A successful retention marketer not only focuses on growing relationships with new customers, but also on making sure existing valuable customers continue their strong relationship with the store.
In the natural lifecycle of some customers, sad as it may be, there comes a stage of reducing purchase frequency and ceasing purchasing altogether: The customer might go for a longer-than-typical stretch without making a purchase, and at some point the retailer might begin to conclude that the relationship had reached its natural end.
The goals of the Retain stage are to minimize customer churn and win back lapsed customers, or those who show first signs of lapsing. The Know stage provides valuable customer insights that help in identifying which customers are showing signs of lapsing. These insights also help in segmenting lapsed customers and crafting tailored messages to each lapsed customer segment.
Here’s an example: A retailer utilizing promotional offers as a tactic for winning back lapsed customers might want to send a 10% promotion code only to its most valuable customers who are at risk of churning, while sending a simple “we miss you” email with no discounts to less valuable lapsed customers.