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Reactivating Lost Customers

Tuesday, February 28, 2012   By Mike Reddy


Most business owners spend a considerable amount of time and money courting new customers.

Save time, money and energy by focusing on a strategy to reactivate dormant customers instead.

Sure, it's a reasonable business coaching strategy to put in place a process to consistently attract new business. But there should be a seperate strategy to bring those old customers back to the fore.

Your message should include a reminder of why they chose you in the first place. That should have been captured on your customer relationship management system.

It's a useful statistic to periodically review your customer attrition levels.

What percentage of customers have you been losing on an annual basis?

It can be useful to separate dormant customers into categories that highlight in general terms their reason for leaving. This sort of intelligence is useful for other reasons as well!

Your categories might include:

  • An interruption (personal, health, cash flow, etc.) caused them to stop frequenting your business. With every intention to come back, they simply haven’t.
  • They were unsatisfied with the product or services you were offering.
  • They had a poor customer experience.

Once you have an understanding of their reasons for leaving consider strategies to ensure you reduce the chances of it happening again.
Once changes have been implemented contact the customer and let them know about your recent upgrades and your expectation of how this will improve the customer experience.

Freely admit mistakes and be frank about how you have implemented your solutions.

Reaching out to clients who have simply fallen off the radar may be more time consuming but it can also be quite simple.

Call. Visit. Send a letter.

Return to the basics and embrace the power of basic human communication. By simply showing concern you may already be on the way to reigniting that relationship.

Mike Reddy is a Chartered Accountant, business coach and advisor helping businesses in Sydney, Melbourne, Brisbane and Gold Coast to easily increase their profits and cash flow. He is currently President of the North Sydney Chamber of Commerce, a Regional Councillor for Sydney North East and a member of the Institute of Chartered Accountants Sydney leadership team. As well as advising businesses, Mike presents business development seminars and webinars and is regularly contacted by the media to comment on small business matters. You can connect with him on Facebook, Twitter and Google+.