Retail analytics and performance metrics can be powerful tools for understanding customer behavior, seasonal trends, inventory issues and all other facets of retail management and operations. One benefit of using these tools is that they are already available to store owners and managers – in your point of sale system. How can you use your POS system to improve product performance and sales? Analyze transaction data collected in your POS system to create an effective sales strategy and improve product performance.
There are the well-known, widely-used POS data points, such as total sales, average transaction value, and number of items per purchase. But to really understand, track and leverage performance and trends, says PointofSale.com, try digging a little deeper.
Understanding and Leveraging Customer Behavior
Instead of simply analyzing which products are selling well, use the advantages of collected POS data to understand which customers are buying those specific products. Identify which items are the most popular. Look at what days and at what times they’re most likely to be purchased. This will help with inventory management, promotion planning, staffing and more.
Planning and Executing Promotions and Sales
Research shows that about half of all retail promotions are not executed as planned. This results in confusion, frustration, and ultimately, a loss in revenue. Look at POS data to determine whether a promotion is performing as anticipated; if not, there may be an issue with its execution.
Analytics can also be helpful when planning promotions. Look at previous campaigns and determine what performed well. Then, use that information to plan the products, sale prices, dates and times of the next promotion.
Improved Forecasting and Real-Time Problem Solving
By monitoring specific product performance, retailers can avoid potential issues and stay a step ahead of the competition. For example, if a product is selling well, add a secondary placement in a different part of the store and order additional inventory. If a complementary product starts to sell, consider a cross-merchandising strategy. On the flip side, if something that had previously sold well suddenly starts underperforming, check to see whether that complementary product is contributing to the downfall. If so, move or merchandise it differently.
Want to learn more about POS data? We’ve previously discussed the importance of using retail and restaurant POS reports on our blog. Contact Retail Tech to find out which point of sale system will provide your retail store or restaurant with the performance reports you need.
Retail Tech carries a wide variety of new and refurbished POS equipment. We offer installation and staging, POS printer repairs, and more. If you need help choosing a hybrid POS system, contact our POS systems specialists for help finding the perfect point of sale solution for your small business.