As a business owner, you may spend a lot of time and resources attracting new customers, and this is important to do. However, there may be a rich vein of gold neglected in your own backyard while you are busy prospecting elsewhere. It’s a strategy called past customer reactivation.
If your business is 2 years old or older, chances are you have customers that did business with you in the past but have not purchased from you for a while. Usually, this is not because they were unhappy with your product or service but simply because they forgot about you.
A friendly reminder, in the right format and using the right kind of language, has been shown to generate sales and instant profits, sometimes providing a huge boost in revenue.
This Method Gets Results
Your results may vary, but most companies find that at least 30% of inactive customers respond to this type of offer and sometimes the response is much higher. Here is an example campaign using a lower figure of 20%, just to be on the conservative side and using a list of 10,000 inactive customers for easy math. You can estimate your own potential revenue using this formula below:
10,000 inactive customers x .20 = 2000 sales x $150 (average sale value) = $300,000 in new revenues
Less printing and postage (est $6,400) and your overhead and you can calculate your net profit.
Plus, this does not include the additional repeat sales to these customers once you have them back buying from you, and not your competition.