Inactive customers represent untapped potential for companies. This refers to customers who have not made a purchase for a long time (e.g. 2 to 3 years). If you succeed in reactivating inactive customers, you will increase your sales.
The group of inactive customers is particularly worthwhile, as they are people who have already made a purchase from you in the past. Compared to customers who are still unknown, the probability of purchase is higher. Marketing automation is a promising approach for reactivating inactive customers.
When is a customer considered an "inactive customer"?
When inactivity can be assumed depends on the product portfolio. A new car is needed less frequently than a new pair of shoes. Car dealerships must therefore allow a longer period of time than mail-order clothing retailers. However, if the car dealership also offers repairs, the time span is shorter. It can be assumed that customers have already taken advantage of offers from the competition - but it is still possible to reactivate inactive customers.
The advantages of your own offer and special promotions must be emphasized. Positive emotions must be aroused.
What is marketing automation?
Marketing automation involves the support and control of customer-related business processes in the area of communication. One sub-area included in this subject area is email marketing - also combined with elements from social media marketing and data from CRM systems. Contacting and communicating with customers is realized through suitable technical systems and technical solutions.
Planning targeted reactivation campaigns
Campaigns to reactivate inactive customers primarily aim to generate additional sales. Ideally, reactivated customers will not just make a one-off purchase, but will become long-term active customers. It will not be possible to reactivate all customers. You can therefore also use the reactivation campaigns to identify which customers are worth the effort.
An example:
You launch an email campaign and write specifically to inactive customers (but who have subscribed to the newsletter). In the email, you ask readers to confirm their subscription to the newsletter for the future. If customers do not respond to this request, then there appears to be no interest. You should consider whether you should stop sending the newsletter.
You can keep your database clear, lean and structured by systematically checking these correlations. In this way, you use your marketing automation resources efficiently. However, a subscriber should not be hastily removed from the database. Rather, it is recommended to adapt the measures to the subscriber behavior.
Should I stop sending the newsletter if customers are inactive for a longer period of time?
This question can only be answered in the respective context. It may also involve "dead" email addresses that are no longer being used. With Marketing Automation Tools, you can recognize whether users have opened the newsletter. "Dead" email addresses and the failure to open the newsletter can thus be detected.
However, if the user opens the newsletter but does not interact with it, they are not considered an inactive subscriber. In this case, adapting the content may encourage them to interact. In contrast, "dead" addresses should not remain in the database, as otherwise there will be an artificially high total number of addresses, which will distort your email statistics.
Differences within the group of inactive customers
If customers read the newsletter but do not make a purchase, the chances of successful reactivation are high. Possible measures for reactivating these active customers include the use of discount campaigns and vouchers.
If the system detects that a customer has not made a purchase for a longer period of time, the customer is included in the reactivation campaign.
A voucher code is sent to the customer at the address stored in the system. The validity of the voucher should be limited, then the incentive for the customer to react quickly is greater. The value of the voucher will be more appreciated by the customer. Alternatives to vouchers are discount campaigns and gifts. For example, you can announce to customers that they will receive a surprise gift with every purchase of 20 euros or more.
Are discount and voucher campaigns successful?
Studies show that people are willing to spend money to receive free gifts. The reward effect is great. However, the gift must offer sufficient incentive for a purchase. The better you know your target group, the better you can tailor the gift to the customer's wishes. As part of marketing automation, you carry out target group analyses. You collect data via the CRM system.
Customer age, gender, marital status and previous purchasing behavior, among other things, provide information regarding the preference for certain gifts.
How often should I write to customers?
Customers should be contacted as often as necessary and as little as necessary at the same time. On the one hand, it is intrusive if the newsletter is sent too often. Customers have no incentive to open the newsletter every time. However, if the newsletter appears at longer intervals as part of the reactivation of inactive customers, the curiosity of the user is aroused.
The company name and the brand name - which should be mentioned in the address field - attract the customer's attention. You will get back into the memory of previously inactive customers. In any case, you should use special events, seasons and festivities as an opportunity to send out a newsletter. Is your company celebrating an anniversary? Is the Christmas season just around the corner? Or is it the start of summer?
Newsletters can be designed to be particularly effective if they are occasion-related.
5 tips: How do I implement the reactivation of inactive customers using marketing automation?
1. define the point at which a customer is considered inactive.
2. design reactivation campaigns for specific customer groups.
3. use newsletters and email marketing.
4. relate the campaigns to special occasions.
5. use the support of professionals: Thorit GmbH specializes in combining marketing and technology.
Reactivating inactive customers using marketing automation is very promising. With the right support, you can implement this task successfully and in a targeted manner.
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