Help Lost Customers Find the Way: Winback Strategy Guide
Do you recall the children’s song ‘Make new friends, but keep the old?’ In the business world, as the company owner or sales rep, you might think that finding new prospects is the most efficient strategy. However, a study done by Marketing Metrics indicates that you can get from 20 to 40 % chance of winning back the lost customers and only up to 20% of turning the lead into the consumer.
Accordingly, recovering clients who switched to another organization is much easier than acquiring someone new. However, it also depends on the type of business you are in, as there can be products and services that customers need to buy once in many years. Thus, a marketing professor at Georgia State University, V.Kumar studied ‘win-back’ approaches and singled out 3 main reasons the businesses should focus more energy and efforts on the lost customers:
- The former clients have already demonstrated the need for your service or product; that makes them rather better prospects than random ones on the cold-calling list.
- As lapsed users are familiar with your business, there is no need to educate them with peculiarities of your brand that saves you a lot of time
- the recent technology allows companies to draw on and keep the tons of valuable information.
Notably, more sophisticated customer databases, like CRM systems, can monitor and analyze how people use the service at the first time. In this way, you have an opportunity to craft the successful win-back offers and identify the most profitable defectors.
At this point, let’s go over the main strategies of reclaiming the lost prospects that can help you increase customer experience as well as boost the sales.
Who should you woo?
Not every client is an ideal customer. First of all, you have to figure out and create a list of leads that you should be pursuing. In case the consumers you forfeited was challenging to work with, then you have to think twice before putting the efforts to bring them back. Besides, as your business grows, you can notice that the previous users are no longer the picture-perfect ones. So, the best thing you can do here is to make sure they stay happy and continue referring you to friends and partners.
What made you lose the clients?
Identifying the reasons why the prospects left your business is the invaluable information. Moreover, many customers leave and get unsatisfied due to the leading argumentations:
- the customers were lured away by a competitor promising better service, pricing or some other advantages
- you, as a salesperson, failed to deliver as promised
- the structure of the company have changed, and new management was not aware of the strengths of services or products because the information was not passed on to them by the predecessors
- there were some unknown reasons like your client lost buying authority or left the organization for another position.
Consequently, you should conduct the main strengths, weaknesses, opportunities and threats analysis as well as find out how to address all the data to the users in the right way.
Should you take the responsibility?
At the time of knowing why you missed the previous sale, it is time to take control over your shortcomings. For instance, if the consumers left because they weren’t getting your direct attention, then you should fix the problem first. The clients want to feel special and are your priority. So, at some point, you have to step up the selling game and keep the customer’s needs first.
How to adjust your offer?
Now, when you all fired up with required info about your lapsed customers, you can create a new and more profitable strategy to regain the users. It doesn't necessary mean to overhaul your entire business model. You might just change the pricing aspect, make an adjustment to the packages or perform clearer communication, e.g. modifying the writing on your website to be more accurate on the product or service you offer. On this stage, the aim is to do your best to meet the lost client’s requirements. What’s more, you will help prevent more consumers from leaving for the same reason.
When to become flexible?
Depending on how much you are willing to recapture the customer back, you should offer and give more than you wanted to in the first sales cycle. So, one of the most important rules is listening to the client’s requests and try to accomplish them. If you aren’t flexible with negotiations when regaining the lapsed consumers, there is a significant chance of forfeiting them forever.
By implementing the 5 simple principles above can help you build an efficient client win-back strategy. Thus, you can not only lure the lost consumers but also improve loyalty, increase revenues and maintain a competitive advantage by becoming more customer focused.
P.S. As CRM implementation helps explore the new horizons with the faithful customers, check out our white paper ‘Proven Reasons for CRM Implementation’ to get the useful insights.