Want to extract maximum value from your customer database? Discover how to create winning win-back campaigns.

Sales are down. Quick, let’s email everyone who hasn’t bought from us for the past 12 months with an offer! Sound familiar? If it does, you’re not alone – this is how many brands approach win-back campaigns. 

Win-back campaigns can be a powerful and cost-effective marketing strategy, says James Bennett, co-founder of LoyPal, which unlocks value from existing customers. However, they’re often approached in an ad hoc and reactive manner, he adds.

“Win-back campaigns are rarely considered as part of a customer marketing strategy,” he says. “They’re often an afterthought.”

For brands, this can be a missed opportunity. At LoyPal, win-back campaigns are an important tool in the loyalty marketing arsenal. All LoyPal clients run win-back campaigns – which generate significant incremental revenue for brands. In the past quarter, 15 percent of the total incremental revenue generated by LoyPal for retail brands was driven by win-back campaigns.

So, how can you win at win-back campaigns?

First, it’s important to understand why win-back campaigns can be so effective (and cost-efficient). 

Why win-back campaigns?

Targeting lapsed customers is a smart way to drive revenue, says Bennett. 

“Lapsed customers are customers who were often acquired at substantial cost and who are already aware of and have a connection to your brand. They liked your brand or products enough once to buy from you – and are therefore more likely to purchase from you again.”

Best of all, says Bennett, unlike acquiring new customers, re-engaging lapsed shoppers involves little to no cost.

Creating a smart win-back strategy

 The secret to a successful win-back campaign is segmentation, says Bennett, who adds that it’s common for brands to send the same offer to all lapsed customers. This is a mistake, he says.

 “Why send the same re-engagement offer to customers who previously spent $1,000 over 10 purchases and those who might have only ever purchased once, and then only spent $10?” asks Bennett, who points out that if a customer has spent with a brand on multiple occasions, they’re statistically more likely to spend again. 

 “The first customer, who spent thousands, was probably happy with your brand but found themselves presented with other options. The latter was more likely to have been a bargain hunter, whose purchase didn’t offer a margin in the first place,” continues Bennett.

 This is why continuous segmentation of your customer base is so vital, says Bennett. Once you understand how much customers have engaged and spent with your brand and when they lapsed, you can send tailored offers, which are more likely to drive sales.

 “Lapsed customers all have different relationships with your brand. If you make the offer and the experience relevant to them, you’ll get better engagement while also protecting unnecessary margin erosion.” 

The LoyPal segmentation advantage

 Unlike many data tools, LoyPal’s proprietary software continuously segments customers, offering up-to-the-minute insights. This delivers brands unprecedented visibility on customer engagement and churn, so that brands can tailor their offers and communication.

 LoyPal technology even presents the opportunity to identify customers before they churn - and intercept them with an offer that aims to keep them engaged.

Discover how LoyPal can help your brand unlock value from your customer base. Or learn more about LoyPal’s three-month trial.