Make dormant clients active

A software company produces an accounting software with five modules, but many customers buy it and then shelve it. It's no wonder that when the company sends out a letter offering a new version upgrade, there are very few responses. What's the point of upgrading to a new version when people haven't even used the old version?

Company surveys show that most clients purchase software that includes only one or two modules, rather than the full five, and therefore does not provide a complete solution for their accounting needs. Customers often turn to other software products that are less expensive and contain five functions.

To this end, the company offers a special upgrade offer for those inactive customers. "For $X you can have all these new features; not only that, we'll be sending upgraded versions of all five modules whether you have five modules or just one!"

This offer doesn't Expensive because the direct cost of the software product is close to zero. It makes no difference in terms of cost whether one module or five modules are placed on a CD-ROM (the cost here refers to the CD-ROM, not the recorded content).

As a result, 73% of customers purchased the upgrade. Because the upgraded version includes all five modules, it is a complete accounting solution. Many customers finally get the software out, install it on the system, and actually use it for management. Dormant customers become active users, meaning they may also purchase the company's other software products.

Dormant customers actually hold enormous potential. One of the easiest and quickest ways to get your business back on track is to wake up those customers and get them to bring you new orders and more revenue. You don't need to pay as much as finding new clients, you already have their list, phone number and address. They know you, know your products, and have bought at least one of your products. Your challenge is to keep them coming back.

In general, there are four ways to wake up hibernating customers: proactive contact, special offers, cross-selling and incentivizing loyalty.

Reach out to remind you of your presence

Your customers need you, but you need them more, you have to admit. Customers are more important to you than you are to them. So, you don't forget customers, but many customers can or have forgotten you. They're not dissatisfied, they're not needless, but not buying from you for a while can forget about you.

Just getting in touch with old customers and reminding them of your presence is enough to wake up a good number of them. All you need is a database of inactive customers, tools to reach customers, and information and reasons to contact them. You can wake up more than 10% of your inactive customers just by reconnecting; if you offer them a special offer, the rate will increase.

Email is one of the easiest, fastest, and cheapest ways to contact inactive customers. Its other advantage is convenience: the recipient only needs to type a few words, press the "send" button, and they can reply. Email friendly, not offensive: if the customer doesn't want to reply, just delete it.

Phones are the most interactive of all contact methods. If you ask a customer why he doesn't place an order, he will generally answer your question. If an unexpected phone call puts too much pressure on him, he can only lie. To take the stress out, find a reason to call instead of a blatant sale. Say, for example, you're going to a meeting in a certain city, call customers in that city, and invite them out for a cup of coffee.

Special Offers, Bribe Your Customers

Contacting inactive customers can keep some people coming back, and with special offers, your sales can double or even better. A special offer to be valid for inactive customers must have two characteristics. First, the offer has to be really special. Such as lower prices, better terms, additional services or more product features, etc., and those who didn't get the mail can't take advantage of these benefits. Second, tell the customer who received the special offer why he is the lucky one. The reason is simple: because they are priority customers, valuable customers.

What must be offered to the customer to make this "bribe" effective? You can try a few special offers and see which one stands out the most. You don't have to cut the price by half or give away a TV. In fact, just offering a slightly better deal than the standard supply is enough to wake up hibernating customers. How much is the discount? Usually a number related to 10. If it's a very cheap product, drop it by 10% or $10; if it's a few hundred dollars, such as software, consider a $100 discount. You can also satisfy customer requests and get inactive customers to repurchase. Many companies are reluctant to ask customers if they are satisfied, if they like the product or service, and if they can improve. Because businesses are afraid to hear something negative: complain. But no matter what the customer says or not, dissatisfaction is dissatisfaction. If the customer doesn't say a word, the problem can never be solved and the customer can never be awakened.

On the other hand, if you understand why inactive customers aren't continuing to buy, you can go about it and tell your customers that the problem has been resolved. Many customers are willing to continue buying once the issues preventing purchases are resolved.

How do I know why customers don't buy? It's simple: just ask. About 50% of the time, they'll tell you, and you can work on it and get the customer to repurchase; otherwise, they'll either be vague or say nothing. Because they might be really pissed off and reluctant to give you another chance. Maybe they're happy with the new supplier and don't want to go back.

If the client doesn't speak up, you can still get answers from someone else - like a secretary, employee, or branch. Then, every now and then, let customers know about your new product, and you'll be amazed how some of your customers actually return.

Cross-sell, buy your other

Another effective strategy for waking up dormant customers is to introduce them to other products and services you offer in your regular customer communications. Some inactive customers may not be dissatisfied with you, just because they no longer need a certain product or service they used to buy, or they have found a better supplier: more variety, faster delivery, price Better deals, or other benefits.

You may not be able to get these customers to come back to buy old products, but they still like you and they may be willing to buy other products or services from you. Maybe you can convince them by saying, "You were happy with our product A, and now we have products B, C, and D. Do you need them? Why not consider our products on your next purchase?" "

A very common mistake is to assume that customers know your company and your services inside out. In fact, most, if not most, customers know about you only about the product or service they purchased.

Reward Loyalty and Lure Your Customers

A repeat customer program is actually a marketing program designed to reward customers who make frequent or large purchases. The most well-known is the airline's "mileage accumulation award". Frequent flyers can get some free air miles, which are tied to the total number of miles you fly.

The benefit of the repeat customer program is that not only are loyal customers rewarded, but once the points start to accumulate, customers will be reluctant to leave you. So customers will keep buying until the points accumulate enough to exchange for the prizes offered.

A smart way to use the old customer program is to give some bonus points as a gift in the customer's points account. It's not a point for a purchase, it's to say "Thank you for being our customer." You can notify inactive customers that their account has new points deposited.

This kills two birds with one stone. First of all, the customer recognizes the company's gratitude to them; more importantly, the unfulfilled points make him more hopeful that he will continue to accumulate and get rewards. Of course, doing so requires continuing to buy the product or service. Some dormant customers are awakened and become active buyers.

This article is adapted from "Fool-Proof Marketing" by Robert W. Bly with permission from John Wiley and Sons Inc. The author registered the copyright in 2003, translated by Hong Jing.

Robert W.Bly is an advertising copywriter and consultant specializing in business-to-business and direct marketing. For over two decades, he has written numerous marketing materials for clients including AT&T, IBM, and Lucent Technologies, and has published over fifty books, including The Copywriter's Handbook and The Elements of Technical Writing.