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Direct marketing reactivation strategies 'are struggling'

Marketers looking into more traditional customer reactivation strategies are being increasingly hampered by cutbacks in consumer spending and channel fragmentation, according to an industry expert.

This is forcing the sector to develop new methods of reaching out to lapsed customers in order to maximize reactivation numbers, Keith Peterson wrote in industry magazine Target Marketing.

Building new approaches from scratch and starting with the basics is highlighted as a necessity in developing these new methods, as is mixing traditional marketing methods with new industry approaches.

Mr Peterson said: "The fundamentals of remarketing haven't changed. Identify best customers and the attributes that make them the best. Analyze purchasing trends, patronage patterns and channel usage to illuminate key behavioral characteristics of the ideal reactivation candidates.

"But don't stop there. Demographics, wealth data and … transactional information should be used to enrich the customer profile. This data helps assess how former customers are spending their time and money today. In addition, this information is critical for assessing the value of former customers who had sparse purchase histories but may still be good candidates."

He added that marketers must ensure customer data is up-to-date and relevant to ensure future campaigns can maximize their potential use.
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