Direct mail is mostly renowned as a customer-acquisition tool, but if you’re not also using it as a reactivation tool, then you’re missing out on a significant opportunity, especially when it comes to your lapsed customers. Direct mail therefore offers a tangible and personalised approach to reconnect with these individuals, providing a unique opportunity to rekindle relationships and boost customer loyalty.
- Who Are Lapsed Customers?
- Importance of Retaining Customers
- Why Use Direct Mail to Engage Lapsed Customers?
- Benefits of Using Direct Mail Strategies for Engaging Lapsed Customers
- X Direct Mail Strategies for Engaging Lapsed Customers
- What Does Successful Reengagement of Lapsed Customers Look Like?
- Why Work With a Direct Mail House?
- Ready to Re-Engage Your Lapsed Customers?
Who Are Lapsed Customers?
Lapsed customers are individuals who have previously engaged with your business, through purchases or interactions, but have ceased to do so over a certain period. The duration that defines a customer as "lapsed" varies across industries and businesses, depending on purchasing cycles and customer behaviour patterns, however identifying these customers is the first step in developing effective re-engagement strategies.
Importance of Retaining Customers
Retaining existing customers is important as it is often more cost-effective than acquiring new ones. Loyal customers are already a ‘warmed’ audience and tend to make repeat purchases, refer others, and contribute to a stable revenue stream. Moreover, they are more likely to try new products or services and provide valuable feedback. Data from Forbes found that businesses have a 60% to 70% chance of selling to an existing customer, while it’s just 5% to 20% for a new prospect. Therefore, by focusing on customer retention, businesses can enhance profitability and foster long-term success.
Why Use Direct Mail to Engage Lapsed Customers?
Direct mail is a great way to engage with lapsed customers, who seem to have gone off the radar. This is because direct mail stands out by offering a physical, tangible connection and provides a personal touch that can break through the digital, oversaturated, noise, capturing the recipient's attention effectively.
Direct mail also boasts higher open and response rates compared to many digital channels, making it a powerful tool for re-engaging lapsed customers.
Benefits of Using Direct Mail Strategies for Engaging Lapsed Customers
Personalisation
Direct mail can be tailored to include the recipient's name, past purchase history, and personalised offers, making the communication more relevant, engaging and attention-grabbing.
Tangible Impact
A physical piece of mail creates a lasting impression, often leading to higher recall rates and a stronger emotional connection to the brand.
Higher Engagement Rates
Recipients are more likely to open and read physical mail, leading to increased opportunities for re-engagement.
Versatility
Direct mail can be used to deliver various types of content, including promotional offers, personalised messages, and informative brochures, catering to different re-engagement strategies.
3 Direct Mail Strategies for Engaging Lapsed Customers
1. Motivational Offer
Providing a compelling incentive can entice lapsed customers to return. This could be in the form of exclusive discounts, limited-time offers, or special promotions tailored to the customer's previous interests or purchases. Creating a sense of urgency by highlighting the limited availability of the offer can further motivate prompt action.
2. Personalisation
Personalising direct mail by addressing the recipient by name and referencing their past interactions with your business can make the communication much more impactful. Utilising your customer data to tailor the content ensures that the message resonates with the recipient, making them feel special and therefore increasing the likelihood of re-engagement.
3. Triggered Direct Mail
Implementing triggered direct mail involves sending communications based on specific customer behaviours or milestones. For instance, if a customer hasn't made a purchase in a predefined period (such as 180 days), an automated mail piece can be sent to encourage re-engagement. This approach ensures timely and relevant communication, enhancing the chances of winning back the customer.
What Does Successful Reengagement of Lapsed Customers Look Like?
Successful re-engagement is characterised by lapsed customers resuming their interactions with your business, whether through making purchases, engaging with your content, or participating in loyalty programs. The KPIs will be specific to your business but often include increased purchase frequency, higher average transaction values, and improved customer feedback. You’ll be able to measure the success of your re-engagement of lapsed customers campaign by tracking these KPIs, especially when you have added adequate tracking capabilities to your mailers such as the use of QR codes, promotion codes or unique URLs.
Why Work With a Direct Mail House?
If you’re wondering where to start when it comes to planning and executing your direct mail plan for lapsed customers, then partnering with a professional direct mail house, such as Direct Mail Systems (DMS), can offer several advantages:
Expertise
The team at DMS has extensive experience in creating and executing effective direct mail campaigns tailored to various business needs across industries.
Resources
With state-of-the-art printing and mailing equipment, DMS ensures high-quality production and timely delivery of your mail pieces.
Data Management
DMS provides data processing services to clean and enrich your customer data, enhancing the accuracy and effectiveness of your campaigns.
Cost Efficiency
Leveraging bulk postage services and established relationships with postal providers, DMS can offer cost-effective solutions for your direct mail campaigns.
You can therefore effectively streamline your re-engagement efforts, ensuring that your direct mail campaigns are both impactful and efficient.
Ready to Re-Engage Your Lapsed Customers?
Get started today by contacting the DMS team to discover how our tailored direct mail solutions can help you achieve your customer retention goals.