Traditional customer re-activation strategies are struggling to deliver the results they once did. This has been fueled by cuts in consumer spending and communication channel fragmentation, forcing marketers to develop new approaches. A Target Marketing Magazine article told the stories of innovators who are leveraging customer data, analytical tools and new customer touchpoints to fuel their remarketing efforts with results.
Start With the Basics
The fundamentals haven’t changed. Identify your best customers and the attributes that make them the best. Analyze purchasing trends, patronage patterns and channel usage to bring to light key behavioral characteristics of the ideal candidates.
Don’t stop there. Demographics, wealth data, transactional information and other lists can be used to enrich the customer profile. This information is useful for assessing the value of former customers who had sparse purchase histories but may still be good candidates.
Last, match these reactivation profiles against dormant customer files to “pop” the segments most likely to yield a profitable level of response.
Reactivation efforts most often are targeted at customers who have not shopped or purchased in the last year or more. While these consumers may not be shopping with you, they are buying from someone.
Reactivation is a form of advanced prospecting. By applying predictive scores to dormant customer files before fielding a reactivation campaign, resources can be prioritized toward those households with the greatest likelihood of response.
A good reactivation strategy encompasses not only who to target, but how to target them. In today’s multichannel environment, opportunities to blend print and other media into an optimum delivery stream for each target segment exist. For example, leads might be generated via a print mail campaign. These leads might then be further qualified using lead scoring and either prioritized for rapid follow-up by phone for high potentials or routed to another channel for less qualified candidates. This blended approach can yield more profitable results. Marketers should choose the medium that optimizes reach and response, according to budget.
Using Predictive Scoring
Aim for a clear view of your best customers. While it is possible, and sometimes economical, to target all former customers, it’s more often the case that a campaign targeting high-value or niche segments produces the best financial results. Focus on predicting who will respond, and then determine the best channel and sequence for the message.
Build New Relationships
A reactivation strategy should include follow-up plans and next steps as well as an outline with how often customers would like to receive communication. Lastly, update files with new customer information and data to ensure future campaigns maximize the information available.