It goes without saying that the holiday season is prime time for retail traffic. Though buyer habits are shifting, with nearly half of Americans planning to spend more online than in store this holiday season, spending they still are—up to 3.5% more than last year, according to Deloitte.
While that’s good news for Q4 sales plans, the long-term effects of a boost in holiday business are equally appealing, as
That’s a potential 32% increase in your customer base if you play your cards right, making it more essential than ever to have a retention plan, and especially one based on data.
Though you may not be able to offer a personalized experience to first-time customers, whose preferences and shopping habits you have yet to observe, collecting as much data as possible during their first visit will give you the opportunity to take a very targeted approach. Doing so requires the right POS or retail CRM software, and specifically one that offers the ability to create custom fields, so you’re able to run reports on KPIs that are most valuable to your business.
Integrate Your Systems
Because you can count on a large chunk of said shoppers making purchases online this year, it’s imperative that your e-commerce platform integrates with your POS. That way, customer profiles will sync, giving you a holistic view of your patrons, no matter where or how they shop.
Segment Your Data to Create Personalized Communication
Obtaining a new customer’s name and email address is a no brainer, but it doesn’t stop there. Knowing the categories, brands and even specific products that they’re drawn to gives you the opportunity to use such findings as bait to draw them back in. How many mass emails announcing sales or promotions do you receive daily? And how many of those are actually incentivizing enough for you to pull out your wallet?
78% of consumers are more likely to be a repeat customer if a retailer provides them with targeted, personalized offers.
So retailers who use robust POS data to create segmented marketing strategies have a much higher chance of cutting through the noise and standing out among the masses. Hit customers who purchased Brand X with an email or text as soon as a new shipment arrives. Reach out to anyone who bought a scarf with visuals that share ideas for how to style it. Target those who purchased a gift card with a reminder to spend them! Even if these items were gifted, it will still get your brand name back in front of the original buyer.
Not only can bounceback coupons secure repeat business, but they encourage upselling as well. Advertise that for every, say, $100 someone spends in December, they receive a $20 coupon to use in January. That customer may be gift shopping right now, but will be treating themself in 2021.
Incentivize Your Customers with Loyalty Programs
If you don’t have one set up already, it’s time to consider a loyalty program. These provide a clear incentive for repeat business, all the while adding additional data to your collection efforts. They can be as complex as a tiered points program, or as simple as a birthday promo. No one likes letting a deal go to waste—a quick email coupon is a surefire way to bring a past customer back through your doors.
Loyalty members are 4x more likely to be repeat customers than non-loyalty members, and letting them know why you’re asking for their information develops trust. Just remember: your loyalty program must be integrated with your POS to help you monitor levels of engagement and compel you to act accordingly; using retail CRM software to build loyalty is essential in today's competitive retail climate.
It costs 5 times more to acquire new customers than it does to keep current ones. With that in mind, can any retailer, large or small, afford customer disengagement?
Download our Secrets to Securing Customer Loyalty e-book and learn more about turning your new holiday shoppers into brand evangelists!