5 Simple Tips to Win Back Lost Customers

At this point, most businesses are aware that it’s more cost-effective to retain customers than it is to acquire new customers. In fact, acquiring new customers can cost 5 to 25 times more than efforts to keep existing ones. So brands of all industries seek to do what they can to engage a customer for as long as possible. So what happens when you lose customers? Is that it? Or are there ways to win back lost customers, and is it worth it to do so? Luckily, the answer to both of those questions is YES!

The importance of a low churn rate

“Churn rate” is a term used to describe the percentage of people who stop using your service or product in a specific time period. Businesses with a high churn rate often have low profit margins and suffer from mixed reviews as they are frequently losing customers and having to market extra for new ones. Therefore, as a business, it is highly important to keep your churn rate as low as possible and do what you can to retain customers and win back lost customers when they stop making purchases. 

As it turns out, it can actually be easier to target customers who have done business with you before than it is to acquire new ones altogether. In fact, on average, 26% of past customers return with a strategic win-back campaign. Also, the lifetime customer value doubles or more for returning clients, as they end up generally being more profitable customers.

Clearly, there is a benefit to winning back customers who used to use your services or haven’t been active in a while. So…how do you get them back? Let us help point you in the right direction with these simple tips to help you win back lost customers!

1. Identify the reason they left

2. Create a “we fixed it” campaign

3. Use incentives to win back lost customers

4. Make it personal

5. Get interactive on social media to win back lost customers

1. Identify the reason they left

To win back lost customers, you first need to understand what it is that made them leave in the first place. Some of the most common reasons customers leave a product or service are 

• price 
• product dissatisfaction
• not understanding the product
• product limitations
• or, the worst one, poor customer service. 

Out of all of those reasons, a customer lost due to being treated poorly is generally the hardest to win back. Knowing the reason a customer left will help you better formulate your next step.

There are a few ways you can find out the reason a customer is leaving. One of the most convenient and useful is through an exit survey given to email subscribers. This can be done as a customer is unsubscribing or sent to a customer who has remained inactive for a long time. There are also brief questionnaires you can create to pop up as someone is about to abandon their online shopping cart. It is also important to closely monitor review sites and social media platforms to understand why you might be losing customers.

2. Create a “we fixed it” campaign

If there seems to be a common theme for why customers are leaving your business, one of the best ways to win back lost customers is to simply fix the problem. And once you fix the problem, create a marketing campaign to let people know!

Listening to customer concerns and correcting the issue or issues surrounding them is a great way to show customers that you pay attention to them and you care. And it’s a great way to create a sense of loyalty with your customers.

3. Use incentives to win back lost customers

No matter the reason for leaving, most of the time customers just cannot pass up a great deal. So give them one! One of the most effective ways to win back lost customers is to use incentives such as a coupon for a percentage or dollar amount off their next purchase, a free upgrade, discounted access to features, a free bonus item or swag, etc. The important thing is to get them shopping with you and needing your services again.

4. Make it personal

To win back lost customers with incentives or fixing a specific problem, it’s important to make it personal to the customer when you reach out to them. Use their name and language that makes it seem more personal. Use phrases such as:

• Haven’t seen you in a while
• We miss you
• Don’t be a stranger
• Let’s catch up
• Remember us?
• Please come back
• We want you back

Using phrases like “we miss you” and “we want you back” helps make them feel like you value them as an individual and not just a name on a list. 

5. Get interactive on social media to win back lost customers

Our last tip to win back lost customers is to be interactive with your customers on social media. Maybe they have been inactive as a customer but still follow your social media account. This is one of the best ways to address common customer complaints, make amends, and win customers back. Do things like announce new or corrected products or services, offer coupons or special pricing to your followers, and run fun, interactive contests. Being “social” with your followers on social media is one of the best ways to get new customers, hold on to existing customers, and win back lost customers who  just needed that extra little push back in the right direction.
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