Leverage Customer Loyalty Programs To Win Repeat Business

Retailers are now more competitive than ever. As such, consumers are showered with more choices, new opportunities, incentives and offers - all of which are enticing them to make the move to another brand or to another store. Thus in this complex environment, it is the job of the retailer to determine who their best customers are and create reasons to keep them coming back.

Repeat business is the lifeblood of retailers of all shapes and sizes. Successful businesses are increasingly turning to customer loyalty programs to deliver targeted rewards and incentives that increase store traffic. These programs not only will attract new customers, but also turn your existing customer base into "ideal customers" who have the purchasing habits that will drive topline growth for your retail store.

By far, the most effective way to design and manage these programs is to use a retail point of sale (POS) system that comes bundled with a customer loyalty module. This provides an effective way to seamlessly integrate loyalty tracking and rewards at the point of sale. More importantly, the POS system should provide reports that help a retailer design an effective and targeted program.

When selecting a POS system, a retailer should confirm that the customer loyalty module includes the ability to offer a variety of plan types including item-based, dollar-based, points-based and frequency-based programs. Another key component is flexible rewards, such as instant discounts, gift card credit and vouchers. Finally, a POS system should have easy set-up at both the POS site and corporate level, a streamlined administration process, and rich enterprise reporting options including customer history and management alerts. These features can all be leveraged to mold customers into profit-yielding members.

Customer rewards programs come in a variety of packages. The trick is to create one that is tailored to fit your business.

In addition to managing loyalty programs, there are endless marketing tactics that can leverage customer data to create loyalty and increase sales. Have you ever been asked for your phone number before making a purchase? Chances are the retailer is leveraging this information to track your purchases. With an integrated customer loyalty module, your POS software retains customer information such as purchase history. From purchase history, you are able to view customers' preferences, sizes, shopping patterns, etc. The reports available are endless. What you do with this information is what will set you apart from other businesses.

For example, let's say you have an abundance of pink scarves and you need to move them to make room for new inventory. What if you could send an email to all your customers who you know bought a scarf in the last month, or even bought pink earmuffs? It's easy to pull such a report. Then send an email to all your customers who bought pink accessories notifying them of the sale. Or a pull a report that targets your customers who list pink as their favorite color. You will sell out of that inventory in no time, and without having to discount the item.

Another powerful tool in customer retention is keeping up with important dates. Easily send mailers to your customers' friends and family notifying them of their loved one's birthday, or even remind them of an upcoming anniversary. Not only can you send them a reminder, but you can make sure they buy the perfect gift. Your reports can show the customer's size, preferences and even their wish list. Don't give your customers the chance to pick up a last-minute gift at another store; keep driving traffic to your business.

It is critical to note that customer loyalty programs aren't just for big-box retailers, but are beneficial for retailers of any size. If you are looking to upgrade your current software, you will benefit from reading a free white paper from the Aberdeen Group. This report reveals that small- to medium-sized businesses (SMB) are finding themselves straddling the line between old and new POS technology. A key factor in the decision making is the customer loyalty application of the current software. Click here to download your copy of "Upgrading POS Systems in Small to Mid-sized Retail: Strategies for Success."

About Andee Williamson

Andee Williamson has been with Radiant Systems since 1983 and currently serves as a Senior Product Expert for the Retail Division. Andee supervises the Customer Service department and collaborates with Radiant Systems' Retail Partners on software and hardware sales activities and also plays a key role in developing strategic marketing plans for the Retail Division. Andee spends much of her time traveling the country visiting prospective CounterPoint customers and attending trade shows in various vertical markets.