The recession has driven many retailers to reevaluate how they are doing business. Rather than casting a broad net with the hopes of landing a plethora of new customers into their stores, a significant portion of merchants are scaling back and instead focusing their efforts on the customer base they already have. Loyalty programs are one of the most effective strategies for achieving that goal.

A loyalty initiative encourages shoppers who are already familiar with a brand to continue shopping with them instead of jumping to a competitor. By attributing a value, whether points or gift-based, above and beyond the goods purchased within a retailer’s store(s) consumers are encouraged to become a brand loyalist and given a reason to keep shopping with that merchant.

Retail Pro International understands the significance of customer loyalty programs, which is why the Customer Loyalty Module is a pivotal part of the recent release of our software. Retail Pro 9 enables users to set up their very own loyalty programs and reward their best shoppers with in-store discounts, gift items, or other rewards of the retailer’s choosing.

Retail Pro’s loyalty module is built upon our proven “Central” communication methods which allow the retailer to ensure loyalty points are awarded and redeemed in a real-time capacity. This is beneficial for both the merchant and the customer. In the case of the retailer, this information is updated instantaneously, assuring them their customers aren't double dipping on rewards due to server-side lag or other nefarious issues.

Conversely because points are managed in real-time, customers are able to check their point balances whenever they want and receive an accurate numbers from any of the retailer’s store locations. For example, if a customer makes a purchase at one store, the transaction will be relayed to Retail Pro's Central Server. Later that day, if they are at a separate location, they can redeem loyalty points earned earlier because communications take place in real time – there are no delays that would prevent this from happening, which can be an issue with other brand’s loyalty programs.

The Retail Pro 9 Loyalty Program module is a flexible solution as well, giving merchants three different ways to carry out their rewards initiatives: Total Based, Item Based and Gifts. Each can be configured to earn and redeem points or achieve specific milestones to receive gifts.

·         Total-based programs use the total amount of receipts to calculate point values – a customer earns loyalty points and then redeems it to reduce the account. For example, when accruing points, spending $100 could earn 100 points. When the customer wants to redeem these points, the point value could be changed to 10 points equaling $1.

·         Item-based systems work in a similar fashion, except different items are set to have various point values. Not every item has to be a part of the program, which is useful for promoting certain goods. Additionally, different shoppers can have bonus multipliers associated to their member (Gold, Silver or Bronze levels, for instance), which can further enhance the bonus points earned.

·         The gift-based method rewards a consumer with actual merchandise rather than discounts. Instead of points, this program would issue gifts for clearing certain levels. For example, they could earn a free flashlight for signing up and then win additional items for hitting other levels.

A successful loyalty program will maximize retention of the most profitable customers, increase a retailer’s profit-to-consumer ratio, revitalize relationships with existing patrons, help create meaningful connections with new ones, give margins room for growth, improve customer behaviors by rewarding them from shopping and dissuading unprofitable habits, leveraging data collected through programs to improve stock selection and generate word-of-mouth buzz from program participants. Simply put, a loyalty program is an arrow you need in your quiver!

Retail Pro International has announced a strategic alliance with Retail Smart Guys, a specialty retail consulting and planning advisory company. Dan Jablons, owner and operator of Retail Smart Guys, a long-time Retail Pro® supporter, will be pivotal as Retail Pro International aims to create customer consulting programs to foster a new pedigree of retailer.

“Leveraging our Retail Pro retail management software and services with Retail Smart Guys' planning guidance will go a long way to ensure the success of any merchant in our ecosystem,” commented Mike Bishop, the Vice President of Business Development at Retail Pro International. By utilizing the services and products of both Retail Pro and Retail Smart Guys, merchants will be better informed about their businesses and markets while gaining access to crucial data and retail management tools that will drive growth, profitability and long-term success for their business.

Dan Jablons is an experienced retail advisor, with a client list spanning dozens of high-profile specialty retailers. Jablons offers his clients expertise in pivotal retail functions, including accurate forecasting, marketing, sales, technology and social networking.

Retail Pro International is currently working to introduce new services that will capitalize on this newly forged alliance. ”We are thrilled to be partnering with such a performance-driven organization in the retail space and believe this collaboration will provide the retailers with the resources and expertise they truly need to succeed. It's the ultimate win-win-win situation for all involved,” added Dan Jablons, the owner of Retail Smart Guys.

Despite declining sales over the past few years, the Irish retail sector is slowly beginning to turn itself around, according to a new report from Retail Excellence Ireland.

Sales in January were down 5 percent year-over-year and overall sales per square foot in the first quarter also declined significantly compared with the same time in 2011. However, encouraging signs were observed in March, when sales climbed by 0.7 percent, suggesting Ireland's retail sector may be bouncing back from the recession.

''March 2012 returned to like for like growth helped by a spell of good weather. The big ticket discretionary sectors remain in greatest distress,'' Retail Excellence Ireland's chief executive David Fitzsimons told RTE News.

Hot beverages and pharmacies proved to be the best-performing retail categories, while furniture and flooring were among the bottom of the list, both down by 10 percent.

If merchants are having difficulty meeting sales numbers, they may want to consider revising store operations and diversifying their product lineup. This could help them reach new shoppers and further buoy sales.

Consumers are increasingly using their mobile devices to make mobile purchases, according to a new study from Interactive Media in Retail Group, an ecommerce trade association based in the United Kingdom.

Compared to March 2011, the number of mobile sales last month skyrocketed by 254 percent, the report notes. Similarly, mobile conversion rates were up as well – from 0.7 percent in 2011 to 1.4 percent this year. While mobile conversions still live in the shadow of PC rates (4.13 percent), the report clearly highlights the growth of smartphones as shopping tools.

"[PC conversions could be higher] because many U.K. shoppers visiting e-retailers from their smartphones today are shopping on traditional ecommerce sites," InternetRetailer notes. "Navigating an ecommerce site on a mobile device can be frustrating because a consumer is forced to pinch, zoom and swipe extensively to see products, and the content-heavy pages can take more than a minute to load."

This also notes the importance of developing smartphone-specific retail sites. By optimizing an ecommerce platform for the smaller screens of cellphones, retail merchants may be able to get more mileage out of mobile shoppers.

Despite rising fuel costs and grocery prices, American consumers are still optimistic about the economy. A recently released Bloomberg report shows that household confidence improved last week to match the highest level in the past four years, which can only mean good things for retail merchants.

The Bloomberg confidence index was observed at minus 31.4 points during the week ending April 15, a 1.4 point improvement compared to the previous seven days. The 31.4 reading is the highest since March 2008, insinuating that the retail sector is on its way to emerging out of the recession-era doldrums, Retailing Today notes.

However, economists were quick to note that many Americans are still unemployed, which may put a damper on expectations.

"The uneven nature of the recovery will likely continue to restrain the type of improvement in consumer sentiment that one would traditionally observe at this point in the expansionary cycle," said Joseph Brusuelas, a senior economist at Bloomberg LP in New York.

Retailers looking to drive in-store traffic, despite the cost-conscious consumer mindset, may want to consider offering discounts. This will make it easier to justify shopping, despite higher commodity prices.

As many retailers look to incorporate the mobile web into their marketing and ecommerce efforts, many have let their standalone websites fall by the wayside. It's pivotal that merchants devote their full attention to all areas of their online presence to ensure the best customer experience.

According to a new report from Compuware Gomez, Overstock.com took high honors in regards to the consistency of its website. On Internet Explorer, the page loaded with the average variation of 0.78 seconds, meaning the retail brand was largely providing users with the same experience. Macys.com was top dog when it came to Firefox, with a consistency score of 0.53 seconds.

"The average Internet Explorer consistency score among the 22 retailers measured in March was 1.25 seconds," Compuware Gomez says, Internet Retailer reports. "The same group of retailers produced an average Firefox score of 1.81 seconds."

Load speed is critical when trying to make the best impression on internet shoppers. Separate studies from Google have found that slow loading speeds can turn customers away even before they see the website, which is why the search engine uses load speed as a signal for determining search rankings.

According to a new report from KPMG, the strength of the retail sector in India is waning due to the closure of several big-name brands. In 2008 and 2009 – the era hailed as the peak of the retail industry in the country – there were more than 4,500 retail stores. As of now, however, that number has shrunk to 2,900, a decline of approximately 38 percent.

Most of the decrease took place in 2009 and 2010, when retail powerhouses such as Subhikhsa went under. While things have stabilized in 2011 and 2012, the sector has shown relatively flat growth, suggesting conditions could still improve.

"It's not an easy business to be in and every retailer in the country is revisiting [their] strategy. In this phase of consolidation, retailers are looking at improving supply chain efficiencies, experimenting with formats that work best," Sandeep Gupta, managing director at Protiviti, told the Hindustan Times.

Retailers looking to bolster efficiency should consider leveraging retail software solutions. This can help them identify potential weak points while further streamlining store operations.

Contactless payment methods are slated to become the norm by 2020, according to a recent report from the Pew Internet & American Life Project that polled a panel of technology experts.

Approximately two-thirds of respondents (65 percent) believe most people will have fully adopted the mobile wallet as their primary point-of-sale payment solution in eight years, usurping cash and credit cards as the gold standard. The change will come as more consumers rely on personal hardware and software for transactions, making smartphones the ideal conduit in that sense.

However, there will still be a place for cash and credit cards in the future. As many as 33 percent of the polled experts believe consumers will not trust the safety and privacy of near field communications (NFC) technology for financial transactions. Consumers, they say, will be hesitant to use their phones for big transactions and thus don't think mobile payments will gain a lot of traction by then.

Factors barring the adoption of mobile payments

Indeed, these privacy fears are a big reason why adoption of mobile technology has been slow thus far. Additionally, the tech experts noted the desire for anonymous payments, a lack of infrastructure to support widespread mobile payment adoption and resistance from companies already entrenched in the existing payment systems.

"As much as I'd like to see a money-free world, I'm afraid the opportunities for the hackers and pirates are too great," one respondent told Mashable. "I'm happy to buy my $2 Starbucks using my Android but I don't know that we will ever feel secure enough to make much larger purchases that way."

Supporters of mobile payments, however, were quick to point out how many countries throughout the world are already using similar systems.

"The 2020 date might be a bit optimistic, but I'm sure that this will happen," study participant Hal Varian, chief economist at Google, explained to the news source. "What is in your wallet now? Identification, payment and personal items. All this will easily fit in your mobile device and will inevitably do so."

As the number of smartphone owners continues to grow, so too does the reality of a mobile payment future. According to the latest data from comScore, upward of 100 million Americans own smartphones such as the iPhone or HTC Evo. To put that in perspective, that's approximately half of the United States' total mobile subscriber base.

In the first quarter of 2012, the number of British consumers performing retail searches from tablet devices grew 11 percent compared to the same time a year earlier, highlighting the importance of considering these devices as retail merchants plan their engagement tactics.

Meanwhile, total search volumes from overseas shoppers were up by 57 percent during the first quarter, peaking in January. In particular, the health & beauty and food & drink categories saw the biggest growth, up 21 percent year-over-year.

Many consumers are using these devices to check out what prices are at various retailers, ensuring they get the best price. Retailers should take note and employ practices to prevent them from losing sales to less expensive competitors.

"Squeezed household budgets mean customers are turning more and more to the internet to research what they're buying and look for best value," Stephen Robertson, director general and British Retail Consortium, said.

Many American retailers are already using price-matching policies to give mobile-savvy customers a reason to buy with them instead of the competition. Merchants around the world may want to consider similar tactics.

Retail Pro® 9.2 Revision 5 has been released and is now available. This release focuses on addition of new functionality in the area of Customer Loyalty and UPC Reuse, as well as some reworking and enhancement of some existing functionality in serial numbers.

“As the old business adage goes, it's a much easier task to keep existing customers satisfied than it is to win over new ones, and this is especially true in the retail sector. Improving customer retention and loyalty is absolutely pivotal to buoying the bottom line of most merchants, and this latest release helps merchants do just that," said Bill Colley, Senior Vice President of Development and Client Services at Retail Pro International.

Retail Pro® 9's customer loyalty module enables users to set up loyalty programs and reward their best customers with incentives that marry to the way they do business, whether through fixed discounts and point-based programs or promotional programs that reward loyal customers with goods. Loyalty is redeemed by leveraging the Retail Pro Centrals Server technology, which processes transactions and keeps the database updated in real time – a feature paramount to providing customers with up-to-the-minute information on their balances.

Another key area of focus is that of serial number tracking. Retail Pro® 9.2 R5 includes several significant improvements to the way the retail software manages serial number use, as well as, how those serial numbers are handled and tracked at point of sale and across locations.

Key changes include serial numbers now being tracked and controlled at the store level as opposed to the company level, enhanced tracking and display of serial number statuses within frontline areas of the system, direct links for viewing the serial number's document history and the ability to filter lists of serial numbers by store, company and single serial numbers.

The area of UPC management has been improved to now allow the reuse of existing UPCs within the Retail Pro Inventory. Retailers and manufacturers purchase UPCs in blocks, which are then assigned as needed to inventory items. After stock associated with these UPCs has been depleted, the UPCs can now be reused and applied to new inventory descriptions and items.

This is a divergence from previous handling, which dictated a UPC could not be reused once assigned within the Retail Pro® retail management system. In this release, a new UPC field has been established which is completely independent of the item’s unique system ID and can be reused if merchants so desire. When their systems are configured to use this new UPC field, Retail Pro® 9 will utilize the new field as its basis for lookups on item information, rather than the UPC field associated with unique system ID.

“These are just a few of the changes made in the latest release. Retail Pro International remains committed to helping retailers stay ahead of the curve by continually implementing key features that support their business needs," added Colley.