The POS Software Blog

News from Tower Systems about locally made POS software for specialty local retailers.

CategoryJeweller software

HELPING SMALL BUSINESS RETAILERS LEVERAGE TYRO BROADBAND EFTPOS

February 8, 2016

1 Min read

H

Small business POS software company helps small and independent retailers leverage the opportunity of the Tyro broadband EFTPOS solutions. We do this through a direct integration with our smart POS software as well as through the friendly small business focussed help desk service.

Serving retailers across a range of retail niches, we have experience from many channels and situations from which to draw when helping retailers save time, cut mistakes and benefit from a best-practice EFTPOS integration. This is an integration supported by tower for many years.

While the Tower Systems POS software works with a range of platforms, Tyro is featured by the company thanks to the relationship with the folks at Tyro, a relationship that benefits the Tower Systems small business retailer user community.

We use Tyro ourselves in our own retail businesses. This enables us to support from a basis of personal experience. It sets us apart.

Read on Read later

HOW OUR POS SOFTWARE COMPANY INTERACTS WITH SMALL BUSINESS RETAIL CUSTOMERS

February 3, 2016

1 Min read

H

Read on Read later

SMALL BUSINESS RETAILERS: DON’T LET FEAR RULE YOUR POS SOFTWARE BUSINESS DECISIONS

February 3, 2016

2 Min read

S

Too often we hear stories of POS software companies threatening small business retailers either through deliberate use of technology jargon or through threats of costs being imposed that were not part of the original contract.

As many small business retailers are not experienced when it comes to technology and not used to dealing with technology companies, they can become confused and think this is how it works, this is normal.

It is not normal.

Small business retailers deserve to be treated with respect, using terminology they understand and with business contracts that are clear and straightforward.

Any POS software company engaging in overt or covert threats ought to be ashamed of themselves. If this is what they have to do to win or keep customers then shame on them and shame on those who work for the company and support such approaches.

Tower Systems is a safe haven for small business retailers looking for an empathetic POS software company, a place where any question can be asked, where regular free training is offered, where business advice is freely available beyond what is usual for a POS software company help desk.

We go into relationships for the long-term rather than a quick sale. This is reflected in our approach to initial training and on-going training, much of which is provided to our small business retail customers for no additional cost. We make this investment knowing the value of a happy customer, especially in small business retail circles where retailers network with colleagues in their retail channel, talking about supplier experiences.

If you are experiencing fear or anything close to fear in your dealings with your POS software company, get out, quit that software as a relationship based on any such fear is an unhealthy relationship for you personally and for your business.

Seek out a professional, respected and trustworthy POS software companies where fear has no place, where small business retailers are communicated with as a peer and not as someone to mock or confuse.

We are writing about this today as we have recently seen a stream of communication between the owner one Australian POS software company and a customer. It is appalling: unprofessional and unnecessarily aggressive. No wonder the retailer experienced fear. The threats in the communication give all software companies a bad name.

Don’t let fear rule your relationship with your POS software company.

Read on Read later

Helping small business retailers leverage POS software through professional communication

January 24, 2016

4 Min read

H

Small business retailers fall in love with POS software companies for a range of reasons, often layered upon each other to provide a comprehensive view of the software supplier business.

We know from years of experience at Tower Systems what many factors play into the small business retailer relationships on which we rely and that we cherish so dearly. The software is a factor, as is the software support. There are other factors too, such as customer communication.

Our small business retail customers love that we communicate with them across a range of platforms and at different times of the day and days of the week. From the reliable weekly email, pictured, to print newsletters, to training videos, to outbound calls to drop-ins to their businesses to user meetings, we offer touch points of a wide variety and through which our customers can connect with us and what we do, touch points on which small business retailers can rely to leverage their POS software to achieve better business outcomes.

Take the weekend email – pictured – this is sent each Sunday. Our weekly email contains news about the POS software, update information, business management advice and business management training. The weekly email from Tower Systems goes way beyond what retailers are used to from their POS software company. It is a professionally presented email. Brief yet complete, providing links to more information for those who want to explore a topic further. Most important is the contact points we publish in the email – we don’t leave small business retailers with vague information. No, we are specific in our contact points, specific with advice on the names of people they can speak with about software and general business management questions and issues.

We know from customer feedback and engagement that the email is used, shared and relied upon. It is a key differentiator for Tower Systems as we demonstrate personal and committed support for small business retailers across a range of retail channels.

Whereas some software companies rely on customers contacting them for and business to business communication, here at Tower Systems we understand the importance of professional business outcome focussed outbound contact. Our goal is to provide our customers with useful information prior to them needing it. Timely information appropriate to retail seasons. Helping information attuned to changing economic conditions. Target information specific to specialty retail channels in which we serve.

Through decade of service to small business retailers we have learned the value of this timely and professional communication. feedback from our small business retailers encourages us to continue our approach and to maintain our commitment to professional outbound contact and support.

We are careful in our communication to ensure it is not geek-talk. No, we prefer plain English help, aimed at supporting those using computers in business because they know they have to rather than because they love technology. This is where our business management advice is particularly useful – we show how our retailer customers can leverage the technology for practical business outcomes in their business. We do this weekly in the email and daily on the phone through our accessible and friendly help desk support.

We back our communication strategy with engagement on social media such as Facebook and Twitter. We are where our customers want us online as well as off line. This is why mail, email, web, social media and other platforms are engaged with by Tower Systems – to reach our customers where they are and not only where it suits us. Sure, it is hard work, relentless work. However, it is rewarding work when we receive feedback fro customers thrilled with outcomes they have achieved as a result of the engagement we have driven through our communications strategy.

The consistency of our communication is a key factor in the bond of trust between Tower Systems and its customers. It drives loyalty on both sides and demonstrates an understanding of customer businesses – as the communication is more than lip-service, more than spin, it is real life action, seeking to genuinely make a difference for the positive in the small business retail businesses in which we proudly serve in Australia and New Zealand.

This is the Tower Advantage^TM. A suite of tools, software, strategies and platforms through which we serve specialty retailers, helping them create better, more enjoyable and more valuable businesses. We trade-marked the Tower Advantage^TM because it deserves it. It is unique to us, unique for our customers. The trademark represents our pride in what we do and those who we serve. It represents the difference we make in the world.

Read on Read later

XERO GROWING MARKET SHARE WITH SMALL BUSINESS RETAILERS IN AUSTRALIA

January 23, 2016

1 Min read

X

We are thrilled to be a long term development partner with the Xero cloud based accounting software and listed as this on their website.

The Australian Financial Review recently published a terrific article about Xero, reporting how the company is primed for growth in Australia. We have seen this for some time through our work with Xero and retailers using Xero and their accountants. It is excellent accounting software.

Our experience is Xero is on the move. We are grateful to be part a small of the Xero story.

Read on Read later

HOW TO BE MORE ‘LOCAL’ IN YOUR SMALL RETAIL BUSINESS

January 22, 2016

2 Min read

H

Being local in retail is more important than ever.

Local can mean different things to different people – it does not necessarily mean proximity. Being local could be about the level of care and attention you provide customers, the additional advice you provide, that you live locally, that you source locally or that you serve the local community personally.

Locally sourced products could be products made in Australia. For example, detailing where a product is made and the family behind it pitches local compared to a similar product imported from overseas.

You can use your Tower Systems POS software to pitch local in a range of ways:

Include notes on receipts. Add product care instructions, use instructions or other useful information automatically on receipts – making your receipt a useful information platform.
Tell people where you source products. For a product made by a family or small business in Australia, include details on the receipt. Shine a light on this local product – provide extra information so your shoppers can feel more locally connected.
Include a SHOP LOCAL pitch. Add an image of a poster or some other promotion of the benefits of shop local to every receipt, reinforcing the value of shopping local. Tower Systems has images you can use for free – in the downloads section of our website.
Thank your customers. Include text personally thanking customers shopping with you. Put our name to the message. Include your mobile. Big businesses do not do this.
Track local product sales. Be aware of suppliers of locally made products and report on the performance of these through various reporting tools.
Thanks for shopping local vouchers. You can use the discount voucher facilities in the software and call them Thanks for shopping local or Local shopping reward. This reinforces a value for shopping with a local business – offering $$ discount off the next purchase based on rules you establish.

It is not enough to tell people to shop local, you need to demonstrate the value of this, you need to live it transactionally in your retail business. The best way to do this is through systems and processes in your Tower Systems POS software.

Read on Read later

HOW TO FIND OPTIMISM IN SMALL BUSINESS RETAIL

January 15, 2016

3 Min read

H

Every day can be tough in small business. You can feel like the big competitors are winning and that you can’t climb the mountain to compete. You may not know where to start.

There are green shoots of good news and opportunities in every small and independent retail business. The key is to find these and to leverage them for more success.

A green shoot is a product or a category of products or a supplier performing above average in the business. Often, these successes have gone unnoticed.

We were working with a retailer recently who said business was down by 20% and they did not know what to do. It turned out that the best performing product category in their business was ‘failing’ for six months because they had not replenished stock.

They invested, instead, on new lines that had not gone as well as the successful product.

They, in part, created their own downward spiral and had not looked at their business data to understand that contributed to the problems they were confronting.

Once they realised the situation, they re-stocked the successful range of products and numbers started to improve. More important, their confidence level grew and with this their business decisions improved.

There are opportunities for optimism in every business.

Finding optimism is like mining, you have to look for it, sometimes for a long time. It is there, though, in every retail business.

As soon as you hear yourself talking your business down, STOP. Look at your data, look for the good news. That is what you need to think and talk about.

By looking at your data, we mean looking at year on year, quarter on quarter or month on month comparison data for departments, categories, suppliers or even individual products. Look for growth and once you see growth, think about what you can do with and around the products achieving growth so that you can achieve other growth.

Any product achieving year on year increases in unit sales is a product to be appreciated, nurtured and used to help grow other products that can sell to the same customer.

This is how you grow optimism. Find those small green shoots, leverage them with some small steps and, over time, build more success for your business.

While overall revenue, traffic count and profitability may be down, growth even at the smallest data point, such as for one or two products, could be enough to get you looking at your business differently.

In the Tower Systems POS software, the best initial reports for good news are: Monthly Sales Comparison (department level, category level and / or supplier level), the 10×10 Report, Ranked Sales Report (by units) for one period and then for the comparative period.

We’re here to help you find the good news in your business. Your business data is the key.

Read on Read later

SMALL BUSINESS OWNERS: BELIEVE IN YOURSELF

January 13, 2016

2 Min read

S

Small business retailers often state the point of different their small business offers but too many do not live the point of difference.

Take customer service, for example.

Many small and independent retail business owners I know say they offer a better and more personal service than big retailers.

Retail shoppers often judge service by ease of doing business, the returns policy and any barriers along the way. Too often, small and independent retailers have barriers that get in the way of their goal of better customer service. Barriers such as hand written signs about eating in the shop, a notice about a credit card surcharge or an inconsistent returns policy.

If you say your customer service is better than your bigger competitors, live it every day. Believe in yourself by doing what you say.

Small and independent retailers who do this – who carry through with actions the words they pitch about their business – tend to be more successful.

Tower Systems helps small business specialty retailers to live their belief in their business through business processes, platforms and tools that drive consistency and deliver better quality and more personal customer service. These and other benefits are at the core of the Tower Systems POS software.

While we are a POS software company, we play an important role in helping small business retailers believe in themselves.

Read on Read later

Sunday retail management advice: train new employees

January 10, 2016

1 Min read

S

One of the benefits of using the Tower Systems POS software in your retail business is the professional training curriculum available through the company’s website.

New retail employees can undertake training specific to their role and the owner can track their progress through the training. The training is in a multi media form including text, images and video. The quality is exceptional.

This professional approach to employee training by Tower Systems helps retailers pursue consistency in their business by ensuring all employees have undertaken the same training.

Read on Read later

POS software customer love helping us sell POS software

January 9, 2016

1 Min read

P

We invited several customers last year to have their photo taken in-store as part of a promotional series showing happy small business customers in their shops where they use our smart POS software. We were thrilled every customer we approached agreed.

Here is one photo from the wonderful LollyBomb business in Adelaide. Some of the specialist facilities in our software help this business in smart and engaging ways.

We are grateful for their help in promoting our software.

Read on Read later

2016 is your year, let’s do this … with smart POS software

January 6, 2016

1 Min read

2

Read on Read later

Featuring on National Retail Federation promotion

December 31, 2015

1 Min read

F

Tower Systems people are featuring on marketing material from the National retail Federation for the NRF Big Show that starts in two weeks in New York. Attended by 30,000+ each year, the Big Show is an extraordinary business conference and trade show for large and small retailers. We have attended for many years. The event is an excellent networking opportunity with overseas based peers as well as with engaged Australian retailers on matters of technology and retail business management. The photo being used by the NRF was taken at last year’s event.

Read on Read later

Helping retailers save time with integrated eftpos

December 30, 2015

1 Min read

H

Tower Systems is using the rush of trade for small business retailers at Christmas to reinforce the commercial value of the Tyro integrated eftpos solution we offer. With 1,000 retailers connected through Tyro we have excellent data reflecting time saving, mistake reducing and other benefits for retailers that help at the sales counter as well as in the back office management of the business.

In the middle of the busy trading of Christmas, the benefits of the Tower Systems Tyro broadband eftpos integration are clear and felt on small business retail shops across a range of marketplaces:

Fast eftpos processing.
Accurate eftpos processing.
Reduced keystrokes at the counter.
No clogging of the phone line.
Streamlined counter management.
Happier customer engagement.
Better control over possible points of fraud in the business.
Reduced cash handling costs.

Read on Read later

Sunday retail management advice: how and when to quit stock in your retail business

December 27, 2015

5 Min read

S

How do you identify product that is not working? When do you quit a product that is not working? Why should you quit stock? How do you quit the stock? How long should quitting stock take? What if the item does not sell no matter what you do?

These are all questions we will answer here for you in the form of suggestions. What you ultimately do is 100% up to you. Your choices need to reflect your own situation and circumstances.

Identifying product that is not working.

Product is not working if it is not paying its way – paying for the floor space it takes and the time you spend on it. Check your sales, rank all your stock based on sales – look at the bottom performing stock. Your software should have a ranked Sales Report that lets you list all your stock ranked by unit or $$ sales. Use this to create your list of items to consider.

The other way to identify stock that’s not working for you is to check your back room or other storage facility. Stock that is not generating cash regularly has to be considered dead in our view.

When do you quit a product?

You quit, exit, products when they are not paying their way, when a season is done or when you want to exit that category for some other reason.

Let’s say your rent is $1,250 per square metre per year. If your gross profit averages, say, 50%, you will need to sell $2,500 worth of product to pay for a metre of space. However, this is not the complete consideration as you have labour, power and other costs to cover. The suggested rule of thumb is that your retail sales need to be at least three times that necessary to cover the cost of the space. In the scenario covered here, you should be earning at least $7,500 from a square metre of space. If stock is not delivering this, quitting it could be necessary.

Why quit stock?

To keep your shop fresh, to not be weighed down by dead stock to make your shop look more relevant, to stop hoarding.

How to quit stock.

Here is how we quit stock in retail businesses we operate. These businesses are in shopping centres where retail space is limited and expensive. We are necessarily aggressive.

Set a deadline. We’d suggest two weeks for quitting a product or range of products.
Choose your timing. The best time to quit stock quickly is on your busiest trading days. For many this will be the weekend. Consider structuring your quitting program to run from Thursday through Sunday.
Set your initial price. The discount must be compelling. We’d suggest 50% off. A smaller discount in this marketplace will not get noticed. Think about your discount words: in some areas, HALF PRICE works better than 50% OFF. Sometimes, 2 FOR 1 can be even more effective. A $$ price can work better – for example a dump bin with everything priced at $1. People then don’t have to work anything out.
Move the product to a high traffic location. Display it as a line you are quitting – in a dump bin or in open boxes. This must be in a location away from where the product is usually located. Do not make an attractive display. Consider placing the stock somewhere that people almost stumble over it.
Put up a sign that is either black on white or white on read. Nothing fancy. Even a hand written sign is good. Do not make a complex or attractive sign.
Adjust your price. If sales are not strong enough, go harder with your discount. From 50% off we suggest a drop to a $$ price point. It can be challenging selling something you would have sold for $20.00 at $1 but that $1 is better than getting nothing for the product at all.
Give it away. If the products are not selling, consider giving the stock away to a local charity. Getting it out of your shop for no compensation can be better than it taking space and giving off the wrong message about your business.
Keep track of time. If you decide to be out of the stock within two weeks, stick to that and make it happen with your pricing and placement decisions.
Use the bin. If you can’t sell the item and you can’t give it away, use the bin.
An alternative: If you have a large amount of stock to quit, consider hiring a local hall and running an off site sale. Talk to your suppliers about getting extra stock in for this. You could even plan to do this as an annual event. Consider, too, linking with a local charity to drive interest and create a fund raising opportunity for them.

Quitting stock takes strength and commitment. We urge you to do it to keep your business fresh. Product not selling gives shoppers a bad impression of your business.

Take a look at your shop floor and in your back room. Look at what you can get rid of right away to reduce the anchor of dead stock on your business.

Too many retail businesses have old stock gathering dust. One of the best ways to separate your business is to regularly quit stock that is not performing as it should.

Read on Read later

Christmas hours for Tower Systems POS software help desk

December 21, 2015

1 Min read

C

We have been advising our small business retail, customers our planned Christmas hours for several weeks:

CHRISTMAS HOURS.
We will close at 12 noon Christmas Eve and reopen 7am December 29. On December 31 we will close at 4pm. we reopoen January 4 at 7am. Our after hours numbers will be available for urgent system down queries.

Read on Read later

Retail management advice: beware web developer promises

December 21, 2015

1 Min read

R

There are some bad web development businesses out there, charging too much and delivering website solutions that are not what customers sought. Like anything in business, when it comes to web development – you get what you pay for. Caveat emptor.

Our advice when it comes to choosing a web developer is simple:

Take your time to work out exactly what you need / want.
Put in writing what you require.
Get a written contract that is specific as to what will be delivered and when.
Pay when you are satisfied.

Read on Read later

The most useful small business POS software knowledge base

December 17, 2015

1 Min read

T

I am still amazed at what I can learn about your software and I’ve been using it for years already.

This is a customer comment to us from last week on discovering new training resources in our online knowledge base.

Our investment in regular enhancing of knowledge base content pays off this this type of customer love. It encourages us to do more.

New articles, new business advice and other new content each week make our small business POS software knowledge base a wonderful resource for our small business retailer community.

We especially love suggestions from customers on new content we can publish.

Read on Read later

Xero, the accounting our POS software links directly to lauded

December 15, 2015

1 Min read

X

We love Xero. While we link to multiple small business accounting solutions, Xero is the one receiving most praise by experts and good press on a number of fronts at the moment.

Tower Systems is proud to be an approved authorised Xero POS software partner, listed on their website.

We are not surprised to see a POS software competition ignoring Xero when rating accounting software. Their ignorance is not unexpected.

Read on Read later

Great gift cards for small business retailers through POS software from Tower Systems

December 14, 2015

1 Min read

G

The Tower Systems designed and manufactured gift cards are growing in popularity across a range of retail channels. We are thrilled to be of service to retailers keen to offer professional gift cards backed by professional gift card management software as they have access to through their smart and engaged Tower Systems POS software.

The latest design customer gift cards are being shipped right now – pitching fresh designs to retail partners in time for Christmas trade.

The image loaded with this post shows some of the cards we have designed for our garden centre customers.

We are grateful to have in-house graphic design capabilities through which we can promote deeper engagement with our software.

Read on Read later

CPA level help for POS software Xero interface

December 11, 2015

1 Min read

C

Tower Systems offers CPA level help for retailers using the Xero accounting interface within our POS software. Guiding appropriate coding and ensuring the right data is linked to Xero, the level of help we provide is beyond what is usual for a POS software company.

Our Xero POS software link is best practice.

Beyond the help desk and beyond the usual IT support person assistance, our in-house accountant is able to help our customers to ensure accurate data and thereby leverage the better value achievable from the Xero link to the Tower Systems POS software.

We use Xero ourselves for two of our retail businesses and this enables us to speak from experience. This makes our advice more personal and experience based than what is usual for a POS software company.

Our accounting link experience includes Quicken and MYOB as well as Xero. It is the Xero experience we like the best, the accounting solution we have enjoyed the most.

This is another POS software Tower Advantage^TM.

Read on Read later

POS software training heading in to Christmas

December 7, 2015

1 Min read

P

Here is a list of POS software training available for small business retailers in the lead up to Christmas. Tower Systems is thrilled to be appropriately resourced and managed to be able to offer these free training opportunities that are a genuine point of difference for us:

Don’t miss a sale this Christmas! Use Gift Vouchers Wednesday, 09 December 2015 02:00pm
Free up cash in your business today Wednesday, 16 December 2015 02:00pm

Read on Read later

Sunday small business retail business management advice: how to compete with a big business competitor

December 6, 2015

3 Min read

S

Here are some tips from us on how to more effectively compete with a big business competitor located near your small business:

Know what you can and can’t do. Some big retailers spend tens of millions of dollars saying they are the cheapest. A small business cannot match that spend. So, price should not be your focus as it is a harder road. If you do choose to pitch on price, you need to do it comparatively and consistently. List their price and your price. However, the risk is they will chase you down that hole and their pockets are deeper than yours. I recommend against competing on price.
Understand the new competition locating near you. Research them, visit their store, look carefully at what they do. Understand, from a rational perspective, why they are a successful national company. Visit several times. Try and talk to customers. Knowledge gained from such field trips will empower your planning and decision making.
Focus on your point of difference. If you do not have on, get one, develop one. Own it. Ensure your business owns it. If it is service, make it better, if it is range, make it better., If it is that you are local, shout this from your rooftop. Your point of difference needs to be seen, heard and understood by your customers and those who would be your customers. If you do not think you have an obvious point of difference, work hard to build one and embed this deep within your business.
Promote your business. Professionally. Be smart. Big businesses are usually big advertisers. You need to advertise too. To the level you are able within your business. This could be in the local newspaper, on local radio, in flyers to homes or even with a terrific display in your front window. Promote your business and in particular your point of difference. Small businesses can win in social media with locally-focussed pitches which demonstrate your local connections.
Network locally. Connect with community groups, charities, sports groups, schools, clubs and friends. A small local business can do this better than a big business. Find a way to connect and help. This will be appreciated and, hopefully, rewarded with business. Strong networking can help you get more people on your side and supporting your business through strong word of mouth.
Have a consistent loyalty offer. This needs to be different to what major retailers do. It needs to be whole of business. It has to offer genuine rewards which get people shopping your shop rather than staying within a category. This is where discount vouchers work.

Read on Read later

POS software Magento link to help more retailers online

December 2, 2015

1 Min read

P

Magento is the world’s best online shopping cart, retail website tool in our view. We say this having worked with a host of platforms and gaining considerable experience ourselves and through people we work with.

Our POS software links to Magento through the Magento API, directly from our software into Magento for shared real-time data. We link from our software to Magento ourselves and have small business retail clients using it too.

Developed in addition to our well-established web-store link, the Magento link is deep, comprehensive and tremendously valuable.

High street retailers serious about an online presence will find it easier and faster to achieve through our Magento link, something we have been using ourselves for all this year and something with which we have excellent experience and knowledge.

Our web development team has developed multiple sites, providing us with excellent reference experiences for retailers contemplating an online presence connected to their high street POS software.

Read on Read later

Why the Tower Systems jeweller software is better for jewellers

December 1, 2015

2 Min read

W

There is a considerable difference between the software packages being promoted to Australian jewellers. The biggest difference is the heritage of the software.

Tower Systems is a software company. We specialise in developing excellent software specific to the needs of jewellers. We are not using the software to try and sell you consulting services.

It is our duty to provide you with software facilities and reports you can use without having to pay consultants to interpret the reports for you. This saves you money. Our Tower Advantage^TM service provides you with expert help.

Tower Systems is an Australian software company. The jeweller software we sell is what we develop ourselves, here in Australia.

Talk to us and you can speak with the IT professionals directly in our business who develop the software we want to sell you.

Jewellers have a direct say in all software enhancements we deliver.

These things separate Tower Systems from Retail Edge, ARMS and Swim.

Facilities in our jeweller software include: sales, customer loyalty, integrated eftpos, repairs management, special orders, gift cards, employee tracking, inventory management, specials / catalogues / offers, web-store interface, Xero interface, product care instructions, customer follow-up marketing, performance reporting, theft management, second-hand goods management, bundling pricing, servicing assistance / management, employee rostering and plenty more.

Serving 300+ jewellers with our specialist jeweller software, our service is personal:

We train you in your business, face to face.
Our support is Australian based, 24/7 and specialist to your needs.
We develop the software. We are not agents.
Our software is developed for you. It is not US or Chinese software.
You have access to more than 130 training videos.
You have access to a comprehensive, self-serve knowledge base.

Read on Read later

Sunday retail management advice: HOW A $2.50 DISCOUNT VOUCHER RESULTED IN PURCHASES OF $1,500 FROM A FIRST TIME SHOPPER

November 29, 2015

4 Min read

S

RETAIL LOYALTY INSIGHT: HOW A $2.50 DISCOUNT VOUCHER RESULTED IN PURCHASES OF $1,500 FROM A FIRST TIME SHOPPER

I want to share with you a true story of what happened recently in my own retail business. It is a story of how a small everyday purchase led to something bigger and how this happened as a result of fundamental changes in how the business is run.

To understand the personal nature of this story … Tower Systems owns and operates several retail businesses including a newsagency in a major Westfield shopping centre. We have this business to provide us with a real-world experience in retail where we can experiment with our POS software.

While this story is about what happened in my newsagency, it could happen in any type of business. This newsagency, by the way, is not your typical newsagency. Close to 70% of what we sell is non traditional. It is high margin higher price point items that sit at the core of this unique business.

At its core, this is a story about shopper loyalty, especially shopper loyalty in a retail situation where between 25% and 30% of shoppers visiting the business are not local and therefore not likely to engage with the old-school points-based loyalty program.

A customer passing the shop noticed our greeting card range and stepped into make a purchase because of a specific need. They purchased two cards. On their receipt was a voucher for almost $2.00. As they are not usually in the shopping centre they looked around for something in which to spend the $2.00.

This is the key: the customer came in to make a quick destination purchase. The type of business we were did not matter. They were on the way to the car park and happened to pass buy our shop. Point 1: location is in our favour. The stepped in because they saw our greeting cards. Point 2: the floor placement of cards was key in getting them in the shop.

Having made the purchase, the customer then noticed, for the first time, what else we sold – because of the $2.00 discount voucher on their receipt. Point 3: we got them to look around and see what else we sold.

The customer did a 180 degree turn and saw a locked glass cabinet of beautiful collectible bears. This was in the right place at the right time as they had been looking for a gift for a child. Money was not an issue. They wanted something to last a lifetime. They purchased a $500.00 bear.

This purchase would not have been made had they not been given the $2.00 voucher on their receipt. The voucher is what got them to notice what else we sold.

Fast forward several weeks and this customer who said they don’t usually come to the shopping centre was back for another $500.00 purchase. Now, several more weeks later, the customer has another $500.00 order placed.

I can directly trace more than $1,500.00 in sales back to the $2.00 voucher.

The software produced the voucher based on rules I established. The initial staff member serving the customer made a brief professional pitch highlighting the voucher. These are both important factors as they are at the core of a structured consistent approach to what has become the most lucrative loyalty program I have seen in my 30+ years involved in retail as a retailer myself and working with retailers in many different channels.

While most times vouchers are handed out they are not redeemed, they are redeemed enough to make them worthwhile. They are redeemed for good margin product as they get people looking at the shop for the first time and discovering items to purchase they were not in our four walls to consider.

The discount vouchers are disruptive and this is why I love them. People respond in unpredictable ways.

Best of all, the discount vouchers are profitable.

For this story to work in any retail business you need to have the right products, placed strategically in-store. Your employees need to make the right pitch. Plus, you need to be attracting people who don’t know and probably don’t care what shop they are in.

Tower Systems offers not only excellent software but also the business acumen, experience and drive to help you make the most of the opportunities in the software.

From points on a purchase to buy X and get Y FREE to Discount Vouchers, the Tower software offers flexibility in loyalty offerings that enable you to make the pitch right for your business to bring shoppers bag to spend more than might usually be the case.

Read on Read later