Reactivations: The Missing Link in Your Marketing Strategy
As brands shift their primary focus toward getting new leads, it can be very easy to lose sight of something that is just as important – how to keep the customers you already have.
We are talking about the customers who were once loyal and have since drifted away from your brand’s offering or service. This is where reactivations come into play! Bringing unengaged customers back into your marketing mix can be a game changer for your business. It allows you to explore untapped potential and boost your brand’s overall ROI (Return on Investment) while still creating a customer base centered primarily around loyalty.
Acquiring new customers can be expensive, and based on our experience here at GeistM, it’s a much lower cost to bring back an old customer than to win over a new one. The question we’d like to explore is: why is that the case?
Reactivating Former Customers Vs. Winning New Customers
We know it’s more cost-efficient to reengage former customers because these people already know your brand; they’ve purchased from you before, and at some point, they appreciated what you offered them. So, now it’s time to remind them with an updated marketing strategy. With that being said, you’re not just aiming for a one-time conversion here but rather attempting to reinvigorate a relationship that could lead to repeat business.
How do I develop a Reactivation Campaign?
1. Analyze Your Data
It’s important to remember that it’s not simply about blasting your customer base with generic emails or offers regarding your promotional strategy — a successful reactivation campaign is strategic and incredibly personalized. It is crucial to better understand why customers stopped engaging with your brand in the first place — were they dissatisfied with something, or did they simply forget about your offering? By analyzing your backend and network data sets, you can identify these reasons and begin developing content that speaks directly to their needs.
2. Personalize the Offering
Whether it’s a special discount, a personalized offer, or a friendly reminder of what’s new with your brand — the key here is relevance. Showing that you understand your customer’s preferences increases your chances of winning them over again. When you offer something personalized, it shows that you care — it’s a small gesture, but it can significantly impact how they perceive your brand. Suddenly, you’re not just another company in an already flooded marketplace, but now consumers have the potential to see exactly what you value and the fact that you value them in return.
3. Refine and Repeat
By tracking who responds to your marketing campaigns and who doesn’t, you can refine your overall digital marketing strategy. You can learn if certain products or services no longer resonate with your consumers or even discover an untapped segment of customers ready to return with just a little nudge in the right direction. This data is invaluable for shaping future marketing strategies, and by integrating reactivations into your approach, you’re staying ahead of the competition and proactively reducing your overall churn, ensuring that you’re not leaving money on the table.
Who can help me build out a Reactivation Campaign?
At GeistM, reactivations are a critical part of our success. As a global digital marketing agency specializing in performance marketing, we know how to create reactivation campaigns that work and show long-term results.
Here are the real results we achieved for our client through a reactivation strategy:
GeistM Reactivations Case Study: Food Subscription Company
One of our top International food brand clients operates on a subscription-based model. We proposed a test to reactivate customers who had unsubscribed from their service within the last two years.
What We Did
Due to these customers’ existing brand awareness, we utilized a highly targeted digital strategy, such as researching the key cause for cancellations through our client’s backend data and leveraging customer surveys.
We gained a better understanding of the specific food categories they had an affinity for. With the help of our in-house content and creative team, we tailored both our visual and written assets and customized all of our promotions. Examples include focusing on value propositions such as free shipping, additional discounts, and personalized emails centered around our best sellers in line with our research and historical data.
The Results
We saw that the overall cost per acquisition (CPA) for reactivating these dormant customers was roughly 80% lower compared to our traditional prospecting campaigns. This large reduction in CPAs highlighted the value of targeting customers who were already familiar with the brand and a metric that a general acquisition campaign could struggle to achieve.
GeistM Reactivations Case Study: Fashion and Beauty Brand
We partnered with a US fashion and beauty brand where we successfully reactivated over 500 subscription accounts in a very short period, with a CPA that was 44% lower than traditional paid media efforts.
We catered our messaging towards additional style guides and specific offers based on customer behaviors, enticing users to return and continue spending across our client’s website. These campaigns are not just about bringing back past customers; they’re about doing it in a way that is cost-effective and aligned with what they currently need.
Wrapping Up
Leaving you with a final PSA – don’t let your valuable consumers slip through the cracks.
Contact GeistM today to learn more about how we can help you harness the power of reactivations to boost your brand’s overall performance and build loyalty with your customers.
