Customer winback generates so much revenue that customer lifetime value doubles for returning customers.
That's what a study in the Harvard Business Review found (March 2016) and we've found the same thing after winning back thousands of lost customers ourselves.
Customer lifetime value doubles (or more) for customers that we win back.
A study of 40,000 lost customers published in the Harvard Business Review reported that ...
"Second-time customers in the study had an average lifetime value of $1,410, versus just $1,262 during their initial run with the service.“
And this increase in lifetime value isn’t exceptional – it’s actually very typical.
Our customer winback programs have won back thousands of lost customers over the last 6 years and the average lifetime value always more than doubles.
The Customer WinBack Benchmark Study also found that winback generates so much revenue that lifetime value doubles or more.
The study reported that …
1) 49% of returning customers generated about the same revenue after they were won back as they did during their "first lifetime" (customer lifetime value doubled)
2) 4% generated less (lifetime value less than doubled)
3) 47% actually generated more revenue the second time around (customer lifetime value more than doubled)
In other words, 96% of the time customer winback generates enough revenue to at least double customer lifetime value.
If you’re responsible for revenue that’s got to be music to your ears.
This is just one more reason why winback belongs in every revenue playbook.