If losing market share and mind share to the competition is a marketing professional’s #1 worry, then grappling with winning back lapsed customers is a close second.
Marketing and sales professionals from organizations have long-since known that “not all customers are created equal.” Rather, some are much more valuable and profitable than others because they have a greater likelihood of converting. But, we find that many B2C organizations are spending a lot of resources having their marketing team try to qualify the right leads in order to pass them along to their sales people to close the deal.
In order to get to the next stage of growth, some B2C companies have started borrowing a tactic from the B2B lead generation playbook by using Predictive Lead Scoring (PLS) to rank their prospects or leads, and determine the best engagement strategy.
Lapsed customers can be some of the best prospects for B2C companies. Why? You already know what these former customers are interested in, how much they’re willing to spend, and you can reach out to them directly because you already have their contact information. That's why targeting lapsed customers can be one of the fastest ways B2C companies can grow their bottom line (especially when compared to targeting cold prospects who have never bought your solution and you know very little about).
In the endless race to get and stay on their prospects’ radar screens, many companies offer free services. However, while this strategy can be used to build a community and publicize a brand, it doesn’t necessarily translate into what companies ultimately need to survive: revenues. Indeed, Totango’s research on SaaS conversions revealed that only 20% of free trial users ever become paying customers.