#171: Boost Your Bottom Line with Database Reactivation
If you’re a business owner, you know how important it is to maximize profits and increase your bottom line. Database reactivation is an effective way to do just that. Database reactivation is the process of reconnecting with past customers or clients and encouraging them to purchase again. It’s a great way to increase revenue and foster customer loyalty. In this blog, we’ll discuss the key benefits of database reactivation and provide tips on how to execute a successful campaign.
What is Database Reactivation?
Database reactivation is the process of reconnecting with past customers or clients and encouraging them to purchase again. It’s a great way to increase revenue and foster customer loyalty. Your database is the most valuable asset you have and reactivation can be a powerful tool for any business.
The Benefits of Database Reactivation
There are a number of benefits associated with database reactivation.
Cost-Effective: Database reactivation is a cost-effective way to increase sales. It’s much cheaper than acquiring new customers, as you’re not spending money to acquire new leads.
Increased Awareness: Database reactivation helps to increase brand awareness. By reaching out to past customers, you’re reminding them of your brand and increasing your visibility.
Foster Loyalty: Database reactivation is a great way to foster loyalty. By reaching out to past customers, you’re showing them that you value them and want to continue to do business with them.
How to Execute a Successful Database Reactivation Campaign
To ensure success, you need to execute a well-planned database reactivation campaign. Here are some tips to help you get started:
Analyze Your Database: The first step to a successful database reactivation campaign is to analyze your database. You need to identify the customers who are most likely to respond positively to your campaign.
Segment Your Database: Once you’ve identified the customers who are most likely to respond positively, you’ll want to segment them according to their purchase history. This will help you tailor your message for each segment.
Create a Targeted Message: Once you’ve segmented your database, you’ll need to create a targeted message for each segment. You should include an incentive to purchase, such as a discount or free shipping.
Choose the Right Channel: You’ll also need to choose the right channel for your message. This could include email, social media, or direct mail.
Measure Results: Finally, you’ll want to measure the results of your database reactivation campaign. This will help you determine which segments and channels are the most effective.
Conclusion
Database reactivation is a great way to boost your bottom line. It’s cost-effective and helps to increase brand awareness and foster customer loyalty. To execute a successful campaign, you need to analyze your database, segment it, create a targeted message, choose the right channel, and measure results. With these tips, you can ensure that your database reactivation campaign is a success.
Listen to the Show:
Laura Meyer 00:00
So, what if you could turn a seemingly inactive list people who have opted to not reply to you and not respond to you when your sales team is following up with them. And so, you've said, you know what, they're just not going to be buyers. What if that was an actual list of people that could turn into a goldmine for your business? This is something that a lot of people just assume that if they went through your initial sales follow up, or even if you have any sales follow up, if they didn't buy the first time you made an offer that they're not interested. And this is something that I have been really dedicating my career to. It's something that I have spent an incredible amount of time looking into not only as a business owner who owned a brick-and-mortar chain for 15 years, but now as a marketing consultant. And I have to tell you, that if I knew then what I know now, about sales follow up, I wouldn't even be recording this video, I would be sitting on a beach somewhere sipping a cocktail watching my kids play in the ocean. So, what I want to share with you today is just the power of this inactive database, what it can mean for your business and the way in which AI makes this entire system so much easier. Stay tuned.
Laura Meyer 01:20
Welcome to the AI-Driven Marketing podcast. This is a place where we deliver quick and insightful weekly tips about 10 minutes or less on what's new and groundbreaking in the world of marketing AI. I'm your host, Laura Meyer, a 20 plus year entrepreneur and marketing expert. If you are excited about staying ahead of the curve and harnessing the potential of AI in your marketing strategies, you're in the right place. Let's go.
Laura Meyer 01:51
Hey there, if we haven't met yet, my name is Laura Meyer. If you're watching on video, welcome if you're tuning into the podcast, so glad you're here. And I am a growth consultant to some of the country's fastest growing brands. And I'm also an AI expert, whatever that means. I think AI is so new, it's hard for anybody to say that they are an expert or not an expert. But put it this way I spend a lot of time looking into AI, not just in theory, not just in what it could do not discussing it. From a philosophical standpoint, I find that interesting, but not as interesting as the practical application of where it can help business owners, particularly local business owners just activate their sales and marketing processes in a more powerful way. The reason why I spend so much time with this is because so many of our clients are just like me, where I was sitting there trying to get the right person to answer the phone and making sure that they're following up within a short period of time and feeling like oh, that person was interested, they relieved they opted in, and then they're gone. Poof. And it feels like Well, gosh, they were interested at one point, right? What happened? Did we just not get back to them? Did we lose their attention? Did they change their mind? It's hard to know.
Laura Meyer 03:08
But what I've learned in the last six months or so is that AI can reengage this type of lead in a way that I think is hard for humans to replicate. Now it can work in a variety of different ways it can work with human sales teams instead of replacing them, which I think some people automatically assume that I'm talking about which I'm not at all when I'm talking about how AI helps. But ultimately, this video in this podcast episode is about something called database reactivation. So, you're paying for these leads, you're going to events, you're running paid traffic campaigns, you're doing all of the SEO things. And
these leads are piling up right. And at some point, they opted into your offer, or they got on your list, or they came to you somehow because they were fundamentally interested in your brand. They probably responded to a variety of different marketing messages. Sometimes it's hard to know exactly what it was that got them on your list, but somehow, they made it on your list. And usually, people don't give up their email addresses easily. I don't know about you, but I'm pretty hesitant to put in my email address. And I only do it if I really want the information or I really want the offer that is on the table. When the offer is in front of me. I'm like, oh, I really want that I'm really interested, or I've been meaning to look into that. Okay, I'll give you my email address and phone number. But people don't do that easily. They don't just give up their private information for no good reason. So, I think it's safe to assume that if somebody is on your list, it's because they had pretty good intentions on learning more about your services. And at some point, along the way, we lost them.
Laura Meyer 04:47
And what happens is the longer you're in business, the more that list of compounds, they tend to okay, so now maybe one day you get three people and the next day you get one the next day you get five people and then over time you have 1000s of leads, 1000s of prospects who at one point were interested, that just completely fell off the radar. And maybe you have a follow up process. You know, when I was in business, we had like a two week follow up process, I've talked to brands now that have as much of a six month follow up process. So, you have your follow up, but maybe it just wasn't working for them at that time, or something came up, or they got busy, or they changed their mind, even though they're still kind of interested. And that's where database reactivation becomes really incredibly powerful. So, let's talk about what database reactivation actually is. Database reactivation is when we take a list of leads that are seemingly dormant, and we send them an outbound message with a great offer, typically, the more generous the offer, the more that people respond, and we're looking for that positive response rate, we're like, we're not looking to tell them everything about the offer, we're not looking to give them every single fact that we can come up with about our company and history, and all of the different options, right, we want to make it really easy for them to just engage in a conversation. That is the goal of this outbound message. And what we've been doing is experimenting with a variety of different outbound messages. And what we find is that on the low end, maybe two or 3% reply, depending on the age of the list and the quality of the offer, but we recently had a client with an 18% response rate. I mean, that is like almost 1/5 of their list that they were thinking was just trash was garbage. And now, those leads have reengaged, many of them have booked. And we've just gotten into a conversation with them in a different way.
Laura Meyer 06:51
And the reason why this sometimes works is sometimes people don't want to talk on the phone, I don't know about you, I really like people, I'm a social person. But if I'm working and I'm busy, I just want to like text in between meetings, or when I know I just have a moment and get something done. I don't necessarily want to talk on the phone. As somebody who has three kids and businesses and life and tennis, you know, things get busy. And so that is just one reason maybe we're engaging with them on a platform that they would prefer to communicate on. Another reason is because we make it easy for them to book. And if you've been trying to book trial appointments, or doctor's appointments or anything like that, lately of right now during recording, it's back to school. So, you know, I'm doing all of those back-to-school things on all those appointments and all of those doctor visits. And it's just like such a
drag because I have to log in, and then I have to find my login. And then I have to figure out the passcode. And then I have to go to the old email address that I don't really use any more than I first signed up with. It is such a pain. And what we do is with AI, we make it so much easier for them to engage with a system, it's seemingly human, that just puts the appointment on the calendar, you don't have to log in anything. You don't have to set up a new account, you can do any of that. And it's amazing how much that removes friction for people that maybe seemed like they weren't interested because we've been following up with them. But it's just that we're engaging them in a new way and making it easier for them to book. So, this has been really remarkable to see how well this works on a doorman database again, what we call database reactivation.
Laura Meyer 08:40
So again, the reason why this works is not everybody books in the same way. Some people want to get on the phone, some people don't mind logging in, some people are like me, and they're like, how can we get this done with the least amount of friction? Possible, right. So, this is why it works because it's combined with AI that makes it easier for them to book. The second is that sales processes that are traditional in nature just might not work for everybody kind of goes back to the first point of that not everybody books in the same way. But when we think about that traditional sales process, traditional follow up, you might want to do a little bit of research on your own time on your own terms. If you're a buyer, you might not want to engage with a salesperson right away. You might want to ask a few people before making that time and money commitment. I don't know about you, but from my perspective, the time commitment is actually a bigger risk for me than a money commitment. I if I'm going to pay for an appointment and it doesn't work out. That's okay. I don't mind but there's time invested in an appointment that doesn't work out or doesn't meet my needs is a huge sacrifice for me in this season of life. So, it just makes it a little easier for them to do their research, ask some friends and then come back to you.
Laura Meyer 09:56
And then the third is speed to lead if it's a new lead, we know research shows that the quicker we get back to that lead, the more likely they are to book. Well, if we are also incorporating database reactivation, then we can reengage them. And with AI, once they're reengaged, we don't lose them again, like maybe this is somebody that's just easily distracted. And so, the AI will engage them, get them on the calendar, because we re engage them. And now it's time to act. So that's what makes this work so well. And the factors that contribute to the success of database, reactivation are a couple, come back to a couple of KPIs or key performance indicators that we like to see. The first is positive response. Sometimes what we see is a high lead to booking rate. But that positive response that that initial response that gets the reengagement is really low. And this has to do with a couple different factors. The first is the strength of the offer, like the more generous the offer, the more likely people are to respond in a positive way, because they're like, Oh, that's a juicy offer. Alright, tell me more. Now, I'm curious, what does it cost? Or what are the long-term commitments what's involved, right, but now we're in a sales conversation, which is fantastic. We typically like to see a positive response in a six to 10% range. If it's below 6%, I'm, we're talking to the business owner, we're problem solving with them. It's above 10%. Like I said, we've seen as high as 18. We're like, oh, my gosh, this is awesome. Free up your calendar call in your backup staff, it is time to party. So that is what we were looking for. And what we like to see is a booking range from that positive response to booking in the 40 to 60% range.
Laura Meyer 11:47
Maybe they ask some questions, and they realize you know what, at the end of the day, this isn't for me, or maybe they engage with the AI, and they're like, oh, wow, this is awesome. And again, typically, we'd like to see that in the 40 to 60% range, we see it about 50% on average. And this is having a lot to do with if the lead is going to a sales team getting warmed up by AI and then going to a sales team. Typically, that move from text to phone tends to reduce the effectiveness overall, even with a great sales team. Because it's hard to move people from platform to platform, you probably have seen this in your own business. If the AI is booking them onto the calendar, it's on the higher side. And then again, the relationship with the brand. And just the overall feeling that people get that care at high level of care and concern, which is how we think about programming the AI that has a lot to do with how well they book as well. So, this has been just fascinating. I remember when I sold one of my old companies owned locations, and turned it into a franchise location, I remember that one of the biggest assets on the asset list was the email list. And that email list was in my I kind of thought, okay, we're going to put it on the, the list of assets, but you know, we've hit up that list so many times, I'm not sure how many of those people could turn into prospects. Gosh, if I knew today, if I knew then what I knew today, I would have looked at that list totally differently.
Laura Meyer 13:25
Inactive list is just a group of people that didn't buy the way that you were selling to them, they still might be very much interested in your offer. And that's what we keep seeing with these database reactivations. So, if you're have been tired, looking at your list, and just wondering, gosh, like I've paid so much money, let's say you have, you know, a 5000 person list and you've paid on average, maybe $3 A lead like that is a ton of money just sitting there. And if you keep looking at that thinking there's got to be something that we could do with that list. I hope that this video, I hope that this podcast episode is helpful to you, I hope it serves you it helps you kind of think about it in a new way and just inspire some innovation right around this idea of maybe I could go at it from a different angle, maybe AI could help me get these folks on the calendar. Again, not to replace the human interaction not to replace that relationship building but to enhance it and in a lot of ways reactivate it and that's what I love about AI because it gives us the ability to get back into relationship with people that maybe you know we lost but we know we could win over if we just were able to get back into touch with them.
Laura Meyer 14:45
So, if you've been sick of seeing your database just sitting there I hope this video was really helpful to you. I hope that if you're listening to the podcast, you have been enjoying this make sure to share it with a friend maybe also owns a brick and mortar location and could be interested in this information. And if you would like to learn exactly how this works, see what it looks like, make sure to visit get more sales with ai.com. That's just get more sales with ai.com where I demonstrate this and really show you what it looks like real time. I appreciate you listening and watching, and I'll look forward to seeing you next time on the AI-Driven marketing podcast.
Laura Meyer 15:26
Thank you for tuning in to the AI driven marketing podcast. Before we wrap up, I just want to remind you that you can learn more about how to make more sales with AI by going to
makemoresaleswithai.com. This is where I dive deeper into the AI revolution in marketing with our free training. And if you've enjoyed today's episode, please share it with others who might find it valuable. And if you can also just take a moment to leave us a review. I would greatly appreciate it. Your support helps us continue to bring you the top insights in the field of AI driven marketing. Until next time, remember AI is here and it's transforming the marketing landscape. Stay Ahead, stay informed, and most importantly, stay excited. I'll see you soon.
Welcome to the AI-Driven Marketing Podcast! Join host Laura Meyer, a 20+ year veteran entrepreneur and marketing expert, as she unveils the future of marketing that's already at your fingertips. Each episode offers quick, valuable insights, news, and practical tips about how AI is revolutionizing the marketing landscape, shaping how businesses engage with customers, and enhancing marketing strategies. Tune in to stay ahead, informed, and excited about the remarkable opportunities that AI brings to the world of marketing.