You just acquired a new customer. You lost money on the transaction (that's common).
You want your money back.
Which of the following two strategies is most likely to get your money back.
- Market normally to the customer ... wait until the customer hasn't purchased in 18 months, then use vendor-centric reactivation strategies coupled with discounts and promotions to "win-back" the customer.
- Immediately work hard to make sure the customer is happy with the first order, and encourage the customer to purchase for a second time within the first ten weeks following a first order?
The answer isn't even close.
Vendors push for (1) because that's how they make money.
You need to push for (2) because when the customer purchases for a second time (especially within 10 weeks), the customer is worth A LOT MORE than when you wait 18 months to convert the customer to a second purchase. You earn all of that incremental profit in the short-term, and, you push the customer to 3x or 4x or 5x status faster, so you earn even more profit in the long-term.
Any lifetime value simulation makes it perfectly clear that you have to do everything possible to get a customer to place a second order within 10 weeks of a first order.
What stops you from taking advantage of this fact?
What stops your call center from calling this customer to make sure the customer is happy? It's called a "call center", right? So call the customer!!
Ten weeks ... 70 days.
That's the window when you can make the biggest impact on LTV.