As an ecommerce business, it is crucial to focus not only on acquiring new customers, but also on retaining existing ones. One very effective way to retain customers is through win back marketing campaigns. Something that even the big dogs, like Amazon, are doing all the time.
Win back campaigns are designed to target customers who have already made a purchase in the past but have not made one recently. The campaign’s main aim to re-engage these customers and encourage them to make a purchase again, but there are other things that it can do for you.
Here are some reasons why win back campaigns are important for ecommerce:
Cost-effective
Costly next to nothing, It is more cost-effective to win back an existing customer than to acquire a new one. According to a study by Bain & Company, increasing customer retention rates by 5% can increase profits by 25-95%.
This is because existing customers are already familiar with the business and its offerings, and are more likely to make a purchase than a new customer who has never interacted with the business before. Additionally, the cost of acquiring a new customer can be high, especially if the business is using paid advertising or other expensive acquisition channels.
Setting up emails to win back a customer can be free, or very cheap to do. You already have the customer’s contact details from their previous orders. Although I would suggest using an automated campaign tool like Send in blue or, if your on WooCommerce, AutomateWoo is an awesome plugin.
Increased customer lifetime value
A customer who makes repeat purchases has a higher lifetime value than a one-time customer. By re-engaging dormant customers, ecommerce businesses can increase their customer lifetime value and overall revenue. This is because repeat customers are more likely to purchase again in the future, and their continued purchases can lead to higher revenue and profits for the business. Additionally, repeat customers are more likely to refer their friends and family to the business, which can lead to even more revenue and growth.
Personalization
Win back campaigns allow ecommerce businesses to personalize their messaging and offers to specific customers based on their purchase history and behaviour. This personalization can increase the effectiveness of the campaign and improve the customer experience. For example, if a customer has only purchased women’s clothing in the past, a win back campaign could offer a discount on women’s clothing to encourage that customer to make another purchase. By tailoring the offer to the customer’s interests and preferences, the business can increase the likelihood of a successful win back campaign.
For the company I am working at, I set up win back emails, with the initial email just acting as a reminder. Simply there to jog a customer’s memory, not everyone remembers the store that they buy products from.
Customer feedback
Win back campaigns can also be used as an opportunity to gather feedback from customers. By asking customers why they haven’t made a purchase recently or what they would like to see from the business, ecommerce businesses can gain valuable insights and improve their offerings. This feedback can be used to make changes to the business’s product offerings, customer service, or other areas that may be impacting customer retention. Additionally, by showing customers that the business values their feedback and opinions, the business can improve the overall customer experience and build stronger relationships with its customers.
Even if you get radio silence from a customer, this is still feedback. You should also find a way to not market to those customers that don’t make it through the win back campaign. For the company I work at, we simply no longer email those customers, as they clearly aren’t interested in our products any more.
Conclusion
In conclusion, win back marketing campaigns are a valuable tool for ecommerce businesses looking to increase customer retention, lifetime value, and revenue. By targeting dormant customers with personalized messaging and offers, businesses can re-engage customers and improve their overall customer experience. Additionally, win back campaigns can provide valuable insights and feedback that can be used to improve the business’s offerings and build stronger relationships with its customers.