Your point of sale system isn’t just some cash register with a few bells and whistles.
Namely, point of sale data is an immense treasury of actionable information. You can use it to improve your marketing efforts and sales strategies, as well as employee performance.
This is to say you figure out what works and what doesn’t without a shadow of a doubt. Benefits spill over into crucial areas such as customer experience and service.
They empower you to take revenue streams to the next level.
Alas, maximising this incredible resource is easier said and done. Many entrepreneurs are unsure of where to even begin looking for nuggets of intelligence. Well, the good news is we’ve got you covered.
Here is a guide on how to extract value from your POS system and enhance your bottom line.
A Case for Point of Sale Data
Processing transactions is just one role that POS systems fulfil.
Technology has advanced by leaps and bounds. It has enabled registers to record and process heaps of information. Moreover, we have a multitude of amazing functionalities out-of-the-box.
Adoption is a real game-changer because each POS transaction brings new bits of data. And over time, POS accumulates a whole wealth of it.
All you have to do is pick up the shovel and dig.
This activity helps you make smart business decisions and offer a consistent omnichannel experience. You’re able to bridge the gap between the data-rich digital world and haphazard reality.
And trust us. You don’t have to be a data scientist to make sense of POS data.
The major problem, however, is not all data is created equal. Some of it is relevant and adds value to your business. On the other hand, we have a vast majority of the data ocean that is downright useless.
Your main task is to “separate the wheat from the chaff” and focus your attention on the right metrics. The next sections will show you how to pull this off in practice.
Smart Inventory Management
First on the list of key areas to track is your inventory.
In this day and age, doing stock and inventory management manually is practically obsolete. The right POS solution, with the proper software integrations, can do the heavy lifting for you.
Built-in management capability automatically adjusts inventory after a transaction takes place. What is more, the POS system keeps track of stock counts and locations.
You stop selling the moment an item runs out and start purchasing more. Another related benefit is avoiding the clutter only collecting dust in your storage. You can decide to sell the surplus stock and make room for more in-demand items.
Ultimately, with smooth inventory management, you’re able to offer better customer service. Amongst other things, your staff can immediately respond to product queries.
Secondly, POS is a huge pool of customer information you need to tap into.
Valuable data points include personal information, past purchase behaviour, and order history. For instance, you may want to acquire email addresses to put together a list for the newsletter.
You can do it via online forms on your website. An alternative would be to instruct your staff to ask for this information at the checkout. In both cases, it’s recommended to offer something in return.
Think in terms of free content, a coupon, discount code, or something else.
Furthermore, notice POS system is capable of harbouring many other types of customer insights. You can use them to populate customer profiles— buyer personas. They facilitate the processes of producing reports and optimising sales/marketing tactics.
One concrete example involves personalised product recommendations. Industry leaders such as Amazon have worked miracles by launching these targeted, data-backed campaigns.
On Top of the Trends
On a broader level, the purchase history is a gold mine of patterns and trends.
You can detect them by following specific products, times, customers, or whole audience segments. The list of possibilities is virtually endless.
One of them is to recognise and then reward your loyal customers with special deals and gifts. At other times, it may make sense to respond to general seasonal spikes in demand by offering promotions.
In any event, it’s always a good idea to keep an eye on the peaks and valleys of your sales. They signal you may need to adjust your approach. The changes can involve anything from new working hours to utilising a different social media channel.
Personalisation of customer service is another major advantage of harnessing POS data. The basic idea is to examine buyer personas and then segment the audience. These activities lead to more targeted marketing and advertising.
Essentially, you ensure your messages don’t fall on deaf ears. In fact, you’re likely to improve results across key performance indicators (KPIs).
Point of Sale Data – Internal Recalibration
Back in “real life”, Point of sale data pays rich dividends as well.
Business owners are able to track unique employe accounts and evaluate individual performance. For example, you monitor the number of sales and provide feedback based on this indicator.
Yes, you can then praise and reward top performers. However, notice you don’t have to alienate or fire those falling behind. Your business could be better off providing coaching, training, professional development, and learning resources.
Finally, POS gives you a chance to pinpoint what particular products (meals) your staff is adept at pitching. This should enable you to boost productivity across the board and supercharge sales pipelines.
You might even be able to grasp the “why” behind the poor or solid performance. Doing that supplies you with business intelligence, which is a big competitive advantage.
Just remember the data output is only as good as data input. Therefore, never prioritise sheer quantity over quality.
All Systems Go
Point of sale data is a resource you can’t afford to underutilise.
If you don’t have a proper system in place, it’s high time to correct that. Assuming you do, start wising up by identifying which data points are worth collecting and analysing.
Gain direct insights into inventory levels and other up-to-date details. Keep close tabs on the ebb and flow of purchases thru your storefronts. Assess employee performance and make the most of your human resources.
Create reports based on your findings and inform the efforts of all teams and departments. You will take the guesswork out of the equation and rely on facts and figures instead.
This is a sure way to fine-tune your processes and delight the customers.
Don’t hesitate to contact us if you want to know more about our POS platforms. More power to you!