Soar to Success April 2021

SOAR TO SUCCESS / Feature Article then there was the cost of replacing those customers. Those huge losses forced Dan to create a program to try and win back some of those lost customers. He had already done plenty of retention work so he didn’t think many of them would be open to returning, but he had to at least give it a try. That program generated a 57X ROI. It wildly overshot Dan’s most optimistic projections. “In my 20 years of marketing nothing had generated that much ROI with so little time, money and effort.” The ROI was high because it cost next to nothing to run the winback program. It was all done with phone and email outreach with existing staff. And the sales were amazing. This is typical of winback programs. They cost little to run and sales average $485K for small to medium size businesses (SMBs) and larger organizations can generate millions. “Reactivated customers buy more, refer more and are more loyal than new customers. They are a fantastic source of new revenue.” Most businesses lose approximately 50% of their clients within four years and Dan’s research shows that about one in four return with a strategic winback program. What’s really interesting is that when they return, they buy more than they did the first time around. “With strategic winback you win more sales in less time and at a lower cost than when you sell to new prospects.” You win more sales because the win rate is 5X better with winback than selling to first time prospects. It takes less time because you don’t need to build relationships and educate the prospect on your product - you’ve already done all that. And according to McKinsey, the cost of winning back a client is as little as 1/10th the cost of acquiring a first-time customer. “If companies knew their winback numbers, most of them would do winback.”