Few UK companies have customer win-back strategies
LONDON - Less than a third of UK companies are effective at re-recruiting lapsed customers, according to a report by data specialist CDMS.
The survey conducted among senior marketers in retail, banking, credit card, insurance, telecoms, travel and utilities companies shows failure in direct marketing, which in turn could promote tougher legislation governing prospect communications.
Telecoms was the most effective sector, gaining a 42% share of win-backs while banks were the least developed with 23.8%.
Ian Hubbard, sales director at CDMS, said: "It is widely accepted that winning new customers is far more expensive than developing existing customer value, yet our research findings indicate that insufficient attention is being paid to the crucial business of customer re-activation."
He added: "However, a significant proportion of lapsed customers can be turned around. In fact, studies indicate that re-activated customers often turn out to be the most loyal."
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