More and more, companies have been trying to figure out how to build customer loyalty at the POS, because they’ve discovered that selling products to a repeat customer is much easier and cheaper than winning over a new one. That’s why businesses that adopt this strategy tend to be more profitable and long-lasting.
However, it’s not easy to come up with initiatives that drive loyalty at the point of sale. To stand out from the competition and win shoppers over, it’s important to understand the factors that contribute to retention and generate ideas based on that understanding.
With that in mind, we’ve put together this post to explain how the loyalty process works and what you can do to encourage it at your points of sale. Read on!
The importance of customer loyalty
Loyalty is the term the industry uses to explain what makes a consumer prefer one brand and reject another. This process is grounded in two basic principles: satisfaction and identification. Both aren’t required in every case; in other words, in some circumstances we’re satisfied with a product, and that’s enough for us to buy it again (think, for example, about buying dish soap).
However, identification is very important in certain segments. People buy Apple computers and smartphones not just because they’re satisfied with the product they bought, but also because they identify with the brand. So when we want to encourage loyalty, we have these two paths: satisfaction, which is mandatory, and identification, which is complementary.
Loyalty matters because it’s what truly makes businesses grow. Research points to the important role that retention marketing strategies play. For example, according to a study by Adobe Digital Index, 40% of an online store’s revenue is generated by 8% of its customers. Those 8% are shoppers who came back to buy from the company again. In other words, although they’re the minority, they spend more and bring in more profit.
As we know, it costs more to win a customer for the first time than to engage someone who has already shopped at our store. That’s why the idea of loyalty is so important for business. Promoting it at the point of sale is what will steer your company toward success.
The secret to building customer loyalty at the POS
Building customer loyalty at the point of sale is one of retail’s biggest challenges. There are traditional strategies aimed at achieving this goal, such as points programs and exclusive discounts. Still, many other factors influence loyalty at the POS.
The right product mix, for example, can make all the difference in how often people come back to your store. Likewise, engagement practices and storytelling can help. Below are some of the tools you can use to build customer loyalty at the POS.
Improve customer service
To retain shoppers, your best bet is to invest in the right customer service. You already know how important your sales associates are in the buying process. Investing in their training and specialization is therefore a surefire way to boost loyalty. Your customers expect a high standard of service. With qualified professionals, you’ll be able to live up to those expectations.
The traditional sales approach is often seen as intrusive. Restructuring it can bring good results. Try a hot desk setup, where customers can consult your associates whenever they feel it’s most appropriate. That way, your audience engages at the right level and enjoys a shopping experience in which they don’t feel pressured to buy anything.
Invest in the right product mix
Maybe your customers really like your store and the service they get. Even so, they don’t come back because they always have trouble finding the products they’re looking for. One way to get around this is to use checkout to confirm whether they found what they were looking for and take that feedback into account when choosing your product mix.
Consider the brands on your shelves and how well they match your audience’s profile. Test changes and track the results.
Think about storytelling
Storytelling isn’t just a tool for marketing and advertising. Stores that tell stories are a great opportunity to put it to work for your brand and sell more. Create environments that intuitively guide customers through an experience or narrative and encourage them to buy certain products.
Using storytelling in stores makes engagement easier and makes visitors more likely to come back.
Engage your customers emotionally
Most of the buying decisions we make in our lives aren’t entirely rational. Remember the Apple example and the role identification plays in loyalty? That’s exactly what we’re talking about.
When a brand manages to engage a customer and connect with them emotionally, it creates a bond. And that bond is what makes them enjoy repeating the shopping experience. To increase your business’s profitability and drive loyalty at the point of sale, invest in personal touches that appeal to the shopper’s emotional side, such as specific lighting or décor that reflects what you already know about their personality.
Consider discounts and loyalty programs
Both of these perks require a visit to your store to earn a stamp or sticker. They’re genuinely good tools for encouraging loyalty. They reward frequent visitors and come at a relatively low cost to the business. Although they’re “traditional” strategies, they shouldn’t be dropped from your arsenal of loyalty-building tools.
For them to work, though, it’s a good idea for them to be just as aligned with your brand and target audience as your other initiatives. Design a loyalty program that’s accessible and rewards people who are already loyal customers, encouraging others to become loyal too.
Learning how to build customer loyalty at the POS will help bring more returns to your business. But as with other marketing initiatives, it’s important to know how to analyze performance throughout the campaign. So learn more about what the results of your strategies mean!
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