Independent Retailers often have underutilized resources at their disposal that can help their businesses operate more efficiently. One of the most untapped resources is the store’s point-of-sale system (POS). It is a powerful tool that collects valuable information about each customer’s buying habits and can help personalize the shopping experience. A treasure trove of data is captured daily. Still, most of it is rarely used to build relationships with customers, promote the business, or encourage shoppers to make a return visit. POS systems enable retailers to collect and extract the following information:

• Customer Profiles include the person’s name, demographics, contact information, and loyalty program status.
• Customer Purchase History offers specific details on the products the customer buys, when, and how often.
• Payment Preferences identifies payment methods, frequency, and amount spent during each transaction.
• Product Preferences highlight favorite brands, product categories, and specific items.
• Promotional Responses is a record of the discounts, coupons, and offers the customer has used.

Personalized Shopping Experiences Drive Sales
Although every operation is different, there are fundamental ways stores can personalize the shopping experience in-store and online. For physical stores, a highly engaged and motivated staff is essential to creating the welcoming atmosphere that fosters a customer-centric experience. Tapping into POS data can help you train associates to greet customers by name, suggest products, or even offer promotional discounts. This is the level of service that creates buzz and differentiates businesses from competitors.

• Research indicates that 80 percent of consumers are more likely to make a purchase when the shopping experience is personalized.
• According to marketing studies, loyal customers who generate repeat business spend 67% more than new customers.

When staff fully understand how to access customer profiles and purchase history, they can resolve complaints more efficiently and offer personalized solutions that let customers know you care about their concerns. Remember, most customers will forgive a mistake or misunderstanding if an issue is quickly addressed respectfully.

Personalizing Marketing Campaigns
According to a BCG Global Consumer Radar survey, four-fifths of respondents say they are comfortable with personalized experiences and expect companies to offer them. The reason shoppers like interactions tailored to their preferences is that they provide value, enjoyment, and convenience. Customers appreciate brands that make their lives less stressful by making it faster and easier to access products and services.

However, whatever campaigns or communications efforts retailers initiate should not be viewed as a substitute for personal interactions. Use your POS system to promote products, services, and niche businesses during peak selling seasons and to drive foot traffic during slow months.

• Build relationships by using purchase history to send personalized emails and text messages with offers about the customer’s favorite products or brands.
• Tailor loyalty program offers to reflect individual shopping habits, birthdays, special promotions, and in-store events.
• Promote specialty services like screen repair, key replacement, and grill assembly to drive demand for seasonal products.
• Offer basic How-to classes on gardening, painting, canning, or topics of interest in your local community.

Offering On-trend Product Assortments
Both younger and older customers like the extra attention and perks that come with personalized service. Yet Millennials and Gen Z also expect retailers to stock trendy, innovative products alongside the tried-and-true staple items that get the job done. Using a POS system to make data-driven decisions increases the likelihood that you select products that cater to your specific customer base rather than taking a one-size-fits-all approach. Leveraging analytics and existing data can help retailers identify the most profitable customers and increase basket size.

In today’s retail environment, personalizing the shopping experience is not optional; it is a necessity. The next generation of homeowners have different expectations than Baby Boomers, who were born before advances in technology dramatically transformed retailing. To maintain a thriving business and prepare for the future, Independent Retailers must acquire an in-depth understanding of the enhancements available within their POS systems. Investing the time now can help streamline processes and build solid relationships with a diverse group of shoppers.