What are Declining Customers?

We describe how we calculate declining customers and some ideas to re-engage this cohort.

Customers are flagged as declining when our predictive model predicts a customer will spend less in the next three months than they did in the same period of the prior year.  Knowing who these customers are before they drop off provides a prime opportunity to re-engage them and further develop your customer retention strategy. 

Develop a Declining Buyers Strategy

Based on the customer segment we recommend having a different retention strategy. The amount of effort and resources applied to the retention effort should align with the value the customer has to your business. 

Re-Engagement Strategies for Each Segment 

Top Performers (most valuable customers)

Goal: Make them feel special, recognized, and valued.

Channel: Call, send a personal email or mail.

Ideas: Assign them a personal concierge, offer them a complimentary gift or event ticket to show appreciation. 

Consistent Buyers (above-average customers)

Goal: Recognize and thank them for their purchases.

Channel: Call, email or mail

Ideas: Send a handwritten thank you, invite them for an exclusive experience, or send them a special offer code. 

Casual Buyers (average customers)

Goal: Create a connection between them and your brand

Channel: Email or social media targeting 

Ideas:  Providing engaging content of things they can use or try themselves, or share a personal story or fun facts about your winemaker.

Spectators (below-average customers)

Goal: Increase brand awareness and positive associations

Channel: Email or social media targeting

Ideas:  Share a lifestyle they can associate with your brand, share the perfect pairing recipe, or confidence that they're bringing the best wine at the party. 

Automate your Strategies

Once you have decided what channel and message is the best fit for your brand, automate the applicable communications so they are constantly working for you in the background. 

Additional Resources

Propel Growth with Experimental Design

Identifying and Activating Intervention Strategies for DTC