What Does "Engage Back" Mean in Entrepreneurship?
In the context of entrepreneurship, "engage back" refers to the process of re-engaging with stakeholders, customers, or even the business idea after a period of disconnection or pivoting. This often involves reaching out to former customers, investors, or partners to rekindle interest, gather feedback, or re-establish relationships.
1.
Customer Retention: Re-engaging with past customers can help improve
customer retention rates, which is often more cost-effective than acquiring new customers.
2.
Feedback and Improvement: Former stakeholders can provide valuable insights into why they disengaged, offering opportunities for
product development and improvement.
3.
Trust and Loyalty: Re-establishing connections shows that you value your stakeholders, helping to build
trust and loyalty.
1. Personalized Communication: Use personalized messages to make stakeholders feel valued. Mention specific interactions or transactions to show that you remember them.
2. Feedback Mechanisms: Offer multiple ways for stakeholders to provide feedback, such as surveys, interviews, or informal conversations.
3. Value Proposition: Clearly communicate the value proposition of your re-engagement. Explain what has changed and how it benefits them.
Challenges in Engaging Back
While engaging back can be highly beneficial, it also comes with challenges:1.
Skepticism: Stakeholders may be skeptical of your intentions, especially if the previous disengagement was due to a negative experience.
2.
Resource Allocation: Re-engaging requires time and resources, which can be a strain on a
startup or small business.
3.
Measuring Impact: Determining the success of re-engagement efforts can be difficult. Metrics like
customer lifetime value and
churn rate can help, but they may not capture the full picture.
Examples of Successful Re-Engagement
Several companies have successfully re-engaged with their stakeholders:1. Airbnb: After facing a backlash from hosts during the COVID-19 pandemic, Airbnb re-engaged by offering financial support and improved policies.
2. Netflix: Netflix often re-engages with former subscribers through personalized email campaigns offering special discounts or new content previews.
3. Slack: Slack re-engages with inactive users through targeted emails that highlight new features and improvements.
Conclusion
Engaging back is a powerful strategy in the arsenal of any entrepreneur. While it comes with its set of challenges, the benefits of improved customer retention, valuable feedback, and enhanced trust and loyalty make it a worthwhile endeavor. By employing personalized communication, offering clear value propositions, and being prepared to address skepticism, entrepreneurs can successfully re-engage with their stakeholders and drive their business forward.