Marketers across the globe have been focused on growth efforts, with reference to acquiring new customers. However, experts claim that the smartest, cheapest, and most effective way to sustain or grow your business is to focus your efforts on retaining existing clients. In fact, the Harvard Business Review states that it is five to 25 times more cost effective to retain an existing customer than it is to acquire new ones.
When it comes to customer retention and engaging inactive customers, direct mailing is considered one of the best marketing strategies. Mailing personalized postcards to regular customers, top-performing customers, and lapsed customers alike can be an amazing way to close new deals while increasing retention and sales.
Here are a few ideas to use direct mail to engage inactive customers:
- Segment Your Customers Depending On Their Purchasing Activity
Although direct mailing is a great marketing strategy, it is unlikely to gain much response if directed towards your active customers. So, start by segmenting your existing customers into several groups: highly active customers, somewhat active customers who could engage more, and previously active customers who have become less engaged.
With these categories, it will be easier to customize a message for each segment. You can easily target underperforming customers with direct mail postcards that encourage them to expand their activities with you, or target active customers to retain their business.
- Entice Inactive Customers With Discounts And Bonuses
There are many different reasons why customers may become inactive: change of priorities causing them to stop a particular purchase, choosing an alternative product that suits them better, or opting to buy from a competitor with better pricing.
Try to identify why inactive customers are no longer doing business with you, and then reach out to them with a special offer or amazing deal that addresses their specific needs. For instance, you can mail a discount offer to customers who switched due to price issues, or a promise of better service delivery for those who were unimpressed by your customer service.
- Add Value To Your Existing Relationships
The best deals are those that are mutually benefiting, such that your customers benefit from increased satisfaction and results, while your business benefits from new deals and increased revenue.
Consider ways you can incentivize existing customers to do more business with you. For product-based businesses, you could promote complementary items in your direct mail postcards, or offer additional services that save customers time, for a service business.
Customer retention is a critical component of every successful business. If you only bring in new customers and cannot maintain their business, it will be a waste of your marketing resources in the long run.
Interested in adding direct mail marketing to your advertising mix? Please call our Toronto mailing house at 1-866-486-0423. Troi spells success, one letter at a time!”