When running a business, you need to keep your eye on various metrics, especially if you want to scale up. With the use of artificial learning and machine learning tools such as predictive analytics, you can get an insight into various analytics of your business which can help you plan for the future better. Moreover, it can make it easy for managers to make decisions better and set priorities to lead the team toward a common objective.
One such metric is customer winback and customer acquisition. A win back is a situation when the business gains an old client back. This could be because of targeted marketing efforts and efficient strategies.
The main goal of this strategy is to improve the retention rate and increase the consumer’s lifetime value. In the long run, it lowers the customer churn rate and potentially increases customer satisfaction.
It is noted that the cost of acquiring new customers is way more than retaining old ones because they are already down in the sales funnel compared to new hot leads. So, implementing winback strategies is one of the most effective strategies to improve your profitability, and it may help the firm reduce its CAC.
Here are some aspects you need to know to design the perfect winback strategies.
Segmentation is one of the most critical aspects of marketing wherein marketers use the data available to divide their target market into sub-groups. Diversifying the audience into sub-groups helps craft more accurate campaigns based on the shared characteristics of the group.
Commonly, segmentation is done based on four categories such as demographic, psychographic, behavioral, and geographic.
With the advent of predictive analysis software, companies can segment their audience more accurately, enabling them to build more target strategies to increase conversion rates. When complex data is provided in a simple format by predictive analysis software, it can help with customer winback strategies and increase the lifetime value of a customer.
An element necessary to design the perfect winback technique is to chart a communication plan which provides a roadmap to the company about the marketing channel that can be used. Once the segmentation is done, a communication plan will enable you to align the teams on a common objective and deliver the most relevant offers to potential customers.
Strategies to win back customers
- Email campaigns – If you are trying to win back a customer, you must have some available data about them, such as their contact information, previous purchase history, etc. This can help you set up a drip email campaign after determining the cause of their churn. After determining why they left your business, your marketing team can send a tailor-made message to them, addressing their concern and offering them an incentive to hop back on board.
- Survey Campaigns – You must always be open to feedback and constructive criticism. So, sending a survey form to previous customers will help you understand their points of view. Understanding the customer is beneficial because it opens up the scope for future conversations with them and enables you to assess your shortcomings which will only improve your processes.
Customer retention and winback are the most crucial factors that could lower customer acquisition prices in the long run and aid your marketing efforts.