When we talk about the importance of data, we sometimes gloss over the nuts and bolts application part of the conversation. It’s good to know what we’re tracking, but it’s better to know how to use that information to achieve our business goals.
Let’s look at a metric that might make you feel kind of sad at first – the number of customers who have failed to return to your business within a given period of time. This period of time varies by industry. If you’re a restaurant, you might want to know about diners who haven’t returned within 6 weeks. If you’re a garden center, it would make more sense to look at things from a more seasonal basis.
Spend some time with this data. You want to know why your customers aren’t coming back. Occasionally, the sight of a name or email address will instantly remind you why you’re not seeing a certain shopper anymore: no matter how that situation developed, that’s not the traffic you’re interested in recapturing. Set those accounts to the side, and look at what you’ve got left.
Reaching Out Works – And You Don’t Always Have to Discount
The restaurant chain Moe’s uses a loyalty app called Rockin’ Rewards. Among the data this app collects is customers who have failed to return. Moe’s sent customers they hadn’t seen in 60 days a “We Miss You” message without a discount offer, and saw a 7% increase in full-priced sales. When a $5 coupon was included, more than 60% of those who redeemed that coupon returned a second time and paid full price.
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You can definitely test this email marketing concept for yourself. Identify customers you haven’t seen in a while, and craft two messages, one with an offer, and one without. Deploy each, at different times, and track the increase in traffic. If the numbers merit repetition – and let’s be real, a 7% increase in sales is nothing to sneeze at! – you can work this email campaign into your regular marketing mix to be repeated throughout the year.