Why Modern Retailers Need More Than Just a POS and The Evolution of Clienteling

I spent a week in Palm Springs at eTail? West, where I had substantially more AI conversations than the 4,700 Sarah Engel mentioned (try over 4.7Trillion times). While the formal sessions buzzed with AI and Agentic Commerce, the most engaging discussions happened in the corridors and meeting rooms.?

Klaviyo 's bold proclamation that they were "the only B2C CRM" sparked a particularly interesting hallway debate. This statement raised fundamental questions about what constitutes a true retail CRM and prompted my conversation with Madeleine Anderson , Partner Manager at Endear .

"What many retailers miss is that clienteling isn't just a luxury retail practice anymore, it's becoming essential across all retail segments," Madeleine explained during our conversation. "We're seeing a fundamental shift where the transaction is just the beginning of the customer relationship, not the end."

When I asked about the difference between traditional CRMs and clienteling platforms, Madeleine was clear: "Traditional CRMs were built for managing long B2B sales cycles, not retail interactions," Madeleine clarified. "Endear, as a retail-focused CRM and clienteling platform, is designed specifically for the high-volume, high-touch nature of retail relationships. We bridge the gap between impersonal transactions and meaningful customer connections."

Madeleine emphasized that the stakes are particularly high in today's market: "In an environment where customer acquisition costs continue to rise, the brands that thrive will be those that maximize customer lifetime value through personalized relationships. Clienteling isn't just about increasing sales - it's about creating the kind of memorable experiences that turn one-time buyers into brand super fans."

These insights got me thinking about the intersection of POS systems, customer relationship management platforms, and the evolving practice of clienteling in modern retail.

Understanding Clienteling and Retail CRM

These conversations made me reconsider the evolution of clienteling in retail. What was once the exclusive domain of luxury brands has now been democratized by technology, making these relationship-building techniques accessible across all retail segments.

Clienteling goes beyond being a mere sales tactic. It's a systematic approach to building customer relationships using data about preferences and buying history. Unlike traditional marketing, clienteling creates a continuous feedback loop between customer insights and personalized service.

The disconnect in many retail operations comes from their foundational systems. Most retailers operate with two separate technological pillars: their POS system handles transactions, while a separate CRM manages customer data. Neither system was designed for the unique dynamics of retail relationships.

POS systems excel at what they were built for – processing transactions efficiently. But they typically capture only the most basic customer information, missing crucial context about why a purchase was made, what alternatives were considered, or how the customer likes to interact with the brand.

On the other side, traditional CRMs were engineered for B2B or B2C sales cycles, scenarios where relationship managers might nurture a handful of high-value accounts over months or years. These systems weren't built for retail's high-volume environment, where associates might interact with dozens of customers daily across multiple channels.

This technological gap explains a common retail dilemma: despite having both transaction data (POS) and customer profiles (CRM), many retailers struggle to implement effective clienteling strategies. The data exists in separate silos, and neither system provides the workflow tools associates need to maintain personalized relationships at scale.

As Madeleine pointed out, modern clienteling platforms bridge this gap. They connect the transaction data with the customer history and provide action-oriented tools for associates to nurture relationships proactively – whether through follow-up communications, personalized recommendations, or special event invitations.

The Revolution in Retail CRM and Transforming Business Impact

So what? Why should retailers care about this technological evolution beyond just having better systems?

When Klaviyo declared itself "the only B2C CRM," it highlighted an important market gap. Traditional CRMs like Salesforce were built for B2B relationships - not the unique needs of consumer brands managing thousands or millions of customer relationships.

However, Klaviyo's strength lies primarily in marketing automation and customer data. For retailers with physical locations, this solves only part of the puzzle.

This is precisely why I find Endear so compelling. The platform positions itself as a clienteling solution built specifically for omnichannel retailers. Unlike traditional POS systems that focus on transactions or marketing CRMs that focus on campaigns, Endear connects in-store experiences with digital touchpoints.

The implications are significant:

1. Unified customer view: Store associates can access online browsing behavior, while digital marketers can leverage in-store interactions
2. Personalization at scale: Automated but authentic-feeling outreach based on comprehensive customer data
3. Attribution clarity: Understanding which touchpoints drive conversion across channels
4. Relationship economics: Measuring lifetime value instead of just transaction value

For retailers struggling with increasing customer acquisition costs, the ability to maximize relationship value through effective clienteling isn't just nice-to-have - it's essential for survival.

Real-World Application and Success Stories

It's hard to find a dedicated CRM for POS, especially one with a robust Shopify integration. I had a chance to see Endear's platform first-hand at the DYODE booth at eTail and even picked up some swag direct from Shopify POS. The demo showed how seamlessly it bridges the online-offline gap that many retailers struggle with.

Madeleine shared two particularly compelling success stories that demonstrate the real-world impact of dedicated clienteling platforms.

FRAME, a dynamic fashion brand blending Californian essence with European sophistication, has seen remarkable results using Endear:

• Tripled their clienteling revenue
• Increased average order value by $81 compared to their regular e-commerce AOV
• Made clienteling a key strategy for new product drops and promotions

Similarly, Mizzen+Main, a modern menswear brand, achieved impressive metrics in less than a year:

• 391% increase in messages sent
• 76% increase in total orders
• 139% increase in average order value for orders influenced by an Endear message

These results aren't just impressive on paper - they demonstrate how proper clienteling tools transform the role of store associates from transaction processors to relationship builders. The numbers reflect a fundamental shift in how these brands approach customer engagement, moving from episodic interactions to continuous relationship development.

The Competitive Landscape and Claims of B2C CRM Dominance

Klaviyo's bold claim of being "the only B2C CRM" raises important questions about the current landscape. What about established players like Salesforce, which has invested heavily in its Commerce Cloud specifically for retail? Or HubSpot, which has been expanding its capabilities beyond traditional B2B use cases? And how do specialized retail technology providers fit into this ecosystem?

The reality is more nuanced than any vendor's marketing claim suggests. The B2C CRM space is rapidly evolving, with different players bringing distinct strengths:

• Klaviyo?excels in marketing automation and customer data management, particularly for ecommerce brands, but lacks the in-store capabilities many retailers require
• Salesforce?offers comprehensive enterprise capabilities but was fundamentally designed for B2B relationships, often making it overly complex for retail associates
• HubSpot?has strong marketing tools but limited retail-specific functionality for clienteling
• Endear?specializes in omnichannel clienteling but doesn't offer the breadth of marketing automation that platforms like Klaviyo provide
• Traditional POS vendors?are adding relationship features but often struggle with the depth of customer insights
• Enterprise platforms?are developing retail-specific modules but may lack the agility of purpose-built solutions

What's clear is that no single vendor currently offers a complete solution that addresses all aspects of modern retail relationships. The winners in this space won't necessarily be the largest or most established players, but those who successfully bridge in-store operations, digital marketing, and customer service into a cohesive experience.

For retailers, this means carefully evaluating which capabilities matter most for their specific customer engagement strategy rather than accepting any vendor's claim of category dominance.

How AI is Transforming Clienteling in the Age of Agentic Commerce

As I mentioned earlier, "Agentic Commerce" was the buzzword dominating conversations at eTail West this year. But beneath the hype lies something genuinely transformative for clienteling.

The most compelling vision isn't AI replacing human associates, but rather AI agents working alongside them, dramatically amplifying their capabilities. This human-AI partnership is where clienteling truly comes to life in 2024.

AI is enhancing clienteling across multiple dimensions:

Predictive product recommendations?have evolved beyond simple "customers also bought" algorithms. Today's AI can analyze not just purchase history but browsing patterns, social media engagement, and even regional trends to suggest products a customer might love before they know it themselves. However, the magic happens when a human associate contextualizes these recommendations within a personal conversation.

Behavioral pattern recognition?allows systems to identify subtle signals in customer behavior. AI can detect when a loyal customer's engagement is fading or when a occasional shopper shows signs of becoming a brand enthusiast. But these insights become actionable when a skilled associate knows how to respond to these signals with the right approach.

Personalized communications at scale?is perhaps the most immediate impact. AI can draft personalized messages based on customer data, but the personal touch of a human associate reviewing and customizing these communications maintains authenticity. As one retailer told me, "Our customers can tell the difference between fully automated messages and ones that had a human touch, even if it was just a small edit."

In virtually every conversation I had at eTail, we circled back to the importance of the human element. While AI can process mountains of data and suggest next best actions, clienteling fundamentally revolves around human connection. The retailers seeing the greatest success are those using AI to handle the computational heavy lifting while empowering their associates to focus on building genuine relationships.

As one executive put it to me over coffee: "Algorithms don't build emotional connections; people do. Our associates are the face of our brand, and AI just helps them be their best selves with every customer."

Have You Been Clienttold? The Future of Retail Relationships

If the present tense is clienteling, perhaps the past tense should be "clienttold." Looking back at eTail West, I've been thoroughly clienttold about the transformative power of these strategies. But unlike a story that's been told and finished, the clienteling narrative continues to evolve.

The retailers who have mastered this art don't view it as a concluded strategy but as an ongoing conversation with customers. They consistently apply these best practices:

• Calling customers by their names, recognizing their individuality
• Doing thorough research before any outreach, avoiding the dreaded "spray and pray" approach
• Collaborating with teammates to ensure consistent experiences across touchpoints
• Personalizing each sales experience based on customer history and preferences
• Providing direct, frictionless ways for customers to reach their preferred associate

The future of retail clearly belongs to brands that master clienteling across channels - not just as a luxury add-on but as a core business strategy. This requires more than cobbling together a traditional POS system with a marketing-focused CRM. It demands purpose-built tools designed specifically for the unique challenges of retail relationships.

I've been clienttold the importance of this approach. Now I'm clientelling you.

What systems is your retail business using to build customer relationships? Have you found the perfect solution, or are you still piecing together various platforms? Have you been client-told, or are you still discovering the possibilities? I'd love to hear your experiences in the comments.

Remember, eTail isn't just about networking and cutting-edge content, it's a launchpad for career development. The insights I gained from engaging with industry leaders and participating in hands-on workshops were invaluable for understanding how retailers are approaching clienteling in 2024 and beyond. Thank you to Lena Moriarty Jodi Bart Holzband and of course Chet Silverman (Mr eTail)

Cover photo courtesy of eTail and Scott Ohsman and Summer Jubelirer