The greatest opportunity to get some quick wins under your belt in early 2023.
Winbacks
It’s no secret to anyone that customers are currently holding onto their purse strings a little more than usual so far in 2023.
But there’s a huge pool of potential customers possibly right under your nose which can be gotten for a really low CAC and they could also be the best and most loyal customers you can get at the moment.
I’m talking about winning back past customers who have cancelled.
Here’s what I’ve been working on this week…
I may write about this in more detail next week’s newsletter but to whet the appetite, here’s some action steps for you to get started these this week:
Step 1 Reduce churn: Cancellation saver survey
Our e-commerce platform Subbly has a built-in cancellation saver where customer can tell you the reasons why they would like to cancel and you can make them an offer to stay. We’ve decided to get more generous with this offer.
Previously is you said it was too expensive or not worth the money, we offered:
Get £5 off your next box?
OR
10% discount off your future subscription boxes
Since new people are harder and harder to convince to signup, and you don’t know how loyal they will be…
We now offer:
Take £5 off your next box PLUS 10% discount off your subscription
It’s always preferable to keep a customer at a slightly lower price than have to replace them with someone new. Every new customer has to be found via ads and that has a direct cost to acquire a customer (CAC).
Step 2 – Reduce churn and Winback customers about to churn
What month do you see the biggest drop off in your retention rates?
We took a deep look this week and discovered if people paid more than 3 times they had up to 75% less churn than people who paid less than 3 times.
We’re now brainstorming offers which are stretched until month 3 similar to HelloFresh
We also know month 5/6 and 11/12 is a big drop-off point as customers reach the end of their commitment period. Some stay on after but a lot leave here.
We decided to have our CS team reach out to anyone set to cancel at these drop points and offer them a generous offer to recommit to BusterBox.
Winback process for Customer Service Team
When are customers likely to churn?
- Month 5, month 11
- When their payment has failed 3 times
- When they set themselves to cancel
Action steps:
Personal email to them asking for feedback or addressing any CS tickets they may have raised with us in the past and letting them know we have some offers to keep them subscribed.
Offers:
- Discounts to £22.99 / £19.99 depending on price in exchange for 12 month recommitment
- Free gift in exchange for 12 month recommitment
- Anything else you think will save people
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Step 3 – Win back after they have churned
What about after they have gone?
This week I set up an automated email sequence:
Sent to all churned customers after a specific time period as outlined below.
A 4 email sequence
After 5 days – Email 1 Survey – CS team read survey results and reach out with a solution and a returning customer special offer
After 20 Days – Email 2 – Reply yes to get a FREE box on a 6 month plan
After 30 Days – Email 3 – Click here to get a secret offer (FREE box) & secret lowest unadvertised price (must commit for 6 more months)
After 35 Days – Email 4 – Your secret offer is going away!
All of these offers are more generous than anything we would advertise, and they are only offered to customers who have shown loyalty in the past – IE stayed with us for at least 6 months.
Since we know they are good and we pay no CAC to reach them (we have their email address) then it works out cheaper and better to give them great deals to come back.
So, get to work! We’ve brought back 50 people so far this week and it’s only Wednesday.
In time of economic difficulty you can still get some great wins, you just need to get creative. ☝️
Want my help setting this up or growing your subscription box? Book a FREE 45Min strategy call with me here.