WIN BACK YOUR CUSTOMERS! A guide to re-engaging your inactive subscribers

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1 WIN BACK YOUR CUSTOMERS! A guide to re-engaging your inactive subscribers

2 Table of contents Win back your customers! 1 Is your brand capturing your disengaged and hard-to-reach customers? 1 Who are your inactive subscribers? 2 Why reactivation? 3 Why does reactivation matter? 3 How to reactivate 4 Identify inactive subscribers 4 Define segments 5 Engaging your new segments 6 Provide an offer 7 Engaging subject lines 8 Confirmed opt-in 9 Reactivation series 10 Welcome back! 11 Reducing future inactivity 12 Conclusion 13

3 Win back your customers! Is your brand capturing your disengaged and hard-to-reach customers? According to Cheetah Digital s report, Four Tips To Smarter Marketing, top marketers say that inactive subscribers can comprise as much as 50 percent of a mailing list. Strategic reactivation campaigns can help you target and win back as much as 40 percent of your inactive file. Read on to uncover best practices, tips and recommendations for implementing successful reactivation campaigns. 1

4 Who are your inactive subscribers? At a simple level, an inactive subscriber is an subscriber who no longer engages with your branded s, yet hasn t explicitly unsubscribed. The period of time in which they have been inactive will differ by brand; our clients definitions vary from as short as 21 days to more than a year. There are a number of reasons why a subscriber may be inactive. Perhaps the content isn t resonating or you re mailing at the wrong times. Or perhaps the issue stems from poor data quality the address may be dormant altogether. Why subscribers may be inactive: I can t remember why I subscribed to this brand. Oh well, next! This brand s WAY too much. Ignore! These messages just really do not appeal to me. Isn t there anything new? Do they even know me at all? All content in this report is based on an in-depth analysis of industry statistics and the success our clients have seen in their various campaigns. 2

5 volume is up 17% for Q compared to Q Source: Cheetah Digital s Q Benchmark Report Around 90% of commercial is delivered to the inbox Source: Forrester Research blocked/flagged as spam increases 24% year over year Source: Cheetah Digital QUICK TIP High levels of inaccuracy for addresses results in deliverability issues. Cheetah Digital s Profile Connect can help validate the accuracy of opt-in names, provide behavioral data and identify if a user is simply dormant or dead. Why reactivation? Reconnect, win back, re-engagement, reactivation as an marketer, you ve likely heard all of these terms. To your customers, they all mean essentially the same thing; we want you back! For marketers, reactivation means reaching out to your inactive subscribers to encourage them to resume engagement with your brand. Though reactivation can happen in any channel, this ebook focuses on reactivation campaigns. Why does reactivation matter? Reactivation campaigns represent a high ROI opportunity with a notably small cost. Past buyers open, click and transact at higher rates than non-buyers; in fact, transaction rates for buyers are almost 2x that of nonbuyers. The bottom line? It s always easier to retain an existing customer than to obtain a new one. Another reason to consider a reactivation campaign is that inactive subscribers can cause deliverability issues, such as: Poor engagement rates Low Inbox Placement Rate (IPR) Risk of old data converting to spam traps Internet Service Providers (ISPs) reclaiming accounts over time 3

6 How to reactivate Identify inactive subscribers There are a number of reasons an address may appear inactive. It may truly be an inactive account (a dormant address that has been abandoned), a subscriber who doesn t find the content relevant or it could be an active customer who prefers to scan unopened s and purchase in other channels. Data provides the insight needed to differentiate between these scenarios. Understanding the cause behind each inactive address is the first step to building your reactivation strategy, and it requires data insights to identify which subscribers are worth re-engaging. Three ways to use data in your reactivation strategy: 1. Identify all inactive subscribers on your list, based on your current data. 2. Connect your cross-channel data to the inactive subscriber addresses to gain a holistic view of the customer s cross-channel behavior with your brand. 3. Participate in a third-party program, like Cheetah Digital s Profile Connect cooperative, to learn more about the person who is behind the address (demographics, attitudes, behavioral data) and identify which of those people are active with other brands, while remaining unengaged with your brand. 4

7 QUICK TIP Analyze your customer data from the past two years to identify seasonal or holidayonly purchasers. Define segments As a fundamental and first step to creating a successful reactivation program, Cheetah Digital s experts recommend that a brand segments its subscribers based on behavioral data and different levels of activity, while formulating a relevant re-engagement approach. For example, you can segment your subscribers based on engagement frequency, such as: Clickers who have not purchased in 90 days Segment 1 Non-openers who have not clicked or purchased in 90 days Segment 2 Openers who have not clicked or purchased in 90 days Segment 3 Period of inactivity will vary by brand and industry 5

8 Engaging your new segments Now that you ve determined your reactivation targets, it s time to explore the best ways to reach them. Our clients use a variety of tactics to make an impact and encourage further interaction with these lapsed subscribers. Successful proven tactics: Offering an incentive Using an engaging subject line Utilizing a confirmed opt-in strategy Sending more than one message as part of a reactivation series Over the next few pages, we ll dive into each of these tactics with suggestions for implementing them as part of a strategic reactivation program. 6

9 QUICK TIP Offer an incentive that makes an impact. If you can, test offers to see what discount amount motivates users to buy. If you don t have a discounted offer available, consider offering a free service, download or upgrade. Provide an offer Sending inactive customers an enticing offer is a successful strategy employed by many brands. According to a Cheetah Digital report, reactivation s with percent-off offers achieved 4x the revenue per compared to other reactivation mailings.* In addition to the subject line that reads: We miss you, please confirm your subscription!, The Children s Place also prominently displays a 15 percent off savings offer and free shipping on all orders made during the brand s big back-to-school Labor Day sale. Source: Cheetah Digital reactivation series 7

10 Engaging subject lines In addition to percent-off offers, there are two other messaging trends that provided a lift in engagement. Specifically, using the word miss in the subject line saw a 23 percent increase in unique open rates for reactivation s, and s using first name personalization saw 2x the unique open rate of other reactivation mailings.* Subject line type 1: We miss you, and we want to show you what s new! Subject line type 2: We have an offer you won t want to miss! Subject line type 3: [Firstname], a special offer just for you! Source: Cross-Channel Marketing reactivation series 8

11 QUICK TIP Remember to keep your word if you communicate that your brand will remove a customer from its subscriber list when action is not taken, then make sure you do just that! Confirmed opt-in In the past, Confirmed Opt-In (COI) mailings have been used as a conservative means to verify a users identity by having them click through after the subscription sign-up process. However, many companies now send a COI mailing as the last in a reactivation series to re-engage inactive subscribers and ensure continued deliverability. American Eagle Outfitters sends s to inactive subscribers asking them to click to confirm their subscription. This is a good example of a COI mailing designed to re-engage inactive subscribers and ensure continued deliverability. 9

12 QUICK TIP Timing consideration: Based on Cheetah Digital s primary research, reactivation campaigns sent once per quarter had the highest open, click and transaction rates. Reactivation series It s important to remember that inactive customers most likely will not click on the first you send, so it s recommended that you build a strategic engagement series designed specifically for that insight-driven audience. The language and cadence you use will likely vary by target group. 10

13 Welcome back! If and when your users do re-engage, thank them for coming back! Pique their interest by telling them what s new and reintroduce them to your brand and your communications. Remember, welcome s series garner 86% higher open rates than regular promotional mailings! Carnival Cruise Lines reintroduces itself in a welcome that features the social networks, new offers and deals its customers can take advantage of. 11

14 Reducing future inactivity From ROI to deliverability, the importance of maintaining the engagement of existing customers and limiting the number of inactive subscribers is clearly key to your marketing success. Over time, it is crucial for your brand to continuously employ smart reactivation tactics that prevent customers from sitting on the sidelines and not engaging with your brand. Be sure to recognize the reasons they disengage in the first place: Source: Do you have certain sources that are bringing in more inactive users or bad names than others? Opt-in process: What are your opt-in practices? Are you automatically opting-in users? Welcome program: Are you welcoming new users in real time? Are you reminding them of how and where they signed up for your program? Welcome series s have both high open rates and have shown to keep subscribers on your list. Early identification of inactives: Don t start when it s too late. Have a strategy in place and employ it before a person lapses for too long. Message variety: Sending your users the same types of messages day in and day out is a sure way to fatigue and bore them into becoming inactive subscribers on your list to cause fatigue. 12

15 Conclusion Focusing on reactivation will not only help you reengage dormant customers, but also provides cost savings through a high ROI and helps to improve the health of your sender reputation. To gain insight into your subscribers behaviors and activities, check out our Profile Connect collaborative service! 13

16 About Cheetah Digital Cheetah Digital is the only independent, cross-channel marketing solutions provider dedicated to the enterprise marketer. Backed by actionable data, intuitive technology and expert services, our platform allows marketers to build meaningful customer relationships, create profitable brand outcomes and drive exceptional results. Our team of industry experts provide marketing leadership for the world s largest enterprise brands, including Williams-Sonoma, Delta Airlines and Hilton. Cheetah Digital is a global company with 1,600 employees worldwide and operates in 17 countries, with headquarters in New York City. Website: Visit our blog: 14

17 Cheetah Digital Head Office 29 Broadway Level 6 New York, NY CheetahDigital.com

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