Managers often get busy with keeping operations going as per plans and achieving daily tasks and monthly objectives. In the process of making ends meet and keeping businesses in the green, we forget to look at what’s going right or wrong for our businesses.
It is necessary to stop and look at sales and numbers and the story they tell to know what can be changed to increase revenue and profits.
There are many paid and free billing software available in the market that offer simple and advanced analytics to assist decision-making by managers and business owners.
Read the following to know what kinds of POS data can be used to grow your business:
Sales data collected at point of sale helps identify products that sell the most. Managers can identify perennially bestselling products and products that sell the most in different seasons, so that apt amount of stock can be maintained for those products.
Identified bestselling products can also be promoted at the right time to increase total revenue. They can even be packaged with other products that need to be promoted.
Optimal visual merchandising
By studying sales data, merchandisers can assess which product locations work the most to influence customer purchase behaviour. Merchandisers can do A/B testing of product locations and study sales data to understand which is the prime location in a store.
In case a new product is to be promoted, merchandisers can use prime locations of stores to place the product, so that it gets maximum customer attention.
Price elasticity of products
Sales data available in POS software also help understand the price points at which customers are comfortable buying different products. You can change product prices over time or stock similar products with different price points to see whether your customers are sensitive to product prices.
This data helps in pricing products optimally to attract new customers and generate maximum revenue possible from the existing customers.
Favourable marketing activities and time
By studying POS data, marketing managers can understand which marketing activities perform well at what time. This helps in minimising marketing cost by undertaking the most effective activities at the most favourable time. Marketing costs can be reduced largely by using scientific data to support marketing activities.
Profile of different customer segments catered by retail stores can be identified, and new customers with similar profiles can be targeted through various targeted marketing activities.
Loyal & satisfied customers
With the help of analytics offered by point of sale software, businesses can identify customers that visit again and again. Such loyal customers can be rewarded and retained, increasing their lifetime value. They can also be encouraged to purchase a larger basket size of goods.
POS software can be used to get feedback from customers to identify satisfied customers, who can be encouraged to refer new customers to businesses.
Preferred product combinations
Point of sale data helps identify products that are usually purchased together by customers. This enables merchandisers to package complementary products together to up-sell to other customers who may show similar purchase behaviour.
Visual merchandisers can use this information to place complementary products together, motivating customers to increase their basket size.