Today, retail success depends on turning sales data into actionable business insights. Follow this guide to use tools to make data-driven decisions that significantly impact retail performance using POS Systems.

Accessing Your POS Gold Mine

Your point-of-sale (POS) system has a Gold Mine of data. Here's how to access your sales comparison reports:

1. Open your POS software and navigate to the Reports section.
2. Select the Sales option.
3. Look for the Compare feature to analyse different periods side by side.

Setting Up Your Comparison: The Foundation of Insight

When setting up your comparison, you have two main options:

1. Formal Date Ranges: Use standard periods like months or quarters for consistent reporting.

2. Custom Date Ranges: Select specific dates (e.g., 06 Nov 2024 to 05 Dec 2024) for more targeted analysis.

Pro Tip: Choose comparable periods for meaningful analysis. For example, compare:

• This year's holiday season to last year's
• This quarter to the same quarter the previous year
• Weekends vs. weekdays

By selecting similar business cycles, you'll gain the most accurate insights into your performance trends.

Analysing the Report: Your Retail Crystal Ball

Your comparison report offers a wealth of information:

Overall Performance Metrics

• Sales figures for each period
• Revenue generated
• Quantity sold

Department-Specific Insights

• Performance comparisons across departments
• Individual department deep-dives

Pro Tip: To analyse specific departments more thoroughly, click on them in the left-hand menu.

Understanding POS Data Export: Unleashing the Power of Excel

To gain additional insights, export your data to Excel. Follow these steps:

1. Click the export button in the top left corner of the report.
2. Choose Excel as your export format.
3. Open the file in Excel or OpenOffice (a free alternative).

Once you've got your data in Excel, you can dig deeper.

Actionable Insights from Reports: Beyond Sales Comparisons

Your POS system is a goldmine of retail intelligence. Beyond sales comparisons, consider exploring these powerful reports:

• Top-selling products analysis: Identify your star performers and potential areas for expansion.
• Inventory turnover tracking: Optimise stock levels and reduce carrying costs.
• Customer purchase history: Tailor your marketing and loyalty programs for maximum impact.
• Staff performance metrics: Improve scheduling and identify training opportunities.

Turning Data into Dollars: From Insight to Action

Now that you've gathered insights from your POS reports, it's time to put them into action:

Identify top performers

Optimise the placement of your best-selling products in your store layout.

Adjust inventory

Use turnover data to fine-tune stock levels, reducing overstock and stockouts.

Refine marketing

Leverage department performance comparisons to allocate your marketing budget effectively.

To consistently enhance your retail performance, regularly examine your data, experiment with new strategies, and evaluate the outcomes.

Your Next Moves: Turning Data into Profit

Start harnessing the power of your POS data today:

1. Generate a sales comparison report for the last two months.
2. Identify your top three performing products or departments.
3. Create one actionable strategy based on your findings.
4. Execute your strategy
5. Monitor the outcomes.

Your POS system can be your gateway to success in retail.

Frequently Asked Questions

Q: How do I access sales comparison reports in my POS system?

A: To access sales comparison reports:

1. Open your POS software
2. Navigate to the Reports section
3. Select the Sales option
4. Look for the Compare feature to analyze different periods side by side

Q: What types of date ranges should I use for comparisons?

A: I suggest using formal date ranges, such as monthly ones. Custom date ranges (e.g., 06 Nov 2024 to 05 Dec 2024) are for ad hoc analysis.

Q: What key information can I find in a sales comparison report?

A: Sales comparison reports typically provide:

• Overall performance metrics (sales figures, revenue, quantity sold)
• Department-specific insights
• Performance comparisons across departments

Q: How can I analyse my POS data more in-depth?

A: Export your data to Excel or a similar spreadsheet program. This allows you to perform custom calculations and create tailored data visualisations.

Q: Beyond sales comparisons, what other reports should I explore in my POS system?

A: Consider exploring reports on:

• Top-selling products
• Inventory turnover
• Customer purchase history
• Staff performance metrics

Remember, consistent analysis and action based on your POS data are key to optimizing your retail operations and boosting your bottom line.

Understanding your Customer Acquisition Cost (CAC) is a key retail element today. We use it in marketing budgeting. I will show you how to calculate it to ensure your marketing budget delivers accurate results.

What is Customer Acquisition Cost(CAC)?

Customer acquisition cost, or CAC, is the cost of acquiring a new customer. Different channels, like social media, newspapers, email newsletters, etc., have different costs and effectiveness. We are trying to determine the most successful channel for the cost vs new customers.

To calculate your CAC, we divide your total marketing costs, including advertising costs, promotions, event expenses, product giveaways, and even extra salaries related to marketing efforts, by the number of new customers you gain.

Why CAC Matters

Knowing your CAC helps you:

• Evaluate the effectiveness of different marketing channels
• Allowing you to allocate your marketing budget more efficiently
• Understand the actual cost of growing your customer base
• Make data-driven decisions about your marketing strategies

Calculating CAC with Your POS System

Your point-of-sale system is crucial for accurate CAC calculations. Here's how to use it:

1. Compare current sales to the same period last year
2. Adjust for overall business growth or decline
3. Identify the number of new customers gained by a recent advertisement.

For example, suppose you averaged 100 sales per day last year and made 105 sales per day this year during a promotion. In that case, we had 5 new sales. This year's business is up about 2% compared to last year's figures, so we have five new sales, less than the two we would have had anyway. So, we are looking at three new sales per day due to this advertisement.

Real-World Examples

Let's crunch some numbers to see CAC in action:

Newspaper Advertisement

• Cost: $200 (design) + $1,000 (placement) = $1,200
• New customers: 10
• CAC = $1,200 / 10 = $120 per customer

Facebook Advertisement

• Cost: $200
• New customers: 1
• CAC = $200 / 1 = $200 per customer

Google Marketing Campaign

• Cost: $600
• New customers: 5
• CAC = $600 / 5 = $120 per customer

In-Store Sign

• Cost: $300
• New customers: 6
• CAC = $300 / 6 = $50 per customer

In this scenario, the in-store sign proves most cost-effective.

Beyond the Basics

Customer Value Assessment

Some people prefer profit over sales because a high-margin giftware buyer is worth more than a newspaper purchaser. I support this view. One of the problems here often is that something is popular; prices are thin, and you promote it, which gets some customers but little profit. The cost of the advertisement is actual.

Your POS System can give you the profit figures.

Fixed Cost Considerations

Sometimes, CAC calculations include fixed costs. The new shop should give you four new customers for two shop locations with a difference of $200 extra monthly rent. To a marketer, the CAC = $200 / 4 = $50 per monthly customer. Is $50 a customer worth it to you as a business owner?

Implementation Steps

1. Get figures before the promotion of what your current customers are.
2. Experiment with different marketing strategies and track results
3. Calculate the CAC results; the more you do, the easier it gets.
4. Regularly review and adjust your marketing mix based on CAC data

By mastering your Customer Acquisition Cost, you'll make smarter marketing decisions, stretch your budget further, and build a loyal customer base that will support your business for years. Keep experimenting, tracking, and refining your approach—your bottom line will thank you!

Frequently Asked Questions (FAQ)

Q: Why should I use CAC in my business?

A: CAC should be used in your business as it helps optimise your marketing and sales budget allocation by showing exactly how much you're spending to gain each new customer, allowing you to identify inefficiencies and reduce wasteful spending.

Q: How is CAC calculated?

A: Divide the total cost of sales and marketing by the number of new customers acquired during a specific period.

The formula is: CAC = (Cost of Sales and Marketing) / (Number of New Customers)

The costs include all costs associated with acquiring customers, such as salaries, tools, advertising expenses, and related overhead.

Q: What is a reasonable CAC?

A: The cost of a CAC varies significantly by industry. In Australia, retail prices are generally about $60. If you are starting a business, it's often higher.

Implementing a strategic best-seller labelling system can boost your retail sales through proven psychological triggers. Products with best-seller badges experience an increase in visibility and conversion boost. As a retailer in Australia, this simple yet powerful technique could be the key to driving customer interest and improving your bottom line. The majors like Amazon do it, so why not you?

The Power of "Best-seller" Labels

Best-seller labels tap into fundamental human desires for belonging and social validation. The sense of belonging drives purchase decisions by providing customer validation. Customers who see an item as popular are more likely to trust its value and quality. This psychological trigger can significantly influence purchasing decisions, making it a valuable tool in your retail arsenal.

Why This Works

This strategy is effective for several reasons:

Social proof

People tend to follow the crowd, especially when making purchasing decisions.

Attention-grabbing

The signs draw the eye, making these products stand out.

Simplifies decision-making

A "Best-seller" label can tip the scales for indecisive customers.

Good Value

Best-seller items are seen as good value.

Maximizing Product Visibility

Strategic placement of best-seller products in high-traffic areas and at eye level significantly impacts customer engagement. It is vital as these items sell. Consider these placement strategies:

• Position best-sellers near the entrance to catch immediate attention
• Place them at eye level on shelves for easy visibility
• Use end-cap displays to highlight top performers
• Put items that would sell well with this item around them.

Implementing the Strategy

Now that you understand the psychology and have your data, it's time to put your plan into action:

Best-seller Signs

I suggest purchasing some for a professional look. An essential tip is to ensure your signs are in red to grab attention and create urgency. Have a look at something like this.

Review your top seller's list.

Your Point of Sale (POS) system is a goldmine of valuable data. Here's how to use it to identify your top-selling items:

Go to Register reports.

Now pick "Top N Stock Sales for a Given Period."

Now, in the form put in the last 30 days and select a department

A report looks like this with your top sellers listed.

This report will list your best-performing products over the past month. Now, go through these items and select as many as reasonably possible. Choose as many items as possible from your top sellers' list; the best-sellers are generally evident when you look at the list. Typically, you get about five on every list.

To gain deeper insights, run reports for multiple timeframes:
- Month data for current patterns.
- Three-month data for seasonal patterns 
- Year data for long-term performance

The bonus of doing several runs is getting more best sellers. 

As a punt, you should get about ten items per department. You do not want more.

Select and label your best-sellers

Place your "Best-seller" signs next to or pointing at these items

Maintain the strategy

Set a reminder to repeat this process monthly, as this ensures your "Best-seller" labels always reflect current top performers

Tracking Performance Metrics

To measure the success of your best-seller strategy:

• Monitor sales of labelled items before and after implementation
• Track overall store revenue changes
• Observe customer behaviour and engagement with labelled products
• Analyze changes in product visibility and shelf time

Optimizing Customer Psychology

Remember, bestselling labels are more than signs- powerful psychological triggers. To maximize their impact:

• Use persuasive language on your labels (e.g., "Customer Favourite")
• Combine best-seller labels with limited-time offers to increase urgency
• Train staff to highlight best-seller items during customer interactions

Conclusion

The "Best-seller" labelling strategy is a simple yet powerful tool that leverages your POS system's data to boost sales. By highlighting your top-performing products, you're guiding your customers towards items that will likely satisfy them, increasing your sales.

FAQ

Q: How often should I update my bestseller labels?

A: We recommend that you update your bestseller labels monthly. This ensures that your labels always reflect your current top-performing products, keeping your store layout dynamic and engaging for repeat customers.

Q: What makes a bestseller on Amazon?

A: A bestseller on Amazon is primarily determined by sales volume within a specific category. The Amazon A10 algorithm considers factors such as sales velocity and sales history when ranking products. The bestseller status is updated hourly, reflecting recent sales performance

Q: Can I use bestseller labels for many of my products?

A: While it might be tempting, your customers are not fools and will smell a rat if you are not genuine. Plus, overusing the label can dilute its impact and reduce customer trust. Stick to labelling your actual top-selling items based on your POS data.

Q: What colour should my bestseller signs be?

A: Red is the most effective colour for bestseller signs. Red grabs attention.

Q: How do I determine which products are my bestsellers?

A: Use your POS software to generate a "Top N Stock Sales for a Given Period" report.

Q: Will this strategy work for all types of retail businesses?

A: I have seen it effectively used in many shops, from hamburgers to chemist shops. However, the impact may vary depending on your products and customer base. It's worth testing and measuring results in your unique retail environment.

Q: How does this strategy tap into customer psychology?

A: Bestseller labels leverage social proof, a psychological principle where people tend to follow the actions of others. Customers who see a popular product are likelier to trust its value and quality, influencing their purchase decisions.

Q: Can I combine bestseller labels with other promotions?

A: Absolutely! You can introduce if you want bestsellers for the promotion, too.

Q: How do I measure the success of this strategy?

A: Track sales of labelled items before and after implementation, monitor overall store revenue changes, observe customer behaviour around labelled products, and analyze changes in product visibility and shelf time. Our POS system will be able to provide this data.

Most of our retail clients who never had a Black Friday Sale listened to us, did it at the last minute, and saw increased sales. It's still possible to capitalise on this massive shopping event. Here's how to make the most of Black Friday today and maximise your in-store profits.

Why Participate in Black Friday?

Black Friday has become a vast retail occasion in Australia, with brick-and-mortar stores gambling a vital function. In 2023, in-save Black Friday income increased by 15% compared to the preceding year, with foot visitors up 22% in shopping centres across most critical Australian cities.

Setting Up Your Same-Day Flash Sale

1. Choose the Right Sale Items

Select products that will attract bargain hunters and clear your inventory:

• Overstocked items
• Slow-selling products
• Popular items with a small discount to drive foot traffic

Your POS system can help you identify these products quickly by generating reports on stock levels and sales performance.

2. Leverage Your POS Software

Your point-of-sale system is crucial for last-minute sales success. It makes it very easy.

Here are some instructions. 

Remember, these are overstocked or slow-selling products, and you are dealing with bargain hunters who want stuff like this now.

3. Promoting Your Flash Sale

What is the point of having a Black Friday Sale if you don't tell people about it? Put a sign up. Do not worry about it being a little early or removing it after Black Friday. Black Friday Sales now last for weeks.

On the Facebook page of one local business, which I know is very professionally run, I saw the following written

Don't miss out on these amazing Black Friday deals! Shop early to get the best selection. We also have a great gift guide to help you find the perfect presents for everyone on your list. And don't forget to take advantage of our price match guarantee!

Make your own sign. I suggest including some of these words as, based on what I have seen, they seem to work.

Black Friday

Cyber Monday

Doorbuster 

Gift Guide

Holiday deals

Price match, 

Save money

Shop small

Here are some ideas:

• "Black Friday Flash Sale - Today Only!"
• "Doorbuster Specials - While Stocks Last"
• "Shop Small, Save Big - Support Local"
• "Price Match Guarantee - Ask Us How"

Conclusion

While planning for Black Friday is better, participating and boosting your in-store sales is not too late. By leveraging your POS system, creating urgent promotions, and focusing on clearing stock, you can turn this Black Friday into a profitable event for your shop.

Australian consumers actively seek in-store Black Friday deals. 68% of Australian shoppers now plan to visit physical stores for immediate gratification and tactile experiences.

Post-Black Friday Strategies

Extend it, extend it and extend it. Black Friday is much longer than a day.

Black Friday Sales FAQ

Q: How do you Make a Sale on Black Friday? 

A: Start by determining the proper merchandise to discount, focusing on overstocked gadgets and gradual-moving inventory. Use your POS device to generate inventory reports. Then, creating urgency with time-restrained gives and ensures aggressive pricing whilst maintaining profitability.

Q: How do you Announce a Black Friday Sale? 

A: Create eye-catching signage using proven promotional keywords like:

• "Black Friday Flash Sale"
• "Doorbuster Specials"
• "Shop Small, Save Big"
• "Price Match Guarantee"

Leverage your social media platforms to announce the sale, and don't worry about extending the promotion beyond Black Friday itself, as these sales typically run for several weeks.

Q: What is the Black Friday Sale in Australia? 

A: Black Friday has come to be a primary retail event in Australia, with in-shop sales increasing by 15% in 2023 compared to the previous year. Physical store site visitors saw a 22% increase throughout fundamental Australian cities, and sixty eight% of Australian buyers especially plan to go to brick-and-mortar shops for Black Friday for fast purchases and arms-on shopping stories.

Q: How do you run a Successful Black Friday Sale?

A: Product Selection

1. Focus on overstocked inventory
2. Include popular items with smaller discounts

3. Feature slow-moving products that need clearing

4. POS System Utilisation

5. Use your point-of-sale system to track inventory
6. Monitor sales performance in real-time

7. Implement price changes efficiently

8. Promotion Strategy

9. Display prominent signage
10. Use proven promotional keywords
11. Extend sales beyond Black Friday

12. Implement a price match guarantee

13. Post-Sale Management - Consider extending your sale period to maximize revenue potential and clear remaining inventory.

Time to do some essential Black Friday Stock Analysis; time is running out! 

With Australian retail sales reaching $6.36 billion during Black Friday 2023 and over 50% of Christmas shopping occurring, early strategic inventory planning will directly impact your bottom line. Use your sales history to see what sells in your shop patterns as your key to maximizing Black Friday 2024 profits.

Maximizing POS Data

Our modern point-of-sale system can give you the information you need to get actionable insights into what sells in your shop in this period. Here is your rapid assessment framework:

Data Collection Process

It is easy and takes 30 seconds.

Go to Register reports.

Now pick "Top N Stock Sales for a Given Period."

Look at last year, the week before (17-24 November 2023)

Now look at 6-29 November 2023

This will give you your Key Performance Indicators (KPIs) for sales.

Action Steps for Success

1. Adjust stock levels based on historical trends
2. If necessary, contact suppliers for high-demand items
3. Update display strategies

These reports must be checked to see what looks interesting and, more importantly, if you have enough stock.

Do it and see how you go.

We do not have much time!
 

FAQ: Black Friday Sales Planning Guide

Retail Basics

Q: What is the significance of Black Friday in Australian retail?

A: Black Friday is now Australia's biggest shopping event. It generated over $6.36 billion in retail sales during 2023. It also marks the official start of the Christmas shopping season, with 30-50% of annual Christmas sales occurring during this period. For retailers, it's a critical time.

Q: What are the critical dates for Black Friday 2024?

A: The core Black Friday sales period runs from November 29 to December 2 (Cyber Monday) 2024. However, many Australian retailers begin their promotions earlier in November to capture early shoppers. Plan for:

• Early Bird Sales: Mid-November
• Main Event: November 29
• Cyber Monday: December 2
• Extended Sales: Through early December

Q: Which retailers typically participate?

A: Black Friday has become ubiquitous across Australian retail. Participation includes:

• Major department stores (Myer, David Jones)
• Electronics retailers
• Fashion and apparel brands
• Online marketplaces
• Small and medium local retailers
• Specialty stores

Data Analysis & Planning

Q: What specific POS data should I analyze for Black Friday planning?

A: Focus your analysis on these key metrics:

• Previous year's top sellers (17-24 November 2023)
• Extended period performance (6-29 November 2023)
• Year-over-year growth patterns
• Stock depletion rates
• Average transaction values
• Peak sales times

Q: How can I use historical data to predict 2024 trends?

A: Conduct this three-step analysis:

1. Review last year's performance:
   • Best-selling categories
   • Daily sales patterns
   • Customer purchase behaviours
2. Compare with current market trends
3. Adjust predictions based on economic conditions

Inventory Management

Q: How should I adjust inventory based on historical data? A: Follow these inventory adjustment guidelines:

• Increase top-seller stock by 20-30%
• Reduce slow-moving inventory
• Add new products in successful categories
• Factor in current market conditions
• Set reorder triggers for high-demand items

Q: How can I prepare for supply chain challenges? A: Implement these preventive measures:

• Order high-demand stock early (by early October)
• Establish backup supplier relationships
• Create contingency plans for popular items
• Maintain clear customer communication channels
• Set up stock-level alerts

Sales Strategy

Q: What display strategies work best for Black Friday?

A: Optimize your store layout with:

• High-visibility locations for top sellers
• Clear promotional signage
• Strategic impulse buy placement
• Efficient traffic flow patterns
• Mobile POS stations for peak times

Q: What metrics should I track during the event?

A: Monitor these real-time indicators:

• Sales velocity by item
• Stock levels
• Average transaction value
• Customer flow patterns
• Staff performance
• Return rates

Post-Event Analysis

Q: What analysis should I conduct after Black Friday?

A: Evaluate these key areas:

• Sales performance vs predictions
• Inventory accuracy
• Customer satisfaction metrics
• Marketing effectiveness
• Operational efficiency
• Staff feedback
• Technology performance

Q: How can I improve customer experience based on data?

A: Use your insights to:

• Optimize staffing levels
• Enhance product knowledge training
• Streamline checkout processes
• Improve store layout
• Refine promotional strategies

Implementation Priority

1. Begin data analysis immediately
2. Order inventory by early October
3. Train staff by early November
4. Set up displays one week before
5. Monitor and adjust during the event

Exciting Hallmark Cards Trial: Enhance Your Retail Experience

As a retail and POS systems expert, I'm thrilled to share information about an innovative trial involving Hallmark Cards and POS Solutions that could benefit your small retail business. This collaboration aims to enhance customer engagement and boost sales by uniquely integrating Hallmark technology into our POS system.

The Hallmark Cards Trial: An Exciting Opportunity

How It Works

When a customer purchases a Hallmark card at your store, our POS System captures the barcode during the sale process. We then trigger the Hallmark system to present an engaging competition on its screen, which offers your customers a chance to win a prize by selecting a card.

You can see what it looks like here.

Benefits for Your Business

Enhanced Customer Experience

This interactive element excites the purchase process, potentially increasing customer satisfaction and loyalty.

Increased Foot Traffic

As word spreads about the competition, more customers may visit your store to participate.

Greeting Card Competition

The competition could encourage additional purchases of Hallmark cards and other products in your store.

Costs

No cost. Registration is free.

Trial Locations and Requirements

Your stthat it is must already sell Hallmark cards to be eligible.

We are currently seeking participants in Melbourne and metropolitan New South Wales. NSW offers more flexibility than Victoria. Once we have settled in, we will expand the area.

Why Consider Participating?

Retail Innovation

By participating in this trial, you're positioning your business at the forefront of retail innovation.

Gather Valuable Data

The trial will provide free insights into customer behaviour and preferences, which could help you in future business decisions.

Strengthen Partnerships

We hope collaborating with established brands like Hallmark will open doors for future opportunities and partnerships.

Final Decision by Hallmark Cards

While expressing interest is the first step, Hallmark Cards will ultimately decide whether your store is accepted for the trial. Even if you meet the initial criteria, Hallmark will have the final say in selecting the trial participants.

Next Steps

If you want to participate in this exciting trial, please act quickly. Here's what you can do:

Assess Your Eligibility

Confirm that your store is in Melbourne or metro NSW and that you sell Hallmark cards.

Contact POS Solutions

Reach out to express your interest and ask to be put on the trial

Please understand that the selection process is by Hallmark, which reviews all potential participants.

The trial offers a unique chance to enhance your POS System capabilities and customer engagement at no cost.

It's an opportunity to test innovative retail technology that could give your store a competitive edge by offering a unique experience.

Frequently Asked Questions (FAQ)

Q: How much does it cost to join the trial?
A: Nothing

Q: What equipment is needed to participate?
A: You'll need our POS system. Our team will work with you to ensure your current system can integrate with the Hallmark technology.

Q: Will this slow down my checkout process?
A: The system is designed to be quick and efficient. I doubt it will add any time to a typical transaction.

Q: How will this affect my existing Hallmark card sales?
A: The trial aims to boost engagement and potentially increase sales.

Q: Can I opt out of the trial if, for any reason, it is not working?
A: Yes, you can opt-out at any time. We value your feedback and will work with you to address any concerns.

Q: How will my customer data be handled?
A: It will not be, and in any case, all customer data is handled in compliance with Australian privacy laws.

Q: Will I receive training on how to use the new system?
A: Yes. We provide comprehensive training for you and your staff before the trial begins.

Q: What happens after the trial ends?
A: Based on the trial's success, we hope it continues and that they expand the program.

Update: When this was first published, as it was new, we did not know if there were any costs to join the program; we have received confirmation that there is no cost. The article was updated.

​

It's becoming evident that retailers across Australia are already gearing up for the festive season. 

Analysing Christmas Interest Trends

To measure public interest in the upcoming holiday season, I turned to Google Trends (www.google.com/trends), a valuable tool, I find for measuring Australian interest over time. The results paint an interesting picture:

• Consistent Interest: Over the past four years, Australian public interest in Christmas-related searches has remained stable.
• Slight Increase: There's a small but noticeable uptick in Christmas-related searches compared to past years.
• Long-Term Stability: Extending the analysis to cover an eight-year period shows little variation, indicating a consistent level of holiday enthusiasm among Australians.

This data shows that despite the current economic conditions, Australians' interest in Christmas celebrations remains constant. For retailers, this presents both opportunities and challenges as we approach the busiest shopping season of the year.

As the holiday season approaches, we must be well-prepared to capitalise on the busiest time of the year. Here is an interesting report

Understanding the 2024 Christmas

Here's what we're seeing:

Consumer Sentiment and Spending Patterns

Cautious Optimism

Despite economic pressures, most (76%) of Australian consumers plan to spend the same or more than in 2023.

Value-Seeking Behaviour

A whopping 70% of shoppers state sales promotions and discounts as the main factor in purchasing.

Early Bird Shopping

55% of Aussie consumers have started their gift shopping by October, indicating your need to be prepared now.

November Peak

63% of consumers plan to complete their Christmas shopping in November, particularly late November.

Black Friday Boom

Black Friday sales are rapidly increasing in importance in Australia, marking the start of the Christmas shopping season.

Category-Specific Trends Expected for Christmas 2024

Clothing

This category has emerged as the most popular gift choice for 2024, overtaking gift cards and electronics for the first time in nearly a decade

Books

Books are among the top gift choices

Gift Cards:

While no longer the top choice, gift cards remain popular, ranking, but the margins are so low that it might be questionable in this category. Many of my clients tell me they feel it costs them money as people spend more on gift cards than on their products.

Food:

Food spending is expected to dominate the peak season; no matter how times may go up or down, people have to eat.

Electronics

While specific figures aren't provided, electronics appear to have dropped in popularity compared to previous years, no longer being among the top gift choices

Overall, most expect a shift towards more practical gifts.

Toys

One category that is not being discussed but I think is worth looking into is kids, people now are not cutting down on their kids. I think you will find strong interest in toys, look at movie-inspired toys, what about toys like the Barbie Rewind 80s edition Career Girl Doll, Wizarding World Harry Potter Interactive Dobby and Batman Mega Mech Playset. Lego is trending on social media exposure. With the predictions of a hot summer water toys are expected to be popular. Learning toys with educational aspects, particularly those focusing on STEM education, are a priority for many parents

Preparing Your Retail Business for Holiday Success

Your POS System

Your point-of-sale system is the backbone of your holiday operations. Here's how to ensure it's ready:

Hardware Check

Test all POS computers, including backup registers. Ensure proper cabling and network connections. This cannot be stressed too much. Make sure everything works now.

Software Updates

Install any necessary updates to your POS software well in advance. You do not want to experiment over Christmas. It is highly recommended that over Christmas, you do not update your computers.

Strategic Inventory Management

Use your POS system's data to inform your inventory decisions:

Analyse Past Sales

See what sold over last year's Christmas period to identify products that sold in your shop.

Supplier Communication

Discuss expected order volumes with suppliers to avoid shortages.

Seasonal Stock

Ensure adequate stock of holiday decorations, gift sets, and greeting cards.

Financial Planning

Proper financial management is crucial during this high-stakes period:

Budget for Increased Expenses

Plan for higher inventory costs and seasonal staffing.

Cash Flow Projections

Use your POS data to forecast cash flow and plan accordingly.

Step 4: Staff Preparation and Scheduling

A well-prepared team is essential for a smooth holiday season:

Analyse Staffing Needs

Review last year's data to inform this year's staffing levels.

Create Flexible Rosters

Use your POS system's staff management tools to create efficient schedules.

Step 5: Marketing and Promotions

Effective marketing can significantly boost your holiday sales:

Social Media Engagement

Start early with holiday-themed social media content to build excitement.

Store Layout

Plan your product placement to maximise the visibility of holiday items.

Festive Decor

Use holiday signage and decorations to create a cheerful shopping environment.

Prepare for Peak Shopping Events

Be ready for high-volume shopping days:

Black Friday

Ensure you can handle increased transaction volumes.

Extended Hours

Plan for extended store hours during peak shopping.

Holiday Preparation Checklist

Use this comprehensive checklist to ensure you're fully prepared:

• [ ] Update and test all POS hardware and software
• [ ] Review inventory levels and set up automatic reorder points
• [ ] Analyse past sales data to inform stock ordering
• [ ] Communicate with suppliers about expected holiday volumes
• [ ] Plan store layout and product placement for holiday items
• [ ] Review and adjust financial projections for the season
• [ ] Create staff rosters and hire seasonal staff if needed
• [ ] Conduct staff training on POS, customer service, and product knowledge
• [ ] Develop and schedule holiday marketing campaigns
• [ ] Prepare holiday-themed store decorations and signage
• [ ] Consider a gift wrapping services
• [ ] Ensure adequate stock of gift cards and packaging materials
• [ ] Plan for extended store hours during peak shopping periods

My personal view

The holidays are just around the corner. We have to shine. I've seen firsthand how a well-used POS system can turn a good season into a great one. It's not just about ringing up sales - it's your secret weapon for managing stock, keeping your team on track, and creating a shop that customers love. Trust me, your POS is more innovative than you think - use it to make your life easier and your business stronger this Christmas.

Once a fringe holiday, Halloween has now become a significant retail event in Australia.

The Rise of Halloween Down Under

Halloween has become a frighteningly big business in Australia. This year, expected: 

• A whopping 21% of Australians are expected to celebrate Halloween
• Total retail sales are forecast to reach $450 million
• The average Aussie Halloween enthusiast is set to spend $93

Who's Driving the Halloween Craze?

Interestingly, it's not just kids fuelling this trend. Adults aged 35-49 are the most enthusiastic Halloween celebrators, with 40% planning to join the fun—a 3% increase from last year!

Top-Selling Halloween Categories

The retail industry expects these categories to sell, so look for top Halloween products here:

What sells in your shop

Go to your POS system into Register Reports

Select "Top N Stock Sales for a Given Period"

In the form, put in the following dates: 25/10/22 to 31/10/22. A report will come out with what is sold over that week. 

As time is running out, could you do it now?

This data-driven approach has helped you avoid overstock nightmares and check that you have the products sold in your shop on Halloween.

Here are some more ideas to consider.

Devilish Decorations

The trend is now that Aussies are getting more creative with their Halloween decor each year, turning their homes into haunted houses.

How about considering:

• Halloween paper plates, cups, and napkins
• Spooky banners
• Balloons
• Creepy cocktail accessories (skull ice moulds, witch's brew punch)

Trick-or-Treating Essentials

The tradition of trick-or-treating has taken off in Australia, so you may want to consider:

• Plastic pumpkin buckets for collecting treats
• Glow sticks and light-up accessories for safety
• Halloween-themed bags and baskets
• Face paint and temporary tattoos for quick costume touch-ups

Navigating the Challenges of Halloween Retail

In retailing, Halloween can be challenging. Here is what I've learned over the years:

Start Now

There is a limited amount of time to begin planning your Halloween stock. Look for something original.

Manage Stock Carefully

Many Halloween items have a short shelf life. You do not want to be stuck with difficult-to-sell Halloween-specific items after October 31st. The odds are you have to put them in storage for next year or sell them at a discount.

Advertise

Put up signs or stands in front of the shop. If you have an Instagram or Facebook page, use it to show your Halloween products and create buzz.

Conclusion: Embracing the Halloween Spirit

Halloween is worth looking into.

FAQs about Halloween in Australia

Q: How big is Halloween in Australia?

A: Halloween is growing in popularity across Australia. Over 5 million Aussies, or about 1 in 5 people, celebrated Halloween this year. Social media and fun family activities fuel interest, so we can expect the numbers to keep rising.

Q: How big are Halloween sales?

A: Halloween spending totaled $430 million in 2022 and jumped to $490 million in 2023. Early estimates for 2024 put spending around $450 million.

Q: How much money do Australians spend on Halloween?

A: Halloween retail trends are up. Today's average spending for a person celebrating Halloween is expected to be $93, an increase of $7 (8.1%) from last year.

Q: What sells the most for Halloween?

A: Halloween sales Australia, top Halloween categories that Australians spend on include:

1. Trick or treating (45%)
2. Treats for trick-or-treaters (38%)
3. Halloween costumes (37%)
4. Home decorations (32%)
5. Attending or hosting events (18%)

Q: Which product category has the most sales for Halloween?

A: The top-selling product category is trick-or-treating gear, with 45% planning to buy these supplies.

Q: What age group spends the most money on Halloween?

A: Australians aged 35-49 comprise the biggest spending age group at 40%, followed by those under 35 at 25%.

Q: Is Halloween getting more popular in Australia?

A: Yes. This year, 300,000 more Australians will celebrate than last year, and it is showing steady growth in popularity.

Brochures are a cornerstone of modern marketing strategies, offering flexibility across tangible and virtual platforms. The topic of effective brochure design recently came to the forefront when a client recounted their experience developing promotional materials.

​

 I learned that after exploring various options, my client highly recommended a web-based application. I pass on his suggestion here because I think it's a good one. 

The Enduring Value of Brochures

Brochures remain a versatile and impactful business asset:

1. Dual-format flexibility: They are effective in both print and digital forms
2. Ideal for detailed product or service descriptions
3. A visual embodiment of your company's identity
4. Suitable for events, direct mail, email, and social media sharing
5. In a digital world, physical brochures provide a tactile experience that can leave a lasting impression
6. Modifying your brochures to specific audience segments or as conditions change is easy. 
7. Cost-effective compared to some digital advertising methods as they have a high return on your investment.

Brochure Design Software Comparison

Brochures are bigger than pamphlets, and I suggest looking for something that can handle something more considerable.

- Free trial option: I recommend testing a system out before committing to it. So, a free trial is a big plus. Sometimes, some software does not fit you; I am shocked about how some people's minds work.  Anyway, test the platform before committing.

- Look for a user-friendly interface that works for you. Check that it is easy to use

- Growth potential: You do one brochure, you probably want to do another and another, and as you get better, you will want something that you can grow into. 

- Check that it has many customisable templates and a wide range of professional templates to suit your business and style. You do not want to keep starting from scratch with every brochure.

- Today, everyone wants to work wherever they are. This is a big plus if your software is available on the web and so accessible from any device with an internet connection

- Export options: Flexibility to export in various formats suitable for both print and digital distribution. You will find that different people want different formats.

Effective Brochure Design Tips

To ensure your brochure makes a lasting impression, it's your business, and you do not want to appear unprofessional, so consider these tips:

Eliminate Errors

**Proofread meticulously**: Typos and spelling errors can significantly undermine credibility. Please have multiple people review the content before finalising. A helpful tip is to read the text backwards; it can often show mistakes.

Stay Current

**Feature up-to-date products**: Ensure your brochure showcases your latest offerings to avoid misleading potential customers. I had a client who used a picture of a spa model. Soon, it became an old model, meaning the brochure became useless. 

Optimise for Various Devices

**Test across platforms**: Your e-brochure may look different on different screens. Use online tools to preview how it appears on other devices, such as iPhones and Samsung mobiles. One site that does this well is here.

Prioritise Readability

**Focus on text layout**: No one will read a poorly organised brochure; all you do is deter the reader. Aim for clear, concise, and well-structured content.

Balance Information

**Avoid information overload**: While including every detail is tempting, focus on key messages. A picture is often better than words.

Maintain Consistency

**Use a cohesive design**: To create a professional look, stick to a consistent colour scheme, font selection, and style throughout the brochure.

Choose Colours Wisely

**Ensure legibility**: Select colour combinations that enhance readability. High-contrast options, such as black text on a white background, often work best.

Use High-Quality Images

**Incorporate professional visuals**: High-resolution images can enhance your brochure's appeal significantly. Consider contacting suppliers for professional product photos. I have yet to meet a supplier who has not been helpful here. 

Include Accurate Contact Information

**Double-check details**: Ensure all contact information is current and easily visible within the brochure. 

I had a client who forgot to include their contact details. What is the point of making a great brochure if the potential customer needs to learn who you are? 

Prioritise Content Over Design

**Focus on your message**: While the design is essential, the content should be your primary focus. Communicate your value proposition and key selling points.

Brochure Design Best Practices

To avoid common pitfalls and create genuinely effective brochures, consider these best practices:

1. **Plan**: Start by looking for something good. It will give you a good idea of what to do.

2. **Work from what you know**: Working with what you know and move into what you do not know. Fill in what you can and then slowly work into the unknown. It will fall into place. 

3. **Allow ample time**: I would not rush it.

4. **Consider your audience**: You are not writing for yourself but for your target market.

5. **Incorporate a clear call to action **: You need to explain to readers what to do after reviewing your brochure.

6. **Optimise for the proposed format**: Check separately for print and digital distribution. What works for one does not work for the other.

7. **Links**: For e-brochures, incorporate clickable links or embedded media to enhance engagement. 

8. **Use QR codes**: QR codes are used on printed brochures to link the gap between print and digital experiences.

9. **Use graphs or infographics**: Do not use heaps of figures; instead, use graphs and other visual representations of data to make complex information more digestible.

10. Use appropriate font sizes and colour contrasts to ensure your brochure is readable for individuals with visual impairments.

Remember, your business image is on display in every brochure you create. Allocating time and resources to design sophisticated, engaging brochures results in powerful promotional assets that yield results across traditional and digital mediums. A well-crafted brochure, adept at presenting products, underlining services, or narrating your brand's journey, can serve as a linchpin in your marketing strategy, aiding in differentiation and leaving an indelible mark on potential customers.

We have all seen firsthand firsthand how economic downturns can impact retail. We must accept that Australians face a significant financial challenge in the immediate future, and retailers must adapt their product offerings to these times. 
 

Here are the RBA Australian Economic Forecast: Labor Market, Consumer Spending, and Inflation Trends (2024-2026)

As you can see, unemployment is expected to remain stable, and wage growth will be less than inflation, so household consumption will be below inflation. As such, the consumer and, as such, the retailer are looking at challenging times.

Understanding Consumer Behaviour in Tough Times

During economic uncertainty, consumers tighten their belts and try to cut money where they can, but they don't stop spending entirely. Instead, they prioritise:

• Essential items
• Products that offer value for money
• Small, affordable luxuries

Targeting your inventory with these priorities can help weather the storm as a retailer.

I have seen firsthand how retailers in one field, like newsagencies, have moved successfully into totally unrelated fields like liquor, groceries and clothing, so accept an idea that is out of the box.

Top Product Categories to Consider

1. Children's Essentials

Parents always prioritise their children's needs, which they rarely cut down. Consider stocking:

• Children's clothing (especially basics) - Clothing, in general, has proven to be an item that most retailers can get into. Kids need a constantly changing wardrobe.
• Particularly, look at baby products.
• Educational toys and books
• Children art supplies

My experience talking to retailers Is that children's clothing maintains steady sales even when adult fashion retailers struggle.

2. Affordable Luxuries

People still want to treat themselves, just on a smaller scale. Look into:

• Cosmetics and skincare - Women do not cut down much on cosmitics.
• Gourmet food items
• Small home decor pieces

Tip: Create attractive displays of these items near your checkout to encourage impulse buys.

3. Home Maintenance Products

As people spend more time at home, home improvement spending goes up:

• Tools 
• Paint and decorating materials
• Gardening essentials
• House cleaning supplies

4. Health and Wellness Items

Health becomes a top priority during uncertain times. Consider:

• Vitamins and supplements - I wonder why more retailers overlook these products.
• Fitness equipment and books.

5. Pet Supplies

Pet owners rarely skimp on their furry friends. Stock up on:

• Toys and treats - particularly dogs
• Pet care items and books.

Pricing and Promotion Strategies

To make these product categories work for your business:

1. Emphasise value: Highlight cost-per-use or long-term savings.
2. Bundle products: Create value packs that offer slight discounts. Bundles work well in difficult times.

Leveraging Technology

Your point-of-sale system can be a powerful tool in navigating these challenges. Use it to:

• Track inventory trends
• Identify your best-selling items
• Manage promotions effectively

Personal insight: Our POS software has helped retailers quickly identify their product mix that sells now based on real-time sales data, which is a crucial advantage in rapidly changing markets. This information is not theoretical but honest facts about what is happening in your business. It takes you one second to find out, see here.

The Bottom Line

Success in retail isn't about being the past, but about the future, the most adaptable to change always win.

Adjust your product mix to the current times, emphasise necessities and affordable treats. Really dig into the information from your POS system - it's full of useful information about what your customers buy from you.

These approaches have helped many retailers I've worked with stay strong during tough economic times. You can do it too.

Father's Day is almost here. I hope you are prepared as it retails a golden opportunity, so please do not waste it. Let's dive into how you can use your point of sale (POS) software to maximise your sales.

Background this Father's Day

According to recent data, Australians are set to spend a lot. $820 million on their dads this year. That's a lot of potential sales to go around! Here's what people are buying now:

1. Alcohol and food (34%)
2. Clothing, shoes, and sleepwear (15%)
3. Books, games, and music (15%)

While that's exciting news, the figure itself is slightly down last year, with the average person shelling out $101 instead of $112, but last year's figure was outstanding, so don't worry. 

Insights from the GiftFair

At the GiftFair in Melbourne. Suppliers seemed to be pushing items for Father's Day, these items:

• Beer steins and unique drinkware: Perfect for dad's favourite brew!
• Quirky socks: Because who doesn't love fun feet?
• Male grooming items: Help Dad look his best. I do not know how it will go in Australia, but retail publications in the UK are now saying they are doing well in retail shops.

Using Your POS System to Boost Sales

Check What Worked Last Year

The fact is that we are creatures of habit. What worked well last year often works this year. Do you remember last Father's Day? What sold well but didn't work? Your POS Software does! Use the "Top N Stock Sales for a Given Period" report to see last year's sales. 
 

Go to Register Reports.

Now pick "Top N Stock Sales for a Given Period."

In the form, put in today's and day-a-week's search and check it out. That will give you what worked last year. Make sure that these items are noticeable in your shop now.

Create Irresistible Bundles

Use your POS to create and track gift bundles. Maybe a "Beer Lover's Bundle" with a fantastic Stein and local brews? 

Offer Early Bird Specials

Did you know that 10% of shoppers have already bought?  The odds are now people are buying for Father's Day.

Making Shopping a Breeze

Remember, stressed-out gift buyers are your friends. Make their lives more accessible, and they'll love you for it. So, set up a "Father's Day Favourites" stand in your store and

• Put your good sellers on the stand from your POS System data
• Create staff picks based on sales data

Wrap It Up

Father's Day might be a short season, but it can significantly impact your bottom line. By using your POS system smartly and focusing on what shoppers want, you can turn this day into a real winner for your store.

Modern times demand modern methods, which means retailers must embrace online visibility. Today, in Australia, online visibility means Google, which means you need a Google Business Profile. What good is your "Open" sign if a shopper today looking for a particular business pulls out their smartphone and searches to find a product you sell?  If Google does not know you, they will recommend someone. Then, that customer will likely follow Google's directions to someone else.

Let me show you some examples of Google searches in Australia for some local businesses; I will pick three examples: a newsagency, a pet shop and a cafe.

I entered my SEO analytics provider, set Google, and then said newsagency. I asked what the top 18 things people search for when they look at newsagency are.

If you look at the list, location is more than half the searches. People are looking for a newsagency if we assume that 3,000 newsagencies in Australia is about 81,000/3,000 = 27 monthly searches per newsagency. 

Let us look at pet shops, and the situation is the same.

There are about 2,300 registered pet shops, which is about 62300/2300 =27  searches per pet shop a month. Interesting, it is the same.

Finally, let us look at cafes; it's the same story. 

We are looking at about 1,400,00 searches, and as we have about 26,124 Cafes and Coffee Shops businesses in Australia, we are looking at 53 searches per month for each cafe.

In all cases, many potential customers will use Google to look for locations for businesses that are almost certainly at the end of their buying cycle and ready to buy.

Ask yourself, "Why cannot they Google my business? Maybe it will increase sales if they find your business. We call this local SEO." 

For retailers seeking expert assistance, a comprehensive GMB management service can help you optimize your profile for maximum visibility.

A Note on Industry Collaboration

Despite our general policy of not referencing other industry players, we feel it's important to highlight our agreement with industry colleagues on this topic. The vital role of online presence for retailers has been a consistent theme in our industry dialogues, and it's gratifying to see a unified strategy emerging to support businesses in their digital evolution.

Why Google Business Profile Matters

In today's digital landscape, people often turn to Google when searching for local businesses. A well-optimised Google Business Profile ensures your shop appears in local search results and Google Maps. This increased visibility can lead to more foot traffic and sales. We call that Local search optimization to help with your business marketing. Today, 46% of all Google searches have local intent.
 

Tips

1. Check Your Google Business Profile

Check if you have one. If you have not, start making one. You may need to claim the existing one for your business listing.

2. Check the Information

Ensure the information about your business is correct and up-to-date, including:

• Business name
• Address
• Phone number
• Website
• Opening hours

3. Choose the Right Category

Select the most appropriate category for your business to help Google understand what you offer.

Optimizing Your Profile for Local Searches

1. Add High-Quality Photos

Upload attractive photos of your store's exterior, interior, and products. Visual content significantly influences potential customers' decisions, so do not be afraid to take hundreds of pictures to find the right ones. You want to showcase your business.

2. Encourage and Respond to Reviews

Positive reviews boost visibility and credibility. Encourage satisfied customers to leave reviews and always respond to them, whether positive or negative. Go to your favourite customers and ask them. Tell them it's a big favour if you could give us one. 

3. Use Local Keywords

Include keywords that local shoppers might use when searching for your products or services in your business description. A simple way of doing this is to ask your customers what words they would use online if they planned to look for your product XYZ.

Verifying Your Google Business Profile

This is very important, as I see so many people messing up at this step. Verification is crucial for your listing to be found by searchers as this process has changed significantly since last year, so do the following to verify your business:

1. Sign in to your Google account and go to google.com/business. Check it is verified it is not
2. Select your business and click "Verify now."
3. Choose your preferred verification method (usually by mail, phone, or email).
4. Follow the instructions provided by Google to complete the verification process.

Monitoring and Analyzing Performance

Google Business Profile provides insights into how customers find and interact with your profile. Use this data to:

• Understand which products or services are most popular
• Identify peak times for customer interest
• Refine your marketing strategies

Elevate Your Local SEO

In today's digital-first retail environment, harnessing free tools like Google Business Profile can be a game-changer. Implementing these strategies and maintaining an active profile will significantly boost your visibility to local shoppers seeking your products. Remember, consistency is key—keep your profile fresh and engaging. Seeing our industry unite to support retailers' digital growth is inspiring. We're fostering a vibrant local business ecosystem through knowledge sharing and collaboration. This cost-free advice can potentially drive substantial foot traffic to your store. Embrace these digital opportunities and increase your sales!

FAQ: Google Business Profile for Australian Retailers

What is a Google Business Profile? 

A Google Business Profile is your business's digital storefront on Google. It's like an "Open" sign for the digital age, helping potential customers find you when they search online.

Why is it important for Australian retailers? 

In Australia, online visibility often means Google visibility. Our research HERE shows that local businesses receive significant monthly searches:

• Newsagencies: ~27 searches per month
• Pet shops: ~27 searches per month
• Cafes: ~53 searches per month. These searches are often from customers ready to buy, making your Google presence crucial.

How do I create or claim my Google Business Profile?

1. Click here.
2. Sign in with your Google account 
3. Enter your business information
4. Choose the appropriate category
5. Add your location and service areas
6. Provide contact details and website information
7. Verify your business

If you have trouble give me a call.

What information should I include in my profile? 

Ensure your profile includes:

• Accurate business name
• Correct address
• Up-to-date phone number
• Website URL
• Current opening hours
• Appropriate business category
• High-quality photos of your store and products

How can I optimize my profile for local searches?

1. Add high-quality photos of your store and products
2. Encourage and respond to customer reviews
3. Use local keywords in your business description
4. Keep your information up-to-date
5. Post regular updates about promotions or new products

How do I verify my Google Business Profile?

1. Sign in to your Google account
2. Click here.
3. Select your business and click "Verify now"
4. Choose your preferred verification method (mail, phone, or email)
5. Follow Google's instructions to complete the process

Can I track how my profile is performing? 

Yes, Google Business Profile provides insights into how customers find and interact with your profile. Use this data to understand popular products, identify peak interest times, and refine your marketing strategies.

Is a Google Business Profile free? 

Yes, creating and maintaining a Google Business Profile is completely free.

How often should I update my profile? 

Keep your profile updated regularly. Change business hours, contact information, or services immediately. Post new photos, respond to reviews, and share updates about promotions or new products to keep your profile fresh and engaging.

Can social media marketing help your small retail business stand out? Let's explore how social platforms can amplify your unique offerings and attract more customers. Today, fewer people now walk to your shop to shop; they surf the net for shopping. So many retailers now do something on their Facebook company page every day. It is their primary communication method. Today, in business, using social marketing has never been more important—vital, I would say.

No business can ignore social media as part of its marketing mix.

Checkout statistics for social media in Australia

"85% of the eligible (age 13+) Australian population have active social media accounts and spend an average of 1 hour 47 minutes per day on social media."

Last year, in 2023, I was shocked when a client asked us for help setting up a Facebook page. We helped him out, but now the problem is that he does not know how to use it. I told him that he had better learn. There is no excuse if he cannot get someone to help him. Then, I gave him a few pointers. I advised him that there are plenty of good online courses and that he does not need to pay a cent for them to learn, for example, the Hubspot social media marketing course. I did this social media marketing course online here, which, in the end, gave me a social media marketing certification.
 

I thought it was worthwhile. If you know something better, please let me know, and I will tell people here about it.

Here are some advantages of social media.

1. Visibility: Social media platforms can help you get to a broader audience.
2. Cost-effective: Social media marketing strategies can often be free.
3. Customer engagement: You can interact directly with your customers, building relationships and loyalty.
4. Local Targeting: Social media allows you to target customers in your local area.

Getting Started with Social Media Marketing

Choose the Right Platforms

Not all social media platforms are the same. Ask your customers; this helps you focus on the ones where your target audience is most active. For retailers, Facebook and Instagram are often good starting points.
 

Learning from Successful Social Media Strategies

When it comes to starting social media marketing, it's crucial to learn from those who are doing it well. If you can, get an expert to help you start even better.

Study and Adapt

One of the best ways to improve your social media presence is to learn from successful retailers doing similar stuff by:

1. Identify successful competitors: Look for businesses with engaging social media profiles like yours.
2. Analyze their content: What types of posts get the most engagement? How often do they post?
3. Observe their tone: Is it friendly, professional, or humorous? How do they interact with followers?
4. Note their visual style: What images or videos do they use?

I recommend you go to Facebook and see what a few similar businesses to yours are doing there now. Check the ones you like and take a few notes about what your business needs. Note the words they say, too. Presumably, they have experimented and found that these work. I admit that when I started with social media, I copied people in Canada; they are similar to Australia, and I found that what they did was novel and new in Australia.

So, to start, copy what they do, change it to make it yours and see how you go. As you learn more, you can adapt.

You can always experiment later with the paid services, but like anything, if you are going to pay, it's best to know a little first.

Key Strategies to Implement

Based on my observations of successful retailers, here are some effective strategies:

1. Showcase your products: Use high-quality images and videos to highlight your offerings.
2. Behind-the-scenes content: Give followers a peek into your daily operations or product creation process.
3. Customer spotlights: Feature satisfied customers using your products or services.
4. Engage with your audience: Respond promptly to comments and messages.

My Personal Experience

When we revamped our social media strategy for our POS company, we started by studying successful tech companies and local retailers. We noticed that posts showcasing real-life applications of our software received the most engagement.

We began creating short video tutorials demonstrating how our POS system solved common problems for retailers. These videos attracted potential customers and provided value to our existing clients. We also started featuring customer success stories, significantly boosting our credibility and engagement rates.

Measuring Success

To ensure our strategy was effective, we tracked KPI metrics. Most social media sites give you this stuff for free.

By consistently applying these strategies and measuring our results, I know we significantly improved our social media presence and, ultimately, our business growth.

Remember, the key is to start with observation, adapt strategies to fit your unique business, and consistently measure and adjust your approach. With time and effort, you can develop a solid social media presence that supports your shop and have much fun doing it.

• Engaging: Use high-quality images and videos for your products; your suppliers have this; ask them for social media content. I am sure they have a social media manager who can help you get effective social media.
• Informative: Share tips, how-to guides, and product information.
• Authentic: Show the human side of your business.

Consistency is Key

To keep your marketing campaign going, you must maintain a regular posting schedule and commit to best practices in social media management.

Leveraging Social Media for Your Shop

Here are some ways to use social media to promote your retail shop:

1. Showcase your products: Show photos and videos of your products. If you get new gift items, books, or pets in your shop, take a picture and share it online. 
2. Share customer testimonials: These bring trust by highlighting positive customer experiences.
3. Provide customer service: I have clients whose staff, when they are not busy behind the counter, are answering customer inquiries on social media.

Be a marketer (an influencer).

Measuring Your Success

Measure the effectiveness of your social media marketing, and keep an eye on these KPIs:

Conclusion

"It's 2024, and the retail landscape demands a modern approach. Social media marketing stands out as a game-changing tool for small retailers looking to scale their business and highlight their POS software capabilities. Create a compelling online presence that works in tandem with your physical store by carefully choosing your platforms, developing captivating content, and actively engaging with your audience. The secret to thriving? Begin with manageable goals, maintain regularity, and always focus on enriching your audience's experience.

Let your social media shine!

Retailers are constantly trying ways to grow their businesses. One method I suggest is cross-selling. This approach involves recommending additional, related products to customers who are already purchasing. For instance, you might suggest they get a card when a customer buys a gift. Your POS system can automatically send you a message if you want. 

Why Cross-Selling Works

Cross-selling is effective because:

1. It's convenient for customers
2. It adds value to their purchase
3. It increases your average transaction value

How to Implement Cross-Selling in Your Store

1. Know Your Products

The first step is to have a deep understanding of your product range. This knowledge allows you to make relevant and helpful suggestions to your customers.

2. Use Your POS Data

Your point-of-sale (POS) system is your goldmine. 

- Access your "Category Companion Sales by Period" report

1. Select a date range (e.g., the past year)
2. Choose a department or high-selling item
3. See which products are frequently bought together. You need some intelligence. For example, if an item sells five a year and has a cross-sell rate of 20%, that is one sale, so it is probably not worth it for you to do any rearranging. But if an item sells 15 a week and has a rate of 10% cross-sell, that is at least one to two extra sales a week.

It is that simple and given to you in less than a minute.

Now run this report with a decent period. If you are looking at seasonal or holiday items, e.g., Father's Day coming up, you may want to look at this period last year. You get a list of items and categories that sell well in your shop.

3. Strategic Product Placement

Once you know which products complement each other, place them near each other in your store. This makes it easy for customers to see and consider the additional items.

4. Train Your Staff

Give your team the knowledge and skills to make appropriate cross-selling suggestions. Remember, the goal is to help the customer, not to push unnecessary items.

5. Bundle Products

Create attractive bundles of complementary products. 

Cross-Selling Success Stories

Newsagencies

Newsagencies can boost sales by cross-selling complementary items to their core products. For example:

• Suggesting greeting cards when customers buy gift wrap
• Recommend similar magazines to then ones being purchased.

Gift 

Gift can increase average transaction value through strategic cross-selling:

• Pairing scented candles with decorative holders
• Suggesting gift bags or boxes with purchased items
• Offering themed collections (e.g., spa day gift set)
• Does the customer need a card?

Pet Shops

Pet stores can leverage cross-selling to enhance pet owners' shopping experience:

• Recommending appropriate food bowls with pet food purchases
• Suggesting grooming tools with shampoo or conditioner
• Offering pet toys that complement the customer's pet.

Monitoring your POS Data for Cross-Selling

1. Analyze purchase patterns to identify frequently bought-together items
2. Use customer purchase history to make personalized recommendations
3. Track the success of cross-selling initiatives to refine your strategy

Building your Loyalty Program Through Cross-Selling

When done right, it can significantly boost customer loyalty:

• Offer personalized recommendations based on past purchases
• Create loyalty programs that reward customers for trying new product categories
• Use cross-selling as an opportunity to educate customers about your product range

Maximizing Retail Sales Through Cross-Selling and Upselling

Get a significant boost in your retail sales:

1. Set specific cross-selling and upselling targets for your team
2. Create attractive product bundles that offer value for money
3. Use signage to promote cross-sell and upsell opportunities
4. Regularly train staff on the products you sell.

I've seen firsthand how gift cards can sell well in shops. Let's dive into a clever gift voucher marketing strategy that your POS System can help boost your sales and customer base.

The Power of Gift Cards

If you have an excellent shop, many people today, rather than picking a gift for someone, will buy them a gift card. Studies show that customers often spend more than the gift card value when redeeming, providing an additional boost to your bottom line.

A Smart Gift Card Sales Tip

Here's a gift card sales tip that I've seen work wonders:

Offer a discount on gift cards using this approach, where you offer a 2.5% discount with a twist.

1. Offer a $100 gift card
2. Then provide a separate $2.50 gift card to the buyer as a thank-you bonus

This strategy can:

• Potentially bring in two customers (the gift recipient and the buyer)
• Encourage the buyer to return to your store
• Create a positive association with your brand

Real-World Success Story

I worked with a local boutique that implemented this strategy during the holiday season. The results were impressive.

Implementing Your Gift Card Program

To make your gift card program successful:

1. Train your staff to explain the benefits to customers
2. Promote the offer through in-store signage
3. Track results using your POS system

Gift Cards and Retail Loyalty Programs

Consider integrating your gift card offerings with your retail loyalty program. This can:

• Encourage repeat purchases
• Increase the customer lifetime value
• Provide valuable data on customer preferences

The Numbers Game

Let's break down the potential impact:

Conclusion

In the world of retail, small innovations can make a big difference to your bottom line.

Have you ever found yourself shivering in the cold weather, wishing you'd bought that cosy jumper you have at home? Or perhaps you are hot and want a cool drink? These weather-induced moments of need aren't just everyday inconveniences—they're untapped goldmines for savvy retailers. Just look at the recent cold spell that swept across Australia, now sending sales of winter gear soaring.

A research paper here done on the weather stated

"Analyzing daily sales at a national apparel and sporting goods brand’s stores reveals that weather effects on store sales are surprisingly persistent, even after accounting for shoppers simply changing when and where they make their purchases. Moreover, sales at stores that have more experience with adverse weather events have a lower response, suggesting that adaptation may reduce the negative impact of increasingly severe weather on sales."

As someone who has analysed sales data for many retail clients, I've seen firsthand how changes in temperature and rain can affect product sales. It is not rocket science. Different weather conditions change what people buy. This is a chart I made based on data from one of our users. 

This stacked bar chart showed the sales performance of different product categories (Drinks, Clothing, Accessories, and Indoor Items) across three weather conditions (Hot, Cold, and Rainy Days). The y-axis represents sales volume, while the x-axis shows the different weather conditions.

Key insights from this chart:

Drinks have the highest sales on hot days, as expected.
Clothing sales peak on cold days, likely due to increased demand for warm clothing.
Accessories like umbrellas showed the highest sales on rainy days.
Indoor items see increased sales on both cold and rainy days, possibly because people spend more time indoors during these conditions.

This chart effectively illustrates how different product categories perform across various weather conditions, allowing users to quickly identify trends and patterns in weather-based sales.

Hot Days, Cool Profits

When the mercury soars:

• Cold drinks sell
• Sunscreen sells

Chilly Weather, Warm Sales

As soon as it gets nippy:

• Hot drinks sell
• Jumpers and beanies become must-haves
• Heaters become essential purchases

Rainy Day Retail

When the rain comes down:

• Umbrellas sell
• Raincoats become good sellers
• Indoor activity items like books and board games see increased interest

This weather-driven consumer behaviour is critical to understanding and predicting your sales patterns.

Turning Weather Data into Retail Gold

So, how can you use this info to boost your sales? It's all about being prepared and using your point of sale (POS) software to your advantage for weather-based inventory management and retail sales forecasting.

Dig into Your Data

This is where our POS software for weather trends shines, as your POS system is a goldmine of information for retail data analysis. Here's how to tap into it:

Go to Register Reports

Now select "Top N Stock Sales for a Given Period.

Put in a date of a hot day and see what you get. Do a few. Now put in a cold day and so on.

Do this also for cold and rainy days—you'll start seeing patterns emerge. 

These are products that sell in your shop in those days. 

Stock Smart, Sell More

Once you've got your data, use it for weather-responsive merchandising:

Make categories for stock that sell well according to the day's weather, e.g., start with hot, cold, and wet.  Get the appropriate signs.

If a day in the morning is forecasted to be such a day, these signs and products will be placed in a prominent position in the shop. 

Communicating Weather Strategies to Staff

Your team plays a crucial role in implementing your weather-based strategy. Here's how to get them on board:

1. Hold regular briefings on upcoming weather and corresponding product focuses
2. Train staff to understand the connection between weather and sales trends
3. Encourage staff to provide feedback on customer behaviour during different weather conditions
4. Create simple checklists for weather-based display changes

FAQs: Weather and Retail

Q: How quickly do weather changes affect sales?
A: Impact can be almost immediate, especially for impulse buys like umbrellas or cold drinks.

Q: How far in advance should you plan for weather-related changes?
A: Today's seven-day forecasts are generally fairly accurate. 

So I would suggest that you check the 7-day forecast each week in your area and note any abnormal hot, cold, or rainy days coming up.

The Bottom Line

While Mother Nature may be unpredictable, your retail strategy should not be. Make sure you have the right approach and tech tools, to take advantage of the weather to make sales. Your POS system isn't just a glorified cash register—it can be a predictor of your customer behaviour. With some planning and the right tech, you can ensure your sales forecast is always sunny, no matter what's happening outside.

Have you noticed the weather affecting your sales? I'd love to hear your experiences! Comment below or reach out if you need help setting up your POS system to weather any storm.

Stay savvy, and may your sales be ever in your favour!

Here is a secret: why do some local shops attract customers? The answer is that online reviews can make or break a small business in today's digital-first world. Here's the catch: Satisfied customers often exit your store silently, while dissatisfied ones eagerly voice their complaints online. To thrive in today's digital marketplace, motivating content customers to share their positive experiences is crucial. As a store owner, you may ponder effective strategies to encourage happy patrons to spread the word about your business in the digital realm.

Enter the review plaque - a simple yet effective tool that may help.

What Are Review Plaques?

Review plaques are small, smart devices that sit on your counter. They allow customers to quickly leave reviews for your business with a simple phone tap. 

How Do They Work - Local SEO?

The process is straightforward:

1. As a customer completes their purchase.
2. You ask about their shopping experience in your shop.
3. If they're satisfied, you invite them to leave Customer feedback
4. Ask them to tap their mobile on the review plaque if they agree.
5. Their phone opens your Google or Facebook review page
6. Your customer can now immediately write a review on the spot

It's that simple!

The Impact of Review Plaques

Recent studies here have shown impressive results:

One retailer reported jumping from an average of one review per month to a whopping 18 reviews! I am sure it improved their Google My Business ratings.

Pros and Cons

Let's break down the advantages and potential drawbacks:

Pros:

Local, authentic reviews - Google and Facebook do not like it if you use fake reviews. Online, they can be ruthless. I had a client thrown right down Google ranking for doing just that.

Limited to in-store use - If they leave the shop, the customer cannot use them.

Cons:

Some customers may be too busy; after all, they are shopping.

Cost-effective

Takes counter space

Timely feedback

Possible customer pushback

Cost

They're relatively inexpensive, ranging from $20 to $80. For the best results, I recommend investing in a quality plaque around the $40 mark - after all, it'll be front and centre on your counter!

The Bigger Picture: Local SEO and Customer Trust

In a world where consumers often search for "newsagent near me" or "pet shop near me," positive reviews can significantly impact your visibility and credibility. Review plaques offer a simple way to encourage satisfied customers to share their experiences, potentially drawing in new shoppers who trust the opinions of their neighbours.

It works for much more than just these industries; for example, I would want to push "POS System near me" or "POS Software near me."

Ready to Give It a Go?

If you decide to try a review plaque in your shop, we'd love your results! Local SEO strategies like this can make a real difference to small retailers, and we're always eager to learn from our customers' experiences.

Have you used review plaques in your shop? Please, you must share your experiences!

Why do some businesses consistently outperform their competitors? The answer is often more straightforward than you think. 

Most sales are recurring or predictable; you can take advantage of this with triggers (free email). Here are some real-world examples of my POS software CRM Users' cases for their loyalty programs. 

1. Birthday email marketing

Do we all do something for our birthdays? Sending a special offer on a customer's birthday is one of the best ways to boost sales. People want to treat themselves, and I am sure you want them to treat themselves from your shop.

2. Reminder email campaigns

Sold a magazine? Great! Set a trigger for when the next issue hits the shelves to notify your customer when it arrives, and you are more likely to see them back in your shop.

3. Pet Owner

Did they buy dog food? They'll need more; it is just a matter of time! Set your CRM trigger based on the average time to use the product.

4. The Annual Service Reminder

Have you just quoted for a lawnmower service? Set a trigger for next year even if you do not get the job, as they will need a new service. Maybe you will get it the next time?

5. Customer segmentation by ethnicity

Say your customer is French, and Bastille Day is coming up; suggest a few books on France.

Your Customer Journey Events in CRM are not just buzzwords but the cornerstone of modern, effective marketing. These strategic touchpoints throughout a customer's interaction with your brand can distinguish between a one-time buyer and a lifelong buyer.

Here, we will discuss the concept, explore its practical applications, and show why implementing this approach could be the best decision for your business.

What Are Customer Journey Triggers (events)?

Customer journey triggers are specific events or milestones in a customer's life or purchasing history that create perfect opportunities for engagement. 

Customer data insights 

1. Free Targeted Marketing: Email marketing based on these triggers costs you nothing but can yield significant returns.
2. Rich Customer Data: As you build your loyalty program, you'll gather valuable insights.
3. Boosted Sales: Relevant promotions mean more purchases.
4. Customer satisfaction: Timely reminders show you care.
5. Stronger Relationships: Lifecycle marketing keeps customers coming back.

The Harsh Truth

If you're not using customer journey triggers, you're losing customers to retailers who are. It's that simple.

How to Get Started

1. Implement a Loyalty Program: This is your foundation for gathering data.
2. Identify Key Triggers: Look at your products and think about natural follow-ups.
3. Set Up Automated Emails: Use your POS software's CRM to schedule these trigger-based communications.
4. Monitor and Adjust: Keep an eye on what works and refine your approach.

Actual Results from my clients

Here are some results I got when I analysed some of my clients' information

A Personal Touch Goes a Long Way

Remember, these triggers aren't just about sales. They're about showing your customers you understand their needs. 

Lifecycle marketing

Customer journey triggers are easy to set up, free to use, and powerful. By tapping into your customers' natural lifecycles, you increase your chance of making a sale.

Dive into your POS software's CRM today and set up those triggers. Give it a go.

I was listening to a talk on retailing. One point that became clear is the growing importance of males in shopping today. We are seeing a remarkable shift underway in today's shopper demographics, challenging long-held beliefs about who does the shopping. Contrary to traditional notions, men shop for basics almost as frequently as women.

Too many retailers are not considering this.

Where there was a family in the United States in 2023 by gender; this was the grocery shoppers. Check this chart below.
 

I found it interesting that if someone is shopping for themselves, men and women are now doing their shopping.

In another study, I found the result was 51% for women and 49% for men. 

Gender consumer behaviour

While the frequency of shopping today is comparable between genders, studies do show notable distinctions in gender behaviour:

• Spending Power: Women spend more per trip than their male counterparts. This difference is why women hold a more prominent role in shopping.

• Shopping Preferences: Men are generally more inclined to shop online and at convenience stores. They like the convenience of these channels. Women seem more likely to shop in physical shops as they prefer the in-person shopping experience.

• Shopping Mindset: Men are likelier to have a predetermined plan and, most importantly, stick to it. If a male comes to your shop, you better have what he wants. Women are more open to impulse purchases.

• Price Sensitivity: Men are typically less price-sensitive than women shoppers. Therefore, you could market higher-priced items to males than females.

Implications for Retailers

1. Optimize Store Layout: Evaluate your store layout. Retailers must ensure that the items men are looking for, such as staple goods and household supplies, are prominently displayed and easily accessible while creating dedicated browsing zones for women.

2. Strategic Merchandising: For males, consider going upmarket. If dealing with women, you need to make sure the area has plenty of cross-merchandising and impulse product placement to encourage impulse purchases and cater to women's shopping tendencies.

3. Gender-based marketing: If you are marketing to men, emphasise convenience, while for women, highlight promotions, new products, and their in-store experience.

Adapting to the New Normal

You need to consider your shop to better accommodate these trends. 

There are two kinds of customer loyalty programs in the loyalty program marketing in our market space.

- An upfront reward or discount voucher program

- A point-based loyalty program.

Our POS Software can implement both with flying colours. The shop selects the appropriate method based on its particular requirements and objectives.

Since I have worked on many occasions with reward programs, I can say that they are good tools for business owners. 

How Upfront Reward/Discount Vouchers and Point-Based Loyalty Programs work

Upfront Reward/Discount Voucher Program

An upfront reward or discount voucher program provides customers immediate discounts or rewards upon purchase.

How It Works:

1. Distribution of Vouchers: Retailers distribute vouchers at each sale in the receipt; sometimes, they issue them free as advertising offers.
2. Customer Usage: Customers receive these vouchers and can use them instantly to get a discount on their next purchase. 
3. Instant Redemption: The reward is applied at the point of sale, giving customers immediate benefits.
4. Tracking and Analysis: Retailers track the redemption rates and sales generated from the vouchers to evaluate the program's success.

Example: A newsagent offers a 60-cent discount voucher on a purchase. Customers can now use this discount on their next purchase. This encourages them to return to the store.

Strengths of the Voucher Program

The upfront reward/discount voucher program is straightforward and effective. Here's why:

• Low, upfront technology/integration costs: This program requires little effort. A retailer with our POS system can have it up and running in less than 30 minutes.
• Simplicity: It’s easy to implement and to understand by customers and staff.
• The immediacy of rewards: Customers receive instant gratification, which drives quick sales and makes it ideal for creating spontaneous transactions
• Keep customers: They encourage customers to come back.

Weaknesses of the Voucher Program

However, there are some downsides to consider:

• Limited customer data/insights: There is no tracking of customer purchases.  
• Perceived value: A voucher is generally a minor amount, so it is often dubious as a motivation.
• Margin erosion: Offering discounts can significantly impact your profit margins, especially with lower revenue.

Opportunities for Vouchers

Despite their limitations, vouchers present several opportunities:

• Appeal to price-sensitive customers: Drive immediate sales.

Threats to Vouchers

However, be aware of potential threats:

• Race to the bottom: Excessive discounting can lead to a race to the bottom, harming your shop’s perceived value.

Point-Based Loyalty Program

A point-based loyalty program rewards customers by issuing loyalty points on each purchase. After a certain number of points, they can redeem them. Generally, a cent equals a point. 

How It Works:

1. Enrollment: Customers sign up for the loyalty program, usually providing some information to create an account.
2. Earning Points: For every purchase, customers earn points based on the amount spent.
3. Accumulating Points: As the customers accumulate points over time, these are tracked in their loyalty account.
4. Redeeming Points: Once customers reach a specific threshold value set by the shop, they are hopefully incentivised to redeem their points for rewards, typically a discount, free products, or special services.
5. Ongoing Engagement: The program encourages repeat business by offering ongoing rewards and benefits for continued purchases.

Example:
Once a customer has earned enough points, a pet shop might offer them a $10 discount on their next purchase.

Strengths of the Point Program

A point-based loyalty program offers long-term benefits:

• Long-term loyalty: Delayed rewards foster long-term customer loyalty without an upfront investment, as unused points cost nothing.
• Tiers: It allows your customers into a different tier 
• Meaningful rewards: As they grow over time, they can be something of substance. 
• Credibility: This proven model is trusted and has credibility
• Customer data collection: Enables personalisation and better understanding of customer preferences.
• It allows customer communication: A shop can send monthly customer loyalty statements that advertise the shop. This is an excellent way of increasing your customer experience with your shop.

Weaknesses of the Point Program

Yet, there are also some drawbacks:

• Management overhead: It requires an advanced POS System like ours to run effectively
• Long-term:  It takes time for the program to be meaningful to the customer.

Opportunities for Points

Points programs also offer significant opportunities:

• Loyalty development: Building a loyal customer base early can provide a strong foundation for growth.
• Unique rewards: Differentiating your program with unique, memorable rewards can enhance customer engagement.
• Future CRM integration: As your business grows, you will benefit from our free retail CRM and loyalty tools.Threats to Points

Threats for Points

• Competition: Keeping up with larger competitors' loyalty programs can be costly.
• Reward expectations: Struggling to provide aspirational rewards might disappoint customers.
• Operational distraction: Managing such a loyalty program can take time.

Return on Investment (ROI)

Measuring its return on investment (ROI) is vital to establishing a successful customer loyalty program. Never forget that we are dealing here with price cannibalization.

Here are key performance indicators (KPIs) that I have seen used to track them:

Both of them

Cost of the program: You are giving away a lot of discounts, so you need to calculate the amount

Time of the program: Conducting such a program will take time, so you must add it up.

KPIs for Voucher Programs

• Redemption Rate: The percentage of distributed vouchers that are redeemed. A higher rate indicates strong customer engagement.
• Incremental Sales: You must establish sales generated directly from the voucher program. This helps measure the program's impact on revenue, but it is very difficult to do.
• Customer Acquisition Cost (CAC): The cost of acquiring a new customer through the voucher program.
• Average Transaction Value: The average amount spent by customers using vouchers. This metric helps assess the program's impact on spending behaviour.
• Repeat Purchase Rate: The percentage of customers who make subsequent purchases after redeeming a voucher.

KPIs for Point-Based Programs

• Enrollment Rate: The percentage of customers who join the loyalty program. This indicates the program's attractiveness and reach.
• Active Participation Rate: The percentage of enrolled members who earn and redeem points. High participation suggests strong engagement.
• Customer Retention Rate: The percentage of customers who continue to shop with you over time. This metric measures long-term loyalty.
• Lifetime Value (LTV): The total revenue a customer generates during their relationship with your business. This helps evaluate the overall effectiveness of the loyalty program.
• Points Redemption Rate: The percentage of earned points that customers redeem. This shows how valuable and attainable the rewards are perceived to be. What you should closely monitor is the point when these are redeemed.

Calculating ROI

To calculate the ROI of your loyalty program, use the following formula:

=(Net Profit from Program) - (Program Costs) /  (Program Costs)  x 100%

• Net Profit from the Program is the additional profit from the loyalty program.
• Program Costs include all expenses related to running the program, such as discounts, rewards, and administrative costs.

Conclusion

Choosing between an upfront reward/discount voucher program and a traditional point-based loyalty program depends on your specific needs as a small retailer. Both strategies have their pluses and minuses and be effective. Like everything, you have to use some intelligence to make an informed decision.