Dormancy Rate

Category: Marketing KPIs.

Fact: sleeping or just taking a nap is good for your health. But when it comes to marketing, dormancy rates are the worst that could happen. Well, almost the worst. Dormancy rate referrers strictly to the customers that you haven’t heard from in a while. This could impact your sales in several ways. However, there are certain tips and tricks that could bring your customers back – and not hit the snooze button again on your company.

Getting an exact number is simple but getting a ratio for the dormancy rate is just some math calculations away. Let’s see below how you can calculate the ratio for this term.

Dormancy Rate Formula

Once you have the exact number of customers that haven’t been using your product in a while, you can do the math. Just divide the number of dormant customers to the total number of customers, and then multiplying the result with 100. This will give you the ratio you need. So, in other words, the formula should look like this:

(Number of customers that haven’t used your product in a period / Total number of customers) X 100
=
Dormancy Rate

Simple and efficient, isn’t it? But getting them to want your products again is the tricky part.

How to Wake Up Inactive Customers

There are a number of ways to wake up the customers from their “sleep.” First of all, you need to find out why they’ve gone silent. A poll or a survey is the best way to find out what the customers actually need and why you haven’t heard from them. With a survey, the customers will be informed indirectly that something good in your company is about to happen – and therefore, they will be automatically interested. Get their attention somehow.

Once you have their attention, get creative. More and more customers from various businesses are running towards the best offers. So, make them an offer that they cannot refuse. If they have left your business for good, make them come back. For example, an account rejuvenation with some attractive offers will be a ticket to get them back.

If you’ve got a web page for your company, make sure that the offers are crystal clear for whoever enters. The changes should also be on the main page. Also, use social media to get their attention; once you share your new offers, they will maybe come back for you in a heartbeat. You need to show the customers the new benefits offered by your company, not just tell them. If you just speak to them about the offer, they will think this is gibberish and they won’t make any sense of what you want. A graph or a chart will get their attention for sure.

To conclude with, you should pay attention to your customers. If they are “sleeping”, wake them up somehow, with the tips above. To get a better view of what’s going on with your customer database, you should use the formula provided above, as well. It’s all about creativity here – and if you are willing to get creative in order to have the attention drawn back to you, use the tips and tricks above.

Related Articles