7 Ways to Use Lapsed Purchase Campaign & Increase Customer Retention

Has your business been experiencing an increase in customer lapse recently? Then it should be a serious concern, as selling products to new customers has 60 to 70 percent fewer chances than selling to your existing customers.

That is why you need to implement an exceptional lapsed purchase campaign. At the same time, it’s important to ensure that the campaign efficiently brings back all your lapsed customers and engages them. Wondering how to do that?

Quest Labs is here to share how you can optimize your lapsed purchase campaign strategy to retain your customers efficiently.

How to Increase Customer Retention In A Lapsed Purchase Campaign?

1. AI User Segmentation To Identify Lapsed Customers

AI-powered user segmentation uses an advanced algorithm to analyze a huge amount of customer data. As a result, it can help businesses efficiently identify user behavior and preferences. It considers users' purchase history, browsing habits, and engagement levels to create highly detailed segments.

Segmentation of users based on all this customer data is essential to categorize them based on different reasons for inactivity. For instance, AI can help you have unique segments for users who have stopped purchasing because of a seasonal change and who stopped buying because they are unsatisfied with the product.

When you segment users based on their behavior, you can identify the points where they are more likely to disengage. Having separate segments for frequent buyers, occasional buyers, and lapsed customers allows you to approach them with different engagement strategies.

2. Determine Reasons For Lapsed Purchase

In addition to categorizing users based on their behavior, AI user segmentation helps you understand why they lapse. By analyzing these groups, you can easily identify the common characteristics and behaviors they share.

Consider a segment of users who frequently purchase seasonal items. If the number of purchases made by customers in this segment suddenly declines, it means that you need to develop better seasonal promotions. Similarly, if a segment shows an increasing cart abandonment rate, it might indicate complexity in the checkout process.

Here are some of the common reasons for lapsed purchases.

3. Personalization To Build Customer Satisfaction

By adopting personalization, companies drive 40 percent more of their revenue than when they don't. Moreover, personalization is undoubtedly an unstoppable strategy for winning back lapsed customers.

It improves customer engagement by making interactions more relevant and meaningful. When customers feel valued, they are more likely to reengage and remain loyal. For instance, you can offer a lapsed customer a special discount on a product they have previously purchased and are more likely to buy again. It makes them feel understood, and they are more likely to return.

But how can you include personalization in a lapsed purchase campaign?

• Personalized Emails:

  You can send customers emails with personalized product recommendations from their past purchases.

• Exclusive Offers:

  It's better to approach lapsed customers with personalized discounts and promotions that align with their interests.

• Targeted Messages:

  Create messages for users that address the reasons for lapse. You can include their previous complaints and highlight how a new product's features solve the past issues.

4. Gamification To Engage Lapsed Customers

Marketers find engaging dormant customers in their lapse purchase campaign extremely challenging. However, implementing gamified engagement can help you reengage customers and motivate them to complete their purchases.

Here's how Quest Labs helps you engage customers during your lapsed purchase campaign.

• Challenges and Contests:

  Include missions and challenges that users can participate in and create a sense of competitiveness among them.

• Rewards and Badges:

  Make the challenges more appealing through points and badges customers earn by completing specific actions. They can then use these points to get discounts when they purchase products.

• Leaderboards:

  Let customers see their progress and how close they are to winning a reward.

5. Exclusive Offers and Incentives

Exclusive offers and incentives are highly effective in attracting lapsed customers. The offers should be personalized and create a sense of urgency to encourage customers to return and complete a purchase.

It’s essential to communicate the rewards clearly and directly to the customers through personalized messages. It’s also important to highlight the exclusivity of these rewards to make customers take immediate action. Moreover, ensure that the offers are easy to redeem to improve the likelihood of conversion.

Let's explore the kinds of offers and incentives customers seek.

6. Multi-Channel Communication Strategies

Effective communication is the key to bringing back lapsed customers. That is why leading businesses communicate with their customers through multiple channels to increase their engagement chances.

Email Marketing

• Personalized Campaigns:

  Include the customer's name and reference their past purchases to make the email personalized.

• Special Offers:

  Attract your customers to complete their purchase by including special offers and discounts.

• Compelling Subject Lines:

  Use compelling subject lines to improve the open rates of your emails.

SMS And Push Notifications

• Clear and Short Messages:

  Ensure the messages convey the value and include a simple call to action.

• Reminders:

  In-app notifications remind users of abandoned carts and limited-time offers.

• Opt-in Opportunities:

  Ensure that customers opt-in to receive these messages to comply with regulations and improve their relevance.

Social Media Campaigns

• Re-targeting Ads:

  Use re-targeting to feature new releases or the products the user has previously viewed on your site.

• Exclusive Social Media Offers:

  Offer exclusive rewards to users who follow you on your social media accounts.

• Interactive Elements:

  Deploy polls, quizzes, or contests to engage customers and bring them back to your website.

7. Gather Feedback To Optimize The Campaign

The above strategies will help you improve customer retention during your lapsed purchase campaign. However, gathering and analyzing user feedback to optimize your strategy is always essential. Here is how you can gather feedback efficiently.

• Exit Surveys:

  Conduct a short survey when customers unsubscribe or leave your site.

• Net Promoter Score:

  NPS surveys help you understand whether customers would recommend your business to others.

• Support Tickets:

  Analyze the customer service data to identify common issues and complaints from lapsed customers.

Retain Customers Effectively in Your Lapsed Purchase Campaign With Quest’s AI Solutions

We have shared exceptional strategies that top businesses use to retain customers in their lapsed purchase campaigns. Adopting these measures will take your campaign to the next level and help engage your customers. By giving your customers personalized recommendations and products, you can ensure they are satisfied and remain loyal.

If you plan to implement a lapsed purchase campaign, Quest integration will help you maximize user engagement and retention.

1. AI User Segmentation:

   Employ the power of artificial intelligence to segment your customers based on their interests and identify the reasons for customer lapse.

2. Generative Personalization:

   Offer personalized experiences to all your customers based on their interests.

3. Gamified Engagement:

   Maximize user engagement with the help of gamification in your campaigns.

4. Feedback and Surveys:

   Conduct surveys to identify the reasons for customer lapses and optimize your strategies for retaining customers efficiently.

That's not all. Quest Labs' no-code solutions help you reach the market quicker by reducing 95% of the development time. So, what are your concerns about the lapsed purchase campaign strategy? Book your demo and talk to us.

FAQs

• What does ‘lapsed’ mean in marketing?:

  When customers who purchase from your business stop engaging for a certain period, they are referred to as lapsed customers in marketing.

• How to target lapsed customers?:

  Here are some factors to consider when you target your lapsed customers:

  1. 1. User segmentation to identify the reasons for the lapse
  2. 2. Personalization to retain customers
  3. 3. Exclusive rewards and offers to engage customers