Has your company lost customers? If so, you likely understand how costly it can be and how much it can impact the business. Research shows the average cost of losing a customer in the United States is $289.
While a majority (70%) of businesses agree that it makes more financial sense to retain customers than find new ones, only 30% actually try to bring customers back. Some of the most common reasons companies don’t try to bring back customers include a lack of resources, a lack of strategy, and limitations with technology.
Before we can understand how to win back lost customers, it’s important to know some of the common reasons customers leave initially.
Some of the biggest reasons customers leave are:
In some situations, a competitor can offer better pricing or better customer experience. Customers may also leave for personal reasons such as a relative leaving the company, job loss (less money to spend), etc.
If a company has poor customer service, a customer is more likely to take his or her business elsewhere. Common customer service complaints include waiting too long to speak with a real person, representatives repeating themselves, or representatives not being able to answer a customer’s questions.
Put yourself in your customer’s shoes. How easy is it to have a complaint/question addressed and solved? If the process is complicated, customers might become unhappy and choose a competitor instead.
Consider making updates to the customer service team strategy, invest in customer service email management software, and make the process one that you wouldn’t mind dealing with when working with a business.
“Why should I care about lost customers?” We’ve mentioned retaining customers makes more sense than getting new ones. Also, a loyal customer is considered the most profitable customer, and a referred customer offers the best return on marketing.
Four win-back offers were tested on 40,000 customers by a telecom company, and some worked better than others:
Trying to win back every single lost customer could consume time, money, and resources depending on the strategy. Instead, consider trying to win back those customers whose behavior indicated an inclination to return. These may include those who didn’t complain, who referred others, or who had complaints that were then resolved.
Also, those who left due to price are more likely to return than those who left because of poor customer service.
Proper marketing tools can help convert lost customers into repeat business:
Now more than ever, business is about a personalized experience between the company and the customer. If you’ve lost a customer, dig into the situation to determine what went wrong. While surveys can provide valuable information, consider keeping them short and sweet to avoid losing one’s interest.
Asking questions and developing a plan for customer retention is important for helping your company bring back lost customers.
Regaining trust and building customer loyalty are important pieces to potentially winning customers back. Salespeople should be focusing on the needs of customers and helping them solve problems rather than strictly selling to them.
While it may seem time-consuming to always follow up with customers, remember that a competitor will do this even if you’re not. Putting out the effort can yield better business.
Ideas for increasing the number of repeat customers your company has may include:
Email campaigns could be an effective way of winning back old customers when done well. To do this right, it’s essential to identify those lost customers, create catchy subject lines (such as “Hoping to reconnect” or “It’s been a while…”), identify a purpose, create content that aligns with the said purpose (consider promotions), and follow up (consider sending a survey, for example).
Remember to empower your customer service team, so they believe in your company and want to offer help and guidance for customers.
Also, real-time service is an important part of winning consumer back. Customer service representatives should be trained to deliver prompt responses on calls, social media, live chats, etc.
CloudApp = visual collaboration done right. Share thoughts and ideas instantly via photos, videos, GIFs, screenshots, etc. You no longer have to have long phone calls or send lengthy emails to explain your point.A simple screenshot or screen recording will do.
Connect with co-workers to brainstorm new ways to improve customer retention and ensure customer satisfaction. Share your ideas for campaigns to bring back old customers.
It’s important to understand that even when it seems your company is doing everything possible to ensure satisfaction, some customers will still walk away for various reasons. Continue to make it a priority to provide a positive experience and to work to win back lost customers.
In addition to surveying customers you’ve lost, you might also consider asking your loyal customers questions to find out why they enjoy working with your company. They could provide candid feedback on your products, services, overall experience, etc.
Are you doing everything possible to win customers back? CloudApp can be helpful in terms of communication between co-workers and with clients.
Sign up today for a free CloudApp account. Use it to share thoughts and ideas instantly in a visually-appealing way to help improve customer retention.