A couple of months back, Spotify launched a “comeback” promo to win back their old subscribers. Users can re-subscribe to the service and enjoy Spotify listening for three months and only pay $9.99. There are no strings attached. Users can opt out again after the 3-month period. They can also choose to continue their premium subscription for $9.99/month.
Quite a steal, right? Three months worth of services for only pocket change is always good news. But from a business perspective, you may be asking, “Why does Spotify have to settle for a third of their revenue? Wouldn’t it make sense to just get new customers who will be willing to pay full price?”
Spotify competes in a space where tech companies are launching shiny new products faster than customers can sign up. Loyalty is gold. Winning back a customer who has already shown capacity to pay a premium is always worth the cost of a couple months of free pass.
It all boils down to your customer’s lifetime value.
What’s a loyal customer worth?
The answer can vary across industries and business models. But even your local mom and pop’s shop know that their loyal patrons bring in 80% of the business.
Do this right now: crunch your CRM numbers to get your Customer Lifetime Value. Now consider it alongside the cost of winning them back (i.e., a promo, discount, event, or freemium). You’ll find that fighting for re-engagement is always worth it. In fact, it’s even more expensive to acquire new customers (five times as much!) than to reactivate old business. (Think about all the ad and marketing cost it takes to generate new sign ups!)
The upside goes beyond numbers, too. Your long-time customers don’t only keep the cash flowing. They also help your business through word of mouth and by offering valuable feedback.
It’s no wonder that brands like Spotify are willing to invest a few thousand dollars on customer re-engagement. They know that a strong customer base is what’s going to keep them on top for a long, long time.
Say “Come back” with Coupons
Is customer re-engagement a part of your eCommerce strategy? Thanks to eCommerce tools, it’s so much easier for businesses to reignite brand affinity. One tried and tested tactic is the use of coupons.
Everyone loves to score a good deal and nothing makes a customer say “Oh goody!” like an offer coupon that’s irresistible, relevant, and highly-targeted. While coupons are great for attracting new customers, they’re also amazing for building customer loyalty. A coupons strategy powered by rich customer data can make a winner re-engagement campaign.
Warming up cold businesses begin with a customer-first perspective. Find out what your customers value and capture that in the offers you promote. A good coupon strategy must:
- Make customers feel appreciated. There are more ways to do this than offering high-value discounts.
- Remind customers what made them buy from your store in the first place. Appeal to the motivations that drove them to your brand.
- Show what customers will be missing out on if they drop out.
- Make it easy for customers to re-engage with your business and pick up where they left off.
- Offer personalized suggestions for using the coupons (i.e., Is their birthday or anniversary coming up?).
- Give a sense of urgency so that customers want to act soon.
See any pattern? It’s all about personalization + right offer + right timing. Put your CRM data to work as you craft campaigns that will excite your customers. You’ll be closing the back door for good.
Offer Free Shipping on the next few purchases
Free Shipping is always good news. Give free shipping coupons valid on the next 3 or 5 purchases. This should get your customers back in the habit of shopping in your store. It’s even better if you can offer this to customers whose delivery addresses are near your city. This way, it will be cost-efficient to ship for free.
Suggest to stock up on favorite
Give shopping credits on their birth month
Is their birthday coming up? Surprise them with personalized greetings and shopping credits to spend on your store. Allow them to use it anytime within their birth month. If you’re feeling generous, throw in a small birthday present in their next shipment to make them smile.
Give a “Just
Because We Miss You” Gift
When you send
Gamify the experience with Spin the Coupon Roulette
There’s nothing like a game of chance to get people excited. Create a virtual coupon roulette that customers can play to score sweet deals. Fill in the wheel with a variety of discounts, promos, and free credits valid for a limited time. That positive feeling of winning something can inspire repeat purchase from your store. This may need a little design and development work but customers are sure to love it.
Here’s another spin to this: a virtual slots machine which will give out a combination of 3 coupons.
Give a big discount to your customer and a friend
Re-engagement marketing and referral marketing in one? Count me in! The only thing better than a good coupon deal is having a friend to share it with. So reactivate your customers with a coupon that they can forward to a friend and claim together. This is also a good chance to get customers to spread the word about your store.
Encourage customers to complete milestones
Create meaningful customer milestones that people will feel good at reaching.
Celebrate the anniversary of their first purchase with a dollar-value discount. Or give a “Five times the charm” discount coupon to customers that went cold after the 3rd or 4th transaction. This should entice them to buy again a 5th time so they can claim the discount.
Give a virtual coupon book
Remember branded planners and their coupon inserts? Coupon books help remind them of the exciting perks they get for being your customers. Throw in some tiered pricing promos, seasonal deals, and holiday discounts. This is a great way to keep them coming back all year round.
Give tiered discounts for wholesale buyers
Savings is a key motivation for wholesale buyers. Entice customers to come back with special promos for wholesale purchases. You can lower the minimum volume to qualify for free shipping, or increase the discounts per tier. You can also give away promo coupons for featured wholesale deals every month. This way, customers always have something to watch out for.
Remind them of their savings with you thus far
Are your customers price-conscious? If your customers love a bargain, then coupons are a great way to stir that feeling. Dig
Stay Top of Mind
It’s true. Re-engagement campaigns entail work and a slice of your budget. But keeping good customers warm actually pays off so well in the long run that it will be crazy not to do it! So start taking back your share of the pie. Warm up your old customers with personalized campaigns and effective coupon strategies.