Win back your clients!
Wondering whether you should invest on winning back customers that you consider “lost”? Is it worth spending money, time and effort trying to re-engage customers with clear signs of disengagement with your brand, such as long term inactive clients or those with decreasing spend? Or should you allocate your scarce resources to attract new customers instead?
Client management strategies applied by ClientIQ, can help you win back highly detached customers, in a way that is 4 times more cost effective compared to attracting new ones!
Re-engaging Long Term Inactive Customers in Retail Sector
The issue: ClientIQ was called to address and re-engage – in a cost effective way – a portfolio of 200,000 customers that have not transacted with our client for more than 2 years.
The actions: Originally, our marketing team designed and executed a set of pilot campaigns, aiming to identify the offer & communication channel with the maximum revenue and profit potential. Next, our analytics team, analyzed the positive & negative responders’ characteristics, and segmented the inactive portfolio into dinstict customer groups, based on their ability to respond positively to an activation offer. Combining the findings of marketing and analytics team, ClientIQ designed and executed a targeted re-engagement strategy by inactive segment.
The results: By implementing a holistic client management strategy, ClientIQ managed to deliver 3 times higher re-activation rates, 4 times higher net sales per customer and 2 times higher net margin per customer vs. self re-activation metrics, delivering to the business a 12% sales growth
Re-engaging Long Term Inactive Customers in the Banking Sector
The issue: ClientIQ was called to reactivate approximately 100,000 customers that have not used our client’s products and services for an average period of 30 months! Trying to win back customers that were disengaged for 2.5 years in a cost effective way was clearly a challenging task.
The actions: Applying a multi segmentation approach on the inactive population, ClientIQ’s Marketing and Analytics teams designed and executed a personalized marketing strategy by segment, addressing to customers with the communication message and channel that was mostly relevant to them.
The results: By implementing a complete client management strategy, ClientIQ managed to deliver unparalleled impact. A population that was adding zero value to the business for almost 3 years, was re-activated at a rate of 27%, generating €6mil incremental sales volume, and €500,000 incremental revenues. And all these at a cost that was 157% lower compared to attracting new customers.
Identifying and Addressing Early signs of disengagement
The issue: ClientIQ was called to design and execute a strategy that would minimize spend attrition, so as to protect our client’s sales volume in a very challenging period. The challenge was dual, since our team would first have to effectively identify customers with signs of disengagement and then formulate the appropriate communication language that would convince them to change their spending behavior.
The actions: ClientIQ’s strategy and analytics teams worked together to create an “Engagement Scorecard” correlating internal (i.e. behavioral) with external (i.e. socioeconomic) data for every single customer. Customers with negative engagement index have been selected and offered a truly personalized marketing message designed by our specialized marketing team.
The results: By combining enhanced customer analytics with the appropriate communication message, ClientIQ managed to re-engage 20% of the detached population, generating €2.6mil incremental sales volume and €330,000 incremental revenues, with a cost that was 4 times lower compared to attracting new clients.