This is the opinion of Chris Steyn, a director of Cape-based IQ Retail, the software retail company that aims to provide expertise in complete financial and business administration solutions in the Windows operating systems environment.

"These days," he says, "the retailer has regular and extensive contact with the customer through various means, including the POS system, credit card payments, call centres and a host of Web-based applications - including buying products on-line. It is here, at all these customer points, that information gleaned on customers should not only be captured, but also optimised to grow customer loyalty."

Steyn said retail IT is pivotal to any retail organisation and should be treated as such. IT plays a core role in capturing customer behaviour, identifying customers right down to an individual profile, handling all the different transactions and acting to enhance overall customer service.

"This is all very well. But, if the IT system is not the correct one, if it is not used correctly - and this is often the case - all it ends up being is a fancy processing and storage tool. But, if utilised properly, information gleaned on customers can lead to better-targeted marketing campaigns, the offering of product discounts or promotions that appeal to a wide range of clients, as well as assisting to stock the shelves with products that customers really want. Information can also be shared with suppliers and can be optimised in other supply chain applications, or for e-procurement.

"The IT system," he emphasises, "should not just be seen as something that handles the transactions and the storage so that financial statements can be prepared at a later stage - or stock taking simply updated. It should be viewed as almost a living organism that can provide management with up-to-date information on customer trends, right down to profiling groups of customers, or even individuals. A decent IT system, in other words, can be used to keep the business going, as well as to grow it through maximising opportunities because of the additional insight gained."