Unresponsive customers : acquisition, retargeting and win-back

Abstract

With firms losing an average of 25% of their customer base every year, understanding and engaging unresponsive customers has become more critical than ever. We characterize unresponsive customers as either prospects that have never purchased from a firm, or former customers that have not purchased in at least twelve months. Since 55% of all communication is non-verbal, how can online firms cut through the silence and engage these unresponsive customers digitally? Our paper is an exploration into the three current management strategies firms implement to reach the unresponsive customer: acquisition, retargeting, and win-back. Included is an examination into recent technological advancements that provide a new layer of visibility into the behavior and emotion of the unresponsive customer. We also discuss how Emotional Value, which is described as the economic worth of feelings, can be implemented to more effectively win-back customers.