There is a proven adage in direct marketing that it is easier and less expensive to market to a customer than to a prospect. That is true when considering targets for acquisition programs and win-back programs as well. For many companies, acquisition response rates are down. Many of them are forgetting one of their best targets for acquisition - lapsed customers. Lapsed customers almost always respond better than "cold" or unknown prospects from outside lists. They know your company and have a reason to "listen" to you. You can use the data-driven information from your files on former customers to make the contact more relevant (how long they were with you, demographic information, etc.). It is easy for you to find them. They are already on your database.
All customers, however, are not worth recapturing. Before launching a win-back program, evaluate the previous value of lapsed customers before selecting them for reactivation. Make sure they have enough future potential value to invest in. For example, poor credit risks, customers who bought only once in 3 years, customers who responded frequently but returned products just as frequently — these categories would definitely not be in your "A" list. If possible, conduct research to determine why they left. Use the information you have on them to make your copy more relevant. Make them an exclusive offer that is "only available to former customers" and is hard to resist. Personalize the message. They were customers, and you know that, so address them as such. Lapsed customers should feel as if they have special status — do not treat them as strangers.
