One of the most important concerns for a new or existing business is making sure that they have a consistent income. No matter what type of business you’re in, a source of regular customers is an excellent way to establish a stable revenue.
A natural part of business however, is that customers will be lost over time to churn.
To offset a loss of customers due to churn, a business can do two things:
- Acquire new customers,
- Employ strategies to win back lost customers.
While both are an essential part of a healthy business, the fact remains that getting new customers can cost five times more than retargeting old customers for repeat sales, and making sure you don't lose them to competitors.
How To Win Back Lost Customers
When you try and win back lost customers, you have some advantages over a new supplier. You already know:
- They like your service or product.
- What their buying habits are like.
- Which of your products or services they’re most interested in.
- Most important of all, you already have their contact details.
So you can more easily target your marketing, therefore cutting down on costs.
It goes without saying that this assumes that you have happy customers! So make sure you also have an effective customer complaints department.
When I worked in my parents' small business. my Dad would always say to me “The customer is always right, even when they are wrong.”
Funnily enough you might find that resolving a customer's complaint satisfactorily could turn them into one of your most raging fans.
However, sometimes, getting back an old customer is easier said than done. Also there’s a strategy for win back that’s unique to every customer. You’ll have to analyze the information you have on them, collect exit and service surveys, and tailor the strategy to each customer.
Check out this infographic below by Fundera to learn the most effective strategies to win back lost customers.