Were you aware that brands tend to lose around 25% of their mailing list every year, and a significant percentage of customers, ranging from 25% to 50%, become inactive? Although customer turnover is a natural part of the marketing cycle, acquiring new customers can be up to six times more expensive than retaining existing ones. This is why investing in re-engagement efforts to warm up leads that are cold and can yield substantial returns – as long as you know which battles to pick.
Businesses must continuously look for novel methods to connect and keep customers in the fiercely competitive world of digital marketing. Retaining current customers is just as vital as bringing in new ones. Reengagement is a useful tactic for accomplishing this objective.
Reengagement campaigns are marketing initiatives created to reconnect customers with a brand or product who have stopped using it. By making a purchase, renewing their subscription, or doing other necessary actions, these campaigns hope to entice these customers to reengage with the company. Depending on the sort of business and the target audience, reengagement can take many various shapes. Some common examples of these are given below:
1. Email campaigns:
The email campaigns include sending emails to customers who have not interacted with the brand for quite some time and these emails include some incentives, new products with better prices and features, etc.
2. Retargeting ads:
It is about displaying the targeted ads to customers who have visited the website of the brand and social media page but the customers have not taken any action.
3. Loyalty programs:
It is about offering discounts to customers who have not been active for some amount of time and these programs are designed to encourage the customers to return to a particular brand.
4. Social media campaigns:
One effective way to revive follower interest and foster brand interaction is by creating compelling social media content.
What are reengagement campaigns?
Reengagement campaigns are a valuable strategy for businesses seeking to reconnect with dormant customers and enhance their overall engagement and loyalty. So, reengagement is the practice of serving the ads to those users who showed interest in the brand’s product and services earlier during a previous engagement. So reenganement help these bounced visitors to come back and ultimately convert.
Reengagement involves targeting users who previously demonstrated interest in a brand’s products or services but did not complete a desired action. This practice aims to encourage such users to return and ultimately convert. Dynamic product ads (DPAs) are a prime example of reengagement, where abandoned cart items can be promoted to encourage a purchase. This strategy can help reduce cart abandonment rates and improve the return on ad spend (ROAS).
Reengagement can also refer to retaining users who have stopped engaging with an app or uninstalled it. By identifying users who have not opened the app in a certain period, businesses can target and bring them back to extend their lifetime value (LTV). This approach can help increase user retention rates and overall app engagement.
Benefits of Reengagement
Although we strive to keep all our contacts engaged with our marketing emails, some of them eventually lose interest. This is where re-engagement campaigns come in, which aim to identify and rekindle valuable contacts before they completely disengage with your brand.
Re-engagement campaigns are designed to renew subscriber interest in your communications, thereby increasing the effectiveness of your email marketing efforts and prolonging the customer lifecycle. In the worst-case scenario, such campaigns help you clean your email marketing lists by identifying and removing inactive data. So, let’s first see what are the benefits of re-engagement campaigns and then we will discuss the best practices around these campaigns.
Here are some key reasons why reengagement is crucial for business success:
1. Cost-Effective
Acquiring new customers can be expensive, especially if businesses rely solely on traditional advertising methods. Reengagement, on the other hand, is a cost-effective strategy that can yield a high return on investment (ROI). By targeting users who are already familiar with the brand, businesses can potentially increase their chances of converting them at a lower cost than acquiring new customers.
2. Improves Customer Lifetime Value
Reengagement can help increase the customer lifetime value (LTV) of existing customers. By nurturing relationships with these customers and providing personalized experiences, businesses can foster loyalty and encourage repeat purchases. This can ultimately lead to increased revenue and profitability.
3. Reduces Churn Rates
Customer churn is a major concern for businesses, especially those that rely on recurring revenue. Reengagement can help reduce churn rates by targeting users who have stopped using a product or service. By identifying the reasons why users disengaged and addressing their concerns, businesses can potentially win back these users and retain them for the long term.
4. Enhances Brand Awareness
Reengagement campaigns can also help enhance brand awareness and visibility. By creating engaging content and promotions, businesses can reach out to inactive users and remind them of the value their brand offers. This can help increase brand recall and recognition, which can ultimately lead to increased sales and market share.
5. Provides Valuable Insights
Reengagement campaigns can provide valuable insights into customer behavior and preferences. By tracking engagement metrics and analyzing user feedback, businesses can gain a better understanding of what motivates their customers and how to better serve them. This can inform future marketing strategies and help businesses stay ahead of the competition.
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Strategies or best practices to reengage the lost customers:
Users purchasing decisions are influenced by a lot of factors and if a user has abandoned a particular brand then there are some best practices to reengage the lost customers. Here are a few things that you can do:
1. Email Marketing:
Email marketing can be an effective tool for re-engaging lost customers because it offers a direct and personalized way to reach out to customers and encourage them to return to your brand.
Email marketing allows you to create personalized messages that speak directly to your lost customers. By addressing them by name and referencing their past purchases or interactions with your brand, you can demonstrate that you value their business and are committed to providing a better experience.
You can also create targeted campaigns. With email marketing, you can segment your lost customers based on their behavior, interests, and other criteria. This allows you to send targeted campaigns that are more relevant and tailored to their needs, which can increase the likelihood of re-engagement
Email marketing can be a great way to offer personalized incentives or discounts to lost customers, encouraging them to return to your brand. For example, you could offer a discount code or free shipping to customers who have not made a purchase in a while. This can create a positive experience and reinforce the idea that you value their business.
Email marketing can be used to create specific re-engagement campaigns that are designed to win back lost customers. These campaigns can include a series of emails that are sent over a period of time, offering personalized incentives and highlighting new products or services that may be of interest.
Email marketing is a powerful tool for re-engaging lost customers because it allows you to create personalized and targeted campaigns that speak directly to their needs and interests. By using email marketing to offer incentives and demonstrate that you value their business, you can encourage lost customers to return to your brand and improve customer retention.
2. Customer Surveys:
Surveys are a valuable tool for gaining insight into your customers’ thoughts and experiences, offering benefits on two levels. Firstly, they create engagement by demonstrating that you value and listen to their opinions. Secondly, when acted upon, customer feedback can improve the overall customer experience and make your brand more engaging in the future.
Surveys can be an effective tool for re-engaging lost customers because they provide an opportunity to gather valuable feedback and insights into why customers left in the first place. By sending a survey to lost customers, you can learn about their experience with your brand, what they liked, and what they did not like.
Based on the feedback received, you can take action to address their concerns and make improvements to your products, services, and customer experience. By showing that you have listened to their feedback and taken action to make changes, you demonstrate that you value their opinions and are committed to providing a better experience.
Additionally, surveys can be a great way to offer personalized incentives or discounts to lost customers, encouraging them to return to your brand. For example, you could offer a discount code to customers who complete a survey or provide feedback on how you can improve their experience. This can create a positive experience and reinforce the idea that you value their business and want to win them back.
Therefore, by using surveys to gather feedback and make improvements, you can demonstrate that you are committed to providing a better experience for your customers, which can help to re-engage lost customers and encourage them to return to your brand.
Netflix is an example of a company that utilizes surveys to assess customer satisfaction across multiple dimensions, with the ultimate goal of enhancing its offering for customers. It also helps in winning the lost customers back as these surveys are according to why customers have abandoned the purchase and what better can the company give them to win their loyalty.
3. Remarketing:
Remarketing is an effective way to re-engage lost customers by showing them targeted ads or messages after they have left your website or app. When a customer visits your website or app, they may not make a purchase or take any action. Remarketing allows you to show them ads that remind them of your brand, which may prompt them to return and make a purchase.
Remarketing allows you to personalize your ads based on the customer’s previous interactions with your website or app. This personalization can help to build a connection with the customer and make them more likely to return. Remarketing allows you to target specific groups of lost customers with ads that are relevant to them. For example, you could target customers who abandoned their shopping carts or who have not visited your website in a certain period of time.
Remarketing can also increase engagement by showing customers ads that are more relevant to them, making them more likely to click and return to your website or app. So, it is a powerful tool for re-engaging lost customers because it allows you to target them with personalized and relevant ads, reminding them of your brand and increasing their likelihood of returning to make a purchase or take action.
4. Deep Linking campaigns:
Deep linking campaigns are very effective to engage the lapsed users as the term deep means to take a user deeper inside what the brand offers in an app that is installed already. A deep link is a link that directs users to a specific piece of content within your app or website, rather than just the home page. For example, a deep link might take a user directly to a product page or to a specific article on your blog.
By using deep links in your re-engagement campaigns, you can send targeted messages to users based on their previous interactions with your app or website. For example, you might send a push notification to a user who abandoned their shopping cart, with a deep link that takes them directly back to the cart to complete their purchase.
Deep links can also be used to provide a more personalized experience for users who have previously installed your app but haven’t used it in a while. By sending a deep link to a specific feature or content within the app, you can remind users of its value and encourage them to start using it again.
5. Retargeting:
The holiday season is a prime opportunity to engage lapsed users through retargeting campaigns. These campaigns are highly effective in capturing the attention of users, especially those who have become disengaged or have switched to competing brands.
By encouraging users to return to an app and complete previously unfinished actions, retargeting campaigns can significantly boost sales. Additionally, during the holiday season, users often browse the same product on multiple marketplaces, making retargeting campaigns a powerful tool for reminding them to return to your app.
6. Planning the OEM inventory systematically:
To effectively boost holiday season sales, it is crucial to plan OEM inventory and strategically place high-impact advertisements at engaging touchpoints. This approach allows marketers to segment lookalike audiences with similar interests and target them with relevant inventory, resulting in increased sales.
For example, if a specific audience is interested in clothing products’ within the OEM inventory, marketers can tap into this audience pool and achieve a quality return on ad spend (ROAS) and clickthrough rates (CTR) by targeting the same or nearby geographic regions. OEM inventories offer transparency and allow advertisers to monitor and analyze which demographics and regions to target, ensuring brands remain safe and informed while making business decisions.
Tools to reengage lost customers:
Keeping track of your customer churn is an essential step in understanding why customers are leaving your business. In today’s data-driven world, this process relies heavily on analyzing customer data to identify patterns and trends. By doing so, you can answer critical questions like, customers leaving at a particular time of year. If so, is it because your product is seasonal, or is there something else going on?
Do you see a significant increase in customer churn when your competitors run promotions or discounts? Or is there a steady downward trend in customer retention that needs to be addressed? By uncovering these patterns and trends, you can take proactive measures to address the underlying issues and improve the overall customer experience.
Marketing teams need a strategy and the finest tools available to them in order to gain back lost clients’ trust and loyalty. These are a handful of them:
1. Mailchimp
Another popular email marketing platform is Mailchimp. Mailchimp allows you to create email campaigns that are targeted toward lost customers. You can use their segmentation tools to create a specific list of customers who haven’t engaged with your brand in a while, and then create a campaign that speaks directly to their needs and interests.
With Mailchimp’s automation features, you can create a series of emails that are sent over time to re-engage lost customers. For example, you could create an automation that sends a welcome back email to a customer who hasn’t made a purchase in a while, followed by an email that offers a personalized discount or promotion.
Mailchimp allows you to personalize your emails using customer data such as their name, location, and purchase history. This personalization can make lost customers feel valued and increase the likelihood of re-engagement. Mailchimp provides analytics that allows you to track the performance of your re-engagement campaigns. You can see metrics such as open rates, click-through rates, and conversions, which can help you optimize your campaigns over time.
So, Mailchimp can help in getting lost customers by providing a platform for targeted, personalized, and automated email campaigns.
2. SurveyMonkey
SurveyMonkey is an online survey software that allows businesses to create and send surveys to gather feedback from customers. In the case of lost customers, SurveyMonkey can help businesses to reach out to these customers and gather feedback on why they stopped doing business with the company.
Survey Monkey has a range of survey templates that can be customized to create a customer feedback survey. The survey can include questions about the customer’s experience with the company, why they stopped doing business, and suggestions for improvement.
With Survey Monkey you can send personalized email invitations. It allows businesses to send personalized email invitations to customers, making it more likely that they will respond to the survey.
SurveyMonkey provides tools for analyzing survey results, including sentiment analysis and word clouds. This can help businesses to identify common themes and issues that caused customers to leave.
You can take feedback and once the feedback is gathered, it’s essential to take action to address the issues that caused customers to leave. SurveyMonkey provides tools for sharing survey results with relevant teams and tracking progress on addressing customer feedback.
Overall, SurveyMonkey can be an effective tool for getting lost customers by providing a way to gather feedback, analyze results, and take action to improve the customer experience.
3. Zendesk
Zendesk is a customer service software that can be used to track customer interactions and gather feedback. You can track customer interactions with Zendesk as it allows businesses to track customer interactions across multiple channels, including email, social media, and chat. By tracking customer interactions, businesses can identify patterns and trends that may be leading to churn and take action to address those issues.
Zendesk provides tools for gathering customer feedback through customer satisfaction surveys. By collecting feedback from lost customers, businesses can gain insight into why customers left and take steps to improve the customer experience. You can also respond to customer inquiries as Zendesk provides a centralized platform for responding to customer inquiries and support tickets. By responding quickly and efficiently to customer inquiries, businesses can show lost customers that they value their business and are committed to providing excellent customer service.
Zendesk provides analytics tools that can be used to analyze customer data and identify trends and patterns that may be contributing to customer churn. This data can help businesses to take proactive steps to prevent future customer churn and improve the overall customer experience.
So, Zendesk can help businesses get lost customers back by providing a centralized platform for tracking customer interactions, gathering feedback, responding to inquiries, and analyzing customer data. By using these tools effectively, businesses can improve the customer experience and increase customer loyalty.
4. Typeform
Typeform can be useful to reengage lost customers because it allows you to create visually appealing and engaging surveys that can capture their attention and encourage them to provide feedback on why they left. Typeform offers a wide range of customization options, so you can create surveys that align with your brand and resonate with your customers. By creating visually appealing surveys that stand out, you can increase the likelihood that lost customers will respond.
Typeform surveys can include interactive features like images, videos, and animations. These elements can help to make the survey experience more engaging and encourage lost customers to provide more detailed feedback. Typeform surveys are optimized for mobile devices, which is important since many customers may be accessing the survey from their phones or tablets. By creating a seamless mobile experience, you can make it easier for lost customers to provide feedback.
Typeform is user-friendly and easy to navigate, which can make it more likely that lost customers will complete the survey. By creating a simple and straightforward survey experience, you can reduce friction and encourage lost customers to provide feedback more quickly.
5. HootSuite
Social media engagement is necessary to communicate with customers and it is best to win the lost trust back of customers who engaged with your brand in the past. Hootsuite is a social media management tool that can help you build lost relationships with customers in several ways:
Firstly, Hootsuite allows you to monitor social media mentions and messages from all of your social media profiles in one place. This can help you quickly identify lost customers who may be reaching out to your brand on social media. It allows you to engage with customers in real time. Hootsuite makes it easy to respond to customers quickly and efficiently, which can help to rebuild lost relationships. By responding to lost customers in real time, you can demonstrate that you value their feedback and are committed to addressing their concerns.
Hootsuite allows you to schedule targeted content to specific social media profiles, which can help you reach lost customers with personalized messaging. By creating content that speaks directly to lost customers and their needs, you can demonstrate that you understand their concerns and are working to address them.
Hootsuite provides analytics and reporting tools that allow you to track your social media performance and understand which content is resonating with lost customers. By using this data to optimize your social media strategy, you can increase the likelihood of re-engaging lost customers and building stronger relationships with them over time.
6. Smile.io
Smile.io is a loyalty program platform that can help you reengage with lost customers in several ways. Smile.io allows you to create a loyalty program that rewards customers for making repeat purchases or engaging with your brand in other ways. By offering rewards and incentives, you can encourage lost customers to return to your brand and make additional purchases.
Smile.io integrates with popular email marketing platforms like Mailchimp and Klaviyo, allowing you to create targeted email campaigns that reach lost customers with personalized messaging. By using customer data to create personalized content, you can increase the likelihood of re-engaging lost customers and encouraging them to return to your brand.
Smile.io allows you to create custom rewards that are tailored to individual customers’ preferences and behavior. By offering rewards that are relevant to lost customers’ interests and needs, you can demonstrate that you understand their concerns and are committed to providing value.
Smile.io provides analytics and reporting tools that allow you to track customer behavior and understand which incentives and rewards are most effective at re-engaging lost customers. By using this data to optimize your loyalty program strategy, you can increase the likelihood of re-engaging lost customers and building stronger relationships with them over time.
What is the benefit of AI in reenagement campaigns?
Marketers can now recognise that if they can predict customer behaviour, their marketing campaigns can be quite successful. Customer behaviour, which can be examined using historical data from past purchases, social media, searches, reviews, feedback, and more, substantially influences the performance of marketing campaigns.
Businesses may now deliver the appropriate product at the right moment by using artificial intelligence and machine learning systems, which enable them predict customer behaviour before any patterns even start to emerge. Nevertheless, you must be certain that the data you have acquired is accurate and that AI technology can accurately predict and foresee consumer trends in ways that can significantly boost the success of marketing initiatives.
Artificial Intelligence (AI) is revolutionizing the world of marketing, and re-engagement campaigns are no exception. AI-powered re-engagement campaigns are proving to be highly effective in engaging with lost customers and converting them into active users. Now, we will discuss the benefits of AI in re-engagement campaigns.
1. Personalization:
AI-powered re-engagement campaigns can analyze customer data and generate personalized messages for each individual user. This personalization can help to build a connection with the customer and make them more likely to return. AI algorithms can analyze a wide range of data such as customer preferences, previous purchase history, and browsing behavior to create highly personalized messages.
2. Real-Time Decision Making:
AI can provide real-time decision-making capabilities for re-engagement campaigns. It can quickly analyze customer data and provide insights that help to optimize campaigns, such as which channels to use, what type of content to display, and when to send messages. This can help to ensure that customers receive relevant and timely messages, which can improve the effectiveness of the re-engagement campaign.
3. Segmentation:
AI-powered re-engagement campaigns can segment customers based on their behavior, interests, and preferences. By using AI algorithms to segment customers, marketers can target specific groups of customers with highly personalized messages. This can lead to a higher conversion rate as customers are more likely to engage with messages that are relevant to them.
4. Increased Efficiency:
Re-engagement campaigns powered by AI can automate many of the processes involved in engaging with lost customers. This can save time and resources for marketers, allowing them to focus on other important tasks. For example, AI algorithms can automatically send messages to customers at the optimal time, which can help to maximize the chances of re-engaging the customer.
5. Predictive Analytics:
AI-powered re-engagement campaigns can use predictive analytics to forecast customer behavior. By analyzing historical data, AI can predict which customers are likely to churn and proactively engage with them before they leave. This can help to reduce customer churn and increase customer retention.
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Brands that Pursue Reengagement Campaigns
Re-engagement campaigns are a crucial strategy for brands to win back lost customers and boost sales. Here are some examples of brands that pursue re-engagement campaigns:
1. Amazon
Amazon is a prime example of a brand that leverages re-engagement campaigns to boost sales. Amazon uses a variety of re-engagement tactics such as targeted email campaigns, personalized product recommendations, and retargeted advertising to encourage users to return and complete their purchases. Let’s see what Amazon did to retarget the lost customers:
- Targeted email campaigns: Amazon sends targeted email campaigns to customers who have not purchased anything for quite some time. The emails also include personalized product recommendations that is based on the customer’s browsing and purchase history and the recommendations aim to entice the customers to return to the site and make a purchase.
- Personalized Offers: Customers who abandon their shopping carts without making a purchase receive personalised offers from Amazon. The offers entice customers to come back and finish their purchases by providing discounts, free delivery, or other benefits.
- Retargeted Advertising: Retargeted advertising is a technique used by Amazon to display pertinent ads to site visitors who did not complete a transaction. These tailored advertisements feature products that the viewer has expressed interest in.
- Amazon Prime Membership: Access to streaming services, free shipping, and other benefits are all part of Amazon’s Prime membership programme. Re-engagement campaigns are used by Amazon to remind customers who haven’t used the service in a while of the advantages of being a member.
- Personalized Recommendations: Amazon analyses user data and offers tailored recommendations using AI algorithms. These suggestions, which are based on the customer’s browsing and purchase history, are meant to persuade them to come back and buy something.
To regain lost consumers, Amazon employs a range of re-engagement strategies. Targeted email campaigns, customized discounts, retargeted ads, Amazon Prime membership, and personalized recommendations are just a few of the tactics Amazon use to interact with lapsed customers and turn them into active consumers.
2. Spotify
Spotify is a music streaming platform that uses re-engagement campaigns to keep users engaged with the platform. Here are some ways in which Spotify uses re-engagement campaigns:
- Personalized Playlists: Users’ listening habits and history are used by Spotify to produce customized playlists for them. By introducing users to fresh music that they are likely to appreciate, these playlists are made with the intention of keeping users interested in the platform.
- Push Notifications: Push notifications are used by Spotify and it worked amazingly. The notifications were sent to users to remind them to listen to their favorite music or discover new artists. These notifications are personalized and based on the user’s listening history and preferences.
- Time-Based Promotions: Spotify offers time-based promotions such as free trials or discounts to encourage users to return to the platform and engage with the content.
- Social Media Engagement: Spotify uses social media to engage with users and keep them interested in the platform. Social media is an effective platform to get in touch with your users and SPotify entertains it user base with a lot of interesting content. They share playlists, artist interviews, and other content that is relevant to the user’s interests.
- Podcast Recommendations: Spotify recommends podcasts to users based on their listening history and preferences. This is a great way to gain the attention of the users and keep them engaged so that when the users get new content then they enjoy it.
To keep consumers interested in the platform, Spotify employs a range of re-engagement techniques. A few strategies used by Spotify to re-engage lost users and maintain their interest in the service include personalized playlists, push alerts, time-based promotions, social media involvement, and podcast suggestions.
3) Sephora
Re-engagement initiatives are used by cosmetics retailer Sephora to get back lost customers. The following are some examples of how Sephora employs re-engagement campaigns:
- Personalized Offers: Sephora delivers offers that are customised to consumers who haven’t made a purchase in a while. To entice customers to come back and make purchases, these offers may include discounts or free gifts with purchases.
- Loyalty Program: Sephora offers a program of loyalty that rewards customers for their purchases. The program gives special discounts, early access to sales, and more benefits. Re-engagement initiatives are employed by Sephora to remind customers who haven’t utilized the loyalty program in a while of its advantages.
- Suggestions for Products: Sephora analyses client information using data analytics to make tailored recommendations for products. These suggestions are made in an effort to persuade the consumer to make another purchase by taking into account their preferences and past purchasing behavior.
- Retargeted Advertising: Sephora employs retargeted advertising to provide pertinent adverts to site visitors who did not complete a transaction. These tailored advertisements feature goods that the viewer has expressed interest in.
- Social media interaction: To interact with customers and maintain their interest in the company, Sephora employs social media. They disseminate information related to the customer’s interests, such as cosmetic tutorials, product launches, and other materials.
To recapture lost customers, Sephora employs a range of re-engagement strategies. One way Sephora engages with lost consumers and turns them into active users is through personalised discounts, loyalty programmes, product recommendations, retargeted advertising, and social media interaction.
Conclusion:
Reengagement is a powerful strategy for businesses seeking to improve customer engagement and retention rates. By targeting inactive or disengaged users, businesses can potentially increase conversions, improve customer lifetime value, reduce churn rates, enhance brand awareness, and gain valuable insights into customer behavior. As such, businesses should prioritize re-engagement as a key part of their marketing strategy.
AI is a game-changer for re-engagement campaigns. It can provide personalized messages, real-time decision-making capabilities, customer segmentation, increased efficiency, and predictive analytics. By leveraging AI, marketers can create highly effective re-engagement campaigns that engage with lost customers and convert them into active users.
Re-engagement campaigns are an essential strategy for brands looking to win back lost customers and boost sales. The examples above demonstrate how successful brands use a variety of tactics such as targeted email campaigns, personalized product recommendations, and retargeted advertising to engage with lost customers and convert them into active users.
We can also see how brands like Spotify, Sephora and Amazon made use of reengagement tactics and initiatives which helped to gain the lost users. So, re-engagement is an important part of marketing that can help businesses to rebuild their relationship with their customers.
