How to put your POS to work - POS Features and Integration Study #1 – Marketing

We just recently surveyed the action sports industry and

found that 48% had either no system for customer

management or have not put their existing system to use.

A few years ago we surveyed our retail clients and asked

them what their plans were to market to their existing

customers for the holidays. We were shocked to find that

almost 40% had no plans to do special holiday marketing

to their existing customers and 64% had no customer

loyalty program of any kind. Almost 60% said they had

no idea how to market to their customers using their POS

system. This was something that we set about rectifying

quickly for our clients and we want to share our tips for

success with you.

Your investment in your existing POS system can only

show a return if you learn and utilize the things it can do

for you. So we ask, what tools do you ALREADY have in

place that can help you effectively market? One Step

Retail Solutions, VP Sales, Kevin McAdam has some

tips and information for retailers everywhere.

“Of all the retailers I have talked to over the last couple

of years, ignoring the marketing potential of your

customer base is among the most dangerous decision

you can make in your retail business. Capturing it and

leveraging it is among the best.’

“Many retailers I talk to do virtually zero marketing

because it’s so expensive and because they see so little

measurable return from it. That’s often because it’s

shotgun marketing.”

So how do you AVOID shotgun marketing, how do

you make your efforts pay off?

“Marketing today is getting more and more precise

and as an independent retailer you need to be riding

that cutting edge to stand out. Let’s take a look at

Facebook and how they market to their members.

They know your profile (likes, dislikes, where you go,

what your hobbies are) and so they put advertising

on your sidebar that they know will have the highest

probability of catching your attention.” You could say

that the key to effective marketing is knowing your

client base and their needs.

So how does one find out their needs? How does one

leverage that information in a small to medium size

retail shop without spending thousands of dollars in

research and marketing campaigns?

“First of all, hopefully you have a robust POS system

that can hold large amounts of information about your

customers, because this is literally your gold mine.

Studies have shown over and over again that it costs 5

times as much in marketing dollars to get a new

customer as it does to re-sell to an existing customer.

It’s easy to understand: someone who has already

bought from you knows where you are and what inventory

you carry and, given good customer service, would buy

from you again. You just need to stay in touch with them

and offer them things you know they will buy. (This is why

Customer Loyalty programs work and yours should

definitely marry up with your POS system.)”

Please note that this is as vital for small and medium size
retailers as is it for the big box stores. “Now you need to

collect the information. Usually it’s as easy as telling the

customer that you make special offers to your regular

customers and then offer to put them on that list. Get as

much information as you can, street address, email (assure

them you don’t let anyone else use their email address),

home phone, cell phone (ask if they would like to be text-

messaged if there’s a really hot sale on something you know

they might like) birthday, sizes, color preferences, family

members….anything that you think might help you

promote to them. It might not make sense to try to get all

this information at one time, but sales clerks should try to

help build their ‘profile’ within your POS system” As a side

note, you can also create a sign that has “Follow us on

Facebook and Twitter” and “Check in on Yelp”. Facebook

contact data has become as relevant as an email address or

mailing address.

Marketing ideas made available by having a solid directory

of clientele in your POS system:

- Hopefully your POS system will not only keep a record of

that customer but also the record will show everything they

ever bought from you. This should be an available

customization in your POS. This way, the next time you get

a new item from the designer they have purchased before,

you can easily pull up the list of all customers that buy that

designer and email them that there’s a new shipment in

the store.

- You might even want to have a wine and cheese party to

kick off a new line and invite all the customers that have

bought similar categories in the past, let them know they

can bring along a friend as long as they are added to the

guest list (with their contact data of course).

- For a men’s store, make sure you have their wife’s

contact information so that just before the customer’s

birthday you can email their wife alerting her to the fact

that you have all his sizes and favorite designers.

- For a jewelry store, make sure that you have the

husband’s contact information so that before major

holidays and birthdays you can alert him to an

exclusive sale or offer.

- Reward customer loyalty. You can rank your customers

using the information in your POS system. You should

know which customers bring you the most margin, who

are the ones that buy the most at regular prices, who are

the ones that only buy when things are on sale, and who

are the ones that you make the most money from. Offer

exclusive deals, first pick or even host a invitation only

preview of your new season.

Don’t let it just be an expensive cash register! Learn it

yourself or have one of your employees learn at least the

marketing functions of the software and then put them

to work to increase your profitability.

“I think one of the most important things you can do as a

retailer in today’s marketplace is stop the old shotgun

wasteful marketing and get on the sophistication band-

wagon to precisely market to precise customers that you

want back in your store and that you know will appreciate

and buy the wonderful merchandise you work so hard to

provide.”

If you would like more information on our POS solutions

or for a free POS consultation please contact Amy Hanson

at 818.543.4777 ext 4116 or email

ahanson@onestepretail.com
www.onestepretail.com