Simplify Customer Retention with Technology

Published: January 26, 2024

Updated: April 25, 2025

Retailers understand the critical importance of customer retention, and the statistics back them up:

(Sources: Zippia, Bain & Company, Harvard Business Review)

Additionally, the 2023 Zendesk Customer Experience Trends Report reveals that more than half of customers are likely to switch to a competitor after just one poor customer experience. This is why customer retention is vital, and savvy retailers use every tool at their disposal to keep loyal customers close and encourage new ones to join the family. Retail technology plays a crucial role in keeping regular customers happy and converting occasional shoppers into loyal patrons and brand advocates.  

“Consumers expect more from merchants today. Due in part to the evolution of retail, which now offers more personalized choices from e-commerce companies, shoppers want similar features such as personalized offers and rewards programs from their neighborhood stores,” Dan Nesmith, founder and president of Paladin Data Corporation, explains. 

How Can Retail Technology Help? 

Get Online 

Like it or not, more and more shoppers are buying online. Over 270 million Americans shop online, a number that continues to grow each year. Stores that want to remain relevant must offer online services. 

Creating a functional online store can be a daunting task for small businesses, though. Depending on the complexity, it can take anywhere from a few weeks to six months and cost between $2,000 and $20,000. These costs vary based on whether a business hires a developer or uses an e-commerce platform. 

PaladinShop™ simplifies the process by providing a ready-to-use digital store within Paladin Point of Sale. It includes customer self-service options and rich product descriptions, features, and images. Customers can manage their accounts, print invoices, view purchase history, and shop anytime, anywhere.

PaladinShop is built into Paladin Point of Sale eliminating the need for additional website developers, proprietary data, or site management. All transactions, from account adjustments to product purchases, are handled by the existing system. 

Jenn and Luke Bates, owners of ProTrade Hardware & BBQ Supply, recently launched their PaladinShop site. 

“We’re a true mom and pop store. So, if we do something like this, it’s up to us,” Jenn says, explaining their decision to implement PaladinShop. “We’re super new at this, but it has launched, and we have people on the site looking around, paying bills, and browsing. Paladin Support has been extremely helpful in getting us going.” 

REWARD LOYALTY

Customer rewards programs benefit both retailers and shoppers. They provide stores with valuable customer information. When customers sign up for an incentive program, which can be done at a point-of-sale system with a simple swipe of a driver’s license and a few questions, a store can start a customer profile that becomes a treasure trove of information. The collected data includes a customer’s name, address, and license type. These customer accounts give stores insights into purchase histories and preferences, which are invaluable for savvy retailers. 

Ben Honeycutt owns Oak Knolls Hardware and Home Center in Orcutt, California and he uses his Paladin Point-of-Sale system and a rewards program to manage his inventory and track his customers.

“I look at my customer listings and rankings. I find out who my best customers are. Last year, we bought some nice gifts and sent them out at the holidays,” he explains, adding that unexpected gifts like that go a long way in building loyalty and retaining customers.

Leading hardware suppliers have branded programs like Ace Rewards, Best Rewards, True Value Rewards, FanBuilder™ (Orgill), and others. Programs such as Paladin Data Corporation’s Rich Rewards or providers like Repeat Rewards offer independent businesses customer incentive programs that keep customers coming back. 

STAY IN CONTACT

​Keeping customers loyal is the ultimate goal of customer retention, and using the information gathered from rewards programs is critical. Text messaging (SMS) and email messaging are the easiest ways to keep in touch with customers and are an important part of any effective rewards program. 

Customers must opt-in to receive these messages, but they are effective platforms for communicating everything from new product additions to sales promotions to changes in store hours or policies. Unlike social media platforms, these messages are targeted directly to a store’s customers or followers and are statistically effective: 

JoLynn Weist, who owns and operates Weist Hardware in New Cumberland, Pennsylvania, uses a rewards program that sends text messages to advertise sales and special events. The program even targets individual customers with birthday greetings and coupons for their next visit. She mines all her customer information through her Paladin Point of Sale system and stays active on social media, posting videos on the store’s Facebook page to stay in touch with loyal shoppers. 

ADJUST AND MANAGE INVENTORY

Once a store collects customer information, the magic starts. Each purchase by a rewards customer gives retailers a clearer understanding of what products they buy, when they buy them, how they purchase – cash, card, or charge – and more. This information helps retailers improve ordering, increase turns, avoid outs, and boost profits.  

“We’ve tailor made our store to have what our clients want,” explains Renee Zaman, owner of Mazo Hardware and Rental in Mazomanie, Wisconsin.  “Paladin gave us a system that works really well. We’re confident that Paladin helps us know what’s selling and what isn’t.” 

Encourage Feedback

Improving customer experience starts with understanding what shoppers think of your business. Tools like Net Promoter Score (NPS) help businesses gauge customer experience, satisfaction, and loyalty. 

NPS is a post-transaction survey that asks customers: “On a scale of 0 to 10, how likely are you to recommend our products or services to a friend?” Responses are categorized: Scores 0-6 are Detractors, 7-8 are Passives, and 9-10 are Promoters. To calculate an NPS score, subtract the percentage of Detractors from that of Promoters. 

Instead of trying to coax customers into the store to sell them something, ask them what changes, improvements, or products they would like to see in the future. It’s a way of personalizing your store and service.  

Constant Contact 

Customer retention done correctly is part of a business’s routine customer service. If it’s incorporated into a store’s retail platform, it can become automatic and benefit both the customers and the business forever. Paladin Point of Sale offers all of these features which can help stores retain good customers and are incentives to lure new shoppers.

“The actions taken in your stores everyday drive customer retention. Customer retention and increased ticket totals will drive increased customer counts which will drive increased revenues,” Nesmith says.

brian bullock 

Author