Identifying Zombie Customers | Optimove

Re-engage your churned customers with this guide

Why it Matters:

Knowing which customers are not a good fit is just as important for brands as knowing which customers are. This insight helps refine marketing strategies and optimize campaigns more effectively. Identifying and excluding low-value, costly customers allows brands to focus on those who drive long-term value, resulting in higher ROI and more efficient use of marketing resources.

Key takeaways:

Focus on loyal customers over those who only engage during promotions to avoid wasted resources and maximize profitability.
Segment wisely to distinguish high-value from low-value customers; use data to pinpoint unprofitable segments, like zombie customers.
Craft personalized messages with exclusive experiences or early-bird notices; use FOMO (fear of missing out) to drive higher-margin purchases.
Align marketing with business goals and KPIs to drive revenue effectively while maintaining brand integrity and customer engagement.

Understanding Zombie Customers

Some of the worst customers for retailers are those who chase promotions but don’t drive long-term revenue: the “zombie customers.” They only come alive for big discounts and sales and aren’t profitable over time. For example, zombie customers may only purchase during huge events like Black Friday or Cyber Monday and tend to ignore regular-priced items.

Knowing who zombie customers are and segmenting them as irrelevant ensures brands avoid wasted marketing efforts while tending to those who truly matter.

Identifying Zombie Customers Through Data Insights

Segmenting customers into the most precise target groups is key as it empowers brands to distinguish between high-value and low-value customers.

Using data to analyze marketing campaigns is crucial to pinpointing unprofitable segments. Look for patterns like only purchasing during sales and overusing discount codes/coupons to identify these customers.

How to prevent churn and reactivate customer

Exploring Messaging for the Zombie Audience

By effectively exploring messaging for zombie customers, brands can refine their marketing efforts to engage and retain them. Offer value in ways that appeal to high-value customers, such as exclusive experiences, early-bird notice, or loyalty rewards. This helps maintain brand integrity and attracts the right audience. Also, evoking FOMO (Fear of Missing Out) in messaging to zombie customers could encourage them to purchase at full price.

Marketers should always develop strategies to discover promotions that attract valuable customers without over-relying on discounts. Craft targeted messages that resonate with specific audience segments and test messages for effectiveness to help drive long-term value for the brand.

Balancing Business Goals with Customer Engagement

Strike a balance between enticing offers and campaign profitability to avoid the pitfalls of over-discounting. The goal is to ensure that each offer is sent to the correct customer segment and contributes to profitability.

OptiGenie’s AI Insights assists marketers in achieving true personalization at scale. By leveraging AI, brands can transform marketing efforts to improve productivity, pinpoint zombie customers, tailor personalized messaging, and re-engage them effectively. Through targeted strategies such as exclusive offers or personalized incentives, marketers can nurture these customers towards more frequent and valuable brand interactions, ultimately boosting loyalty and lifetime value.

The Guide to Re-Engaging Lapsed Customers

Identify at-risk and lapsed customers and bring them back with this guide.

In Summary

Effectively identifying and managing zombie customers is crucial for marketers aiming to maximize efficiency and long-term value. By leveraging data-driven insights and advanced segmentation, brands can focus on loyal, high-value customers, reducing wasted resources.

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Published on

July 17th, 2024