Deal with lapsed or inactive customers
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It's more cost effective doing business with existing customers than
looking for new ones. Reigniting a business relationship with a lapsed or
inactive customer will improve your profitability quicker than targeting a new
one, which will inevitably involve extra spending on advertising and
promotion. Every company will lose customers over time for a variety of reasons;
sometimes this can't be prevented (for example, the customer has a change in
requirements or financial circumstances), but other times you will be able to
take action (for example, if they simply forget about your business or if they
had a bad experience). Analysis of inactive customer databaseIf you
have a customer database (or records of some sort) then you will be able to
find out exactly which customers have become inactive. Draw up a list of
customers who you think are particularly good targets - perhaps they've bought
from you on more than one occasion? Before contacting your target customers, try to discover internally
why they stopped buying from you in the first place. Speak to the account
handler and examine their last purchases. Targeting dormant customersThe next step is
to approach your inactive customers:- Reintroduce your company by way of a letter, e-mail or direct
mail (it is advisable to familiarise yourself with the Data Protection Act
before commencing your campaign)
- Follow up with a telephone call giving the name of their new
contact at your company
- Re-kindle the relationship, and ask why they have not dealt
with your company recently
The direct contact of a telephone call will be the most effective in
discovering the reason for the lapsed business and redeveloping it. Plan the
telephone call and make your questions succinct and relevant. Above all, listen
to their answers and be prepared to take action on constructive criticism,
responding quickly by informing them of the measures taken to rectify the
situation. Rebuilding relationships- Plan a direct mail/telemarketing strategy which will provide
sustainable and regular contact with them (but not overwhelm or annoy
them)
- Send them your new product list and consider giving them an
introductory discount on their next purchase
- Keep your company name in front of them as much as possible
through newsletters, stickers, pens and e-mail messages
Plan aheadReactivating inactive customers
takes time, so spread out your calls and aim to contact only a small number
each week, giving you the time to develop the appropriate relationship with the
customer.
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