The Effectiveness Of Win Back Strategy For E-Business Lost Customers

In recent years, with the Internet users’ gradually formed shopping habits and theimprovement of online shopping environment, e-commerce industry represented byonline shopping develops rapidly. From the initial pure e-commerce enterprises, totoday’s traditional enterprises, more and more enterprises join the e-commerce industry,the e-commerce channel has become generally adopted by enterprises and accepted bypeople as a way to shop. For consumers, they can search goods throughout the worldwithout leaving home and enjoy the convenience of shopping; for enterprises, they caneffectively reduce cost savings of inventory; e-commerce indeed achieves a win-winsituation. However, while the development of e-commerce in full swing, the customerresources competition becomes more and more intense among enterprises, a series ofproblems have gradually emerged. As e-commerce strides over geographical and timeconstraints, consumers have broader shopping choices, therefore, they have a lowstability rate and a higher churn rate. Win back lost customers can bring financialbenefits and service improvements for enterprises. After the loss of customers in e-commerce environment, it becomes the current exigent problems to solve for e-commerce enterprises about how to take effective strategies to win back lost customersand reduce costs due to the development of new customers.Customer relationship management theory underlies this article. Based on theliterature analysis of lost customers and win back strategies, using the operational dataof a well-known vertical pet supplies e-commerce company domestic, this articleanalyzes the price promotion and relationship investment two strategies’ effectivenessto win back lost customers, and verifies the regulating effectiveness of the relationshiptime between customer and enterprise and the duration of lost time on the two customerwin back strategies.The research found that, under e-business environment, the relationship investmentand price promotion strategies are both able to win back lost customers effectively, andthe relationship time between customer and enterprise has positive influence on theeffectiveness of win back strategies, while the lost time of customer has a negativeimpact on the effectiveness of the win back strategies. The results has some guidinguses for e-commerce enterprises to take more targeted strategies to win back lost customers based on the relationship time and the lost time or other characteristics, andalso it can provide a reference value for some relevant e-commerce enterprises.