What's the best way to win back at-risk customers before they churn?

Expert answer · sourced from 8 podcast episodes

Short answer

If I were you, I’d first figure out what 'at-risk' even means for your business by calculating your average time between repurchases. Once you know that window, you can build a segment of customers who are past that point and start reactivating them.

TL;DR

If I were you, the very first thing I'd do is define what at-risk means for your specific brand and products. I see a lot of people jump straight to tactics, but as Fiona Stevens pointed out on Ecommerce Coffee Break, your expected repurchase time frame is completely unique to you. A mattress brand’s “at-risk” window is years, but for a coffee brand, it could be a matter of weeks. You can’t build a good strategy until you know that number.

So in week one, I’d dive into my order data and calculate the average time between a customer's first and second purchase. Let's say it's 45 days. I’d then create my first at-risk segment: customers who are past 60 days without a second purchase. My first move wouldn’t be a discount. Instead, I’d send them an email asking for feedback or introducing them to a new product line they haven’t purchased from before. The goal is to re-engage them with value, not just a coupon.

In month one, I’d get more sophisticated. I'd start segmenting that at-risk group by their lifetime value. For the highest-value cohort, I’d try something that doesn’t scale, like sending a personal video to check in, an idea I got from Oli Bridge. For everyone else, I’d build an automated, low-frequency email flow. William Harris and his guest Jason Anderson talked about this on the Up Arrow Podcast. They made the case for thoughtful monthly touchpoints, which keep you top of mind without burning out your audience.

I’d completely ignore trying to win back customers who were clearly a bad fit. This was a huge takeaway for me from listening to Kristen LaFrance on Honest Ecommerce. She makes the point that with acquisition costs rising, you have to focus on keeping your best customers, not desperately chasing every person who leaves. Some customers churn because they were never right for your brand in the first place. Let them go.

The biggest trap I’d avoid is making discounts the default weapon. It's a common tactic, as Sep Advani mentioned, but it can really devalue your brand and just attracts people who will leave again as soon as the promotion is over. A discount should be a strategic, last-resort tool for a specific, high-value segment, not a blanket solution. It's one of the most important Customer Retention And Loyalty Strategies to get right.

Cited episodes (8)

  1. Ecommerce Coffee Break — How To Grow Your Business With Returning Customers | #274 Fiona Stevens cover art

    How To Grow Your Business With Returning Customers | #274 Fiona Stevens

    #1 · Ecommerce Coffee Break · with Fiona Stevens

    This episode provides a simple framework for defining at-risk segments and offers practical, non-discount tactics to re-engage those customers.

  2. eCommerce MasterPlan — iFIT’s 4-Bucket Framework: How to Build a Subscription Business That Lasts cover art
  3. Ecommerce Coffee Break — How To Build A Subscription Business From Ground Up | #198: Sep Advani cover art

    How To Build A Subscription Business From Ground Up | #198: Sep Advani

    #3 · Ecommerce Coffee Break · with Sep Advani

    Listen to this to understand the common pitfalls of using discounts as a primary tool for fighting customer churn.

  4. Honest Ecommerce — Your Best And Worst Customers | Kristen LaFrance | Churn Buster cover art

    Your Best And Worst Customers | Kristen LaFrance | Churn Buster

    #4 · Honest Ecommerce · with Kristen LaFrance

    This episode is essential for learning why you should focus on retaining your best customers, not trying to save everyone.

  5. Shopify Masters — Best of 2023: Top Advice from Business Experts cover art
  6. eCommerce MasterPlan — The 3 Pillars of a Successful Subscription Business, top tips from our latest Virtual Summit cover art
  7. Up Arrow Podcast — The Customer Journey Mistakes That Kill 8-Figure Brands With Jason Anderson cover art

    The Customer Journey Mistakes That Kill 8-Figure Brands With Jason Anderson

    #7 · Up Arrow Podcast · with Jason Anderson

    The episode makes a strong case for using thoughtful, low-frequency messaging to reactivate dormant customers without hurting deliverability.

  8. Maximizing Ecommerce — Developing Customer Relationships with Personalized Video with Oli Bridge, Bonjoro, Ep #64 cover art

    Developing Customer Relationships with Personalized Video with Oli Bridge, Bonjoro, Ep #64

    #8 · Maximizing Ecommerce · with Oli Bridge

    This gives you a creative, high-touch idea (personalized video) to win back your most valuable at-risk customers.

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