Pros and Cons of Marketing to Past Clients

Every business has departed customers.

While some of them do not make any effort to win back their former customers, others try to promote their products to both existing and previous customers.

If you are wondering if it is a good idea to reach out to past clients, the information below can help you make the right decision.




Pros of Marketing to Past Clients

Reduces Marketing Costs

Getting back a past customer is a lot more cost-effective than gaining a new one.

In order to gain new customers, you have to launch a new marketing campaign to increase brand visibility and convince people to purchase your products. This requires a substantial amount of time, effort and money.

Marketing to former clients, on the other hand, costs very little. Since you already have their contact information, all you need to do is call them or send them an email.

Requires Less Effort

Your former customers have tried your products or services before, and they have a better knowledge of your brand than new customers.

As such, you do not have to educate them about your products from scratch, which saves you considerable time and effort.

If you can find out why they stopped purchasing your products and make the necessary changes to meet their expectations, you will have a good chance of winning them back.

Provides an Opportunity to Increase Customer Loyalty

There are many reasons why your old customers decided to defect from your company, including high prices, unsatisfactory product quality and poor customer service.

By reaching out to them again, you are showing them that you value and wish to regain their patronage. If you are able to make improvements to your products and services, they will know that you are sincere about regaining their business, and they may become more loyal to you.

Qualified Components Limited is an example of a company that has succeeded in winning back departed customers.

Based in March, Cambridgeshire, this metal components manufacturer lost many customers because of poor pricing and inadequately trained sales staff.

After it refreshed its business plan, it was able to woo back its lost customers and gain new ones, increasing its market share by about 15 percent.

Cons of Marketing to Past Clients

May Undermine the Morale of Your Sales Staff

Departed clients who have been dissatisfied with your company may react negatively when you try to market to them.

Your sales representatives may have to deal with a lot of negativity and criticism when they contact your past customers. This can cause them to lose motivation and affect their overall performance.

Jeopardizes the Reputation of Your Company

If your past clients decide to buy from you again, they expect you to make certain changes to meet their needs. If you fail to meet their needs satisfactorily, it is likely that they will not patronize you again.

Customers who are very disappointed may make negative comments about your company and discourage other people from purchasing your products and/or services. This can cause significant damage to your company’s reputation whether you’re in the business of marketing real estate, advertising, and the advantages of using a wireless credit card machine to draw in more customers or touting the benefits of social media campaigns.

Marketing to past clients is a good way to expand your customer base, but it also involves certain risks. If you want to win back your old customers, you have to try to give them a better shopping experience.

About the Author: John McMalcolm is a freelance writer who writes on a wide range of subjects, among which include small business management and marketing your business.