Turn Inactive Customers into Consistent Buyers

Executive Summary: Turn Inactive Customers into Consistent Buyers

Most SMB execs are chasing growth through new customer acquisition today, but what if the biggest opportunity was already in your system, just sitting dormant?

Distributors are leaving money on the table by ignoring three segments that already exist in their ecosystem:

• Inactive customers who haven’t ordered in a while
• Underserved customers who don’t buy as often as they could
• Undiscovered customers who are ordering, but from someone else

The good news? You don’t need more reps, marketing dollars, or new systems to tap this revenue. You just need better visibility, consistent outreach, and a few simple process changes to reactivate and expand the accounts you already have.

Key Takeaways:

• Your best revenue opportunities already exist in your customer list
• It only takes small tweaks to identify potential revenue opportunities
• Explore practical ways to re-engage dormant accounts and expand wallet share
• Get tips for building consistent follow-up habits (without adding staff)
• Access a follow-up blog on how to automate outreach and win more sales

SMB execs are often pulled in two directions: keep the business steady and find ways to grow. Many default to pursuing new logos. But here’s the truth:

80% of your revenue comes from 20% of your customers. This means you’re sitting on a wealth of opportunity.

That includes:

• The contractor who hasn’t ordered since last fall
• The landscaper who buys one product from you but 10 from a competitor
• The company that doesn’t know you carry consumables that they use monthly

These are the hidden revenue streams that high-performing distributors are targeting. And you can too.

Understanding the Opportunity: The 3 Hidden Segments

1. Inactive Customers: They've Bought Before—They Can Again

These customers have done business with you but haven’t placed an order in 3, 6, or 12 months. You already have their contact info, order history, and relationship foundation—but they’ve gone quiet.

Why they matter:

• They're the easiest to re-engage: 60–70% chance of selling to existing customers, compared to 5–20% for new prospects
• A slight nudge can bring them back: 75% of consumers prefer brands with incentives, meaning nudges can be very effective
• They often left due to service gaps, not product issues: 91% of consumers say a positive service experience makes them more likely to purchase again.
  

2. Underserved Customers: You're Not Their First Call—Yet

These customers place occasional orders but don’t rely on you as their primary distributor. Often, you’re being used for “overflow” or only for niche SKUs.

Why they matter:

• They're spending somewhere else: 80% of revenue comes from 20% of customers - you just don’t have full wallet share yet.
• They may not realize how much more you offer: 93% of customers are more likely to make repeat purchases with companies that keep them in the loop.
• Strategic engagement can flip them into primary accounts: 89% of customers are retained by companies that excel at multichannel customer engagement.

3. Undiscovered Customers: You Don’t Know Them—But You Should

These are often walk-ins, one-time buyers, or new customers who have never made it into your CRM. You may have a phone number, a job site name, or a single ticket, but no real relationship.

Why they matter:

• They are new opportunities hiding in plain sight: 71% of marketing budgets are allocated to targeting existing customers, potentially neglecting new and untapped audiences
• A single follow-up can convert them into long-term buyers: 49% increase in reply rate can be achieved with just the first follow-up compared to the initial outreach.
• They are often ignored because no one "owns" them yet: 61% of distributors share lack of time and resources was their number one challenge with proactive outreach. 

Why It Happens: Operational Gaps, Not Intentional Neglect

Most SMB execs aren’t ignoring these customers on purpose. But in the whirlwind of daily operations, your team is focused on:

• Answering the phone
• Handling quotes
• Solving shipping issues
• Getting through the day

This means proactive outreach falls to the bottom of the list. And when communication is spread across personal phones, siloed inboxes, and untagged tickets, it’s almost impossible to even identify who’s at risk of falling through the cracks.

Solution Overview: 2 Simple Ways to Start Winning Back Lost Revenue

Tip 1: How to Reactivate Dormant Customers

Dormant customers aren’t lost. Most simply got busy, went with the fastest option, or slipped through the cracks during a hectic season. But they already know your business. They’ve bought before. And they’re more likely to respond to a simple nudge than a full-on pitch.

Bonus: Pair this with your sales data to see who’s dropped off in frequency or order size, and prioritize accordingly.

Why this works:
These customers already know you. You’re not selling from scratch—you’re re-establishing trust and making it easy for them to come back.

Tip 2: How to Prospect Contractors Who Don’t Know You Yet

Every market is full of potential buyers who’ve never ordered from your business, not because they don’t want to, but because you’re not top of mind. These “undiscovered” customers could include New contractors in your service area, contractors who order from your competitor by default, and former customers who've switched brands without a reason.

You can win these buyers with a simple, local-first prospecting strategy built on relevance and repetition.

Why this works:
Most contractors work with whoever is easiest, fastest, and most responsive. You don’t need to undercut pricing—you just need to show up before your competitors do.

Benefits and Expected Outcomes: Revenue Without New Hires or Systems

You don’t need to expand your team or invest in enterprise platforms to start seeing results. Most distributors already have what they need—they just lack process.

When you activate your “sleeping” customers, you:

• Re-engage buyers who already know and trust you
• Expand sales to customers who don’t yet buy your full offering
• Convert one-time transactions into ongoing relationships

And in the process, you:

• Reduce dependence on net-new lead generation
• Strengthen revenue predictability
• Increase the lifetime value of your existing customer base

Conclusion and Next Steps

Want to start small? Do this next week:

1. Pull a list of customers who haven’t ordered in 60+ days
2. Identify accounts with one-time purchases but no follow-up
3. Tag or flag customers by order frequency to spot inconsistencies
4. Send a “just checking in” message to 5 dormant accounts
5. Log responses and schedule next follow-ups

Ready to elevate your customer experience?