Tips for Identifying and Marketing to Your Best Customers
If you’re thinking about POS and inventory management, then you probably have some inkling of the value of data-driven decisions. Analysis of sales, inventory turn, and ROI can all provide good data to help you decide on product assortment and stock levels. These are all solid KPIs to help you manage the inventory performance side of the business. However, this is only half the battle.
Beyond choosing what to stock for those customers who come through your doors, we must determine how to get those doors to swing more often. Attracting new customers is one of the biggest challenges. Marketing choices abound, and depending on which expert you listen to, you can throw your advertising dollars at a plethora of different methods. So, how do you evaluate the success of your marketing efforts? Measuring the Return on Investment (ROI) is usually the best way.
My experience as the former CEO of a five-store retail footwear company has shown me this: casting a wide net to attract new customers is an expensive thing to do and a difficult thing to measure. Where did I find the biggest ROI? The answer is in motivating my customer base to come back more often and make bigger purchases. So how do we actually make this happen?
Luckily, RICS Software puts these tools at your fingertips, and I’ve used them time and time again.
1. You must track who is buying and what they’re buying.
This is easily done by linking every purchase to a specific customer record.
2. You must have the ability to sort that data by different factors.
What brand was purchased? What class of merchandise did they buy? When was the purchase made? These and a multitude other questions can be answered through running a ‘Customer List’ report in RICS. Once you have this list, the hard part is done.
3. You can now choose your preferred method of contact to deliver a specific offer to a customer that you know will resonate with them.
Whether it’s a personal email, a direct mail piece, or a phone call from their specific salesperson, you can now foster those personal relationships that make your customers feel good about coming back and buying in your store.
The next question is, how else can you motivate your customers to buy more often? Find out here.