Everybody understands that it costs more to acquire a customer than to maintain one. But are your systems optimised to construct longterm, valuable relationships? Discover the 3 practices that each and every retailer should put in place and the way your POS system should encourage them.
With the current shoppers having more choice than ever, retailers will need to find intelligent ways to foster loyal profitable customer relationships as opposed to one-off low value transactions. As opposed to finding ways to continuously acquire new clients, the most innovative retailers are focusing on maximising life value. In other words, taking a long term perspective of the worth of a client and understanding that some (and most ) clients will spend more often, in greater amounts and over a long-time period, if they perceive you provide superior value and understand their requirements best. Calculating what the dollar worth a fantastic customer could represent over their life will change how you look at your sales, marketing, service and operations strategies.
Many times, loyalty and lifetime value plans become connected with reward card applications. This is with good reason — a enormous 71 percent of Australians belong to at least one store loyalty card program. And POS systems play a vital role in facilitating these programs. But, establishing loyalty and lifetime value strategy goes deeper than simply rolling out a rewards program and so does the contribution that a POS system can create. As we shall now explore…
The most significant and sustainable way to build long term loyalty is to optimise your customer encounter.
This ought to be the basis to get before embarking on any other loyalty strategies or applications. No quantity of loyalty points or advertising campaigns will compensate for a disconnected or disappointing shopping experience. Exceed expectations and not only will you find that client return with a desire to spend more, but most likely, they’ll also tell others about you also.
So, what role can your POS system play in creating a consistently excellent experience? Here are just a few examples:
At the most obvious level, the capacity of this item search and recommendation engine inside your POS system can go a long way to providing a excellent service experience, enabling your employees to provide pertinent suggestions that are tailored to clients unique preferences. Other tools that could make an essential difference include customer profiles (including identifying VIPs), the ability to organize inter-store stock transfers and cellular selling via iPads or tablets. On the other hand, POS performance problems such as a slow system that leads to customer delays are a surefire show stopper.
Powerful modern POS systems, obviously, are becoming much more than simply the software for employees to handle your customer check out procedure. For most retailers, they’re the core system for handling your data and workflows concerning inventory, fulfilment and logistics, goods, clients and sales. They help to make sure you:
- Source the Proper products
- Stock them in the right quantities
- Price them accurately
- Ship them time at the fulfilment methods that the customer desires
Finding these operational components correct has a significant effect on perceived advantage, choice and reliability, which can clearly impact whether shoppers opt to make you their go-to brand.
Having an omni-channel POS system, all of your data and processes are handled in an integrated fashion for both your in-store and ecommerce operations. Clients are then met with up-to-date and precise details about each item, no false promises are made about stock availability and they are able to take advantage of unified channel solutions such as Click & Collect.
Loyalty reward programs + client profiling
Nearly half Aussie and New Zealand shoppers spend more with the promise of benefits, and approximately 56 percent are more likely to return to a merchant with a loyalty program instead than one without.
Offering a loyalty reward program offers you a few exceptional opportunities — it incentivises the client to supply you with a more comprehensive profile of them, permits you to associate all their transactions to this profile and, of course, encourages them to store more with you to get the rewards provided. At a higher level, you can aggregate the profile info you’ve captured on your clients to receive some essential insights. E.g. you may discover a specific demographic of your client base represents the best lifetime value, or is making the majority of purchases for a specific product line.
A fantastic POS system should give the capability to make a customised loyalty rewards program as standard. You need to be able to supply your customers with their personal loyalty card, which can be associated to their POS System Account Number and branded with your company’s logo and information. When the client is in-store, you can scan the card and start collecting information. Your POS system loyalty program operate should provide the following as standard:
- Apply points as’tender’ to cover products.
- Automatically assign discounts for clients depending on their spending pattern
- Manually apply discounts to groups of clients
- Create thousands of gift vouchers at a time
- Apply bonus points as incentives to re-visit or re-purchase
Just make sure you keep your loyalty program simple to join, easy to use and offering a feeling of value regularly to your clients so that they have every reason to return.
Personalised email marketing
Australian and New Zealand has some of the maximum email advertising click-through rates in the world, based on some 2016 Benchmark Study by IBM.
Create a point of getting customer email addresses and comprehensive profiles inside your POS system. You can then send emails out using this information which are tailored to that shopper’s preferences. These email campaigns should concentrate on relationship building over time — beginning with a simple thank you (and possibly some kind of surprise present ) through to supplying exciting news, advice and insights about your field of expertise.
Needless to say, you should also concentrate on more transactional elements like cross-sell and up-sell, repeat purchase, discounts and sales promotions or new product launches. However, as with any relationship, it’s about getting the perfect balance between give and take.