The probability of selling to an existing customer is 60 – 70%, while to a new one is just 5-20%. So why don't focus more on customer retention and customer reactivation to optimize business expenses? The post below may help you come up with a new plan for customer reactivation – the golden key to saving costs for customer acquisition.
Reactivate former customers – the golden key to save costs
Whether you're a startup gearing to accelerate growth or a mature corporation looking to gain market share, you may already know this stat: It's 5 – 7 times more expensive to acquire a new customer than to keep an existing one.
The cold hard truth is: customers often don't buy from brands they don't trust, while customer acquisition usually comes at a high cost. Here's a breakdown of common customer acquisition cost centers:
- Outbound, or traditional marketing (including advertising, direct mail, cold calling, etc.;
- Inbound marketing (blog content, SEO, social media);
- Sales and business development salaries
And the list goes on. As acquisition numbers grow, these programs and their costs keep getting bigger.
On the other hand, past purchases can be considered as low-hanging fruits and customer retention can positively impact your business growth. Studies by Bain & Company, along with Earl Sasser of the Harvard Business School, have measured that even a 5 percent increase in customer retention can lead to an increase in profits somewhere between 25 and 95 percent. Some reasons can be listed:
- You have the ear of your customer already, so they'll be willing to truly listen to what you have to offer. The probability of selling to an existing customer is 60 – 70%, while the probability of selling to a new prospect is just 5-20%.
- Customers will advocate for your company, shouting from the mountain tops about their trust in your brand or service. This “advocacy-in-trust” impacts prospects that want to know what it means to be your customer, giving prospects a glimpse of the customer experience your brand provides.
In short, if a business does not use customer retention and customer reactivation, they are leaving a lot of money off the table.
Solutions for reactivating customers
To wake up dormant customers, your business can consider 2 highly-effective solutions:
- Having good customer relationship management through email & after-sale services.
- Study old customers, and discover why they don't buy your products. Then contact them and fix their problems if possible. Amongst different communication methods, telephoning should be the highest priority.
Benefits of using Telesales in customer reactivation programs
Telesales is an effective way to reconnect with and reactivate your dormant customer database. By using telemarketing, your company can win up to 50% of your past customers back!
- Telesales & Telemarketing offers a more personalized approach with customized messages targeted to individuals in a dormant state. Two-way communication is a key strategy for nurturing relationships needed for reactivating lost customers. Because on the phone, you instantly establish a conversation; your message is much simpler to get across when you engage in a dialogue and questions can be answered.
- With a Customer Reactivation telemarketing campaign, you can get immediate feedback and proactively re-engage with your customers.
- Telemarketing offers a human touch that you can't get with emails or social media. It's a fundamental strategy for increasing revenue and finding out why customers are falling through the cracks, which is business intelligence that can help you manage attrition.
- Telesales agents trained in conversational sales techniques provide a meaningful emotional connection that not only increases conversion rates and customer satisfaction but customer loyalty as well.
As the leading provider of outsourced contact center in Vietnam, Bellsystem24 Vietnam can discuss how our expertise can help turn your lapsed customers into returning sales revenue.
Feel free to call us today for an effective customer reactivation!
