When most people hear POS software, they think of stock control, quick customer checkout and other retail administrative tasks. However, they are missing a critical piece of the puzzle and that is customer relationship management. Any retail EPOS systems that are worth their salt include comprehensive systems that allow retailers to manage customer relationships and boost customer loyalty through various marketing strategies and tactics.
The Importance of Customer Loyalty
It's a proven fact that a repeat customer improves profitability significantly. Repeat customers tend to spend more and cost less per sale than a new customer. This is why it is imperative for any retail operation to build a relationship with their customers.
The better your relationship with your customer and the more they enjoy their experience in your store, the more money they will spend with you and the more people they will recommend your store to. In other words, you win on two fronts, namely increased revenues as well as free word-of-mouth advertising which is the most effective type of advertising in existence.
Using POS Software to Understand Customer Behaviour
Understanding your customers and their purchasing habits is essential to improving customer loyalty. The more you know about your customer, the more you will be able to create offers based on their purchasing habits. This not only increases the chances of them making a purchase but it also increases their loyalty towards you because you make them feel special and important by customising an offer particularly for them. You'd be surprised how such a small thing can have a massive impact.
Good POS software will allow you to gather data about your customers, including what purchases they made and when they made them. The easiest way for you to gather this data is to use branded loyalty cards. Every time they use their card they will be rewarded and you will know exactly who purchased what and when. Additionally, when applying for the card, they will have to enter their personal details, allowing you to reach them via email with various offers and other incentives to bring them back to your store.
And everyone loves getting something for nothing, even if it's just their perception, which is why you won't have a problem convincing people to sign up for your loyalty program. However, you need to make sure that customers are rewarded and that it doesn't take forever for them to receive those rewards or they might find another store more to their liking.
POS software can help you keep track of all this information and generate detailed reports, allowing you to effectively tailor an offer that will entice your customers back to your store. Additionally, high quality retail EPOS systems also come with integrated email marketing features, allowing you to manage contact lists and reach your customers with a few clicks of the mouse.
Customer retention is critical to the success of any retail store. While it isn't a deal breaker, it can certainly take your store's performance from mediocre to outstanding and all it takes is the implementation of a quality POS software solution.