Cost to bring back a lapsed customer vs acquire new.
Inputs
Reactivation economics
Reactivated customers
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Cost per reactivation
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vs New CAC
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About this calculator
Reactivation is consistently the cheapest customer-growth channel for established brands. Lapsed customers already know your brand, have past purchase data, and convert at higher rates than cold prospects when given a reason to return. Yet most brands underinvest in reactivation while overspending on paid acquisition.
The math here: total reactivation campaign cost (email negligible + SMS sends + retargeting) divided by reactivated customers = cost per reactivation. Compare against your standard CAC. Most brands find reactivation 3-8× cheaper per customer.
The smart allocation: dedicate 10-20% of marketing budget to reactivation programs (win-back email/SMS sequences, retargeting custom audiences from past customers). The cost-per-customer math justifies it; the LTV math (reactivated customers are higher-LTV than new) compounds the case.
Pair with the Win-Back Campaign Calculator (focused on email-only) and the Repeat Purchase Rate Calculator. Most successful retention programs run reactivation as a quarterly cadence — not a one-time campaign.
Frequently asked questions
Which is cheaper — reactivation or acquisition?
Reactivation, almost always. Cost-per-reactivation typically runs $5-15 (email + SMS + retargeting cost). New customer acquisition runs $25-100+ (paid ads + content). Reactivated customers also have higher LTV than new ones because they already know your product.
When should I prioritize reactivation?
Always run reactivation; question is what% of marketing budget. 10-20% of marketing budget on win-back/reactivation is typical for established brands. Higher % when paid acquisition gets expensive.
What channels work for reactivation?
Stack of three: email win-back sequence (free, highest reach), SMS to email non-responders ($0.30 per send), retargeting via custom audience upload ($5-15 cost per re-engaged customer). Together delivers 5-10× cheaper customer than fresh acquisition.
How long after lapse should I try reactivation?
90-180 days post-purchase for most categories. Earlier than 60 days = customer hasn't actually lapsed. Later than 365 days = recovery rates drop sharply (under 1%). Time the campaign for the sweet spot.
When should I write off a customer as truly churned?
After 365+ days of inactivity AND 2+ failed reactivation attempts. At that point cost-per-reactivation approaches new-customer CAC. Move email frequency to quarterly only and remove from active SMS programs.