How many of your customers and clients that once bought from you, aren’t buying from you any more?
Do you know your current attrition rate?
Surprisingly, most companies don’t have a clue. Most companies are looking to improve, but they aren’t exactly sure where they’re falling short. Often, they’re looking in the wrong places.
Naturally, we seek to add more new customers, instead of asking the question I’ve asked above.
When I’m helping a company solve an attrition issue or an issue of decreasing revenue, the first thing we do is figure out the current attrition rate, and then figure out WHY it’s happening. We don’t know what we don’t know.
You wouldn’t believe the stories I could tell you, but we might find those same stories repeating themselves inside your company’s walls.
Once we know the attrition rate, we can fix it. Of course, the sales and marketing folks think it’s far more effective to solve the loss of existing customers by replacing them with new customers.
What they don’t realize is this IS a function of sales and marketing and is always far more effective than hunting for new business.
If you were to decrease your attrition rate by 30%, couldn’t we say you’ve increased your client base by that same percentage? Of course we could, because they were leaving you regardless! Hardly anybody every thinks this way, but if you’ve been reading my Tidbits long enough, I hope you are.
I cover all of this in great detail in Chapter 10 of Evergreen, which is appropriately titled “Bringing Back Lost Customers.” In Evergreen, I share exactly how to do it, but it’s relatively straightforward by putting together a simple reactivation campaign.
I also share the story of one small company I helped design a program to bring back lost customers. They spent $3000 to bring back $50,000 in yearly revenue. That’s a 1566.67% ROI, and those are annualized returns! I helped another client generate $70,000 from a single mailing to a single client!
Sure, implementing a reactivation campaign is not as glamorous as implementing a new marketing campaign. It’s not as glitzy as creating a funny YouTube video with the hopes of it going viral, and it’s not as exciting as spending the marketing budget on a website revamp. But, what would you rather have? A few pats on the back, some artificial likes, a couple random mentions on social media, or money in the bank?
Reactivating lost customers isn’t easy—because it takes time, energy, and resources away from the new customer acquisition addition. But it is simple—because with some focus on who left, and why, there’s a good opportunity you can bring them back.
You don’t know what you don’t know. And if you don’t know, you should.
I’m here to help if you need it.
P.S. The early bird discounts for the first ever Evergreen Summit end Wednesday (tomorrow) at midnight. This email covers just one example of the type of thing we’ll cover at the summit.
Can you afford to NOT attend this event? And if you can’t attend in person, there’s a virtual opportunity.
You can register at http://TheEvergreenSummit.com