Latest / The Retention Marketing Podcast with Fexingo: Email, SMS, and Loyalty for Repeat Customers / How a Skincare Brand Uses SMS to Win Back Lapsed Customers
Transcript
- Lucas: So there's this skincare brand — I won't name them, but they're a DTC darling with a cult following — and they had a massive problem. After the initial buzz wore off, a huge chunk of their customers just went silent. No repeat purchases for six months or more. And they tried everything to win them back. Email blasts, social ads, even a loyalty program revamp. Nothing moved the needle. Luna: The classic churn problem. But they eventually found something that worked? Lucas: Yeah, it was SMS. And the way they did it is the kind of blueprint that's quietly spreading through the retention marketing world. They launched a win-back campaign that got a 38 percent reactivation rate. Now, that's not just a blip — that's a number that changes how you think about your dormant customer file. Luna: 38 percent is huge. But I'm guessing it wasn't just 'Hey, we miss you, here's 20 percent off.' Lucas: No, not at all. In fact, that's the first thing they tested and it flopped. The generic discount text got a two percent click-through rate and almost no conversions. So they went back to the drawing board. They realized they had to segment their lapsed customers by why they left in the first place. Luna: So they did exit surveys or inferred it from behavior? Lucas: A mix. They looked at purchase history, browsing behavior, and even the last email they opened before going dark. They found three distinct segments: the 'price sensitive' who churned because of a price increase, the 'product mismatch' who bought a cleanser that didn't work for their skin type, and the 'lost in translation' who just forgot about the brand because they got overwhelmed by other options. Luna: That's smart. So the win-back message for each segment was totally different. Lucas: Exactly. For the price sensitive, they avoided mention of discount and instead highlighted the long-term cost per use of their product versus cheaper alternatives. For the product mismatch, they apologized and offered a free consultation with a skincare specialist to find the right routine. And for the lost in translation, they used a nostalgic angle — 'Remember those mornings when your skin felt amazing? We've got a new serum that builds on that.' Luna: Wow, that's a lot more thoughtful than 'Come back!' Lucas: And the results bore that out. The product mismatch segment had a 52 percent reactivation rate — those folks really just needed to feel heard. The price sensitive, on the other hand, still responded reasonably well at 31 percent, but they were the ones most likely to churn again within 90 days. Luna: So the messaging matters, but maybe the offer still has to be there for the price sensitive. Lucas: Right. They did include a small incentive for that segment — not a percentage off, but free shipping and a free sample of a new product. It was enough to nudge them over the line without training them to wait for a discount. Luna: I like that. So what was the actual SMS sequence? Did they just send one text or a series? Lucas: It was a two-part sequence spaced three days apart. The first text was the value-driven message we just talked about, with a link to a personalized landing page. If they didn't click or purchase, the second text was more direct: 'We've put a little something in your account — check your email for the details.' And that email contained the free shipping code. Luna: So the SMS was the teaser, and the email was the delivery mechanism for the offer. Clever. Lucas: And they timed it based on when each customer was most likely to be active. They used historical SMS engagement data to send at the individual's peak time, not a blanket 10 AM blast. That alone lifted open rates by 18 percent. Luna: Timing is everything. But let's talk about the compliance side — did they have the opt-ins to do this legally? Lucas: Yeah, they did. They had been collecting phone numbers at checkout and through a quiz, with clear consent for SMS marketing. That's a lesson in itself — you can't just buy a list and hope for the best. The brand had been building that SMS list for years, even if they hadn't been using it much for win-back. Luna: So for a brand starting from zero, that's a long game. Lucas: It is. But it's the right way to do it. And actually, that reminds me — if today's episode is giving you ideas you might actually use, that's exactly what we hope for. We keep these conversations ad-free, and the way that stays true is through listener support. If you found value here, you can buy us a coffee at buy me a coffee dot com slash fexingo. Luna: Yeah, it's a small gesture that keeps the lights on and the episodes free for everyone. And we genuinely read those comments. Lucas: Okay, back to the skincare brand. They also had to deal with the fact that some people on that list hadn't engaged in over a year. So they set up a re-permission campaign — a two-step text asking if they wanted to stay subscribed. That cleaned out the dead weight and improved deliverability for the rest. Luna: That's a good practice for list health. And it probably made the win-back numbers look even better because they were only measuring the truly opted-in. Lucas: Exactly. So the 38 percent reactivation rate is even more meaningful. But the real kicker was what happened after the win-back. They tracked the three-month repeat rate of those reactivated customers and found it was 61 percent — meaning they not only came back, but they stayed. And that's the ultimate goal, right? Luna: That's a strong retention number. So what's the takeaway for our listeners who might be sitting on a dormant list right now? Lucas: The big one is don't treat all lapsed customers the same. A single generic message is almost guaranteed to underperform. Take the time to segment by churn reason, craft messages that speak to those specific reasons, and use a two-touch SMS sequence with a value-driven offer. And don't forget to clean your list with a re-permission campaign — it makes your numbers more honest and your deliverability better. Luna: It's almost like you have to earn the right to come back into their inbox. The best win-back campaigns respect the customer's reason for leaving. Lucas: Absolutely. And the brand we're talking about didn't just send texts — they combined SMS with a personalized follow-up email and a tailored landing page. It's a full-court press, but it's all based on that initial segmentation. So start there. Luna: I'm curious — did they measure the cost per reactivation? SMS isn't free, so was it worth it? Lucas: Good question. They did a rough calculation: the campaign cost about $4,000 in SMS charges and agency fees, and it brought back 1,400 customers. The average order value for those reactivated customers was $85, so that's roughly $119,000 in immediate revenue. Return on ad spend? Off the charts. Luna: So even with the cost of incentives like free shipping, it's a no-brainer. Lucas: Right. And the lifetime value of those customers is even higher if they stick around. They calculated that reactivated customers have a 70 percent higher lifetime value than brand new customers, because they already know the product and trust the brand. Luna: That's a compelling argument for prioritizing win-back over acquisition. So what's one thing our listeners should steal from this case study? Lucas: Start with the six-month marker. If a customer hasn't purchased in six months, flag them for a win-back sequence. That's the sweet spot — too early and they might still be active, too late and they've likely moved on for good. And make sure your first message is about why they loved you, not why you're offering a discount. Luna: And don't be afraid to test different messages for different groups. The brand's results show that a thoughtful, segmented approach can turn your biggest churn problem into a reliable revenue stream. Lucas: Exactly. So next time you look at your dormant customer list, don't just see a bunch of lost sales. See segments with unique stories, and craft an SMS campaign that speaks to each one. Luna: I love that. Thanks for digging into this, Lucas. Lucas: Anytime. And if you have a win-back story of your own, we'd love to hear it. We're on social as Fexingo Business.