Successful Customer Recovery Measures
How to Win Back Dissatisfied Customers
Regardless whether they offer physical products, digital products or services, no company exists without customers. New customer acquisition is the top priority for many companies, as new customers are felt to be the most lucrative and generate most revenue for the organisation. But is that even true? Customer recovery is presumed to require very high efforts, but even simple measures can help to prevent customer fluctuation or recover lost consumers..
In times of customer fluctuation and saturated markets, customer churn is a pain that many entrepreneurs share. However, this should not be accepted as inevitable. It pays to look after lost customers, as in the best-case scenario, you win them back. After all, dissatisfied customers are not lost forever. With clever measures, it is possible to convince them of the advantages of your product or service.
Table of Contents
Find Out the Status Quo – How Many Customers Have I Lost?
If it was not possible to prevent dissatisfied customers from migrating, it is of course necessary to pull out all the stops to win them back. For this it is important to analyze the current situation and to gain an overview of how many detractors were lost and exactly which customers ended their business relationship. This is often not that easy, because in many industries there is no verbal or written notice. Many customers leave the company quietly and without further notice, which makes it all the more difficult to define a churn. It is important to identify so-called “sleepers”. These are not to be considered lost, more like “ready to be converted”, which is why they deserve special attention.
However, it’s not just the number of customers lost that matters. The respective value of the customer must also be taken into account. This value is also used to decide whether any recovery measures are worthwhile or not. The following questions provide an answer or assessment of the individual customer value :
- Has the customer made regular purchases?
- How big were their bills?
- How long has the consumer been our customer?
Of course, it is only worthwhile to win back those customers who appear to be long-term lucrative and profitable partners. There is no point in investing time and money in consumers who cost more than they ultimately bring in. This can be determined using the following indicators:
- Sales potential per year
- Analysis of customer recovery
- Costs of customer support
- Recommendations from the customer