First Published: 15 September, 2017
They're my inactive customers... But I can still contact them, right?
If you are trying to ascertain whether you can legally contact past customers you need to consider Principle 9 of the Privacy Act.
The agency must not keep the information for any longer than it is needed for the purposes for which it was collected.
Interpretation of this Principle must therefore be in the context of your relationship with the individual. Your purpose in storing information is clearly based on maintaining a long-term relationship. There is no other legislation which prevents you from contacting existing customers by mail or phone and if you have consent, you can text or email as well. So, it is up to you to make a commercial decision! Your customer database is your most valued asset. Defining customer classifications will depend greatly on your product, industry segment, or customer base. Transitioning your clients in a strategic way through the customer life cycle will create the opportunity for re-engagement.
So, what's the difference between a lapsed and a lost customer?
A customer that has gone a significant amount of time without interacting with your brand or has not made a purchase in a predicted time frame, they are referred to as a "lapsed" customer. Some lapsed customers may eventually turn into inactive or abandoned customers who no longer purchase or interact with your company.
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