Modern point-of-sale systems go beyond processing payments. They collect a wealth of customer intelligence, such as a customer’s birthday, location, purchase history, and brand preferences. This data is essential for creating a personalized customer experience, which is a major priority for 70 percent of executives. Despite the acknowledgment of personalization as a priority, only 17 percent of companies go beyond basic personalization data, according to Forbes. Retailers and business owners have an opportunity to stand out from competitors by leveraging POS-collected customer data to connect with shoppers and provide a consistent experience in all store locations.
The Benefits of Personalized Service
Retailers, using a one-size-fits-all approach to marketing, frustrate 74 percent of their shoppers, according to Janrain. When customers walk into a retail storefront they visit often, the sales staff and cashier often greet them by name and offer assistance. Using customer information gathered from a POS emulates this helpful approach, and 53 percent of shoppers feel personalized service adds to the customer experience.
Targeting Customer Segments
Advanced POS systems provide filtering options so retailers can look for specific customer attributes within reports. Some characteristics provided by these reports include:
- Purchase dates
- Price points
- Purchase category breakdowns
- Brands
- Season
- Size
- Color
- Gender
- Customer types (new, loyal or inactive)
- Store location
The sheer amount of information available with an advanced POS system opens up an opportunity for retailers to connect with their customers on a very personal level. Retailers can utilize customer information to personalize emails based on gender, specific interest categories, and more to increase conversion rates. Many of these systems, such as a cloud-based POS system or a web-based POS system, also allow retailers to stay on top of other emerging brand-building and marketing tools, such as eReceipts.
Nurturing Customer Relationships
Personalized service results in 40 percent of consumers buying more from retailers, according to HubSpot. Consumers are particularly receptive to retailers using their data to make the shopping experience easier. Accenture found 48 percent of customers preferred reminders on consumable products they re-ordered frequently. While customers warmly receive features such as automatic loyalty program discounts and exclusive coupons, 88 percent do want to know how companies use the data. Including this information in a readily accessible place builds trust between the company and the consumer.
Personalized service improves the customer experience and positively impacts the consumer’s opinion of a retailer. Incorporating customer data into communications that provide value to the shopper increases the retailer’s chance of seeing the customer again, both in-store and online.
Sources:
- http://www.forbes.com/sites/sap/2014/03/12/personalization-the-secret-to-better-customer-experience/
- http://janrain.com/about/newsroom/press-releases/online-consumers-fed-up-with-irrelevant-content-on-favorite-websites-according-to-janrain-study/
- http://www.invesp.com/blog/online-shopping-personalization/
- http://blog.crazyegg.com/2014/11/06/boost-conversions-personalization/
- http://blog.hubspot.com/marketing/data-personalize-marketing-li
- https://newsroom.accenture.com/industries/retail/us-consumers-want-more-personalized-retail-experience-and-control-over-personal-information-accenture-survey-shows.htm
