Traditional businesses use the Point of Sale (POS) system as a means to complete a transaction and nothing more. Many do not realize that the check-in-check-out system store valuable data – it is, in fact, a gold mine for businesses!
Having a deep understanding of the Point of Sale supply chain and optimizing the data generated at each point allows businesses to streamline their processes and make better growth decisions. Each point in the POS supply chain has to be monitored and interlinked so that the whole process works in unison. Data silo slows the processes in an organization and causes wastage, therefore, a proper POS analytics system that integrates the whole supply chain is important in any business, big or small.
POS Analytics – The Way to Go
A good POS analytics gives accurate information that helps businesses make critical decisions, especially in this highly-competitive world with highly-demanding customers. Businesses can utilize the data they gather to plan their inventory, sales, marketing and staffing among others.
When your sales till is linked to your inventory management system, you will know exactly what sells and what doesn’t. Smooth cash flow is important; you wouldn’t want dead stock sleeping in your store. A good POS system will alert you if you have such items so that you won’t make the mistake of ordering them again. It also applies for hot-selling items, you need to stock up before it runs out so that you won’t lose out on potential sales of that particular item. Sales data analysis can also forecast sales patterns, for example, if a particular item sells better at a certain period of time, the system can alert the managers, who can decide on re-stocking or promoting that item.
For businesses with more than one branch, POS analytics can help you with the movement of your stock. If item A is selling fast in Store X, but the same item doesn’t seem to move in Store Y, businesses can transfer the stocks in Store Y to Store X instead of replenishing them with new ones. This gives you better control of your stocks. In addition, businesses can monitor the sales performance of each store, department, aisle, and product and base their promotions on the trends and patterns they derive from their sales data analysis. Businesses can also compare historical data and determine if their promotional activities have been effective in bringing in traffic and sales.
On top sales and inventory management, businesses can also gain insights about consumer behavior through POS analytics — what are the products that are high in demand and what do customers usually pair them with. Plus, if you tie your POS system with customer loyalty card, you will notice the type of customers who usually frequent your stores. With this information, you can have more targeted promotions so that you don’t have to waste time and money on promoting the wrong products or targeting groups that least likely visit your store.
In a nutshell, a systematic point of sale analytics allows businesses to increase their Return on Investment and decrease wastage. Knowing what exactly goes in and out of the store and warehouse also helps businesses avoid shrinkage and pilferage.