A Game Changer in Customer Reactivation

As many of us know, it’s easier and more profitable to reactivate a lapsed customer than trying to gain a new one, whether through digital, postal or retail. There are many techniques that are deployed in order to identity the proper audiences in the offline world, such as RFM+ segmentation and optimization, or modeling through a co-op. All of these techniques are tried and true and should continue to be used to identify the appropriate reactivation group for any campaign. But now there is a new player in the game and it’s proving to be a game changer.

CohereOne has had a long-standing relationship with the digital company 4Cite, leaning on their technology to drive many programs, which has increased our client’s digital performance. Using their digital data, 4Cite could identify the postal address for anonymous site browsers and/or cart abandoners, and thus we quickly determined that we should be using that powerful data in our postal efforts.

Through the 4Cite tagging, they are able to identify an anonymous browser on a client’s website and collect a variety of metrics surrounding that browser’s behavior such as “time on site,” “how many pages viewed,” “individual product page views,” “number of times visiting,” etc. Knowing how much data could be mined from a client’s site, it was clear that we needed to find a way to harness that to drive our postal audiences.

CohereOne partnered with 4Cite to create an individual score based on online engagement that could be applied to postal segmentation. This score is applied to all identified records in the customer file in order to select names for a mailing. This score can be combined with the existing RFM+ to supplement and create an even more robust segmentation strategy for selection.

As seen in the chart below, these lapsed buyers are performing nearly 2X in response rate compared to those who fell outside of the model. It’s clear that the 4Cite scoring is highly predictive and is a powerful tool to apply for customer reactivation.

In another case, we applied the 4Cite score to a static lapsed customer group, which was also used for traditional co-op reactivation modeling. As seen in the chart below, while all scoring sources performed well, the 4Cite web behavior score was by far the best. Another positive is that 70% of the 4Cite scored records were incremental i.e. not found by any of the other sources.

Clearly this technology has tremendous upside and provides another arrow in our quiver to continue the merging of online behavior and offline experiences. If you’re interested in finding out more about how this can help you supercharge your reactivation efforts, email me at tseaton@cohereone.com.

1 thought on “A Game Changer in Customer Reactivation

  1. Travis

    Very informative article. Admittedly it hit a nerve with me as preaching the value of reactivation has been a mission of mine for years. Yet so many companies just can’t see it. Or worse, don’t believe it. Looks like you’ve got a valuable tool in taking on this opportunity.


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