A retailer’s POS (point of sale) software is not only a tool used for processing transactions. Amid the revolutionary advance in technology, retailers can access more POS data than anytime before.
Here, we will define POS data and how it gets collected. Most importantly, we specify which POS data retailers should use to maximize sales.
Briefly, what is POS data?
It is a considerable amount of information collected automatically during customer checkout. These insightful pieces of information are on your customers and business.
How is it collected?
You have two crucial ways of gathering data from customers using a POS system from a trusted provider, say Magento.
The first way is passive data collection. Here, there is no need for visitors to take action. The data can include demographic information, geographic location, date of purchase, item bought, and repeat sales. It likewise covers analytics on user experience on a business website, for instance, their most visited pages, how much time they spend on a page, and the path to buying.
Retailers can leverage that data collection for various purposes. For example, develop a customer profile considering their previous behaviors with the firm or on the corporate website. The data helps with your growth strategy implementation as well. It also plays a substantial part in SEO (search engine optimization), assisting your website listings in ranking higher in the search engine.
Another way of data collection is the active one. With it, shoppers take action to give you more of their information. One of the most typical examples of this approach is putting a form on your business site. This form enables visitors to register for an offer or something.
What POS data should you consider to boost sales?
Below, we list out crucial types of POS data and explain why they are significant.
Inventory data
1. Definition
Whenever an item is in stock, sold, returned, or exchanged, the specific stock-keeping unit’s inventory levels modify in your POS software automatically to show the number of units of that product and their location.
2. Its importance
Inventory is the part that makes a retail company succeed. And as you operate both an offline and online one, it is even more critical to ensure the accuracy of inventory levels. Thanks to precise inventory levels with automatic adjustment after sales, you will prevent stockouts effortlessly and let consumers know with confidence whether you have an item available.
Sales data
1. Definition
Sales data provides you with insights both small and large in scale. At the large-scale level, sales data displays your net and gross sales and how many units you have sold in a particular period. At the small-scale level, this type of data reveals your store’s average order value. It also lets you know the average quantity of products per order and daily net sales.
2. Its importance
By utilizing this data, your business will see an increase in profitability. It informs you about specifically when you get your highest sales and evaluate your efficiency in translating foot traffic into sales.
What is more? Sales data helps with your inventory management and product reporting. With it, you can reorder your hot items before they get sold out and launch discounts for goods with low sales. Plus, referring to the data, you avoid stockpiling items whose sales are historically poor.
Product data
1. Definition
Product data in a POS system often lies in the categories of profits, sales, or costs. Combined, these pieces of information help with the generation of your sales reports. Moreover, they inform you about the number of units of an item you have sold, the product revenue, and which products have the top rate of return.
2. Its importance
There is a slight difference between sales data and product data. Speaking of sales data, it lets you know the number of sales you have made over a certain period. In comparison, product data helps identify your top items according to how many units get sold, top goods by net sales, and the overall revenue of each sold product.
Customer data
1. Definition
This type of data helps you see how long a person has been as your customer, their frequency of purchasing from you, the amount of money they have spent, and specifically what items they bought.
2. Its importance
Thanks to this POS data, you know how much revenue you get from the consumption of new and repeat customers and determine how to merchandise to consumers. It also helps differentiate the omnichannel customer experience from the single-channel one.
Employee data
1. Definition
Whenever a sales associate uses the POS system to process a sale, the sale chalks up to their user profile.
2. Its importance
POS employee data is super helpful for store managers to monitor their team’s sales productivity and ensure every team member has a part in achieving the store’s set objectives for sales. Further, the data allows them to define and reward the best sales associates and find those who may need more sales training.
Final words
Every successful business reaches decisions depending on facts and data. If you want to maximize your sales and see your enterprise growth, you should figure out ways to collect the POS data and which data to use. Do consider the critical POS data mentioned above. They will offer you a specific roadmap to follow.
Source: https://www.mikegingerich.com/blog/what-point-of-sale-data-should-retailers-consider-to-maximize-sales/
- https://www.mikegingerich.com/
- Mike Gingerich
- United States
