Point of sales (POS) systems are the most used facility in retail businesses these days, the people with fresh start-ups, franchise-based systems, restaurants & now even multiplex theatres are also using POS systems for the effective growth in their business. Now let us learn something about retail marketing. in RM, the merchandisers use to promote their brands by building effective perceptions and knowledge about their products. It is very interactive way of brand promotions amongst the people or we should say a very effective tool to gauge new people as the customers would love to compare the products they are planning to buy or they just bought if you’ve got your brand well sighted and well informed amongst the consumers than you have a very good chance of gaining some good profit in your sales with all effective means and then can be possible with effective retail marketing of your brand. Now here begs the question of how POS systems can be an effective tool in boosting retail marketing as both of these things are quite the opposite in comparison. in this article, we will discuss how they are co-related in bringing healthy profits to your business.
Previously in our blogs, we have discussed how pos can be a useful tool for making your retail operation better and how pos can help us in manufacturing the best effective decision for the business. We also highlighted what sort of frustation usually retailers faces when they implement in effective pos systemin detail through our blog. This blog has addressed how a POS system can help in improving retail marketing and how businesses can get benefits from the POS system instead of keeping its scope limited.
POS System & Retail Marketing:
Point of sales systems and retail marketing are pretty much linked with each other & have shared charactisiticsin a business because the more the product is sold, the more you earn. The retail marketing has now become a very integral part of open market start-ups,business. The more you can promote your brand, the more you get the profit. You can take examples of some leading brands globally they use to spend millions and millions of dollars on their new products and even if they make some enhancements in their present products the same course of actions were followed because they know the fact that for instance, if the budget is of 4 million $ it would come back to them like a boomerang in few months of time with almost double of the investments they did. But for having effective marketing, you got to have a strong product & financial backup. The product has to worth it, and the financial settlements should be done by your Point of sales systems. In this article, we will discuss how retail marketing and Point of sales systems can co-exist together and can play a role in a successful business.
Good Data Backup:
One of the key features in a retail business is your costumer’s data. After shopping, while paying the bills, your POS system should be credible enough to pick up data from each transaction and store it in a local repository, and if it has the capability of taking it on the cloud, then it is like icing on the cake. What can this data do to you? How and why it is useful for an effective business? The answer to this is to monitor which customers visit you the most. By having this data onboard, you can make effective strategies about how to gauge them to shop again and again from you by sending them updates via SMS or if you have access to their emails you can send those updates to them via emails.
Giving Away Loyalty Rewards:
This data can also be helpful in introducing good money-saving plans to reward your loyal customers, how is it possible to give credits to those who visit you barely once a month? Will this affect your plans financially the answer to this is no, not at all. The investment in this plan is a long-term process; granting loyalty rewards to your faithful customers is not a bad thing at all. Your customers are your business, giving them loyalty awards is never a loss of any form, it is just that while implementing you got to restrict a limit of purchasing for them so it may not affect their purchasing power by any means
Let us take an example of a local shopping mall chain in New York, while setting up their business in the local market during the opening, just after 3 weeks of time, they set up discounts on top brands to have their customers gathered around them after they see a considerable rise in their sales with respectable profits they set up a loyalty awards tag upon 400$ of shopping if someone would shop around this ratio they will get a 5% payback on their bills. This strategy seems to be a risk at that time, but the risk paid off very well when their annual report was analyzed which shows a significant rise in profits moreover their annual profit-loss percentile was at a very high percentage as compared to their competitors in the market. All of this became possible by the effective use of their POS systems, its capability of saving customer’s data and their transaction made it possible and the company’s business prevailed to new heights with it.
Giving Off Free Services to Boost Sales:
In this technological age, everybody wants to be connected to the social world in whatever they are doing around. This also is the same while shopping or eating around in nearby restaurants/malls or some very good ice breakers. Now, how this social interactivity is useful in maintaining a healthy transactional role and effective sales? The answer to this query is hidden in your question. Here, there should be some role defining required it is now the responsibility of the facilitator to provide free internet services to the customers, the network service provider should really design the services in such a way that upon connecting it should ask the contact details of the users so it may get saved to the reserved logs of the daily entrants then this could be linked with the POS system.
Now, what would the POS system do to this data, while surfing through the web, in some cases while looking at the history it can easily be determined that what are his/her interests, what he likes or dislikes is he/she a shopaholic? Or interested in trying new items to serve his cravings. By having these details, the POS system would send offers to them via any possible means (SMS, Emails, etc.) so that they may frequently come to your centers and have their needs fulfilled.
Effective tool for Business Expansion:
Having earned good profits is always the reason for expansion, your profits and most importantly good to average customers’ feedback may enable you to increase your systems a bit more to some extent that could generate good revenue which guarantees future fortunes. Here your POS systems and retail marketing strategy should not get unsynced. The reason why it shouldn’t be disturbed is that it was synced previously and it was the reason behind the success you achieved in the retail market, and you must know the importance of it by this time. Here comes a more significant task, are you going to follow the same strategy? Or there should be some role reversal. There are two perceptions over this scenario, either you should go with the same setup because it is a tested experiment and people of the vicinity loved it, liked it and valued you because of this thing so it’s not bad to go with the same strategy to prevail more but it may affect your franchise based set up a bit, for example, the new place you started by following the same strategy may have larger space and offer room, for new brands then people would move towards the new settle rather than being loyal to the pioneer one.
The second approach would be to go for a change, as in by saying this I mean you must go for the transition as it is somewhat necessary to build a new business strategy, it is somehow essential just to take a note of it, a franchise owner was very successful in his retail business with using the best POS services their strategy was so successful in Michigan, they opted to make a move for expansion in the western state of California, where they failed to build any impression, the reason behind this failure was they were so reluctant to adapt to the approach of the west being an eastern side start-up giving away easy discounts and good strategy is not always guarantees success sometime you got to adapt according to the trend followed by the regional people or be trend settlers likewise what Burger king did to McDonald’s in the USA , they got to adopt a completely different strategy when the sensed the need of it when Burger King started acquiring good ground in the leading states of Dallas, Illinois and the economic hub of New York City.
POS System & Retail Marketing in Pakistan:
As far as Pakistan is concerned in this domain, we ‘re a bit behind in acquiring modern sequences. The reason behind this the reluctance of the local brands working on ground, as in by saying this I mean we are pretty much confused on what to learn and what to implement although, being the 4rth largest entrepreneurial market in Asia, we’re still not able to promote our brands in the local markets to have good, seemingly smooth POS systems working and in operations now being used even in the local departmental store in your locality. Why we lacked behind is we fail to adapt to the new strategy that is Digital Marketing.
Many of you may use YouTube every day, we see multiple ads on it promoting their brands so easily, and they used to appear so frequently on it that you may memorize the jingles and the names of it in a day. Can you guess how many of the ads are from the local industry? Any guesses or any count that would come to your mind, crunch numbers in yourself I would say it is not more than 3,4 not more than that. There is a possibility that people are getting used to if it maybe someday we will have it so commonly used that one day even the local brands will be using this stuff and promoting their products obviously it would take some time, but slowly and gradually it will be in practice. As far as the syncing between the POS and RM is concerned it is working well in Pakistan, and the reward adjustments and suppliers have also been adapted by some various local departmental store chains here especially in Karachi, Lahore & Islamabad.