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Reactivating your Dormant Customers

Posted on July 26th, 2013 by with

All retailers face the challenge of keeping their customer base engaged and making frequent purchases with their stores.  Studies show that Retailers can lose between 20-40% of their customer base yearly.  Though it is impossible to keep every single customer, you have to have a strategy to not only keep customers happy, but also have a plan for when they are considered “lost.”

With the trend of Big Data becoming more accessible through new data mining and marketing tools, Retailers can now more easily identify their dormant customers, when they stopped shopping, and the types of offers needed to drive the customer back into the store.

Here are 5 things to focus on when developing your strategy for reactivating these lost customers.

  • Identifying who these customers are for your business and what sales cycle you want to keep your frequent shoppers in
  • Creating a strategy to retain loyal customers and keep them engaged so they do not become dormant, while also having processes for reactivating those that do “slip through the cracks”
  • Quantifying the metrics to measure how this group changes over time and where you can improve your strategy for reactivating them
  • Determining what technology tools are available to help you implement your strategy
  • Deciding what incentives will drive the customer back into your stores.  It needs to be aggressive and will change depending on your business.

In many cases, there are just minor tweaks retailers need to make to their store processes or marketing strategy to start retaining a larger percentage of their customer base, but amidst focusing on other things, are simply looked over.

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