Tons of people try to figure out who unfriended them on Facebook or unfollowed them on Instagram or Twitter. They use apps and various steps to get the bottom of these little mysteries.
Shouldn’t your company or organization be at least this curious about lost or lapsed customers, donors and fans? Wouldn’t it be so very valuable to know who no longer includes you in their life — and more importantly, why?
Well, winning back lost customers is tough — they all probably think they have good reasons as to why their customer satisfaction waned.
But for customers whose allegiance has, for whatever reason, simply lapsed, here’s some great news: retaining an existing customer is six times less costly than acquiring a new customer. So, how can you pinpoint these people, and even break them down by the likelihood that they’ll reengage with your company or organization?
There are many ways — and ColemanWick is fluent in all of them. For instance, for hospitals we are able to provide “patient reactivation” solutions. Our proprietary Reactivation Engine uses advanced statistical methodology such as multi-factor modeling, linear/logistic regression, correlation, gradient boosting methods, random forest and fuzzy-logic scoring to predict which patients are likely to return, and what marketing messaging and channels are most likely to encourage appointments.
The Cleveland Clinic conducted just such a statistical analysis which significantly improved their direct marketing effectiveness: of 300,000 patients mailed, 54,000 were successfully reactivated, bringing an added $58M to the hospital. For the cost of a 50-cent direct mail piece, the initiative demonstrated an incredible average of $5,789 return per patient!
That’s the power of smart analyticsi n the hands of people who know how to handle complex data mining.