Boost Revenues by Targeting Lapsed Clients

Did you know that one of your deepest wells for bigger profits is your lapsed customer base? These are customers who have done business with you in the past, but for some reason have not come back.

This isn’t always due to discontent with your company. Sometimes it’s forgetfulness. Sometimes people simply want to try something new, and once they’ve done so, stay with it for convenience. Or a competitor comes along and offers them a deal at just the right time.

Assuming that lapsed customers had a positive relationship with you, re-engagement campaigns targeting those customers can yield tremendous results.

Take the example of one optician in the United Kingdom. In its market, independent opticians have been facing increased price-driven competition from large specialist chains. It fought back using a direct mail campaign with personalized URLs and incentive vouchers to re-activate lapsed clients and increase traffic to the practice.

The results? The practice reported 82 campaign recipients responding to the campaign and spending an average of £150 ($250) each after voucher reduction. This generated an immediate ROI of over 400%.

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Profitable (and Overlooked) Uses of Color

When we think about color in print marketing and direct mail, we think about stunning images and eye-catching graphics. But what about color in the messaging itself? What role should that play? Here are some important but often overlooked ways that color can increase the effectiveness of your print marketing efforts.

Increased Recall and Response

Study after study shows that, when messages and images are in color, it increases recall dramatically. Color increases recall in the 80% range, and people are about 40% more likely to select or read materials when they are in color.

Here are some more benefits of color:

  • Helps readers find information more easily (great for insurance policies, contracts, and other lengthy documents)
  • Reduces errors (highlighting instructions or account information helps people get it right the first time)
  • Slashes payment time (try highlighting the amount owed and the due date with color and watch your invoices get paid faster!)
  • Increases the ability of readers to understand and retain information (great for sales presentations)

When you want to draw your readers’ attention to something, consider printing it in color. Make phone numbers or payment information stand out in a letter. Highlight discounts in a brightly colored starburst. Use arrows or colored bullets to focus attention on key points in a brochure.

Success Translates into Dollars

One success story comes from the State of California Franchise Tax Board (FTB), which produces more than 14 million personal income tax returns each year. The FTB used to send out tax notices, but many taxpayers didn’t know what they needed to do, how much to pay, or where to send the payment.  The result was slow payments and expensive volumes of calls to call centers.

The FTB decided to do something different. It added highlight color and personalized messaging to explain exactly what each taxpayer needed to do. Key information was displayed in blue, guiding taxpayers through the document and giving them specific instructions.

The result? Faster payments and fewer mistakes. This translated into millions in additional interest income and, at an average cost of $15 per call to the call center, significant savings from reduced call center contacts.

The takeaway? Color matters—not just in your graphics, but in your messaging, too. It is central to your brand identity and marketing psychology. Let us help you use color to make you money and save you money, too!