What is Customer Re-Engagement?

In marketing, customer re-engagement pertains to a strategy that includes reaching out to customers who have not interacted with your brand or purchased from your online store in a while.

This practice typically involves rekindling the customer's interest through email marketing, offering attractive discounts, or exclusive products that would entice them to revisit your website and hopefully make repeat purchases. The concept of customer re-engagement evolved with the rising competitiveness of the digital marketing space. In the past, marketing depended mainly on attracting new customers, but lately businesses recognize that retaining existing customers can be more profitable.

Customer re-engagement is an essential part of the retention strategy. The goal here is to enhance the Lifetime Value (LTV) of the customers, which refers to the net profit contributed by a customer over their entire relationship with the company. When a customer re-engages with a brand and make repeat purchases, it means they are contributing more to the company's LTV.

Examples of Customer Re-Engagement

1. An online fashion retailer sending a personalized email to a customer who hasn't made a purchase in the last three months, offering a discount on their next purchase.
2. A health and wellness e-commerce website sending an email series showcasing their new product line to customers who haven't visited the site in six months.
3. A furniture e-commerce platform sending a special promotion for exclusive furniture sets to customers who have not made a purchase in a year.
4. An online bookstore offering a special book club membership to past customers who haven't made a purchase in a while, providing perks like free ebooks, discounts, and early access to new releases.
5. A Music streaming platform sending personalized playlists to inactive users, based on their previous listening habits, to encourage them to return to the platform.

Marketing Tactics Similar to Customer Re-Engagement

• Customer Retention refers to strategies and tactics companies use to prevent customers from defecting to competitors.
• Customer Loyalty Programs are schemes offered by companies to reward frequent customers, incentivizing them to make repeat purchases.
• Personalized Marketing refers to strategies aiming to customize offerings and communications based on individual customer's preferences and behaviors.
• Email Marketing involves communicating with customers via email to build relationships, promote products, and drive website traffic.
• Segmentation is the process of dividing a market into distinct groups of buyers who might require separate products or marketing mixes.

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