Netflix vs. Athletic Green’s Customer Win Back Strategy

To start this case study I’m dropping some heat from Outbound Engine:

• Acquiring a new customer can cost five times more than retaining an existing customer.
• Increasing customer retention by 5% can increase profits from 25-95%.
• The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%.

BUT, the basis of this case study stems from this stat: U.S. companies lose $136.8 billion per year due to avoidable consumer switching.

This case study helps make a dent on that number.

Netflix’s Win Back Strategy

A couple of days after I unsubscribed from Netflix, I received the above reactivation email: “3 great reasons to come back to Netflix”.

Did I click the bright red button to rejoin? No.

Why not?

None of the reasons they wrote were specific to my reason for leaving which I selected in the exit survey: too expensive for what it is.

With customer outreach, you are not only competing against direct competitors, but also newsletters, influencers, and other companies vying for your customer's attention and money. To win customers back, you have to tackle the #1 objection of your customers.

Athletic Green’s Win Back Strategy

Now, Athletic Green.

When Melanie Balke canceled her subscription, AG asked her reason for canceling, she gave the feedback that she couldn’t stand the taste.

The next email she got contained a recipe to make AG taste better, directly addressing her concern, nothing else.

I’ve heard people tell me, “our list is too small for segmentation”. But segmentation is a means to an end.

It’s your way of telling your customer, “we heard you, we are here to help you make it right.”

What Would Make This Strategy Go From Good to Great?

• Timing is everything. Start tackling the objection the second they tell you what it is.
• Have an “objection funnel” created for the top customer objections
• Don’t hope customers come back - give them a reason to come back.
• Tackle the objection and offer a solution
• Ask for feedback shortly after the delivery date to start tackling objections before they occur
• You work so hard acquiring each customer, don’t let them go without trying.