Point of Sale software has many obvious advantages for retail store management. Yet POS software can also prove effective as a marketing tool. Better understand and target customers with the actionable insights gained from the POS software data. Here are some strategies to use the POS accessible database to achieve greater marketing success.
Harness POS Data to Enhance Marketing Tactics
Using the data available, retailers can track customers’ purchases — what they buy and when. Leveraging this knowledge, the retailer can encourage customer retention with relevant coupon promotions, automatic timed sales and markdown offers based on purchase history.
Harnessing the POS data effectively can increase sales by focusing the stores’ marketing efforts and dollars on the right customers at the right time. Boost sales with the analytical tools to identify and market to big spenders, category spenders or make decisions based on other customer attribute segmentation.
“Some 69 percent of U.S. companies with loyalty programs track the lifetime value of each customer, for an average value of $1,803, according to Experian.”
Increase Traffic with Loyalty Programs and Buyers Clubs
Retailers already know how quality inventory and excellent customer service foster customer loyalty. Yet setting up a buyers club or loyalty program can also improve store traffic. Repeat customers are critical to business, especially as acquiring new customers costs five times more than keeping one.
One challenge facing retailers offering loyalty programs is poor contact data that leaves the marketer unable to communicate with the buyer via their desired channels. Yet POS software integration with marketing loyalty campaigns makes sense to better reach customers. The POS tool can enhance customer targeting and focus marketing campaigns on specific locations or other predetermined characteristics.
“75% of companies see a return on investment from loyalty programs. — Experian”
Better Understand Customers
One in four consumers are frustrated when a company fails to recognize them as a past or current customer, according to a KiteWheel study cited in the Business Journal. But with POS data at their disposal, retailers can engage with customers with insight into their demographics and what they value. The POS data helps turn infrequent shoppers into life-long customers by tempting them back to the store with personalized efforts. Know which customers are active or inactive, what they spend in certain categories and identify other customer attributes.
Integrating the POS into marketing strategy also helps address the challenge of data and information silos. By bridging the communication across functional departments — often in real time — sales and marketing can gain additional insight into shopper segments and what marketing campaigns correlate with increased revenue.
Boost customer satisfaction
Sharing customer information among all stores helps ensure that the shopper’s experience with each of the retailer’s stores is consistently positive. A POS software can insure all store records reflect the customers’ real-time purchase history, gift certificates/gift cards, store credits and more. At-a-glance, staff can know which brands, styles, sizes, and colors are preferred by individual shoppers.
The software, too, can help retailers satisfy customer merchandise requests by enabling searching in real-time across all locations or effectively suggesting substitute offers when the original item is not in stock.
A POS software can offer enhanced business intelligence and inventory management as well as eCommerce integration and encrypted payments. The retailer doesn’t need to stop their search at the obvious functionalities, though. Select a POS software that meets many retailer needs and adds marketing advantages too.
Sources:
Experian. (2014, November). Driving Customer Loyalty. http://go.experian.com/loyalty-challenges-ebook