Reactivating Inactive Customers
Why is a reactivation strategy Crucial?
Customer retention is as important as acquisition in the current competitive retail landscape. A solid reactivation strategy increases the profitability of acquisition investments by enhancing the lifetime value of customers and avoids costly reacquisition of already known customers.
Then, what should you do when once-loyal customers become inactive?
This is where the reactivation strategies comes into play.
Identifying inactive customers and ensuring understanding
The first step in crafting an effective reactivation strategy is precisely identifying inactive customers in your database. Consider the following questions:
What is the definition of "inactive customer" for your business? Is it someone who hasn't made a purchase in a month, six months, or a year?
What additional criteria can you use to refine your segment of inactive customers? For example, previous purchase frequency, total amount spent, etc.
The RFM segmentation of the CDP provides an overview of your different segments, allowing you to identify the volume of affected customers.
Subsequently, the use of Customer Audience Filters (CAF) allows you to create segments to isolate your inactive customers and discover their characteristics (gender, age, registration date in the database, etc.), as well as the products or product categories most likely to reactivate them.
Implementing a reactivation strategy
Once you have identified your segment of inactive customers, it's time to implement targeted reactivation strategies. Here are some examples of effective approaches:
Automated Reactivation Campaigns
Utilize CAF to identify the most purchased products, brands, or product categories by inactive customers. Then, create an automated campaign that effectively highlights the identified categories and brands. You can also associate personalized product recommendations for each contact through product recommendations and/or accompany your communication with special offers to incentivize purchases. Finally, specifically target your automated campaign to your inactive customer segment and set the campaign recurrence of your choice to ensure that any new inactive customers receive it.
New Anticipation Campaigns to Limit Inactive Volume
The various status of RFM segmentation allows anticipation of when customers start to become inactive by monitoring their status in the RFM model (Recency, Frequency, Monetary). It is then relevant to create automation at the time of status changes before customers reach the "inactive customer" stage. For example, send reminder emails or special offers to encourage customers to make a new purchase before they become inactive based on anniversary purchase dates. Or set up replenishment campaigns to suggest repurchasing similar products when products reach the end of their lifespan (Cosmetics, Refills, etc.).
Investing in Multi-Channel
To maximize your reactivation chances, use a multi-channel approach. In addition to emails, consider sending personalized SMS messages or targeting social media advertisements. This omnichannel approach strengthens your presence with inactive customers and increases conversion opportunities.
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Conclusion
Reactivating inactive customers is a crucial step in maintaining CRM growth and profitability. By precisely identifying your segment of inactive customers and implementing targeted reactivation strategies, you can reignite their interest in your brand and guide them toward future purchases. With a proactive and personalized approach, you can transform inactive customers into loyal brand ambassadors!