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Getting back churned users, is it worth it?
My time is split evenly between acquiring new users and making existing customers happy (so they stay). But now, I'm wondering if this should be a tripart split, and I should also be paying attention to churned users.
In the past, I've tried a win-back campaign for churned users by offering them a discount. But it had 3% conversion.
Should I focus on re-engaging churned users for my SaaS?
If so, what are best strategies?
If not, why?
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Jamesky
Getting back churned users can be worth it, depending on your business goals and the reasons why users churned in the first place. Here are some factors to consider:
Cost: Reacquiring churned users can be expensive. You may need to invest in marketing campaigns, promotions, or other incentives to entice users to return. It's important to weigh the potential cost of reacquiring churned users against the potential revenue they may generate.
Lifetime value: Churned users may have a lower lifetime value than new or existing users. If users churned because they were not a good fit for your product or service, it may not be worth investing resources in trying to reacquire them.
Reason for churn: Understanding why users churned can help you determine whether it's worth trying to win them back. If users churned due to a temporary issue, such as a technical glitch or a bad customer service experience, it may be worth trying to reacquire them. However, if they churned due to a fundamental issue with your product or service, it may be more difficult to win them back.
Competitive landscape: Consider the competition in your industry and whether it's worth investing in reacquiring churned users. If your competitors are actively targeting your churned users, it may be worth the investment to win them back.
In summary, getting back churned users can be worth it, but it depends on the cost, lifetime value, reason for churn, and competitive landscape. It's important to evaluate each situation on a case-by-case basis and determine whether the potential benefits outweigh the costs.
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It is important to understand why they churned, if you are offering something different than the time they churned yeah it's worth it, but if you still have the same issues it is a lost cause.
I'd say try it and calculate your CaC afterwards. I suspect that a churned user coming back might be there to stay, as they already know 1) why they left and 2) why they came back (probably solving the "why they left issue")
