What is a Lapsed Customer?
Imagine you have a favorite toy store. You used to visit it all the time, maybe even bought a cool action figure or a board game there. But then, for some reason, you stopped going. Maybe you got interested in a different hobby, or another store opened up nearby, or you just forgot about it. When you stop visiting and buying from that store, you become what businesses call a lapsed customer.
A lapsed customer is simply someone who bought something from a business before but hasn’t made another purchase in a while. They’ve “lapsed” or fallen out of their regular buying habit. For businesses, knowing about lapsed customers is really important because it helps them understand how to keep their customers happy and bring back those who have drifted away. It’s like checking in on an old friend you haven’t seen in a bit to see how they’re doing!
Why Do Customers Lapse?
Just like why you might stop going to that toy store, there are lots of reasons why a customer might stop buying from a business. It’s rarely because they suddenly dislike the business completely. More often, it’s a mix of different things that slowly make them drift away. Understanding these reasons is the first step in trying to win them back.
- A Not-So-Great Experience: Sometimes, a customer might have had a problem. Maybe the product wasn’t exactly what they expected, or it arrived late, or they had trouble asking a question. Even small problems can sometimes make someone think twice about buying again. Businesses try really hard to make every experience smooth, but mistakes can happen.
- They Simply Forgot: In our busy world, there are so many shops and brands out there! A customer might have bought something once, liked it, but then just forgot about the business. They didn’t have a reason to remember it when they needed something similar again. This is especially true if the business doesn’t keep in touch or offer something exciting to bring them back.
- Found Something New: Maybe a new store opened up, or a friend told them about a different brand that offers something similar. Customers are always looking for the best fit for their needs, and sometimes a new option catches their eye. This doesn’t mean your business wasn’t good, just that they explored other choices.
- Their Needs Changed: People’s lives change all the time! A customer might have bought baby clothes from a store, but now their child is older. Or they bought a specific tool for a hobby they no longer pursue. Their need for what the business sells has simply gone away.
- Not Feeling Special: Everyone likes to feel appreciated. If a customer feels like they’re just one in a crowd and not a valued part of the business’s community, they might look elsewhere. Businesses want to make their customers feel important, like a VIP, so they want to keep coming back.
It’s important for businesses to remember that lapsing isn’t always their “fault,” but it is their opportunity to reconnect and show their value again.
Why Are Lapsed Customers So Important?
You might think, “Why bother with old customers? Why not just find new ones?” That’s a good question! But actually, lapsed customers are super important for a few big reasons. Think of it like a sports team: it’s great to find new talented players, but it’s also smart to keep your experienced players happy and on the team.
Here’s why businesses really care about their lapsed customers:
They Already Know You!
Lapsed customers have already visited your store or website and bought something. This means they know who you are, what you sell, and how you operate. You don’t have to introduce yourself all over again! It’s much easier to remind someone who already knows you about what you offer than to explain everything to a brand new person. They’ve already taken the first big step of trusting your business with their money once.
Bringing Them Back Can Be Easier (and Smarter)
Finding brand new customers can be a lot of work and sometimes quite expensive. Businesses have to spend money on advertising, getting their name out there, and convincing people to try them for the first time. But with a lapsed customer, you already have their information, and you know they’ve shown interest before. A friendly reminder or a special offer can often be enough to get them to come back, which can be less costly than finding someone totally new.
In fact, many businesses find that trying to get an old customer to buy again is much more successful than trying to get a complete stranger to buy for the very first time. You can learn more about how important it is to keep customers coming back by exploring what eCommerce retention is.
They Can Become Your Best Friends Again
When a lapsed customer comes back and has a really good experience, they might become even more loyal than before. It’s like when you reconnect with a childhood friend; sometimes that bond can become even stronger. They might even tell their friends about how great your business is, which is like free advertising! This is called word-of-mouth marketing, and it’s super powerful.
How to Spot a Lapsed Customer
So, how does a business know who its lapsed customers are? It’s not like they wear a special hat! Businesses use clues, almost like detectives, to figure out who hasn’t been around in a while.
| Clue | What it Means |
|---|---|
| No Purchases Lately | The most obvious sign! If someone hasn’t bought anything in a specific amount of time (which can be different for every business, depending on what they sell), they’re likely lapsed. |
| Ignoring Messages | If a business sends out newsletters or special offers, and a customer isn’t opening them or clicking on anything, it might mean they’re not thinking about the business. |
| Loyalty Points Expiring | If a business has a special club where customers earn points (like for rewards), and someone’s points are about to disappear because they haven’t used them, it’s a big sign they haven’t been active. |
| Not Visiting the Website | Businesses can often see if someone is visiting their website. If a customer used to visit often but stopped, that’s another clue. |
Businesses use special tools and systems to keep track of these things. They set up rules, like “if a customer hasn’t bought anything in 90 days, they’re a lapsed customer.” This helps them identify who to reach out to and try to bring back.
Bringing Lapsed Customers Back: Smart Strategies
Once a business knows who its lapsed customers are, the fun part begins: trying to get them back! This isn’t about tricking anyone, but about reminding them of the good things your business offers and maybe even making them feel a little special. It’s all about providing a great eCommerce customer experience.
Making Them Feel Special with Loyalty Programs
Imagine your favorite restaurant gives you a special card, and every time you eat there, you get points. After enough points, you get a free dessert! That makes you want to go back, right? That’s what a loyalty program does. It’s a way for businesses to say “thank you” to their customers and reward them for coming back again and again.
For lapsed customers, loyalty programs can be a powerful way to bring them back. A business might send a message saying, “Hey, we miss you! Here are some bonus points to get you started again,” or “Your points are about to expire, don’t miss out on your reward!” This gives them a clear reason and a special treat to return.
Building a great loyalty program helps businesses create a community where customers feel valued and want to engage. A platform like Yotpo Loyalty helps businesses design and run these programs, making it easy to reward customers for purchases, birthdays, or even just for saying hello. These programs can be tailored to make customers feel truly special and encourage them to reconnect. You can explore more about the best loyalty programs and how they work.
Using What Others Say (Reviews) to Rebuild Trust
Think about when you’re looking for a new game or a book. Don’t you often ask your friends what they think, or look at what other people have said about it online? That’s what reviews are! They are honest opinions from other customers about a product or a business. If a lapsed customer is thinking about coming back, seeing lots of new, positive reviews can really help.
Good reviews show that other people are still happy with the business and its products. It can remind a lapsed customer, “Oh right, I remember liking them! And look, everyone else loves them too.” It builds trust and confidence that the business is still great.
Tools like Yotpo Reviews make it easy for businesses to gather and show off these important customer opinions. Businesses can ask customers to share their experiences, and then these reviews can be displayed on their website, helping not just new customers but also reminding lapsed customers of the business’s quality. Learning how to ask customers for reviews is a valuable skill for any business wanting to improve trust.
Sometimes, these two ideas work together! A loyalty program might even reward customers for leaving a review, creating a cycle where customers are happy, they share their happiness, and that helps bring back lapsed customers. It’s a win-win!
Gentle Nudges and Special Offers
Businesses can send friendly messages to lapsed customers. These aren’t pushy demands, but gentle reminders. A message might say, “We miss you! It’s been a while, and we’d love to see you back. Here’s 10% off your next purchase!” or “Did you know we have new arrivals you might love?”
These messages are often personalized, meaning they might mention something the customer bought before, making it feel more special and relevant. The goal is to catch their eye and give them a good reason to click back to the website and maybe even buy something again. This is a key part of the eCommerce marketing funnel that businesses use.
Special offers, like discounts, free shipping, or a small gift with their next purchase, are like a friendly invitation. They give the lapsed customer a little extra push to try the business again, without feeling pressured. It’s about making them feel appreciated and excited to return.
The Power of a Great Customer Experience
While trying to win back lapsed customers is important, preventing them from lapsing in the first place is even better! And the secret to that is providing an amazing customer experience all the time. Think about it: if every time you go to that toy store, the people are friendly, the toys are great, and everything is easy, you’d never want to stop going, right?
A great customer experience means:
- Fantastic Products: The things a business sells should be exactly what customers need and want, and they should work well.
- Helpful Service: If a customer has a question or a problem, getting quick, friendly, and useful help makes a big difference.
- Easy Shopping: Whether it’s online or in a physical store, everything should be simple to find and buy. No tricky steps or confusion.
- Making Customers Feel Heard: When customers share their ideas or feedback, businesses should listen and show they care. This includes looking at user-generated content like reviews and photos.
When customers consistently have good experiences, they build a strong connection with the business. They feel happy, valued, and confident, which makes them want to keep coming back without even having to think about it. It creates a community where customers are not just buyers, but fans who genuinely enjoy interacting with the brand. This is also why understanding the new eCommerce growth model focuses heavily on retention.
How Do Businesses Know if Their Efforts Are Working?
After a business tries to bring back lapsed customers, how do they know if it worked? They don’t just guess! They keep a close eye on a few things:
- Are They Buying Again? The most important sign! If a customer who hadn’t bought anything in months suddenly makes a purchase, that’s a huge win. Businesses track how many lapsed customers come back and buy again.
- Are They Engaging? Are they opening the emails, clicking on links, or visiting the website again? Even if they don’t buy right away, showing interest is a good sign they’re thinking about the business.
- Are They Becoming Regulars? The ultimate goal is not just one more purchase, but to turn a lapsed customer back into a regular, happy customer. Businesses watch to see if these customers continue to shop or interact over time. This helps them understand their ecommerce conversion rate.
Businesses use special reports and tools to track these numbers. It’s like checking the score in a game to see if their strategy is helping them win back their valuable players!
Bringing It All Together: Why Every Customer Matters
So, a lapsed customer is like a friend who has drifted away a bit. They know you, they liked you, but for some reason, they haven’t been around lately. For any business, big or small, understanding who these customers are and why they’ve lapsed is super important. It’s not just about getting one more sale; it’s about building lasting relationships.
By using smart strategies like inviting them back with special loyalty program rewards through Yotpo Loyalty, or reminding them of the great experiences others are having through trusted customer stories gathered by Yotpo Reviews, businesses can rekindle those connections. Making customers feel valued, heard, and excited to return is key. Because in the end, every customer, whether new, loyal, or lapsed, has the potential to be a business’s biggest fan!
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