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Strategy #33 – How Many Customers Didn’t Revisit Your Store?

And What You Can Do About It!

Every retailer has a percentage of customers that don’t return to make additional purchases. Why? Well, they simply forgot about the store, or, if they do pass by the store on a regular basis (on the way to work, other shops, etc) there wasn’t a strong enough reason for them to ‘drop’ in.

Business Marketing Perth Customer Paying

This is why internal brand marketing is so important.

Did you know it’s five times cheaper to bring back a ‘forgotten/lost customer’ than pay money on advertising to bring in a new customer?

It makes sense to focus some of your marketing budget on these customers.

So what can you do about these past customers that haven’t returned?

Step 1) You need a way of identifying them. Our ‘Lifetime Customer Program’ automatically identifies all customers that haven’t made a purchase in 3 months.

Why 3 months? Well, typically new season styles come in every three months, right? Plus…

a) Customers need clothing and footwear for warm and cooler weather (practical reasons)
b) New styles
c) Calendar events – birthdays, anniversaries, etc.

Step 2) Compile a list of these ‘lost’ customers (again our ‘Lifetime Customer Program’ can do this with a click of a button).

Step 3) Send these ‘lost’ customers a message with a reason to return by SMS, email or post.

Step 4) Repeat. How often should you conduct this process? Answer : Every month.

e.g. Sally’s last visit was in January. Amanda’s last visit was in February.

Sally should be on your reactivation list for April. Amanda should be on your reactivation list for May.

What are the results?

Almost all returning customers will purchase (if they find something they like). Why else would they come back? Typical example : 100 returning customers spending $100 (on average) will net $10,000 in additional sales.

Wow – $10,000 in additional sales. Retailers that don’t contact ‘lost’ customers could be missing out on $10,000 (or more) in revenue every month. Are you?

Article published from our head office – Balcatta, Perth, Western Australia.
About the author. I’m Mark Fregnan, founder of Kinetic Media & Marketing, an Australian consulting business that focuses entirely on making our clients MORE PROFIT WITH LESS EFFORT. Being in business is tough – it’s time to employ modern solutions to bring in more customers and clients at a lower cost and use good systems to maximise business returns. Contact Us for marketing that WORKS!

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