Customer winback is very inexpensive because the high price of customer acquisition has already been paid.
Winning a new customer is expensive, winning back an old customer is really inexpensive.
That's because the price of acquisition has already been paid.
It takes a lot of time, money and effort to acquire a new customer. Unless you're launching satellites into space, it's one of the biggest expenses in your business.
Patrick Campbell, the founder of Profitwell (which he just sold to Paddle for $200m!) is famous for his research.
One of his studies categorized the expenses of over 1200 organizations and found that a hefty 57% of their budget went to new customer acquisition (e.g. sales and marketing teams).
Meanwhile, you can win back many, many lost customers for the price of acquiring one new customer.
That's because you've already paid the price of getting those customers.
You don't need to pay for ads or buy lead lists. Your leads are free, they're sitting in your CRM. All you need to do is pull them out.
And you don't need to pay SDRs and AEs to qualify those leads, build relationships and educate them on your product.
All that work has been done and paid for. That's why winback is so inexpensive and it's one more reason why winback belongs in every revenue playbook.