While it’s essential to offer exceptional service for your customers, it’s not enough to solve the dilemma of customer churn. There could be many reasons why customers don’t return – and capturing valuable, behaviorally-driven data can help piece together the churn puzzle.
Gone are the days where you have to guess about consumer behavior patterns and offer blanket discounts to try to engage “at risk” customers. The modern age means implementing data-driven tactics that drive a measurable, thriving ROI. By not using data to win back churning customers, you’re missing out on a realistic view of your customer. You won’t have a measurable way to alter declining visit behavior.
Today’s customer engagement platforms offer data-driven methods to solve merchants’ common issues. By unlocking and tracking customer data and behavior information, businesses can use contemporary customer engagement to identify, understand, and respond to customer behaviors.
One of the best ways to combat customer churn is through a Winback campaign, which delivers 6x ROI for today’s businesses.
In this post, we’re sharing how Winback campaigns deliver impactful ROI and create abiding customer relationships.
What are Winback Campaigns?
A winback campaign is an automated method to re-engage churning customers. Winback campaigns use real consumer data to identify behavior patterns and offer value to lapsing consumers.
Because it’s 50% easier to sell to existing customers and returning customers spend 67% more than new ones, it’s crucial to invest in customer retention to strengthen ROI. Using an engagement platform that gives a 360-degree view of your patrons allows you to win back churning customers and continue engaging them for years to come.
So, how do Winback campaigns boost the bottom line? Here’s how it works:
- Merchants enable Winback campaign(s).
- Thanx uses data-driven AI to track customer visit frequency across multiple business locations. The platform discovers any previously loyal customers who are currently churning and have not made a purchase in a specified amount of time.
- Thanx automatically sends a personalized offer directly to the churning customer’s app or email. The platform knows which items this particular consumer used to purchase and uses this information to craft a targeted, special offer made just for each unique customer.
Winback is proven to drive 49% of churning customers back into the store, using data to drive an ROI that powers real business growth.
Tracking the ROI of Winback Campaigns
In the past, there was heaps of guesswork around the actual impact that loyalty programs like punch cards and discounts had on a business.
Data-driven Winback campaigns take the assumptions out of your campaign measurement, offering you a real-time view of exactly how your program is impacting your bottom line.
You can easily track Winback campaign results within your customer engagement dashboard. You’re able to see:
- Exact return accrued in a chosen period of time
- Number of at-risk, churning customers
Clear ROI measurement is crucial to understanding exactly how your programs are influencing your business. A powerful customer engagement program proves the real impact of your return. Winback campaigns solidify long-term ROI from those who would have likely stopped returning to your business.
Mike’s Carwash has won back over 30% of churning customers
Car wash brand, Mike’s Carwash experienced the power of winning back “at risk” customers. In the past, Mike’s Carwash had no real-time data about the customers frequenting their many locations.
Like many car washes and other multi-location businesses, Mike’s traditionally used broad marketing tactics like direct mail, radio, and large email blasts. Without using data-driven, targeted campaigns, Mike’s had no information about their customers. They weren’t able to prove a granular ROI of their marketing efforts. They had no way to know which customers were churning, and definitely had no way to connect and win them back.
This all changed when Mike’s started using customer engagement to understand their customers. Since implementing customer engagement Mike’s can now:
- Identify and reward high-spend customers that drive the majority of their business
- Understand customers’ frequency and purchasing habits
- Use customer data to drive marketing decisions and boost ROI
However, their most impressive metric comes from the churning customers they’ve been able to win back.
Mike’s Carwash has won back more than 30% of lapsed loyalty members by automatically reaching out with personalized offers delivered straight to the customers’ cell phones. Winback has driven Mike’s Carwash tens of thousands of dollars in ROI – which would have never been possible without a data-driven customer engagement platform.
Shenaniganz experienced 542% Winback ROI
Who doesn’t love laser tag, bowling, food, and more entertainment? Even the most exciting activity centers are subject to customer churn… as Dallas-based family entertainment center Shenaniganz was experiencing.
Restaurants and entertainment centers experience bursts of traffic on certain days of the week, holidays, and special occasions. This traffic is accompanied by slower periods, as well as customers that don’t return for periods of time. Shenaniganz implemented data-driven customer engagement to reduce this churn and make a positive impact on their ROI.
An efficient way for Shenaniganz to make a serious ROI impact was to win back “at risk” customers that hadn’t visited in 142 days or more. By re-engaging these customers with targeted offers, Shenaniganz:
- Successfully converted 20% of churning customers
- Generated 542% ROI from won-back customers in less than two months
- Raised loyalty member check averages by 13%
- Reduced the 86% of customers that had not returned in 4 months down to only 37%
Shenaniganz used customer engagement to gain a new understanding of their customers and boost their ROI through engaging those that weren’t returning. Customers responded to targeted winback offers, driving measurable revenue that greatly impacted Shenaniganz bottom line.
More and more of today’s merchants are realizing that churn no longer has to be a looming threat for their business. What used to once be an untraceable issue is now another way to re-engage and build a loyal customer base.
The ROI of winback campaigns is undeniable. Winback campaigns offer crucial insight into customer behavior and allow you to drive 6x ROI for your business. Through directly connecting with churning customers, you unlock the ability that customer engagement has to create favorable consumer behavior.