1. Identify low-demand products
Among the main problems that consumers face are high prices, quality, and lack of variety in the products that a retail store offers. By performing a POS data analysis it is possible to identify the way in which customers respond to product prices. And also the strategies that retailers can apply to manage inventory, and thus know the availability in stores, trends, and consumption in the different periods. This type of analysis allows managers to order more of a product that generates more sales and more profit for their business.
2. Buy the right amount of products
Retail businesses make the mistake of choosing the average number of products sold as a parameter to increase or decrease their storage. However, they do not take into account seasons such as weekends, holidays, etc. By knowing this information, retailers perform a proper inventory count and earn more profit with the correct quantity of products.
3. Store the right products
Out-of-stock products are known to slow down the sales of a retail business. So POS data analysis reveals a trend that indicates which ones are in greatest demand, and in what periods. This allows you to prioritize the products that are stored in the stores, manage them in different categories, and have enough stock when the time comes to take them to the shelves.
4. Identify sales trends
The information collected during the data analysis accurately indicates the sales and profits of each point of sale. This will help you to compare the results as well as to optimize the productivity of each store and increase the profitability between them. Comparable data is easy to obtain in a POS data analysis. With this information, you can know in detail each product, category, and organization of shelves in the points of sale.
5. Best business strategies
It allows us to know what is happening at the points of sale and the habits of the consumers, to make better decisions and improve the commercialization of the products. With this, it is possible to accurately measure the effectiveness of the commercial promotions executed, and identify the ROI of the promotion and what is the increase in sales for each of them, so you can better plan future promotions and optimize your strategies with prices based on data.
6. Know consumer habits
It helps you collect deep information about consumers, and analyze which products they consume the most and what other products they use to complement them. Moreover, This allows you to properly plan promotions, according to the type of customer and organize products in retail stores according to consumption.