Please, come back – the economic relevance of customer winback!


Does this sound familiar?

  • You acquire many new customers at high cost, who often only order once.
  • The repurchase rate of your existing customers is too low.
  • The date of the last order was a long time ago for the majority of your customers.
  • Despite great efforts, you can only partially explain why so many customers become inactive.

Unfortunately, these relationships are a reality in many – if not most – customer databases. According to Griffith and Loewenstein, pioneers of customer winback from the USA, companies lose between 20-40% of their customers every year. Therefore, it is not surprising not surprising that a high customer churn has a negative impact on the profitability of a company and that this loss cannot be permanently offset by the acquisition of new customers.

The solution recommended is customer winback: because the chances of successful reactivation are high and it makes economic sense for the following reasons:

  • The probability of reactivating an inactive existing customer is about 4 times greater than converting an interested person into a new customer.
  • Recovery campaigns immediately generate high profit contributions. Taking future repurchases into account, these returns are even more attractive.
  • According to Frederick Reichheld, inventor of the Net Promoter Score (NPS), an annual increase in the customer retention rate of 5% already leads to profit increases of 25-95%.
  • Our own projects show an additional response compared to control groups of up to 10%.

However, if a company concludes that it wants to seek out its inactive customers and take measures to win back customers for the reasons mentioned above, the marketing department is confronted with a multitude of questions. Which customers are inactive and when can we know when we actually lost a customer? Which of these inactive customers are most likely to repurchase? How should these customers be addressed? Is it enough to send a simple e-mail with a discount code or should more personalized printed letter be sent?

Caspar Feld Marketing-Performance is intensively involved with various customer winback strategies and has been able to successfully apply them in practice. With our wealth of experience, we can work with you to find answers to these questions and help you to identify and address the reasons for customer migration at an early stage. Furthermore, we can reactivate outgoing customers with targeted incentives and thus increase the return and profitability of your company. Using our strategies, we are confident we can assist your company in winning back your most valuable customers.

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