Dormant customers constitute a huge revenue loss to the retailers, but they also have the highest reactivation potential owing to their already established and familiarity of the brand. Journey Builder , this opportunity is turned into automated, multi-channel win-back campaigns which re-engages lapsed shoppers by personalizing messages. Functional journeys or purposeful exploration of the non-potential market by dividing the causes of inactivity and value can restore 1020 percent of inactive revenue in the retail industry.
Why dormant customers matter
It is generally less cost-effective to secure new customers than it is to retain current ones, and reactivation approaches often better warrant their ROI 2-5 fold as compared to acquisitions. Sleeping customers (S in RFM) already have brand familiarity and confidence in the product, requiring less convincing than cold prospects for customer reactivation campaigns using Journey Builder win back strategies to reactivate dormant customers and win back inactive customers via dormant customer strategy.Those retailers that do not pay attention to them miss out on the easy money and competitors take them with competitive offers. Win-
back campaigns recapture the customer at 20-30 per cent the cost of new acquiring.
Define “dormant” for your brand
Dormancy is defined differently by various categories: fashion-based companies may view 90 days of inactivity as dormant, grocery stores may employ 60 days. Use RFM (recency, frequency, money) in determining the right thresholds. Disect by the period of inactive time: short-term (30-90days, easy to be reactivated), mid-term (90-180 days, need stronger motivation), and long-term (180 and more, not likely to be reactivated). Make alterations on the definitions to align with the average purchase cycle of and the industry standards of the brand.
Segment inactive customers by value and reason for churn
The high-value dormant customers should be given priority. RFM scoring would recognize champions (recent/high-value) and would be suitable to be re-engaged as VIP, whereas the low-value browsers could be approached in a less aggressive way. Examine the causes of churn: cart abandonment (where friction has to be removed), price sensitivity (exclusive offers have to be made), switching to competitors (loyalty benefits need to be offered), and life events (family-friendly deals). Sub-divide further by the channel of last visit mobile dormants are more responsive to push notifications; email subscribers to automated series.
Design a multi step win back journey
Journey Builder organises 3-5 touchpoints within 30-60 days. The entry points are inactivity trigger, cart abandonment and the changes in the status of loyalty. Split decision divides customers based on segments: high-value customers have individualized video, price-sensitive customers have offers of percentage-off. Waiting messages separate (Day 1: gentle, Day 7: offer, Day 21: final) are utilized. The factors are exit criteria to avoid over-contacting the converted.
Choose the right mix of content and offers
Content provides an emotional appeal; provides action. Start with a value reminder (remind about these favourites you have bought before). Scale up to rewards: 10 percent on the first purchase of short term dormant, 25 percent with free shipping on high value client. Better things to personalise according to previous behaviour- apparel customers get style quizzes, beauty customers get samples. Urgency of tests (24 hours to go) versus exclusivity (VIP-access). Develop segmentation A/B tests of creative.
Orchestrate email, SMS, push, and ads
Multi-channel sequences boost the rate of response by 40 percent. Email deploys storytelling on Day 1 and Day 14; SMS activates urgency on Day 3 (“Your 20 percent off expires to-night); push notifications occur when a user browses the site ( Complete your cart?); ad retargeting the user after visiting a site. Journey
Builder is a channel aligned tool over unified customer profiles to ensure that messages are always similar. Mobile heavy dormants are sent to 70 per cent push notifications, desktop users to email.
Set timing, frequency, and exit rule
Cadence The best cadence between persistence and irritation. Short-term dormants are provided with 5 touches in 30 days; high-value customers are provided with 3 premium touches in 60 days. Wait activities consider the purchase cycles and time zones. Exit rules inhibit messaging of converters, complainers or re-activators. Spam is blocked by frequency limitations (maximum 2 messages a week). Time of testing – weekends translate 25 per cent more as to lifestyle brands.
Track win back KPIs and iterate
Rate of reactivation (dormants converting), revenue per reactivated customer, ROI/acquisition cost, and lifetime value lift. Winners in performance are highlighted by segment performance, high value SMS journeys can potentially result in 3 times ROI. A/B test provides, channels and communications quarterly. Unless it is successful, stifle effective sections of future campaigns. An average win-back rental using Journey Builder gets the dormant base back at 15 per cent a year.
Conclusion
Journey Builder is transforming lost revenue into dormant customers that will be reactivated with high margins. The use of exact segmentation, multi-step journeys and orchestration on the omnichannel creates personalized refactoring in bulk. Out of win-backs, retailers achieve 10-20% of dormant spend as well as strengthen loyalty, which confirms that win-backs are effective versus acquisition economics.
