Maintaining growth: Re-Engagement Formula

Many brands struggle to keep customers engaged over time, with inboxes flooded by promotional emails that often go unread. It’s common for customers to disengage after a certain period, either because they’ve lost interest or moved on to a competitor.

“The average email list naturally decays by 22.5% every year, meaning that without win-back campaigns, you’re likely to lose a significant portion of your audience.”

Re-engaging inactive subscribers is far more cost-effective than acquiring new leads. The cost of retaining customers through win-back campaigns is five times lower than acquiring new ones [According to Salesforce].

Without a re-engagement strategy in place, brands lose out on potentially loyal customers who could still be interested if approached in the right way. Ignoring inactive customers can result in diminishing email list quality and lost revenue.

Studies show that sending re-engagement emails to inactive subscribers can increase open rates by 45% and click-through rates by up to 12%. According to Campaign Monitor, companies that use well-timed win-back emails are able to recover 15-20% of inactive subscribers. These numbers make a compelling case for focusing on re-engagement rather than immediately cleaning up dormant contacts.

Re-Engagement Formula: Trigger a win-back email after a subscriber has been inactive based on the table below:

1 Week to 1 Month of Inactivity

• Effectiveness: ★★★★★

• According to Omnisend, win-back emails sent within the first month of inactivity can recover 30-40% of inactive subscribers.
• Note: The incentive does not need to be high here.
• Best Practice: Send a re-engagement email within 1-2 weeks of inactivity, offering personalized content or a discount on a product they recently viewed or purchased.

1 to 3 Months of Inactivity

• Effectiveness: ★★★★☆

• Campaign Monitor reports a 15-20% recovery rate for subscribers in this time frame.
• Best Practice: Send a win-back email at the 2-month mark, offering a time-sensitive deal, such as “Come back and get 20% off your next purchase.”
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3 to 6 Months of Inactivity

• Effectiveness: ★★★☆☆

• Salesforce data shows that win-back campaigns after 3-6 months can still bring back 10-15% of subscribers, though the engagement rate is much lower.
• After 3 months, use need a stronger incentives such as higher discounts or exclusive early access to new products to entice them back.

6 Months and Beyond

• Effectiveness: ★★☆☆☆
• Stats: Win-back campaigns for users inactive for more than 6 months have an average recovery rate of only 5-10%, according to Mailchimp. These subscribers have likely disengaged completely, and the cost of re-engagement might outweigh the benefits. However, using one final email campaign that emphasizes a last-chance offer can still result in minor recoveries.
• Best Practice: Use a “last chance” email stating that their subscription will end unless they re-engage within a certain time. Offering something unique, like a personalized discount or a loyalty program invite, can spark action.

In the first email, acknowledge their absence and offer a strong incentive, such as a discount or exclusive content. This personalized touch not only catches attention but also makes the user feel valued.

Example:
Subject Line: “We Miss You, [First Name]! Here’s 20% Off to Welcome You Back!”

The email can include a time-limited offer, an invitation to a special event, or even exclusive access to new products or services. The key is to create urgency while making the customer feel like they’re receiving a special, tailored offer.

The average email list naturally decays by 22.5% every year, meaning that without win-back campaigns, you’re likely to lose a significant portion of your audience. Re-engaging inactive subscribers is far more cost-effective than acquiring new leads. According to Salesforce, the cost of retaining customers through win-back campaigns is five times lower than acquiring new ones.

In addition to recovering lost revenue, win-back campaigns improve deliverability rates. By removing truly inactive users who don’t respond even after a win-back attempt, you’re left with a more engaged list, improving overall performance and ensuring your emails land in inboxes, not spam folders.

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