Home/Playbook/Win-back campaigns for pizza customers

Campaigns & offers

Win-backs: the ladder, the value, and when to stop

A three-rung win-back ladder with escalating value and descending cost per contact, plus the honest maths on when a lapsed customer stops being worth chasing.

Campaigns & offers5 sections4 questions answered
Campaigns & offers illustration

Win-back is the campaign type most likely to be run badly, because it is emotionally satisfying to send and hard to measure honestly. A large share of the customers who respond to a win-back were going to return anyway. The job is to build a ladder that finds the ones who were not, without paying full price for the ones who were.

The three-rung ladder

Value escalates. Cost per contact descends. That combination is deliberate: it concentrates spend on the customers who prove hardest to recover, while keeping the cheap channels doing the early work.

RungTimingChannelOfferFraming
1At lapse thresholdEmailNone or small attach ("free garlic bread")"Here is what is new": a reason, not a bribe
2+10–14 daysEmail + SMSMeaningful deferred value"We saved you something": specific, time-boxed
3+21–30 daysSMS, or mail for high-valueStrongest offer in the programme"Last one from us": honest finality
Exit+45 days::Drop cadence hard. Move to dormant.

Rung one should not carry a discount

This is the counterintuitive part and the part operators skip. A meaningful share of lapsed customers have not made a decision to leave. They have drifted, changed a routine, or simply forgotten. For those people a reminder is sufficient, and giving them a discount is pure margin donation.

Rung one is a reason: a new item, a changed delivery time, a seasonal special, a genuinely useful piece of news. Only when a customer ignores a reason do they become worth paying for.

Size the offer against the customer, not the campaign

A flat "20% off, come back" applies the same cost to a customer worth $80 a year and a customer worth $900 a year. Scale the value to trailing spend, capped at a defensible fraction of expected recovered value.

A workable rule: the maximum total win-back spend on a customer should not exceed roughly 15–20% of the gross margin you would expect to recover over the following twelve months if the win-back succeeds. That produces meaningfully bigger offers for lost regulars, and small or no offers for one-time customers, which is correct.

The most expensive win-back offer should go to the customer you can least afford to have lost, not to everyone.

Knowing when to stop

Win-back response decays steeply with time since last order. Past a certain point, usually somewhere between nine and eighteen months depending on the market, the response rate stops being distinguishable from the background rate at which lapsed customers spontaneously return.

Find your own knee by plotting response rate against days since last order, and set the exit point just past it. Continuing to mail beyond that point does two kinds of damage: it wastes budget, and on email it wastes deliverability, because a large unengaged sending population drags inbox placement down for the customers who are still listening.

The holdout is mandatory here

Of all campaign types, win-backs are the most likely to take credit for other people’s work. Hold out 10% of every lapsed cohort (permanently, not per-campaign) and compare return rates.

Expect the honest incremental number to be a fraction of the gross number. That is not a failure. A win-back programme with 22% gross return and 9 points of incremental lift is a genuinely good programme, and knowing the 9 is what lets you spend confidently.

Questions

What is a good win-back response rate?

Gross response of 8–25% across a full three-rung ladder is typical, depending heavily on how the lapse threshold is set. Incremental lift over a holdout is the number that matters and is usually between a third and a half of the gross figure.

Should I ask why they left?

A single optional question in rung two costs nothing and occasionally surfaces something operationally important: a bad delivery, a price change, a driver problem. Do not make it a survey, and do not gate the offer behind answering it.

Is direct mail worth it for win-backs?

For high-value lapsed customers, yes. It is one of the few cases where the cost per contact is justified, because the recoverable value is large and mail reaches people whose email you may have lost. For one-order customers it never pays.

How do I avoid winning back someone who already came back?

Evaluate eligibility at send time, not at build time, and exit on conversion immediately. This sounds obvious and is the most common failure in restaurant win-back programmes: a list built on Monday and sent on Thursday will contain people who ordered on Tuesday.

Keep reading

Related chapters

All 46 chapters

This is one chapter of the job.

marketing.pizza runs all of it, every night, across every store you have.