Why is customer appreciation important for businesses?

Customer appreciation is essential because it is the driver of the great, universal retail goal – loyalty. Retailers all want loyal customers – shoppers who have a positive retail customer experience, come back more frequently, spend more at each visit and who can enhance the retailer’s own marketing, by becoming an advocate of the brand and telling others how much they love it.

Customers are much more likely to be loyal when they feel appreciated, known and valued, so appreciation is one of the fastest, and most effective ways to build loyalty.

In fact, retaining just 5% more customers translates to a 25% increase in profits.

The reason that loyalty is such a big goal in retail is that, quite simply, customer retention is the most cost-effective marketing strategy. Numerous studies have shown that it costs up to five times less to retain a customer than to win a new one.

Loyal customers therefore offer a cost-effective way to increase revenue and can drive a bigger boost to profits. In fact, retaining just 5% more customers translates to a 25% increase in profits.

The steps to customer appreciation and loyalty

For retailers, implementing customer appreciation strategies requires:

Analysis

Retailers need to know who their customers are and how they buy. So the first step is to capture and interrogate sales data, to provide insights into who buys what, with what other products, when, where, through which channel and how often? The more a retailer can understand about shoppers’ preferences and buying habits, the better the foundation for customer appreciation strategies.

Promotion

Based on analysis, retailers can build tailored campaigns. Tailored promotions make the customer feel seen and known – a vital component in driving loyalty. In one recent pilot program, personalized marketing programs saw 2-4% higher gross margins, compared to generic offers.

Tracking

Every time a promotion is sent out, it’s essential to understand the impact it has on the business. Knowing what does (and doesn’t) work ensures retailers can refine and enhance their offer.

Recognition

It’s essential to be able to identify members of your point of sale in Kenya customer loyalty program, whichever channel they are using. Online, that means recognising and welcoming them as they log in. In store, recognition may be through them presenting their retail customer loyalty programs card at the checkout, or even before they enter the store, with geofencing technology that recognises when they are close to or entering the store and sends them a welcome message.

Reward

The way to keep loyal customers is with an enhanced retail customer experience and enticing rewards. Not all shoppers want the same rewards, so a range maximises your chances of success.

Point of sale customer loyalty technology

Managing customer appreciation strategies requires smart retail technology. Selecting a POS platform that includes retail data analytics, promotions and point of sale customer loyalty will make designing and implementing customer appreciation strategies more streamlined and efficient.

With the help of the right POS system in Kenya like SimbaPOS, customer engagement can be increased significantly.

Data analytics uses POS system in Kenya customer data to understand consumer behavior and preferences. This feeds into designing and disseminating offers via the promotions engine. The results of those promotions are captured in the point of sale, providing insights into which promotions and offers work best in driving take-up. With the help of the right POS system in Kenya like SimbaPOS, customer engagement can be increased significantly.

The point of sale customer loyalty system recognises the customer at the checkout, or via geofencing, as they approach or enter the store. The POS system in Kenya rewards program ensures customers receive their earned rewards and retail customer loyalty programs apps make it simple for customers to track and redeem their points or other incentives.

The key is that all these parts of the system must be integrated and must work together seamlessly. When retailers use the right POS system, customer appreciation strategies become more streamlined, are more efficient and deliver a better retail customer experience. A point of sale system in Kenya with integrated functionality for analysis, promotions, retail customer loyalty programs and apps will help retailers to implement their customer appreciation strategies, drive up loyalty and boost their bottom line.

Get ready to supercharge your business! SimbaPOS is THE game-changer for Kenyan small businesses. Unlock its magic – fast transactions, stress-free inventory management, customizable to your heart’s content, mobile payment superstar, and all that on a budget! Don’t wait, upgrade to SimbaPOS now and ride the wave of success! Your business will thank you for it!

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