The Lost Customer Outreach Problem: Which Ones Do You Reach Out To?

The Lost Customer Outreach Problem

I came across an interesting post on LinkedIn recently about a Delta frequent flier who was very upset with Virgin Atlantic for not going the extra mile to help him on a recent trip. He was a lost customer for Virgin Atlantic and he felt they missed an opportunity to win his business back. His post stirred up debate on LinkedIn. Some called him elitist and entitled since his elite status on Virgin Atlantic had long since lapsed.

But reading through his post, I felt he made a compelling point:

“I fly a lot. I have Diamond status on the Delta airlines loyalty scheme, the highest you can get. I really fly a lot! On my briefcase and all my bags I have the Delta Diamond tags. This is like wearing a beacon that says ‘this guy flies a lot!’

My question is, ‘When I fly with other airlines, do they ignore this display that says I am a high value customer and could be one of your best customers?’ It seems that my badge has the cloak of invisibility as everyone ignores it. Why?”

His detractors charged he was seeking special treatment when he hadn’t purchased a first class ticket or had any status on that airline. Was he being entitled or was there more to this story?

Why Reach Out to Lost Customers?

I think the detractors are wrong. First and foremost, if you see a customer who is clearly a premium value customer you engage them. His Delta tags clearly highlighted he flew frequently and was a higher dollar customer than someone traveling for leisure. While Virgin Atlantic didn’t owe him anything, it was certainly a missed opportunity. With all the marketing dollars spent on advertising and frequent flyer programs, a simple waiver for luggage might have led him to reconsider his flying habits and choose Virgin Atlantic in the future.

His detractors also overlooked that he previously had elite status on Virgin Atlantic, so at some point he had been sold on their value proposition. While I don’t have the numbers to prove this, it should be cheaper to reacquire an old customer versus attempting to sell your product to a “blank slate” customer.

If you are a B2B SaaS provider, you know all too well the cost of acquiring a customer.

Sometimes customers leave due to price, competitive offerings, or just circumstances beyond your control. In some of the research I have conducted, I’ve noticed economic buyers are willing to give emerging companies another chance if they can illustrate what has changed for the better.

Here are some things you can do to target and reach out to lost customers with the most potential:

1. Mine your CRM to sort through and identify the best prospects for an outreach: It could be someone who left on good terms and only for business reasons. Conversely, it could be a company that left on bad terms but where the economic buyers have moved on.
2. Customize your outreach: What were the pain points that made them leave in the first place? Your communication should address what has changed, what you have learned, and how you can help them.
3. Maintain a communication stream: The frequency, content, and tone should be customized to the customer. There is nothing worse than receiving a form letter asking for another chance that doesn’t clearly state why they should.
4. Don’t be afraid to engage your lost customers to better understand why they left: At Openview Labs, we often do this kind of research and find lost customers are more than willing to give feedback. It gives you an opportunity to listen to their constructive feedback and develop actionable strategies for change. The added benefit is that it keeps the conversation going and hopefully the door open in the future.

Finding new leads, educating them on your value proposition, and converting to a paying customer can be a long expensive process. One way to augment your lead generation is to mine your CRM to see what lost customers you can potentially revisit. Each situation is different, so use your discretion on how to choose for an outreach.