Customer Reactivation Letter — The Best Way To Increase Sales
Talk to your customers! Even when they aren’t there. Especially when they aren’t there.
Fortune Magazine found that it costs five times as much to sell to a new customer as to an old customer.
So What?
So, you can spend 80% less to generate a given level of sales by targeting your existing customers instead of new customers.
And the way to do that is simple, write them a letter. This is known as a "customer reactivation letter" because you are not writing to shoot the breeze. But for a specific reason, to get them to become an active customer. Now.
Basically the letter consists of these parts:
* Establish rapport
* Remind them that they are already customers
* Make them a good and specific offer (better yet a compelling offer)
* Ask for action
* If feasible, provide a deadline
* Always include a P.S.
Does it work? Boy does it ever.
First, 68% of customers leave a business because of perceived indifference. But a personal letter from the owner shows a high level of interest. So it avoids that number one reason for losing a customer.
Second, most people dislike the risk of buying from an unknown source. If you delivered on your promises on their previous purchase(s), then they will perceive little risk in buying from you again. If you didn’t, make it part of your letter to apologize and offer to "make it up" to them. The results will astound you.
Third, consider customer referral value. Every satisfied customer tells an average of 5 people. So you are not promoting just their business, but many of their friends as well.
Even if they cannot use your offer right now, they will remember the extra touch of a personal letter. That is good will, which even bankers recognize as almost as good as money in the bank.
Reactivation Letter
When writing a reactivation letter, you will want to grab the attention of the customer with the headline — not the company name. You want the reader to get into the letter as soon as possible.
For example, include a great offer and describe the different services and products you offer. Assume that they are unaware of special offers, which is another excuse to contact them. Make sure you include directions to your place of business. And at the bottom of your reactivation letter, repeat the offer and deadline. The P.S. is normally one of the first things read so it is critical that you have one.
Put the name and address of your place of business on the bottom because a prospect does not care who you are or what you do until you have something they want.
Keeper
When sending a reactivation letter, be sure and include a "keeper." Whenever possible, give your customer a "keeper" — something they will want to keep (for example a calendar or a pen). Every time they refer to it, they see your name again. That way, the next time they need your type of service, your name will be on the tip of their tongue, and they are once again reminded about your business.
One interesting thing that happens with reactivation letters is that many people come in after a deadline and mention that they had received the mailing. So even though sales percentages might have been good from the mailing of reactivation letters, the response will be even higher.
The customer reactivation letter with a keeper works. Try it — you’ll like the results.