Customer Win-Back Pays Dividends

Most firms think of the lost customer as a lost cause. Yet, mounting evidence shows rewards from win-back success, and the benefits surrounding it, far out-weigh the investment costs.

A study by Marketing Metrics has found companies have a much better chance of winning business from lost customers than from new prospects. The research shows the average firm has a 60%-70% probability of successfully selling again to ‘active’ customers, a 20%-40% probability of selling to lost customers, and only a 5%-20% probability of making a successful sale to prospects.

Replacing one ‘high-value’ customer is the equivalent of 19.5 average customers.

16th April 2003