How To Get Your Lapsed Customers Back Without Resorting To Discounts

You win back lapsed customers by figuring out why they stopped using your service, then reaching out to them with a reason that's relevant to their current situation. Start with gentle reminders that matter, like proof that you've improved since they last used you, some content that's actually relevant to them, and a bit of choice - let them pick what they'd like to hear from you. Only use discounts when your data shows that price is actually the problem.

The choice is pretty simple: build up the value of your brand in their eyes before you start cutting prices.

For UK businesses, holding onto customers is a serious business and not just because it's the right thing to do for customers. Square points out that 33% of UK customers just walk away, and according to research from SugarCRM, that's because 74% of the time they had a terrible experience with your customer service team, while 83% of your marketing folk would say that's because they just weren't hearing what you had to say.

A lapsed customer isn't necessarily a lost customer they're just a customer whose relationship with your brand has gone a bit quiet.

The first thing to ask yourself: why did the customer go quiet in the first place?

Business owner speaking with a customer across a desk

The first thing you shouldn't do is build a reactivation campaign around the idea that everyone wants the same thing. Why would a customer who used to buy your product all the time stop now? The answer probably isn't the same for the guy who bought it last week.

Their life has changed

Chances are, the customer's circumstances have changed. They may have got a new job, moved house, had a kid, started a new hobby or found themselves with more or less money. They may have changed from being able to do evening classes, to being too busy, or switched from trying to relax to trying to stay fit or the other way round.

That's not a rejection of your brand. It might just mean the way you used your service is no longer the best fit.

What to do:

●       Reframe your offer to fit their new life.

●       Promote flexible options, new formats, or different ways of using your service that might be more convenient for them.

●       Ask them what's changed don't just assume they've lost interest.

●       Give them some control over what they get from you by building preference options into your emails and CRM.

The value got lost

Customers get busy. Even if they used to love your service, they might have forgotten exactly why they chose you. That's especially true for products with a long buying cycle, seasonal services or brands competing in crowded markets. If you don't remind them what your business does for them, someone else will fill the gap in their attention.

What to do:

●       Remind them of the benefits, not just the product.

●       Use their past purchases to show them how relevant you still are.

●       Give them some practical tips on how to make the most of what they've got from you.

●       Share some customer stories and reviews to show them the best bits of what you do.

Shopify gives some good advice on how to re-engage lapsed customers. They say use bestsellers, new products, and past purchases to remind inactive customers what they've been missing. That's not just limited to ecommerce make the value visible again.

You sent the re-engagement message at the wrong time

If you send a message too soon, it feels intrusive. If you send it too late, they've forgotten all about you. There's no one size fits all rule for when to send a re-engagement message it's different for every business. A coffee shop, a personal trainer, a software company, or a small hotel will all have different natural cycles of repeat business or bookings.

Use your own data to work out:

●       How long it usually is between repeat purchases.

●       How long it usually is between bookings or appointments.

●       When repeat customers typically come back.

●       When they first start to lose interest.

●       How different regular customers are from seasonal ones.

Trigger the re-engagement message when they move beyond their normal cycle not just when they hit some arbitrary 90 day threshold.

Silent churn

Some customers just up and leave without a word. They don't cancel their account, ask for a refund, or complain to your customer service team. They just stop opening your emails, stop coming to your website, or stop buying from you.

This is the hardest kind of churn to deal with, because there's no obvious complaint to resolve. You have to do some behavioural analysis to figure out what's going on.

Look out for signals like:

●       A drop in email engagement.

●       Fewer website visits.

●       Reduced use of a service or platform.

●       Browsing without buying.

●       Missed appointments.

●       Increased friction in customer service.

●       A shift towards searching for or reading about your competitors.

Just because they're not complaining doesn't mean you're not getting a warning sign.

Build the re-engagement sequence around value

Marketer reviewing an email campaign on a laptop

A successful reactivation sequence doesn't start with "20% off". It starts by asking a question that's worth answering:

Why should this customer care now?

A good sequence might look like this:

First, acknowledge the relationship

Start with a human reminder that the customer has interacted with your brand before.

Don't overdo the "we miss you" language. It can sound like you're just going through the motions. Instead, refer to a specific bit of your history together like a previous booking, or a product they bought.

The goal is to make them feel like you remember them, not that you're trying to be all buddy-buddy with them.

Next, restore relevance

Show them how your brand fits into their current life. For a fitness business , a shorter training programme might be just the ticket for people with limited time on their hands. For a hotel its a shoulder season itinerary built around local events that can really shine. For a beauty brand, its maybe a routine based on a customer's previous product favourite rather than just sending out the generic new arrivals email.

Use a single clear call to action : invite the customer to take a browse, read up, throw in a reply, make a booking, or update their preferences & ask a question or two.

Don't feel like every early-stage reactivation message has to be a hard sell.

Then , show 'em what's changed

A lapse caused by disappointment can't be fixed with a cheerful subject line its the changes that really matter. If you've sorted out your delivery times, tell us how that's improved. If you've just introduced a new booking system , let people know the benefits. Explain the difference in your updated product, or show them how your team has changed its approach and what the results are.

This is where being transparent becomes a valuable asset to your business.

Use:

●       before and after comparisons of any service improvements.

●       customer feedback that shows you're listening.

●       product demos that show how things have improved.

●       real-life case studies that show the impact.

●       expert commentary that sheds new light on things.

●       clear answers to any previous objections people might have had.

The customer doesn't need you to tell them your business is better they need to see the evidence for themselves.

Give people control not pressure

Some people might want to hear from you less often, while others might prefer different topics, channels or formats. Give them the option to:

●       change their email frequency.

●       pick the topics that interest them.

●       choose between email, SMS or no promotional contact at all.

●       update their location or service preferences.

●       pause their communications rather than unsubscribing from them altogether.

●       tell you what would make your brand more useful to them.

This looks after the relationship, improves the quality of your owned data, and respects the customer's right to consent especially for UK businesses operating under UK GDPR and the Privacy and Electronic Communications Regulations.

Add a reason to return that's not just about price

A reason to return doesn't just have to be a discount.

Consider offering:

●       early access to a launch.

●       an invitation to an event.

●       a complimentary consultation.

●       a useful downloadable guide.

●       loyalty points that are already available to the customer.

●       a free add-on at a qualifying spend.

●       priority booking.

●       a limited product bundle.

●       a charity-linked purchase.

●       a personal review or recommendation.

The goal is to either reduce friction or increase perceived value without damaging your standard pricing.

Use your own data, but don't forget about human judgement

Your CRM, booking platform, ecommerce system, analytics and customer service records are the operational nervous system of a reactivation programme but data alone doesn't create relevance.

Start with a simple RFM view:

●       Recency: how long has it been since the customer last bought or engaged?

●       Frequency: how often did they typically return?

●       Monetary value: what was their average or lifetime value?

Then add in some context that RFM can't explain:

●       what they bought.

●       which team looked after them.

●       whether they ever complained about anything.

●       which content they consumed.

●       whether they used a particular location.

●       whether they ever responded to previous offers.

●       whether they are a seasonal or habitual customer.

●       whether they've consented to each channel.

Create reason codes for the typical drivers of lapse price sensitivity, poor experience, lack of relevance, product mismatch, timing or unknown. These don't need to be 100% accurate, but they do need to be helpful enough to guide your different messages.

Automation gives you speed and scale, but only human judgement can provide the nuance, ethics and personal perspective that your reactivation programme needs.

Before activating a segment, get a human reviewer to check it over and make sure:

●       the message would feel helpful if they received it.

●       the recommendation is genuinely relevant to that customer.

●       sensitive data is being used responsibly.

●       there's a clear way to reduce or stop communications if that's what the customer wants.

●       you can explain why this customer received this particular message.

That's the difference between personalisation and just plain old surveillance.

Keep the brand top of mind through content and PR

Reactivation isn't just about email automation customers can return to a relationship through many different entry points: a social post, a press feature, a podcast, a search result, a customer story or a recommendation from someone they trust.

This is where content creation for businesses can be a retention tool, not just a one-way conversation at the top of the funnel.

Create content that will help previous customers:

●       get more value out of something they've already bought.

●       understand a relevant change in the market.

●       solve a problem related to their previous purchase.

●       see how other customers are using your service.

●       discover a new application or product category.

●       reconsider an objection that previously stopped them from returning.

Use one strong customer insight across multiple channels without making it seem repetitive. EC Stream's approach to repurposing content across PR, social media and SEO is a good example of how one good idea can be reworked into different formats without losing its impact.

PR has a role here too. A well targeted media story can remind lapsed customers that your brand is active, credible and evolving. Focus on the things that are new and newsworthy: a new service or location, a measurable improvement, a partnership with a trusted organisation, an original report or customer insight, the founder's take on an industry issue, or a local event or community initiative.Don't put out generic press releases to every outlet, build real media relations that pay attention to the story and the audience. EC Streams own guidance on hyper-personalised outreach makes it clear : you only get a hearing and a good rep by being relevant.

For a small business, this is just plain old common sense growth marketing. Content & PR create all sorts of good reasons to remember you, without you having to keep throwing money at it all the time.

The discount trap

Discounting might give you a bit of a temporary uplift, but it can also seriously damage your relationships with your customers in the long term.

If your customers get into the habit of waiting for a cheaper price, they might well start to put purchases off, wait for a sale rather than buying at full price & even start to ignore the rest of your communications. Not to mention the fact that you're losing margin on customers who would have come back without having to offer them a discount in the first place.

Worst of all, repeated discounting can actually reposition your brand in the customers mind. Something that used to be a premium service starts to feel like a bargain item. A specialist product becomes something you just try to flog. And all that careful work you put into building a solid price architecture goes out the window.

So only use a discount in the following circumstances

●       If the price is genuinely the number one thing stopping your customer from making a purchase.

●       If the customer has got a big amount of lifetime value to the business.

●       If you don't end up losing too much margin on the deal.

●       If you can control the offer & put a time limit on it.

●       If you've already tried non-price ways of persuading them to come back.

●       And you've tested it against some customers who didn't get the discount to see what the results are.

A discount should be a carefully thought out intervention, not a knee jerk reaction to someones inactivity.

Measure reactivation as a profit outcome

Marketing team reviewing charts and campaign performance on a laptop

Just counting how many of your open rates is a pretty poor way to judge how well a campaign is doing. Opens show that people are paying attention, but it doesn't necessarily mean that you've remade a connection with the customer.

To get a full picture of what's going on, you need to track performance in layers

●       Re-engagement metrics: opens, clicks replies, preferences updated & website visits

●       Conversion metrics: purchases, bookings, renewals or completed enquiries

●       Quality metrics: average order value, mix of services sold & gross margin

●       Durability metrics: whether customers come back for a second purchase or booking within 60 or 90 days

●       Health metrics : unsubscribe rate, spam complaints & how your support team feel customers are interacting with them

●       Incrementality metrics : the difference between customers who got contacted & a comparable group who didn't get anything

Then there is the calculation for reactivation rate: reactivated customers ÷ eligible lapsed customers x 100

And also the reactivation contribution: revenue - product or delivery costs - campaign costs incentive cost

What it shows is that for businesses who sell online, repeat customers are a pretty big deal. Shopifty did a study which showed that 21% of customers came back, but they generated 44% of revenue & 46% of orders. So the message is pretty clear : retention is something that needs to be taken seriously because even a small group of loyal customers can generate a lot of business.

Please don’t assume every customer you bring back through reactivation is going to be worth loads to you. Some customers come back just at a deep discount & never shop with you again. In that case, they might even be a net loss.

The decision for leadership

Reactivating customers without using discounts means you need to have a solid operating model in place.

●       Define lapse based on your own customer cycle, so you can tell who is at risk

●       Work out what is causing customers to leave in the first place.

●       Start by being relevant & making sure you've got proof to back up your claims.

●       Use your own data responsibly.

●       Give customers some control over the comms they get from you.

●       Keep building content that stays useful to customers even between purchases.

●       Use PR to squeeze every last bit of credibility & momentum out of things.

●       Keep discounts for when you can measure the impact.

●       Measure whats going to give you a real return on your investment.

Its not about sending out more messages, its about making each message earn its place.

If your customer base is going quiet, EC Stream can help you build a brand growth strategy that targets the right customers, gets your content & PR to line up & turns customer insight into a real reactivation programme. Our consultancy is built around the fact that one size does not fit all.

A good win back campaign does not ask, "what discount will bring them back?" it asks : "what would make this relationship useful again?"

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