Though frequently overlooked, reactivating former customers may be the simplest option for business owners looking to quickly ramp up without breaking the bank.
What would you do if you needed to get some new clients and revenue before the next month?
If you’re a business owner, even a well-established business owner, this will happen to you at some point. For instance, how would you respond if a few clients unexpectedly leave you at once? Similarly, could you absorb the crushing blow of learning that some of your clients simultaneously can’t pay you on time or even at all? Additionally, what happens if you find your leads or sales pipeline is drying up?
In all of these cases, before your business goes too far south, you’ll need to correct your course quickly or it could be too late.
There are a plethora of viable options that help business owners immediately increase their revenue. Boosting advertising spend, optimizing pricing strategy and running seasonal promotional campaigns are just a few popular examples that come to mind.
Another highly effective strategy to reactivate former customers. Though frequently overlooked, reactivating former customers may be the simplest and lowest cost option for established business owners to quickly ramp up revenues without breaking the bank.
Customer reactivation by itself can be a confusing term and varies by industry, so let’s break it down. When referring to a customer in this article, it’s anyone that is buying a product or service from your company. It’s not a lead, qualified lead, prospect, referral partner or another stakeholder. It’s an actual paying customer. To simplify the explanation here, a customer can also be referred to as a client, patient or member, depending on your profession.
So what type of customer should you set out to reactivate? This strategy has nothing to do with your current customers. Rather, it has everything to do with your former customers. The intent of the reactivation outreach process is for those former customers to not only re-engage, but also begin to pay for your products or services again. Essentially, you want to wake up and resurrect past client relationships and win them back.
Related: Four Ways To Boost Customer Experience (And Thus Hold Onto Your Clients)
Some organizations refer to former customers as lost, dormant, lapsed, previous or inactive. Whatever you do, please don’t refer to your prior clients as “dead customers”. I know you want to bring some of these inactive customers “back from the dead”, but what if some names on your client list are in fact deceased? I’ve been in client meetings where this has happened and it can get awkward in a hurry.
Regardless of what your preferred name is for a former customer, a well-defined and well-run customer reactivation process produces numerous benefits:
Related: The Real ROI Of Being Customer-Centric
Below are the key steps to follow to profitably launch and execute your next former customer reactivation initiative:
If you’re a business owner with an established client list in need of a quick revenue recharge, tap into the power of the customer reactivation strategy. After all, if best-in-class companies are committed to balancing new client acquisition efforts with a customer reactivation outreach strategy, why shouldn’t you as well? You’ll be amazed at how quickly you can get some wins on the board. Whenever my clients are looking for a revenue boost in a short period of time before month-end or quarter-end, I always advise them to reach out to their former customers. In fact, one client family member recently shared he brought in as much revenue in two weeks as he normally does in two months!
Your former customers already know who you are and it’s a much shorter sales cycle. What have you got to lose?
Opinions expressed by Entrepreneur contributors are their own. Original Article Here.
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