The data that companies collect on each customer - products or packages bought, amount of usage, upgrades, downgrades, duration of account etc. – means they build up good user profiles on all of us. If someone decides to cancel a subscription and leave a company, this data on customer behaviour can make winning back customers a much easier job.
We all know that it costs a lot less to win-back and retain a customer than to acquire a new one.
Companies that bill on a recurring basis such as broadband and digital media providers, insurance companies and utility companies are plagued by churn.
Research from Georgia State University shows that instead of spending huge amounts of money on marketing to replace lost customers, companies should look at creating smart customer win back campaigns.
The research states three reasons why winning back a customer is easier and more profitable.
- First, these people have demonstrated a need for the service, which means they’re still good prospects.
- Second, they are familiar with the company, so no need to spend money marketing to them, creating brand awareness and educating them about the offering.
- Third, because of the user profiles companies have built, it’s possible now to tailor your new offer based on the data and analytics of the users previous behaviour. Your user profiles also tell you who your most profitable defectors were.
Why should you outsource your customer win back campaigns?
As well as the above reasons, our experience at customer win back and retention at Zevas has taught us that there are many ancillary benefits to running a good customer win back campaign.
By analyzing unhappy and lost customers we help companies detect other at-risk customers before you lose them. Being close to your customers doesn’t just mean we can identify pain points but we can also uncover growth areas. We can glean invaluable customer insight and feedback to inform any new product development conversation.
Call us at Zevas to find out how we can help you maintain and grow your market share.
HOW OUTSOURCING CAN GROW YOUR BUSINESS - FREE GUIDE
Do you want to know how outsourcing can increase your profits and your market share? In this FREE GUIDE you'll learn how outsourcing
- Saves you money
- Reduces risk
- Can be your fastest route to market
- Grows your business