What Is a Chicago FCMO’s Role in SaaS Retail Customer Loyalty?

Chicago is one of the biggest stages for the SaaS retail industry. The retail industry in Chicago is in overdrive with the incorporation of new technologies into daily operations. One of the key players contributing to this acceleration is software-as-a-service (SaaS) solutions.

In the Windy City, SaaS provides cloud-based software solutions for retail businesses to manage operations, such as inventory, sales, and customer relationships. 

SaaS integration is more important than ever, especially with the growing competition. These solutions are key to effective retail management and streamlining daily operations, which could mean the difference between staying afloat and closing down.

The goal of SaaS in retail is to build a loyal customer base and keep retail businesses competitive. This may all seem like a tall order at first, but a fractional CMO for SaaS can help lead the way. They provide strategic marketing guidance to effectively maximize your software and lock in customer loyalty.

Continue reading to learn more about how a Chicago FCMO for retail customer loyalty brings more long-term clients your way.

But first, here's Jason with what a Chicago FCMO with DAP can do for your Windy City business: 

What Does a Fractional CMO Do?

A fractional chief marketing officer (CMO) is a C-level executive with years of marketing experience. They are instrumental in coming up with innovative marketing strategies that bring measurable growth and results.

Chicago FCMOs cover a wide range of services on the marketing spectrum, including branding, campaign execution, data analytics, and market research. A fractional CMO can help you achieve the ROI of your dreams while keeping your budget realistic. 

One of the biggest advantages of Chicago’s fractional CMO services is that they are more affordable than full-time CMOs. They are hired on a part-time or contract basis, so you do not have to worry about the associated costs that come with full-time CMOs. Instead, you can use these funds for critical campaigns like Chicago local SEO or Chicago web development. 

Types of SaaS Solutions For the Retail Industry

We don’t have to tell you that running a retail store is a lot of work—you live that every day. Luckily, you can streamline operations and make things more efficient, making the lives of your staff (and you!) much easier.

Listed below are three SaaS solutions beloved by Chicago retail stores:

Point-of-Sale (POS)

For stores that have many transactions to keep track of, point-of-sale (POS) solutions are your go-to. This handy software has a wide range of features that will make managing sales and payments a breeze.

One of the point-of-sale system’s main selling points is its ability to streamline retail operations. This increases efficiency and accuracy by automating sales processes and tracking sales data from daily purchases.

These systems also spot pricing errors and prevent cash flow issues that could hinder operations and customer service. You can also use these tools to keep track of inventory to prevent out-of-stock sales and be ready to give customers what they need.

Inventory Management

Inventory management is another common SaaS system. Depending on your business, your inventory management system can be something as simple as an Excel spreadsheet or a cloud-based system that acts as a central location for all information about your inventory.

This system tracks and manages goods in real time throughout the supply chain. You can monitor the entire inventory process, from production to end sales. Additionally, inventory management systems also prevent retailers from overstocking or stockouts. This ensures that customer demands are always met, increasing customer satisfaction and retention. When companies don’t have out-of-stock issues, customer equity improves by 56.2 percent, and returns improve by 12.5 percent. 

Furthermore, even if you have multiple locations to keep track of, inventory management monitors operations on all of them. This system is ideal for managing sales on multiple channels, leading to faster purchasing and smoother transactions. A Chicago FCMO has experience in data analytics and aligns inventory levels with customer demand, keeping popular products consistently available. Minimizing stockouts is part of maximizing your ROI.

Customer Relationship Management (CRM)

Customer relationship management (CRM) software can dig up a goldmine of customer information—all in one platform. Gathering and analyzing customer data helps establish the foundation of a good relationship. After all, customers are the lifeblood of all retail stores, so you want to make sure that they are well taken care of.

CRM software helps retailers understand customer behavior to create personalized campaigns, increasing customer satisfaction and loyalty. These solutions also give insight into different customer interactions so you can learn more about their specific needs and answer them.

A Chicago FCMO for retail customer loyalty can help select the right CRM based on features like automation, reporting, and integration capabilities. Then, your FCMO can guide the implementation process to ensure it’s successfully adopted by the team.

What Are the Benefits of SaaS Solutions for Retail Companies?

SaaS solutions have transformed the way retailers conduct business-to-consumer marketing or B2C marketing. Given their user-friendly design for tracking and monitoring nearly every aspect of the business, it's no surprise that an increasing number of retailers are adopting these systems.

Here are 11 reasons why FCMO-backed SaaS solutions are a must-have in your organization:

1. Cost-Effectiveness

In the retail world, expenses pile up, making it tricky to manage a budget. Many SaaS systems are subscription-based, meaning retailers can save on costs for expensive individual software systems.

Additionally, instead of making ongoing payments for licensing, hardware, and maintenance, you only pay for what you use with SaaS. This lowers the initial investment and gives retailers a budget that is easier to predict (another win!).

Furthermore, you don’t have to hire in-house IT specialists to monitor your systems. All updates and maintenance are done automatically by the software provider, guided by the FCMO. By the way, a Chicago FCMO has tons of connections; ask them about who they work with for Dev issues. 

2. Scalability

The retail industry is no stranger to fluctuating needs that are difficult to predict. When SaaS joins the team, some of the technical weight can be lifted from your shoulders. SaaS helps retailers adjust their technological resources (such as adding more users, expanding features, or increasing storage) based on growth. 

It’s the assistance you need without the complexities of traditional tech infrastructure. This flexibility puts retailers in a better position to respond quickly to market demands, launch new products, or expand into new channels without costly upfront investments or reputation (and bottom line-damaging) site downtime. (Unplanned downtime costs the world’s 500 biggest countries $1.4 trillion a year—aka 11% of their revenue.)

Speaking of scalability, when you need to bring in new team members, turn to your Chicago FCMO. They can help you hire, onboard, and train new part-time or full-time employees. When it comes to particularly stressful times (looking at you, holiday season), Chicago FCMOs help with scaling—getting you the extra software bandwidth and people bandwidth you need.

3. Easy Integration and Deployment

With SaaS, businesses can worry less about operational delays. These tools are easy to use and can be deployed quickly without much hassle. As a result, businesses have a shorter time-to-market, allowing them to serve customers faster and more efficiently.

SaaS programs are not standalone assets; they can easily be integrated with other programs, such as CRM software, automation tools, and accounting software. This allows businesses to complete all operations in a streamlined manner, increasing efficiency and minimizing downtime.

• Note on SaaS: SaaS products are user-friendly. They incorporate easy-to-follow best practices, making it easy and intuitive for anyone in the company to use (and your FCMO can help get everyone up to speed as well). 

Plus, in most instances, you can purchase a few months or less of the software (for subscription models). That way, you can test out the software first before committing to it to test its functionality and how it serves the business. 

4. Data-Driven Decision-Making

In the retail industry, there is no room for guesswork or assumptions. Successfully running a retail store entails looking at things from an objective point of view. What better tool to assist with that than SaaS platforms?

SaaS platforms are equipped with advanced data analytics and reporting features that allow you to make informed decisions. Retailers use objective data gathered from various sources, such as sales, inventory levels, pricing models, customer behavior, and current market trends. 

Basing your decisions on factual data leads to more accurate results. It also allows retailers to spot any areas for improvement and quickly adjust their marketing campaigns and operations accordingly.

5. Improved Customer Service

Retail is all about serving the customer. SaaS solutions are ideal for providing seamless and efficient shopping experiences to customers, which is key to maintaining retention and loyalty.

You can achieve this by using SaaS platforms to analyze your customers’ behaviors and preferences. This information allows you to fully understand their needs and create tailored marketing campaigns that resonate with them.

With SaaS, you can also incorporate customer-centric features that allow you to serve the customer at any time. These include 24/7 chatbots, FAQs, and self-service portals, which conveniently answer the customers’ needs without the waiting time listening to elevator music on hold.

Mobile apps with live chat connect customers and support teams, allowing for quick responses and immediate solutions to concerns.

6. Transparent Communication

A business only thrives when it practices honesty and openness with its customers. Fractional CMOs use different online platforms to maintain open communication and build trust with the public.

Keeping customers in the loop is important: It shows that you’re thinking about them. When you inform shoppers ahead of time of things that may affect their shopping experience (like scheduled downtime or local construction), they know you value their time. 

You can utilize different channels, such as emails, SMS, or social media, to update your clients on product updates, price changes, and service disruptions. Additionally, if a customer experiences a negative experience with your brand, such as a defective product or slow shipping, take proactive steps to come up with a solution. 

Customers appreciate when organizations are transparent and are more likely to choose a brand that learns from their mistakes.

7. Value-Added Services

It is always smart to find ways to give customers more than what they came for. Fractional CMOs can help retailers sweeten the deal by marketing value-adding services to enhance the shopping experience.

Value-added services are additional products or extra services that are given in addition to the customer’s main product. These services often include complementary products.

Note that these do not always have to be tangible products; value-adding services can also include free trials, free shipping, or discounts on your next purchase. Everyone loves freebies, and these are good ways to increase customer satisfaction and incentivize them to buy from your store. 

8. Surviving Market Volatility

Like with any industry, from life insurance to travel, the retail market is prone to fluctuating market demands. Whether you run an online shop or a physical store, you will eventually deal with price drops, insufficient supply, or low numbers of purchases. All these could hold back business operations and affect customer experience.

Fortunately, fractional CMOs are comfortable adapting to unstable market conditions. An FCMO uses their knowledge of market trends and scalability, as well as various market analysis tools, to identify market patterns and trends and adjust resources accordingly based on this data.

One of a fractional CMO’s strengths is developing customer retention strategies when retailers experience a drop in sales due to decreased spending. To develop a plan, FCMOs rely on market and customer analysis and investigate underlying causes of spending drops. Using this data, retailers and their FCMOs create pricing models that benefit both the customer and the business.

9. Omnichannel Marketing Strategy

Retail can reach out to customers on multiple channels, whether it is via an e-commerce website, email, social media, or physical means like in-person store visits. It is a holistic approach that enables productive communication with customers at all touchpoints.

Fractional CMOs design and execute digital marketing strategies to reach many customers at once. They can help you come up with an effective omnichannel marketing plan, giving customers a seamless shopping experience. 

For instance, a customer might receive a personalized email promoting a sale, view the same offer on social media, and then visit the store to make a purchase. When in the online or real-life store, they could also pull us digital loyalty rewards through the shop’s app. All these factors come together to make a truly unified shopping experience.

One way to achieve this is by gathering insights into how customers approach retail shopping. Look to answers for questions like:

• Does your demographic/target market prefer a certain app versus another? 
• Which review platforms do they visit and how much do they trust each (Yelp, Google Reviews, etc.)? 
• Do they like subscription models? 
• What’s their preferred mode of payment? (Options like cash, credit cards, digital wallets like PayPal or Apple Pay, or buy-now-pay-later options)

You can gather feedback from customers using surveys or forums to gain more insight into the shopping experience from their perspective. Programs like Google Analytics can also provide insights here. Use this data to create tailored messages and marketing campaigns that speak to your target audience.

Here's what you need to know about mobile app development in Chicago with Jason:

10. Build Strategic Partnerships

Retailers don’t have to go at it alone; fractional CMOs use industry experience and their skills in networking to build beneficial partnerships with other organizations. 

Retail partnerships are when two or more brands collaborate on a major event or campaign to boost awareness and customers for all parties. It is also an opportunity to share resources to grow your business, which is a huge advantage for retail startups.

The first step to starting your partnership is to do your research on companies or brands that complement your services. Finding the right partner is crucial to your partnership; take time to learn everything about these brands.

Set goals as well. A potential partner is more likely to agree to the partnership if they know what your mission is. Not only that, but goals must also be mutually beneficial; it would not be a partnership if only one side benefits from it.

11. Website Navigation 

Website navigation is one of the most vital aspects of ensuring a positive shopping experience. One way your fractional CMO helps secure customer loyalty is through Magento customizations (if you use Magneto). (Magento is an open-source e-commerce platform that can be customized with a wide range of UX features.) 

Whether you use Magneto or another platform, look for customizations that use the latest technologies. Try to improve navigation, loading speed, and add personalized elements when possible.

For example, your website’s user interface is one of the first things your customers will see. Optimize the UI of all pages so your customers may use the platform comfortably. 

At times, it’s the little features that make or break a store, so take the time to customize your site in a way that makes everything easy for customers. From the initial visit to your website to finally receiving the product, every interaction must be intuitive and give the user what they want. Speaking of customization, add shipping features, pricing, and customer data collection when you can. 

Important Metrics to Measure Customer Loyalty

Customer loyalty is not just measured by how many customers come in and out of your store; several metrics objectively measure customer loyalty.

Listed below are six useful metrics to take note of:

Customer Retention Rate

Customer retention rate measures the rate at which a customer stays with your brand over a given time. Higher retention rates also mean high customer satisfaction and potential for long-term engagement. 

You always want to aim for a higher customer retention rate as this shows your business is succeeding at keeping customers loyal.

The formula for customer retention rate is:

Customer Lifetime Value

Customer lifetime value (LTV) refers to the total revenue generated by a customer over the entire time they spent with your business. The longer a customer spends buying from your brand, the greater their LTV.

Customers from different groups have different spending habits, which is why this is a helpful metric to determine which group spends the most. As a result, you can determine which group to focus your marketing campaigns on. 

Customer lifetime value is measured by multiplying the customer value by the average customer lifespan. You can increase LTV by creating personalized experiences that secure long-term customer loyalty.

LTV can be increased even further by encouraging customers to make larger purchases. You can achieve this by including value-adding services, upsell opportunities, and product bundles.

Net Promoter Score

Net promoter score is a rating system used to measure customer satisfaction and loyalty. You may use simple questions to help you gauge customer loyalty. Some sample questions include:

• How would you rate your experience on a scale from 1 to 10?
• How likely are you to recommend this product to a friend?

The higher the customers’ ratings, the more likely they are to remain loyal to your brand. NPS can also be measured by subtracting the number of detractors (those who answered 6 or lower) from the number of promoters (those who answered 9 or 10).

Consider those who answered 7-8, also known as the passives. While they are not entirely promoting your brand, you are not in danger of losing them completely. You can always capitalize on opportunities to show them that your brand is the best. 

Customer Loyalty Index

The customer loyalty index is a quantitative metric that gives businesses insight into how long a customer will remain loyal to their brand.

Dozens of factors go into computing this metric, such as customer satisfaction, net promoter score, retention rate, etc. This data can also be gathered from surveys where you ask customers how much they are likely to recommend your brand and buy from it again.

Similar to computing the net promoter score, you may use numerical values to accurately measure customer loyalty. These numbers are used to gauge your business’s performance and your customers’ stance towards your company in terms of loyalty and retention.

Repeat Purchase Rate

Repeat purchase rate measures the rate at which your customers buy a product multiple times. It gauges how likely they are to return and make another purchase.

Ideally, you want a higher repeat purchase rate because it shows that your customers have a high level of loyalty and retention to your business. It also increases the chances of your customers returning to purchase new products.

For this formula, you will need the total number of customers in general and the number of customers who have more than one purchase. Divide the latter by the former, and multiply the result by 100.

Here's how to calculate the repeat purchase rate:

Churn Rate

If the previous metrics measure the likelihood of a customer returning, the churn rate measures the rate at which a customer turns away from your brand. You want this metric to be as low as possible.

High churn rates mean that something is causing your customers to deviate, whether it is low-quality products or services or lack of engagement. It is an indicator of low retention and loyalty.

The churn rate can be found with the following formula:

Find the Best FCMO For SaaS Retail With Digital Authority Partners

Customer loyalty in SaaS retail comes with its challenges, given the high competition and lack of marketing resources. Fortunately, you can find the perfect fractional CMO at Digital Authority Partners.

Our Chicago fractional CMOs are real professionals when it comes to finding ways to secure long-term loyalty and retention. Not only will you have more customers coming your way, but our FCMO strategies also guarantee higher conversion rates and returns on investment.

Bring your retail store to new heights with us! All you have to do is send us a message!