We’ve all been there. You are sat looking at an endless list of customers, while simultaneously despairing about the fact that they haven’t bought from you or engaged with your brand in a long time. Instead of confronting the issue head-on and looking to rekindle communications and interacting with a now largely dormant customer base, time and time again companies look to acquire new customers in the hope of increasing sales. Across multiple industries, this is the norm. It is expensive and time-consuming and more often than not it isn’t the answer to increasing your sales. Attracting a new customer costs five times as much as keeping an existing one. The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20%. If you already have lists of customers, engage with them, reawaken them and you will see your sales increase.
Email Marketing is a great way to re-engage dormant customers. You can devise campaigns by segmenting your customers into groups defined by how recent their previous interactions with you were, for example, those who haven’t opened an email from you in the last month, and those who haven’t clicked on an email link in the last 6 months etc. By emailing these dormant customers with emails that have personal subject lines such as “Are you there?”, it places you and your brand back into your customer’s thoughts and into a position where those customers might wish to re-engage with you. It’s not about increasing sales immediately, but more about increasing engagement and from then on seeing a spike in sales from a previously dormant customer base.
The key to many of these successful email marketing campaigns is that they are sent out at times which data has shown to be the periods when dormant customers were in the past actively opening emails and clicking on links. The data may not show an exact time that each dormant customer usually opens your emails, but an overall average will appear which will suffice. It is also advised that you use subject lines that demand immediate action. These subject lines could include for example lines like “Sign up today or miss out”, or “Last chance to verify”, as these sorts of lines urge action and elicit a response. It is entirely up to you how aggressive and forthright you want to be. At the end of the day, only you as a brand know how best to communicate with your customers and urge them to re-engage with you.
Prevention is better than cure
The best approach to increasing sales is always preventing your customers from going dormant in the first place. Instead of investing man-power and revenue into reclaiming those sleeping pockets of profit, brands can help themselves hugely by identifying those customers most likely to drop off before they actually do. There are certain attributes and patterns of behaviour that all customers exhibit before their interests wane and they become dormant. Third-party vendors offer predictive analytics tools, that can help you identify potentially dormant customers based on these behaviours.
In conclusion, your existing customers are your lifeblood. Remain focused on retaining them, even if it means that you have to devise a plan to wake up those that are sleeping. You will save money and extra costs by doing so.