A point of sale (POS) system is not simply a tool to process transactions. Your POS data is incredibly important for providing insights that will allow you to jump ahead of your competitors. In this article, we will look at why POS insights are important and how you can use them to increase sales.
The Importance of POS Data
In the retail industry, trends have been shifting towards omnichannel operations. Omnichannel operations focus on the whole customer experience across different channels, such as shopping online or in brick-and-mortar stores. Any merchant should be able to create and maintain a consistent and high-quality customer experience regardless of the platform. To do that, you need to use POS data and analyze them across channels.
A business automation service like Shogo will be able to work with POS partners such as Toast, TouchBistro, and Shopify to create financial reports and retail insights. This will allow you to make data-backed decisions in your business and improve your chances of success. You’ll be able to improve customer experience by providing better customer service, which will, in turn, drive more sales.
There are three main ways to utilize POS data to help your business succeed.
Optimize Your Inventory and Stock Levels
Approximately half of existing small businesses do not track inventory. This results in a heightened risk of things going wrong or even missing. With POS data, your business will be able to operate safely by optimizing your stock levels. You can manage your POS system easily to check inventory counts, transfer stocks, manage returns, check stock levels at different stores, and much more.
With the POS system, you can track items easily from product ordering to point of sale. This will help you to make business decisions in terms of purchasing, marketing, advertising, and forecasting. You’ll never run out of the right products.
Gain Product and Customer Insights
POS data can also give you product-specific insights. You’ll be able to look at order histories to see what customers like and provide further recommendations and marketing campaigns. Personalized advertisements and offers will increase sales. You’ll also be able to look at sales by product to identify sales trends and capitalize on them to meet demand. POS will also reveal product affinity, so you can see which items are frequently purchased together. You’ll be able to use this data to bundle items and recommend products at the checkout. Lastly, POS data helps you to understand what items undergo frequent refunds, returns, and exchanges.
Make Staffing Decisions
POS data can also be used to track employee performance to see who deserves promotion or recognition and who requires motivation or extra training. Top performing employees will be great for training new employees and taking charge of sales campaigns or seasons. You can also assess your sales to staff ratio to see if your business is adequately staffed to help customers at all times.
POS data is powerful if wielded correctly. Retailers can improve strategic decision-making processes by capitalizing on POS data to gain new insights. It can be used to direct resources and increase sales. With a business automation system like Shogo, you’ll be able to receive timely, accurate, and organized POS data reports and use them to improve your business.