Title - Propositions for reactivation Tags - retention
If you decide to woo people back with propositions (as opposed to just offering the service again), it helps to calculate the hard cost and profit of the service.
For example, take a service that costs £50 per month. And say the hard (fixed) costs to deliver it are £20 per month. The profit is £30 per month.
You can use that £30 a month as a bride to bring them back. You could give them the first month for £30, which is still profitable for you, and gives them a £20 per month saving. Or you could offer the first three months for £100, which means you make a £15 per month profit, then it goes back to the regular price.
You can also use the profit to pay for other products and services that you can add to the proposition. You can even negotiate to buy them in bulk.
For example, you could show a restaurant owner how, if you brought them a lot of first-time customers that many of them would continue coming back. Therefore, if they were to sell you some meal vouchers at cost, they would benefit in the long-term.
Say that it normally costs £20 per meal, so two meals would be £40. Their hard cost to provide those two meals might only be £10. So they could sell you a voucher for two meals for £10 (with a value of £40) as an incentive for reactivation.
They would get lots of new customers without any out-of-pocket advertising expenses, and keep all of the profit from every return visit.