This is probably the hardest part. In 2002, the German scientist Silke Michalski investigated for her dissertation how good the chances are of winning back a customer for a bank after they have already canceled. Only one of 265 customers called was persuaded. Logically, the strategy for winning back customers depends on the reasons that led to the customer canceling. If you know how you disappointed them, you can promise to improve and offer them compensation. Of course, you can also buy back customers with switching bonuses. This was fashionable for a while among mobile phone companies. No wonder, since there are only a few providers in most European countries. As a customer, you could specialize in repeatedly receiving switching bonuses - whether this was worth it for the companies is questionable. However, most companies now work with specific analyses that forecast the customer lifetime value (CLV) and can thus predict whether the investment is worthwhile.
Treating different customers differently
Professors Reinartz and Kumar have scientifically proven what common sense has always suspected: There is no point in setting up expensive loyalty programs if you also retain unprofitable customers. They have refuted the theory that loyal customers are generally more likely to recommend a company and pay higher prices. They therefore recommend dividing customers into italy telegram data four groups. Among short-term customers there are "butterflies" with high profit potential and "strangers" with low profit potential. Among long-term customers they see "loyal friends" and "clingers". It is easy to imagine that it is better not to invest too much in this last group with low profitability but high loyalty. The appropriate strategy for them would be to cultivate them through less costly channels and offer them more expensive products in order to increase their value. Or - to put it bluntly - get rid of them. It is better to profit from strangers with every single action - they don't stay anyway. You can try to bind the butterflies to you by employing personal advisors. And you try to keep your loyal friends as long as you can.
Analytical CRM is coming soon
Of course, it is not that easy to decide which category a customer belongs to. This is why the manufacturers of CRM software have developed various aids. And that is what the next blog is about .