LRP | CLIENTELING

Clienteling is a customer relationship management strategy that aims to build long-term relationships with customers based on data about their preferences, behavior, and purchases. It's commonly used in retail, particularly in luxury or high-end markets, to personalize the shopping experience and increase customer loyalty.

In clienteling, sales associates or customer service representatives use information about a customer's past purchases, interactions, and preferences to provide personalized recommendations, offer special promotions, and create a more tailored shopping experience. This personalized approach can help increase sales, improve customer satisfaction, and build brand loyalty.

Clienteling in retail stores involves several key steps to effectively build and maintain relationships with customers.

Here are some key strategies:

1. Collect Customer Data: Gather information about your customers, including their purchase history, preferences, contact information, and any other relevant details. This can be done through loyalty programs, online accounts, or simply by engaging with customers and taking notes.

2. Use a retail CRM System: Utilize a customer relationship management (CRM) system to store and manage customer data. This will help you keep track of customer interactions, preferences, and purchase history.

3. Segment Customers: Divide your customer base into segments based on factors such as purchase history, demographics, or preferences. This allows you to tailor your approach to different customer groups.

4. Personalized Communication: Use the data you have collected to personalize your communication with customers. This could include personalized emails, text messages, or phone calls offering relevant products or promotions.

5. Offer Personalized Recommendations: Use the information you have gathered to offer personalized product recommendations based on each customer's preferences and purchase history.

6. Provide Special Treatment: Offer special perks or privileges to your best customers, such as early access to new products, exclusive events, or personalized styling sessions.

7. Follow-Up: Follow up with customers after their purchase to ensure they are satisfied with their purchase and to offer assistance with any issues or questions they may have.

8. Continuously Improve: Regularly review and analyze customer data to identify trends and opportunities for improvement. Use this information to refine your clienteling strategies and better meet the needs of your customers.

By implementing these strategies, you can create a more personalized and engaging shopping experience for your customers, leading to increased loyalty and sales.

Some of the companies providing modern clienteling capabilities in their tool include:

Endear: This platform allows small retailers to connect with customers through personalized messaging via email, text, and WhatsApp. It includes CRM features, analytics, and sales tracking, helping teams stay organized and effectively follow up with customers.
PredictSpring: This solution is designed for small to medium-sized retailers, offering a modern POS system that creates seamless shopping experiences. It allows for personalized engagement through customer insights, helping retailers understand preferences and driving sales through targeted recommendations.
ConnectPOS: Known for its omnichannel capabilities, ConnectPOS helps small retailers unify online and offline sales channels. It provides real-time data synchronization, enabling sales associates to offer personalized service regardless of where customers shop.
Shopify POS: A popular choice for small retailers, Shopify POS integrates seamlessly with e-commerce platforms, allowing businesses to manage sales, inventory, and customer data in one place. It supports personalized customer interactions and enhances the in-store experience.

Key is to see how each one integrates into your existing systems and require the least timt and effort to start using, including ease of use for your staff.

Consumer benefits:

Consumers generally have a positive outlook on clienteling apps in stores, as these tools enhance the shopping experience by offering personalized interactions and services. Here are some key insights into consumer sentiments regarding clienteling apps:

Enhanced Personalization: Clienteling apps allow retailers to gather rich customer data, such as purchase history and preferences, which helps in creating personalized shopping experiences. This personalization makes customers feel valued and appreciated, leading to increased loyalty and repeat purchases.
Improved Customer Engagement: These apps enable one-to-one communication through various channels like SMS, email, and chat, allowing for more meaningful interactions between customers and store associates. This engagement is crucial in building strong customer relationships and enhancing satisfaction.
Seamless Shopping Experience: By integrating with multiple channels, clienteling apps provide a seamless shopping experience both online and in-store. Customers appreciate the ability to receive consistent service and recommendations, regardless of the shopping channel.
Efficient Service: Clienteling apps equip store associates with customer profiles and order histories, enabling them to provide informed recommendations and faster service. This efficiency is appreciated by consumers, as it enhances the overall shopping experience and can lead to higher conversion rates.
Support for Local Shopping: Some clienteling apps, like Visional, focus on promoting local shopping, which resonates with consumers who are interested in supporting their local communities and reducing their environmental impact.

Potential drawbacks of using clienteling tools

While clienteling apps offer numerous benefits for retailers and consumers, there are some drawbacks that customers have mentioned:

Privacy Concerns: The collection and use of personal data can raise privacy issues for customers. Some consumers may feel uncomfortable with the amount of personal information being gathered and used for personalized marketing and recommendations.
Over-Personalization: While personalization is generally seen as a positive, there is a risk of over-personalization, where customers might feel overwhelmed by too many targeted messages or recommendations, leading to a sense of intrusion.
Dependence on Technology: The effectiveness of clienteling apps relies heavily on technology and data accuracy. If there are technical issues or data inaccuracies, it can lead to poor customer experiences and dissatisfaction.
Effort and Time Investment: For retailers, implementing and maintaining a clienteling app can require significant time and effort, which may not always translate into immediate benefits. This can indirectly affect customers if the app is not well-integrated or if staff are not adequately trained to use it.
Potential for Generic Interactions: Despite the aim for personalization, there is a risk that interactions can still feel generic if the app does not effectively utilize customer data to tailor communications.

In general the benefits of using clienteling tools and apps outweigh any potential downside if the implementation and roll out is well planned and carried out in phases with attention to customer and staff feedback. Consumers, by and large, prefer and even expect more personalized experiences in shopping as long as their information is private and secure.