Analytics are a key indicator in any type of business, but they’re especially important when sales and customer satisfaction are key to success. We’ve previously written a blog post on the importance of evaluating restaurant analytics, but, of course, restaurants and retail stores can be quite different in products, practices and goals. So today we’ll share a few tips for using retail analytics to influence sales and performance.
As discussed in a recent Point of Sale article, analytics are key to the 5 Ps of retail: place, product, price, people and promotion.
Place
Evaluating sales and profit numbers will tell managers whether specific products are better suited to be sold in store or online. These analytics will help to improve the physical layout of a store by identifying more popular items and placing them strategically.
Product
Retail analytics are key to managing supply and demand. Sales numbers will help identify and keep popular products in stock. On the flip side, knowing which products aren’t selling will prevent them from being overstocked
Price
After you know which products are and aren’t selling well, it’s time to look more closely at price. Could prices be modified to maximize sales and profit? Are customers taking advantage of coupons or special offers to buy certain items? Are those discounts helping or hurting the bottom line?
People
As the retail industry shifts, personal connection is essential to performance and profits. By evaluating shopping behaviors, you’ll be better equipped to proactively offer those personal experiences to customers.
Promotion
If your marketing campaign is going to succeed, it needs to be personal. Use retail analytics to monitor purchases, coupon redemptions and more. Then, use that data to build specific and targeted marketing campaigns, ultimately working to increase customer loyalty.
As retailers work to improve store performance, Retail Tech is there to help with a wide variety of new and refurbished POS equipment. We offer installation and staging, PoS printer repairs, and more.
Contact our POS systems specialists for help finding the perfect point of sale solution for your retail store.
