with your brand—that can hurt the most when they go quiet.?
Think about the resources you’ve poured into attracting them: advertising spend, special promotions, loyalty benefits. ?
Every time they stop engaging, it’s not just frustrating—it’s a direct hit to your return on investment (ROI).?
But there’s good news: customer churn isn’t inevitable. ?
It’s something you can address, and, with the right strategy, significantly reduce.?
The True Cost of Churn—And How to Combat It?
Before diving into solutions, it’s crucial to understand how damaging customer churn can be. ?
According to a Bain & Company study, increasing customer retention by just 5% can lead to a profit boost of up to 95%. ?
That’s right—just a slight shift in your ability to keep customers can have an outsized impact on your bottom line.?
Now, how can FMCG marketers like you re-engage those valuable, silent customers? ?
Here are three strategies you can implement today to combat churn and win back lost engagement:?
1. Personalized Re-engagement with Chatbots?
Customers who once joined your promotions or loyalty programs, provided their mobile numbers, and made purchases—only to stop buying—are prime candidates for re-engagement. ?
But sending a generic email or discount code might not be enough to win them back.?
That’s where personalized communication comes into play.?
Leverage the SKALE Chatbot to send highly targeted messages based on their earlier purchases or interests. ?
The key is to personalize the message as much as possible. ?
If you know exactly what they bought the first time, you can tailor your message to include product recommendations, related offers, or even exclusive content designed just for them.?
For example, imagine a customer who last bought a health drink during a summer promotion. ?
Rather than sending a blanket discount, use the chatbot to remind them of that exact purchase and offer a related promotion, like a limited-time deal on a new flavor or product line they haven’t tried yet. ?
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2. Re-engage In-store Shoppers by Collecting First-Party Data?
Are you noticing a decline in sales from a specific retail channel? ?
This could indicate that your regular in-store customers are churning. ?
And without first-party data—email addresses, mobile numbers, or purchase histories—it’s difficult to re-engage them effectively.?
That’s why now, more than ever, collecting first-party data should be a priority for FMCG brands. ?
Implementing a robust loyalty program is one of the best ways to gather valuable customer data, which you can then use to drive targeted re-engagement campaigns.?
For example, let’s say you’ve noticed that sales are down in a particular store where you previously had a loyal customer base. ?
A loyalty program allows you to capture the contact details and shopping habits of these customers, giving you a direct line to re-engage them with personalized offers.?
Once you’ve collected the data, you can craft campaigns tailored to their preferences, whether it’s a reminder about their unused points or a limited-time offer based on their favorite products. ?
3. Incentivize with Urgency?
There’s nothing quite like the fear of missing out (FOMO) to drive action.?
When it comes to loyalty programs, introducing a points-based mechanic can quickly reignite interest. ?
Remind customers regularly that they’re just a few points away from their next reward, whether it’s a free product, an exclusive discount, or an entry into a prize draw. This taps into their competitive spirit and creates a sense of urgency to take immediate action.?
Take it a step further by introducing time-sensitive rewards. ?
For example, offer a digital voucher for 30% off their next purchase, but with a catch: it must be used within the next week. ?
This kind of urgency encourages immediate re-engagement and can drive foot traffic or online purchases faster than a general promotion.?
Another way to re-engage inactive shoppers is by highlighting upcoming promotions—whether it’s a Double Day campaign, or a festive holiday event. ?
Customers are more likely to re-engage when there’s something exciting on the horizon, and if they feel they’re getting exclusive early access or exclusive deals, even better.?
How SKALE Can Help You Combat Churn?
Ultimately, reducing customer churn comes down to two key elements: personalization and data. ?
By integrating SKALE into your campaigns, you can centralize all your customers' first-party and purchase data in one platform. ?
This allows you to build precise customer profiles, identify those at considerable risk of churn, and develop targeted re-engagement strategies to win them back.?
With SKALE’s integrated suite of solutions, you can automate these re-engagement efforts, track success in real-time, and make data-driven decisions that reduce churn and boost your ROI.?
Don’t wait until your customers have already disappeared—start re-engaging them today with personalized, targeted offers that bring them back to your brand.?
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Digital Transformation, Project Management
3 个月Thanks for sharing this. The real-life examples make this more relatable and actionable.