Customer data is more than graphs and figures; it’s a modern form of currency, and today’s businesses should unlock its value to get ahead of competitors. The numbers tell the story: according to a recent Salesforce survey, 66% of customers expect companies to understand their unique needs and expectations.
While traditional methods for understanding customers — like focus groups and surveys — can still be effective, POS data analysis is now essential to business growth. It helps you:
- Generate new ideas for products and services
- Predict consumer behaviors
- Make better business decisions
- Improve customer service and personalization
- Keep track of finances
- Fine-tune your brand
So, how can businesses collect the valuable data they need to thrive? Most modern point-of-sale (POS) technology collects data that helps you get to know your customers, and in turn, define your brand. Using POS data analysis, you can identify what drives sales for your business, what speaks to your customers and what keeps them returning.
Here are some examples of the kind of information you can generate with a modern POS system:
- Customer records, including purchase history, average spend and contact information
- Peak hours and top-selling products
- Sales performance by employee
- High-level and granular inventory data
It’s not enough to just collect data about your business; you have to put that data to work to make it valuable. Here are three ways POS data analysis and POS reports can help you define your brand and keep your customers happy.
1. Refresh your marketing game
Getting granular insights can help you serve your customers before they even make a purchase. Customer and trend data can inform smart marketing campaigns and allow you to send relevant messages to the right customers at the right time. Create personas and target customers based on information like their number of visits, average spend per visit and days since last visit.
Has it been a while since some of your customers paid a visit or made a purchase? Craft an email to remind them about your services and products. Or send them a reminder to purchase a product — for example, a daily vitamin — when their supply may have run out.
2. Improve your customer service
In addition to inventory tracking, data from your POS system can help you make informed product recommendations for customers. Based on an individual’s purchase history, you can predict which products they might like. You can also use POS data analysis and POS reports to make shopping decisions easier for your customers. Do you notice that certain products are always purchased together? Offer a bundle or special deal — think coffee and croissants; graham crackers, marshmallows and chocolate; or an eyebrow and a lip wax.
Knowing who your customers are — and what they value — can help you refine your brand and serve your customers well. Getting feedback is a great way to gain insight into what your customers are looking for in a service or product. This call-to-action can be made on your business’ social media accounts or even an email marketing campaign. Do your customers prefer purchasing ethically sourced products? Pay attention to where your products come from and be open about your sourcing methods.
3. Know what to stock and sell
By analyzing historical sales data and using inventory tracking tools, you can identify trends and determine which items to keep in stock (and when). With a modern POS solution, it’s easy to view bestselling products. For example, if your customers love one particular style of purse, you can increase deliveries of this variation to ensure you stay well stocked.
There may be times throughout the year when sales trends change. By tracking POS data over time, you might find that swimsuit sales go up significantly right before spring break, making it a good idea to stock up on swimming trunks and bikinis for February and March. Or during the cold winter months, iced coffee sales may decrease. In response, you might order fewer iced coffee cups and more paper cups, reducing costs by only buying the supplies you need.
By tracking timely sales data, you can make decisions that define your brand. Do sales spike during the morning shift? Sell easy, to-go options for customers who are in a hurry to get their breakfast.
Telling your brand’s story
Why is defining your brand important? It’s about more than colors and logos; it gives your business and identity and a personality while telling customers what to expect. A clearly defined brand drives:
- Recognition
- Customer loyalty and trust
- Cohesive messaging
- A sense of unity for employees
Your POS system is more than a cash register. It gives you access to valuable data and insights about your brand and your customers. POS data analysis doesn’t just improve customer experience and the strength of your brand — it also helps you increase your bottom line. According to a McKinsey survey, companies that extensively use customer analytics reported 115% higher ROI and 93% higher profits compared to those that didn’t monitor customer analytics.
POS data analysis tells the story of your business and your customers: who they are, what they value and what they purchase. Turn to your POS to get the data you need to fine-tune your brand’s story.
Learn more about the functionalities of a modern POS system.
Equal Housing Lender