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What types of businesses are best to avoid doing customer re-activation campaigns for?

by Delta223
2 replies
I was planning on picking up some clients for marketing services using customer reactivation campaigns which I see as low hanging fruit. I planned on targetting jewelry stores at first but have had a change of heart after seeing a jewelry marketer advocating calling instead of mailing (apparently this is a high margin/low volume business and you need to be highly personal to each contact to get them into the store).

I wanted to ask you guys what makes for a good or bad niche for this kind of campaign, in general. I'm thinking now that I should target a higher volume business with gross margins of 40% or more. Or a service business that has the capacity to take a good amount of jobs if the reactivation campiagn creates a sudden surge.
#avoid #businesses #campaigns #customer #reactivation #types
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  • Profile picture of the author animal44
    Not what I found with our jeweller. We got a very good response to letters and emails. And still do. Our jeweller sells high value, hign margin stuff - rolexes and real diamonds as such like, not the costume type jewellery..

    I wouldn't worry too much. Any niche will generate some response. Just get out there and put some deals together. Once you gain a bit of experience you'll be able to pick the niches that suit you best - which might not be the highest margin niches. Work with niches that you have interest in and you'll find you look forward to Monday mornings... :-)

    How much you make depends more on list size than anything. Our smallest fee was just £750, from a tiny list. About the same time we get got the poorest response - I think it was 0.075% - and we still earned some £17,000 from that one, purely because of the list size.
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  • Profile picture of the author JohnMcCabe
    Originally Posted by Delta223 View Post

    I was planning on picking up some clients for marketing services using customer reactivation campaigns which I see as low hanging fruit. I planned on targetting jewelry stores at first but have had a change of heart after seeing a jewelry marketer advocating calling instead of mailing (apparently this is a high margin/low volume business and you need to be highly personal to each contact to get them into the store).
    That jewelry marketer wasn't selling training on cold calling, was he? Or some type of phone sales?

    Originally Posted by Delta223 View Post

    I wanted to ask you guys what makes for a good or bad niche for this kind of campaign, in general. I'm thinking now that I should target a higher volume business with gross margins of 40% or more. Or a service business that has the capacity to take a good amount of jobs if the reactivation campaign creates a sudden surge.
    It depends on your pricing model. If you get paid by the reactivation, then volume is a definite factor. If you get paid based on the sales brought in, transaction value becomes more important.

    As far as a niche goes, look for businesses who could benefit from reactivation of old customers.

    Think about orthodontists. Once the kids' teeth are straight, there isn't anything there to reactivate. Same with morticians. Unless there's a fresh corpse in the morgue, not much you can do to reactivate old customers.

    So who benefits the most from reactivation efforts?

    To me, it's businesses with some kind of continuity model - memberships, monthly auto-billing, insurance (especially property/casualty) and so on.
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