The modern day point-of-sale (POS) has evolved to become more than just a transaction processing tool. Technology has advanced since the original cash till, and today, the POS has business benefiting features that retailers can really use across processes. Let’s focus on one of the most important benefits of the POS which provides value in intelligence and decision making – data collection.
While most retailers over the last few years have started collecting data at the POS, it’s those who are actually processing this data in the right way and drawing insights to enhance their businesses are getting ahead in the retail arena. Below are 3 important aspects of POS data and how it can be used.
Inventory and stock optimization:
When the POS is used to record data about inventory, it enables retailers to stay on top of stock levels thus making it easier to track items — from ordering through the point of sale (and even returns). This further aids in better inventory forecasting, purchasing, and this is also useful in retail marketing decisions. Some of modern retail POS software provide some important features related to inventory such as conducting inventory counts, managing returns, automating re-order points, checking stock levels at stores, among others. Analyzing the inventory data collected at the POS can enable retailers to have the right product at the right time.
Enhancing customer experience:
The POS software can be used to collect customer information while registering customers, look-up already registered customers, capture their feedback, track the frequency of their visit to the store, and also monitor their ticket size, the kind and quantity of products they generally purchase. All this data can be processed to draw powerful insights to analyze shopper behavior and their buying patterns thus allowing retailers to personalize customer experience along with having the right inventory at the store. Further, the information can also be fed-back to the store-staff at the POS to enable cross/up selling. Also, having the inventory data will allow the store associates to proactively let shoppers know about the availability of certain products. These efforts can enhance the overall customer experience.
Improving staff performance:
The POS software can be used to collect data related to sales staff. Some of the valuable metrics in addition to total sales could be basket size in-terms of price and quantity, walk-ins converted to registered customers, customers issue resolutions, and so on. The data can then be processed to learn about employee performance and understand the areas where improvements are required in terms of training and also recognizing the achievements of the store employees. In addition to this, factoring in the staff to sales ratio is an essential parameter to decide about the staffing needs for the store.