In the retail industry, there are three main objectives that are always ongoing that businesses try to achieve. They are:
- Create or find new leads for the expansion of the business
- Explore new ways to increase sales to earn more profit
- Apply different strategies to retain your existing customers
However, business owners are often more focused on generating leads and discovering new ways to raise sales, but retaining your existing customer is more important than other objectives. Studies show that around 61% of overall revenue is derived from frequent consumers.
It is now very important for the owners to find strategies that can help in making the customer experience better with their business, and it’s possible now with the help of POS software. Most of the retail POS software comes with a dedicated CRM module, and also they provide valuable information about the customer purchasing behavior, customer preferences, and customer information that can be used for re-targeting, marketing, loyalty programs, discount offers, and many more.
This blog will discuss customer retention, why it is important for the business, and which strategies business owners need to apply immediately to increase their revenues, and how cloud-based POS software can assist retailers in implementing this strategy.
It relates to the initiatives and tactics that retail businesses follow to increase the number of sales from all the customers who have already used the service. In simple words, In basic terms, it refers to the techniques that business owners employ to entice customers to become regular buyers because the ultimate goal of retailers is to develop consumer loyalty toward their business such that the customer would always prefer them for the services .
Why is it important?
The most important task for the retail business owner is to increase their customer retention and should find ways to improve it because not only will it increase their sales but will provide valuable feedback about the quality of service they are offering to the customers, and the marketing strategies they have applied are working in the right direction. Customer retention also plays a vital role in the growth of the business. The efforts and financial cost required to make customers regular is low compared to the marketing budget needed to attract new customers.
Four strategies to boost customer retention
The most important strategy that every business owner needs to adopt is having a dedicated customer support center to handle all the clients’ issues. According to a study, consumers prefer to shop or avail service of businesses that provide dedicated customer support. Shoppers always need attention for several issues, for which they always require assistance. This type of center is the best solution because it not only handles their issues but also improves the customer shopping experience, which is important in retaining customers.
Retailers cannot connect directly with their clients without a customer support team. As a result, the support center is very important and vital in transmitting information to consumers about the quality of service that a business is providing. They also assist retailers in influencing customers and persuading them about why their services are better than others which helps in business growth.
A customer loyalty program is one way to increase customer satisfaction and retention by getting to know about customers and offer them various rewards for availing the business’s services. The loyalty program provides retailers with up-to-date information on consumers’ preferences, allowing them to create effective and more profitable consumer retargeting tactics.
The primary goal of a loyalty program is to keep the existing customers retained with the business by offering them various lucrative offers or discounts. Retail businesses can offer a point-based system for every shopping customer, and they can redeem their points against various discounts, products, or vouchers. This strategy also helps in making customers spend more on every purchase, which is beneficial for business.
Retail businesses can use POS Software to manage loyalty programs efficiently. Retail POS software generates information about the customers who are eligible for the discounts based on purchasing behavior and average monthly shopping.
Cloud retailer POS is an essential tool for the business owner in understanding the customers, which not only helps in creating effective marketing strategies but also improves their shopping experience. Modern POS software programs like CISePOS come with a dedicated customer relationship management module that provides valuable data about the customer purchasing behavior and keeps track of their preferences which are very helpful in creating an effective targeting campaign. For example, using the CRM module of the POS software, business owners can generate information about the customers who have done purchasing only once. Based on this data, retailers can create special offers or discounts to make them regular customers, which will also increase revenue.
The customer relationship management module in the POS software is vital for retailers in knowing their customers. The CRM module provides essential information about the customers like their date of birth, purchasing habits, and products they like most, and other important data. It helps business owners in creating effective marketing campaigns like birthday promotions, product discounts, redeem vouchers, and many other offers to acknowledge customer loyalty.
Today retailers have more access to consumer data than ever before because of POS systems used in their business. Based on different information and analytics generated from retail POS software about customers’ shopping behavior, business owners can adjust services that are offered to improve retention and increase their sales.
Customers will always remain a vital asset for any business, and retaining them is essential for retailers. In this blog, we have discussed four critical strategies that can help retail business owners in increasing customer retention, sales, and revenue. Using the above approaches with POS software, retailers can enhance the customer shopping experience, which is also an important part of improving service quality and business growth.