July 19, 2021

Dealing With Tiny Percentages

The first thing you notice when you try to reactivate customers is that they (the lapsed buyer) have very little chance of buying again in the next month.

We've talked about the importance of the Welcome Program.

All of you know about the importance of Reactivating Customers.

When you try to Reactivate a Customer, you invariably face a big problem ... you're dealing with Tiny Percentages.

Here's a typical story regarding Reactivation. I calculated the average monthly response rate for buyers across a bunch of businesses.

Let's say you are trying to reactivate a 25-36 month buyer, who only purchased one time. Every month you have a 0.7% chance of getting the job done.

0.7%.

As a marketer you become Shania Twain ... "that don't impress me much". You could increase the rate by 50% and it would seem like nobody would notice and you wouldn't get credit and in a year you'd be fired.

You'd be wrong.

I'll explain why in my next post.




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