Retail POS data is much richer than only the raw sales numbers and the insights derived from the them are the company’s secret weapon for upholding a positive in-store trend and directly impacting the foundation. The benefits can become greater if retailers and their suppliers collaborate on POS data analysis technology.
FREMONT, CA: With the cut-throat competition and thin profit margins, retail business owners are always pressurized to over-perform with lesser materials available; therefore, retailers tend to use whatever is at their disposal creatively.
Retail point of sale (POS) data is one of the readily available resources where sales metrics that appear either directly from a single trade chain or are compiled from multiple ones, syndicated through a third-party is included. The retail POS system can be utilized by both retailers and their supplier brands to enhance in-store sales, which can ultimately lead to superior performances, inventory management, and forecasting.
Retail POS data can measure the number of goods sold over a given time and analyze the customer behavior from the order history. The process can empower retailers and supplier brands to learn a lot regarding how consumers buy from them. The analysis of retail POS data at the stock keeping unit (SKU) level reveals the probable items, which are proving to be bestsellers, and which are the unpopular ones. Timestamps and dates found on sales transactions also reveal that when shoppers are most likely to make a purchase, it enables the retailers to take a data-driven approach to their inventory management.
It is often witnessed that retailers and suppliers benefit enormously from proper promotional implementation, offering another opportunity for POS data to provide value. It is essential to carefully execute the pricing, display design, marketing campaigns, staffing, and more goes into making sure that promotions are cost-effective. Mistakes like displaying the wrong section of a store can be frustrating because the advertisement does not attract the consumer, whereas retail POS data is a crucial indicator of correctly set promotions.
A sales spike can establish a promotion’s effectiveness and produce concrete evidence for repeating the campaign in the future as well as provide real-time access to POS reporting to catch fluctuations early and take corrective action.
Plan for Resources:
The ability to plan better to intercept problems before they occur is an additional advantage of retail POS data analysis. The strong sales of complementary products can exhibit the success of a cross-merchandising effort, and the bestsellers can be identified more efficiently, by coordinating with suppliers to improve inventory planning.