What is recurring revenue and why does it matter?

We will share everything you need about recurring income and how to cash in — literally.

While acquiring new customers via the virtual door will always be a priority for eCommerce businesses, it is only half of the battle. Businesses are constantly looking for innovative, scalable ways of increasing sales with rising acquisition costs.

We’ve noticed a significant rise in advertising costs in recent months, thanks to iOS 15. But maybe this was the push that we needed to start considering retention as a key component of our marketing strategies.

While recurring revenue business models are not new, more DTC brands are realizing how stable and predictable they can be. It is important to understand what recurring revenues are, their benefits, and why you might consider adding one to your business.

What is recurring income?

What is recurring revenue, you ask? We’d love to answer your question. Recurring revenue, in its simplest form is the percentage of revenue expected to continue for months. Recurring revenue, unlike one-time sales is predictable and stable. It can be counted upon to occur at regular intervals with high levels of certainty.

All industries can see examples of recurring income. It is often seen in membership programs, subscriptions, and service agreements. We saw a massive shift towards online shopping after the pandemic. Businesses across industries started to adapt to the recurring revenue model. However, there are many types of businesses that can do this best.

  • Content-based – Content-based businesses offering access to content digitally and physically have had great success with recurring revenue models. It is evident in magazine subscriptions, audiobooks and digital books, as well as news outlets, photo libraries, streaming services, and news outlets.
  • Service-based – Instead of having to make a single transaction to buy a service, service-based companies will allow access on a regular basis to their platform. This is starting to appear all over the place in the form educational courses and language learning applications.
  • Product-based – This is the most popular of all three. These recurring revenue models, which are product-based, are becoming more and more common. Customers can subscribe to many products, including clothing and cleaning supplies, and have them delivered on a regular basis to their homes.

What does recurring revenue in eCommerce mean?

Stability. Stability. Stability.

An eCommerce business can establish a monthly revenue stream that is predictable. This allows them to plan for future growth. There are many ways that brands can benefit from structuring their recurring revenue streams using subscriptions.


Predictability is the most important benefit. While subscriptions provide a predictable, recurring revenue stream, they can also help to predict inventory needs. Merchants can manage their inventory better because they are subscription-based. This allows them to satisfy consumer demand and reduce the risk of overstocking.

Potential investors and stakeholders can find predictability attractive. Brands that can generate regular revenue are more stable investments.

Cash flow

Cash flow, or the money that flows in and out of a business on a daily basis, is the second benefit. Cash flows in whenever consumers make purchases and when investors add funds. When the brand spends money such as on marketing and employees, cash flows out.

Subscription models can help brands keep a positive cash flow since they are recurring. With predictable revenue, brands have the freedom to invest in product development, marketing and testing. Positive cash flow allows brands to pay off debts and return money back to shareholders.

Acquisition costs

Marketing in today’s economy is focused on lowering acquisition costs. It’s not only the economy that brands need to be concerned about. It’s five times more costly to acquire a new customer than it is to retain an existing one. This alone should motivate marketers to focus on their retention strategy. Brands who focus on existing customers increase their customer lifetime or CLTV, which in turn will increase their return on customer acquisition.


You will gain valuable insights from your customers, which is the final benefit. It is impossible to underestimate the power of having a conversation with your customers. Subscriptions offer brands the unique opportunity to understand their customers and to provide them with relevant information.

You might consider adding a recurring revenue stream to your business.

According to Frederick Reichheld, Bain & Company’s research, increasing customer retention by 5% increases profits in the range of 25% to 95%. Subscriptions can be a great way of increasing your retention and cashing in on those profits increases literally.

Today’s tech solutions make it much easier to add a subscription channel to increase your recurring revenues than you might think. Subscriptions are easy to set up without the need for a web development team or deep pockets. This means that you can focus on customer retention and increase your profits today.

Yotpo Subscribes is an example of this easy-to-use app that merchants can use to get up and running in as little as 8 minutes. You can be sure that your customers will have a seamless experience with Shopify’s native integration.

Subscriptions can be a great way to build strong relationships with your customers. But subscriptions don’t just make money. It all boils down to the customer experience. We cannot create engagement as a brand; customers will choose when, where and how they interact with us. However, we can focus on the experience that leads into engagement.

Subscriptions are a recurring revenue source that allows you to offer a unique experience for your customers. When customers and brands optimize their subscription experience, then both win.

source https://www.yotpo.com/blog/what-is-recurring-revenue-and-why-does-it-matter/

Using Website Search to Boost B2B Revenue

If you help ecommerce shoppers quickly find what they’re searching for, you will probably sell more. To accomplish this, take a look at your website’s navigation in addition to its search function. In this guide, I will discuss challenges for B2B website search — and how to conquer them.

Challenges for B2B Website Search

An optimized website search is valuable for B2C and B2B ecommerce websites. But B2B sites frequently have unique challenges when it comes to search. Below are a few of the most frequent.

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  • Part number searches. In B2B, shoppers hunt from the part number they use to refer to a product. Sometimes, they may search by a partial part number, or the part number can have a hyphen in it. Moreover, there may be more than 1 part number for the exact same product. Part numbers can be problematic for search platforms.
  • Similar goods. Many B2B companies have several products that are extremely similar. They’re represented by exactly the exact same photo and, possibly, the identical description. There might be 100 SKUs that seem exactly the same but are different in size, strength, and other features. This can make it difficult for shoppers to find the appropriate thing in a search.
  • No pricing or add-to-cart on search results. B2B companies often provide customized pricing by customer. Thus, a business may not list prices in search results and might exclude an add-to-cart button at the results. This slows down purchases.

Reviewing Your Website Search

A fantastic way to examine your site search would be to set up Google Analytics search monitoring. To do this, first determine the query parameter for your search. In the case below, the query parameter is”q” in 1 case and”key word” in another.

The search parameter for Arrow.com is “q”.






For Pensnmore.com, the search parameter is”key word”.

Then, in Google Analytics, go to Admin > View Settings. Set”Website search Tracking” to”On” and enter your query parameter.

In Google Analytics, so to Admin > View Settings. Set”Website search Tracking” to”On” and enter your query parameter.

This will allow you to view:

  • How a lot of your site visitors use your website search;
  • The conversion rate of people using your search and people who don’t;
  • The most-searched keywords.

In my experience, visitors using search have a higher conversion rate. Assessing this metric before and after you make changes to your search can allow you to understand their impact.

After enabling search monitoring in Google Analytics, let a week go by and see the most frequent search terms. Now try those searches yourself. How do they look? Do you get the right product as the top search result?

Optimizing Your Website Search

Here are three ways to get the maximum from your site search.

  • Promoting specific products for top searches. Once you’ve used Google Analytics to identify your best searches, identify the goods that you would like to appear for those searches. Manually override the search results if needed. This could take a programmer’s assistance.
  • Boost your search-results page with a focus on conversion. Consider a usability consultant for recommendations. Otherwise, compare your search results pages to big retailers such as Amazon and Office Depot. Boost your product images. If possible, provide pricing and an add-to-cart button. Include product reviews for social proof.
  • Ensure part numbers yield the right results. As I mentioned above, B2B ecommerce shoppers frequently search on part numbers. Test part numbers and partial amounts based on what you see folks looking for in Google Analytics. If these are not returning the right results, speak with your developer.

Adding Functionality to Drive Revenue

To drive more revenue from the website search, consider these developments.

  • Use faceted search. This is typically a list of filters on the remaining search-results page which enable visitors to refine the search results by specific attributes. This can be particularly beneficial for B2B shoppers, to help them find the ideal products.

NorthernTool.com’s aspect search, on the left, includes”Categories,””Brand,” and”Price.”

Having great faceted search requires data for each the features to filter on. This frequently entails a review of product information and a solution to easily maintain data, like integrating with product data management (PIM) software.

  • Identify misspellings and direct users to planned products. Typos are common, particularly when users are on smartphones. Identify misspellings in search phrases, and then immediately direct users to what they’re searching for.

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In this case from OfficeDepot.com,”lsr newspaper” has been corrected, to exhibit”laser paper,” the correct spelling.

  • Offer automobile suggest. This is a feature where a drop-down box appears as a user types search phrases. From the drop-down box are suggestions for the consumer could be searching for based on shared searches, your website data, and, possibly, data on that user.

Looking for”notebook power” in CDW.com activates automatic suggestions:”notebook power cord” and”notebook power adaptor.”

Constructed Search or Third Party?

A few of the improvements listed above you can likely make, with the support of a programmer, to your current ecommerce platform. Otherwise, consider a third-party search vendor — SearchSpring, Nextopia, Monetate, SLI Systems, to name a few — to implement the improvements.

Site-search vendors typically have a data feed from your site and use it to build search results with the attributes that I’ve outlined in this report. In my experience, prices vary from $500 to $5,000 a month. The vendors can usually track conversions from their website search, and thereby gauge the return on your investment. The platforms also provide management and analytics tools that allow you to have greater visibility and control over what your customers will see.

Getting Started

Don’t let all the possible improvements overwhelm you. Begin by setting up site-search monitoring in Google Analytics. Look at how common site searches are doing, and choose which new features will generate the best return. Implement those features and gauge the impact. Continuous improvement is the name of this game.

Investments: An Important Revenue Source for Those Who Have Disabilities

If you get Social Security benefits because of disability, there is a strict limit on how much income you can earn every month from working until you risk losing your benefits. Nonetheless, there’s no limit to the quantity of unearned revenue you can have, which means investments can be an important way to build wealth.


  • If you collect Social Security Disability (SSD) benefits, there is a limit to how much income you can earn from working. You may lose your benefits if you make too much.
  • For 2021 the earnings limitation is $1,310 per month; it is $2,190 per month for men and women that are blind.
  • There isn’t any limit to the amount of unearned income you can have, which means that you can earn money from investments such as bonds and stocks.

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What’s Social Security Disability Insurance?

According to the Social Security Administration (SSA),”Social Security pays benefits to individuals who can not operate because they have a health condition that is expected to continue at least one year or result in death.” 1

To qualify for disability benefits, you must meet two earnings evaluations:2

  1. A Recent Work Evaluation –This earnings test demonstrates you worked a certain quantity of time at the three- to 10-year interval (according to age) before you became disabled.
  2. A Duration of Work Evaluation –This test measures the quantity of time you worked over your life. Generally speaking, you can subtract the year you turned 22 in the year you became disabled to ascertain the amount of work quarters you want to meet with the duration requirement.

Along with the two earnings tests, the SSA also considers your medical condition, as it began, how it limits your activities, your medical evaluation results, and the medical treatments you have obtained when making its determination.3

If you qualify for benefits, you may continue to receive them until you go back to work on a regular basis. If you’re receiving disability benefits when you reach full retirement age–67 for people born in 1960 and after –your disability benefits will automatically convert to retirement benefits. The benefit amount will stay the same.45

Income Limits for Social Security Disability Benefits

For 2021 the monthly income limit is $1,310; it is $2,190 per month for men and women that are blind. If you are able to earn more than those amounts, the SSA deems you capable of engaging in”substantial gainful activity,” that keeps you from qualifying for benefits.6

If you work while getting SSD benefits, you need to report the income to the SSA, however little you earn. During a”trial work period” of up to eight months (not necessarily in a row), you can get unlimited earnings and still receive full benefits. When the trial work period is finished, the SSA will ascertain if you’re still eligible for disability benefits.6

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“SSD recipients are permitted to earn some income for a limited time and limited sum, mainly to fully examine their possible ability to go back to work and leave the SSD rolls,” says David Gantt, an Asheville, N.C., attorney who handles a huge volume of SSD cases. “After these very restricted times and amounts are exceeded, the Social Security Administration will review any documented income and also make [an] inquiry or an investigation.”

SSD Benefits and Investment Income

Income can be earned or unearned. Earned income is money you make while actively working, either for an employer or yourself. It includes wages, salaries, tips, bonuses, net earnings from self-employment, contract work, certain royalties, and union strike benefits.7 This sort of income counts from the monthly maximum for SSD eligibility.

Unearned income is money you earn or get through something apart from employment or busy work, and it does not count against the monthly income limits. Examples of unearned income include:8

  • SSD Benefits
  • Pensions
  • Presents
  • Inheritances
  • Dividends
  • Interest

“Some of our customers who get SS disability checks (SSD) have investment income from financial records (inventory, trusts, bonds), rental property, or other passive income resources,” states Gantt.

Bear in mind that if you have investment income, the SSA is very likely to want a good look. “Current technology assists flag questionable investment income information,” states Gantt. “I tell my customers who proceed in [the] investment stadium to anticipate questions and [a] review.”

1 way to get ready for questions would be to use an affidavit. “Financial investments are usually passive by nature. For true passive income earnings, we invite SSD customers to be ready to sign affidavits that they took no action on the investment income subject that could convert the income to the earned legal group,” says Gantt.

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Investments that Do Not Jeopardize SSD Benefits

Somebody who receives SSD benefits can invest in securities such as stocks, bonds, exchange-traded funds (ETFs), and real estate investment trusts (REITs) without jeopardizing their benefits. Dividend income from stocks, in addition to other sources of passive income, is OK up to the SSA is worried because it is unearned income. “The key is if the investment income is earned or not. Passive income isn’t earned in the legal significance of SS law and not counted as evidence of an ability to operate,” states Gantt.

Is Real Estate Income Earned or Unearned?

Income from property investments may count as earned or unearned, depending on the circumstance. If you would like to invest in property, you can purchase property stocks, funds, and REITs without jeopardizing your gains, because these investments offer a passive (aka unearned) income source. But what about purchasing physical property, such as a rental property?

“Actually, possession of rental property with no action has been approved and authorized in certain cases we managed,” says Gantt. “But, most landlord-owners are also taking action (remodeling, plumbing, electric, mowing, etc.) that push consequent income from passive to earned income.”

Because property investments could be a bit of a grey area,”we invite customers to ascertain the passive vs. earned income appearance and proof factors before starting investment earnings,” states Gantt. “[Our customers ] are cautioned that active involvement in rental property may cause a finding that the present handicap has raised, and [they] are no more SSD eligible.”

If you are thinking about investing in physical property –and maintaining your SSD benefits along the way–plan on talking with an experienced disability attorney who can help make sure that any income stays passive. Otherwise, it’s better to stick with the real estate stocks, funds, and REITs.

The Bottom Line

If you collect SSD benefits, you can have up to $1,310 ($2,190 if you’re a blind person) in earned income every month without risking your own benefits. Meanwhile, the estimated average Social Security disability benefit is $1,259 per month, based on the latest statistics available from the Social Security Administration (SSA).9 Combined, that is $2,569 monthly, or nearly $31,000 a year–a sum which may fall short of what is required to live comfortably.

Investment income–provided it is unearned–can provide a valuable chance for those who have disabilities to buffer their budgets and build wealth. For those who have questions regarding SSD eligibility or need help with affidavits to show you took no action on investment earnings, speak to an experienced disability attorney in your town or online.

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3 Ways You Can Better Meet Customer Needs Online to Boost Revenue

When the pandemic moved most people online for the vast majority of our days, service providers proceeded to meet customers where they had been: At home on their computer or telephone.

For some, this was completely new. The provider might have never offered an internet appointment before, while their client might have not had a digital financial or legal consultation before.

Regardless of the learning curves for all involved, suppliers like marketing services, accountants, and attorneys have been able to do a very good job up to now. In a new ConnectPOS survey of individuals who listened with a service supplier online*, 83 percent of respondents feel fulfilled with current online interactions with service providers.

While that satisfaction rate is definitely positive, the remaining 17 percent of respondents who believe either neutral or dissatisfied with their online interactions can not be ignored. Now, more than ever, every sale counts. A happy client today might become a loyal customer for life, returning to a company when they want specific services or products.


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3 tips to enhance your internet experience so you never miss out on a sale

Here are three actions you can take to offer a top-notch online experience to fulfill customer needs so they will want to hire you over and over again.

1. Stay on top of communicating so customers are educated and wish to renew their contracts

The way you conduct business changed when the pandemic moved everything on the internet, and your customers’ needs have changed, too.

Gartner research suggests that customers want longer communication, and they want that communication to be touchless, by remaining informed digitally (total content accessible to customers ).

“Be responsive,” said Max Gruber, director of Operations in FireCask. “Radio silence or inadequate communication can place real doubt in [customers’] minds. If you are there for them during times like this, and you can help them pull through and grow, then they will be thankful down the road.”

Consistent communication can help to keep customers in the loop and builds confidence in your brand, resulting in contract renewals and a consistent client base.

Software is crucial to online communication and can effectively manage how and when customers receive updates from you. Here is what this looks like in practice.

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2. Keep your site relevant and easy to navigate so customers can (and need to) get connected

Sometimes, the only thing standing between you and your customers is your own site. A poorly designed site can drive away customers who prefer the glossy user experience provided by your competitor.

Your website needs to be customer-centric. According to Gartner, it is easy to figure out whether it is (full content accessible to customers ). Ask yourself:

  • Can my website map out product and service offerings according to our own perspective?
  • Can we use confusing language or industry-specific jargon?
  • Does our site offer disruptive interactions, such as sign-up pop-ups?
  • Does this take many clicks and activities to contact us or make a purchase?

If you answered”yes” to one of these questions, it may be time for a site redesign.

Because your site is the mediator between you and customers –both potential and present –you need to be certain it matches their needs and is not only a reflection of how you see your own business.

Technology presents a Catch-22 for some service providers: While it enables them to connect with customers when they cannot satisfy in-person, it may often feel cold, impersonal, or robotic. Here’s how one attorney went electronic without becoming impersonal.

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3. Request and implement customer feedback to show that you value your customers

Outsiders can often provide the most helpful insights. In cases like this, an outsider is the customer; someone who is not as near the organization and its internal workings as you or your employees.

Customer feedback can be crucial in identifying strengths and opportunities for advancement, but not all comments is created equal.

According to Gartner, more significant than feedback generally is making certain that you get the perfect kind of feedback to help shape new procedures (complete content available to customers ). There are many types of feedback you can collect from surveys:

  • Customer satisfaction (CSAT) steps how happy a client is with your company as it stands. (Ask:”How satisfied are you with your current online interaction with our company?”)
  • Net promoter score (NPS) steps how willing a client is to recommend your service to their network. (Ask: “How likely are you to recommend our services to a colleague or friend?”)
  • Customer attempt score (CES) steps how simple a customer’s interaction was. (Ask:”How easy or hard was it to schedule your appointment?”)

Each of these forms of comments provide a different dimension of insight into your customer experience, and customer satisfaction software can help you handle the information you collect. However, you need to ask the correct questions at the ideal time to unlock the most precious information.

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Make your customers feel valued so that they keep coming back

Providing a positive online customer experience almost always circles back to communication. This means keeping customers informed with regular updates, quickly responding to their queries, maintaining open electronic communication lines so that they can easily reach you, and listening to their opinions.

Software will help you do it. Customer communications management solutions make it easier to schedule meetings, respond to questions, and gather feedback so that you don’t miss out on an chance to fulfill customer needs.

Ready to explore software choices?

See our references

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The Key Holiday Season Presents For Retailers in Australia and New Zealand & How To Maximise Revenue

Don’t miss these critical opportunities to connect directly with festive shoppers and boost your sales leading up to the Christmas period ahead.

Christmas is the biggest annual revenue driver, contributing more than 45.3percent to the total annual retail sector. In the lead up there are various events throughout November and December — such as Click Frenzy, Black Friday, Cyber Monday — offering opportunities for retailers to showcase who they are and what they do, to drive sales and engage with new and present customers.

Here’s the list of Important dates to Create plans around:

  • Melbourne Cup — November 5th — In categories like fashion, 70 percent of individuals purchase with an occasion in mind. Fashion retailers are well-acquainted using the purchase-driving power of the Melbourne Cup.
  • Click Frenzy — November 12th — A effort fusing Australia’s main sales into a centralised online shopping experience — and definitely worth getting involved .
  • Black Friday — November 29th — Originally in the U.S, Black Friday has become a growing initiative here in Australia.
  • Small Business Saturday — November 30th — Initially started by American Express, encouraging clients to’shop little’ and support local companies.
  • Cyber Monday — December 2nd — Cyber Monday follows on from Black Friday, with a focus on online shopping.
  • Free Shipping Day — December 14th — The previous day that customers can shop online with guaranteed free delivery prior to Christmas.
  • Super Saturday — December 21st — The last Saturday before Christmas (enough said).
  • Boxing Day — December 26th — One word: earnings, sales, sales.

If retailers can adopt these events successfully, it increases their likelihood of bringing keen seasonal shoppers — and turning them into returning, long-time clients.

According to our experience working with leading Australian & New Zealand retailers, here is the three most critical areas to get right.

1. Optimise Your In-Store and Internet Experience So They Are Efficient & Engaging

Australian and New Zealand shoppers reveal a clear preference towards retailers offering an integrated bricks and clicks existence. This provides them with maximum convenience and efficiency to finish their buying journey by using both electronic and in-store touch-points.

Regardless of the growth of online shopping, Australians still favor completing part of the purchasing journey in-store particularly for the big occasions. However, they are mixing that with online research to guide which store(s) they see. Nowadays, two out of five shoppers leave a sale due to a lack of cross-channel alternatives to make a purchase.

Given that the festive season is the period of greatest spend and complexity (with many present choices to make) for many customers, providing such efficacy is vital.

This requires retailers to optimise their in-store experience to increase the odds of winning the sale and building loyal relationships when shoppers see. Ensuring your shop, staff and systems are geared up to effectively engage clients, fast provide recommendations and increase termed earnings / loyalty sign ups it is crucial to increase sales and minimise abandonment. With a great number of casual employees in operation throughout the festive period, retailers will need to provide them with intuitive, intelligent systems and technologies to help bridge the knowledge gap.

In addition, you need to ensure you’re providing a unified online shopping experience that maximises in-store visits and eCommerce revenue. 1 survey by Deloitte proves that digitally affected in-store buys made up over five times that of pure eCommerce purchases. To put it differently, it’s now commonplace for in-store shoppers to research a new or product online . Research demonstrates that 67 percent of people will see a merchant’s site first, before going into physical shops .


Offering Click & Collect and In-Store Stock Assess based on real-time stock is one big way to drive these in-store visits. Australians shoppers love Click & Collect for the motives of ‘preventing house delivery charges’(45 percent of shoppers) and because‘it is much more suitable than home delivery’(37 percent of shoppers). For online-sales driven events such as Click Frenzy, Black Friday and Cyber Monday there’s still chance for retailers to turn them into in-store visit chances.

For both online and in-store, ensuring that you have the ideal fulfilment choices and that meet / exceed delivery rate timelines is critical during the holiday season. Fail to provide confidence that customers will receive their products in time and see that your conversion rates plummet.

2. Make sure Inventory / Product Availability

During the festive period, with a long list of presents to purchase and a brief length of time, shoppers tend to be even less forgiving when it comes to retailers not having available inventory.

So, having the ideal product choice available and appropriate inventory levels in all your stores and stations is an obvious issue to get right. But it is still among the most frequent failures we see from Australian and New Zealand retail. Understocking and overstocking contributes to a drastic amount of lost sales. The typical merchant loses 4 percent of potential revenue because of 31 percent of consumers purchasing products from other retailers when things aren’t immediately available for purchase(2).

Those retailers that can exceed customer expectations and give the fastest and easiest access to a range of their best products to meet their needs, can secure a highly effective source of sustainable competitive edge in their own category. The financial effect of greater eCommerce and in-store earnings can be deep. Retail Express customers see an average of $120,000 increased yearly profit per store by allowing such plans.

Retailers pursuing an Endless Aisles business model where all their shops and stations can leverage all inventory across their entire supply chain have the ability to maximise product availability and choice, and optimise the fulfilment experience for clients.

3. Maximise Profiling and Targeted Marketing Before & After The Season

Now’s the time for retailers to receive their targeted marketing so as to drive online and in-store visits and maximise brand awareness. This needs to include digital advertisements, social media and email campaigns together with in-store signage & visual merchandising. By utilizing customer profile data, each these campaigns can be personalised to account for a selection of different demographics and product preferences.

Maximising the capture of profiles and names of all visitors and clients that hit your shops (physical and online) during the festive season is vital for continuing personalisation, loyalty programs and promotion to induce repeat shop visits and maximum lifetime value to the new year.

You will find a wealth of current customer growth and loyalty programs you can participate in if essential details are recorded. However, many stores still let shoppers walk away unidentified and don’t turn them into repeat customers.

In Retail Express, maximising termed earnings is a leading item on the agenda of the growth-focused retailers we associate with. In general store and invididual staff KPIs and incentives are designed with this front of thoughts. Having advanced CRM capability inside your in-store Point of Sale system is critical to progressively profiling clients.