Customer WinBack Ranked #1 for ROI

Customer winback was ranked #1 for ROI by the Customer Winback Benchmark Study.

It ranges from 32X and goes up to 182X.

That’s what over 140 CROs, CMOs, CEOs and founders told us in the WinBack Study. 

And that’s why they ranked it #1 for ROI.

It was ranked higher than upselling, podcasting and even strategic alliances.

Winback also delivered the best ROI that I’ve ever had and it’s why I love winback so much.

I’d been a marketer for over 20 years before I did my first winback campaign.

That customer winback campaign generated a 57X ROI. Nothing I’d ever done had generated that kind of ROI. 

Strategic alliances were gold for us and delivered a great ROI, but it wasn’t anything close to 57X ROI.

It’s because you’ve got this amazing situation where an extremely low investment generates really high returns.

For example …

The average customer winback campaign costs less than $5k to run and generates $485K. 

That’s a 97X ROI.

Now those numbers are for SMBs (small to medium size businesses), larger organizations generate millions in winback revenue but the ROI remains really high. 

Now those ROI numbers are pretty amazing … but does customer winback really deliver the best ROI?

To find out, let’s deconstruct the ROI potential of typical revenue strategies and see which one comes out on top. 

ROI is simply returns divided by investment so the best ROI is going to be found in a strategy that generates serious revenue at a very low cost.

That means any kind of new customer acquisition is out of the running for best ROI because it costs so much to land a new customer.

Now you could make a case for strategic partnerships because they have low acquisition costs, but other strategies like upselling don’t have any acquisition costs at all.

And upselling can create serious revenue since the probability of a new customer buying an upsell is 13% and for longer-term customers it’s 65% (clientsuccess.com).

So that makes upselling a top contender for the best ROI strategy.

Cross-selling has a lot of the same advantages as upselling so it’s a contender too.

But customer winback can deliver an even better ROI.  Here’s why …

Now those ROI numbers are pretty amazing … but does customer winback really deliver the best ROI?

To find out, let’s deconstruct the ROI potential of typical revenue strategies and see which one comes out on top. 

ROI is simply returns divided by investment so the best ROI is going to be found in a strategy that generates serious revenue at a very low cost.

That means any kind of new customer acquisition is out of the running for best ROI because it costs so much to land a new customer.

Now you could make a case for strategic partnerships because they have low acquisition costs, but other strategies like upselling don’t have any acquisition costs at all.

And upselling can create serious revenue since the probability of a new customer buying an upsell is 13% and for longer-term customers it’s 65% (clientsuccess.com).

So that makes upselling a top contender for the best ROI strategy.

Cross-selling has a lot of the same advantages as upselling so it’s a contender too.

But customer winback can deliver an even better ROI.  Here’s why …

Like upselling and cross-selling winback has no acquisition costs, but the ROI is higher because it generates more revenue.

Lifetime customer value more than doubles for customers you win back and you typically don’t get that kind of revenue with upselling.

Returning customers typically spend 120% or more of what a new customer spends.

That’s what I’ve found after winning back thousands of customers.

The Harvard Business Review found the same thing in a study of over 40,000 lost customers.

And the Customer WinBack Benchmark Study also found that customer lifetime value more than doubles (on average) with over 100,000 lost customers.

Winback was ranked #1 for ROI by CEOs, founders and CROs in the Customer WinBack Benchmark Study because ...

1) The cost of running a winback campaign is extremely cheap, less than $5K for SMBs.

2) Customer winback generates serious revenue.  So much revenue that customer lifetime value more than doubles for returning customers.