Given 65% of consumers switched to a competitor brand last year, can membership organisations learn anything from consumer win-back programmes?
There has been a high level of brand switching in 2011. Win Back represents a big opportunity is the main conclusion of a report by CIRRUS Marketing Consulting.
Going back to a lost customer with nothing new to say is unlikely to work but how often do membership organisations really understand the reasons for leaving and what type of proposition might win back lapsed members.
Ian Phillips, Director, Ashridge Communications commented ‘We work with a wide range of professional membership bodies on researching lapsed members and advising on win-back campaigns. We find that many organisations have limited exit surveys and possibly telemarketing win-back campaigns but without really understanding the real motivations for leaving which can then enhance the win back as well as support membership retention.’
In the CIRRUS survey they identified that consumers have been looking in particular for Better Prices and Value For Money (VFM). This can in part be explained by Austerity Britain Syndrome, real disposable incomes are falling and this trend is set to continue.
Is there however sufficient margin to improve prices and VFM or sufficient will to improve the customer experience?
29% switched brands in search of Better Customer Service and Better Quality. Memcom believes that whilst there are of course many other reasons for being a member of a professional body many leave as they do not feel it is value for money and that it is all about tailoring benefits as much as possible to specific groups needs and interests. A feeling of empathy with the brand also needs to be created. The concept of shared values and how to take that on board will be explored further by Cristian Holmes of BACP at the MemCom conference on May 17th.
CIRRUS in their report confirm this and state that a one size fits all approach to win back is unlikely to succeed. There is significant variation in:
•    the reasons for brand switching
•     lost customers attitudes to the brand
•     likelihood to repurchase again
ROI can be increased by tailoring and customising Win Back marketing activity. Some segments should be screened out, others warrant significant investment.
There is a link between the reason consumers switched brands and the likelihood to re-purchase. Specific strategies can be developed for The Untouchables, Cold Prospects, Warm Prospects and The Definites.
Consumers seem to take the view companies are more likely to fix Price and VFM issues than Customer Service issues. So it may cost more to win back those who defected because of customer service issues.
Consumers claimed Email is the preferred way of companies getting back in touch with them to persuade them to re- purchase. Direct Mail is the second preferred method. Test marketing campaigns should be carried out to establish ROI of each channel.
It is recommended that a systematic Win Back process is followed:
•    insight
•    segment prioritisation
•    test marketing
•    review, roll out and automation
For a copy of the full report click this link - http://www.dma.org.uk/sites/default/files/tookit_files/win_back_2012_by_cirrus_marketing_consulting_v_dma.pdf
*CIRRUS Marketing Consulting commissioned an online market research study in the UK in December 2011 using Toluna. 500 respondents completed a survey and the data was weighted to be representative of the UK Adult population.