VIDA Management Consultants

Specializing in Customer Interaction

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Past Project

Customer Reactivation Program

A successful customer reactivation program was implemented by finding customer segments that responded to special offers when contacted by phone. First, we determined an average customer’s lifetime value (how much revenue was generated) and the average length of time they remained a customer. Then, we went through the master customer database identifying the initial purchase date, last purchase date, and total dollars spent.  The customer data was compared against the average customer lifetime value and average activation time.

After testing different customer segments, we targeted customers that did not remain an active customer as long as the average, and spent fewer dollars than the average customer. This segment was contacted by phone with a special promotional offer to encourage reactivating the account. Different scripts and promotional offers were tested to find the right mix. An ongoing program was set-up to contact this market segment on a date triggered basis to keep them active for a longer period and generate more revenue.  This reactivation program generated $300 per agent hour.