Winback campaigns and new customer acquisition are two distinct strategies in the business world. Winback campaigns, which aim to re-engage lost customers, are often more cost-effective than acquiring new customers. This is because the cost of acquiring a new customer can be up to seven times higher than retaining an existing one.
Moreover, lost customers already have a relationship with the brand and are familiar with its products or services, making them more likely to re-engage. However, it is important to understand why customers left in the first place, as this can help to tailor the winback campaign and prevent further customer churn.
Despite the benefits, winback campaigns aren’t always the best strategy. They can be seen as a sign of desperation, potentially damaging the brand’s image and alienating existing customers. In contrast, new customer acquisition can bring fresh perspectives and ideas, expanding the customer base and increasing market share.
In conclusion, both strategies have their own merits and drawbacks. The choice between a winback campaign and new customer acquisition largely depends on the specific circumstances of the business. Therefore, it is essential for businesses to carefully consider their options and choose the strategy that best aligns with their goals and objectives.
Go to source article: http://avc.com/2015/08/winback-campaigns-vs-new-customer-acquisition/