Spend, Experiment, Save: Part 3

Let's look at our framework ... each row in the table below represents the recency of a lapsed customer. We also have our three columns ... SPEND, EXPERIMENT, SAVE. Let's see how we should treat reactivation candidates.

Look down the SPEND column. Roughly a quarter of 13-24 month lapsed buyers are worth spending marketing dollars on. After about 29 months of recency, virtually nobody is worth spending money on.

By about thirty-six months, EXPERIMENT percentages erode. You need to SAVE money by not marketing to customers.

Ok, let's have a little fun. Let's run the table above, but only for customers with one life-to-date purchase.

Almost NONE of the 1x reactivation candidates (for this brand) are worthy of spending money on. They're largely dormant. You can experiment through about two years of recency, then the whole purpose of the enterprise is to SAVE marketing dollars ... you're only trying to engage these customers going forward (at a low, low cost).

Tomorrow? A quick discussion about those who actually do ENGAGE with your brand.