Modern day point-of-sale (POS) solutions are intelligent enough to not only handle sales transactions but also provide you with valuable data that you can use to improve your sales and subsequent services to your customers.
Smart POS systems have an inbuilt analyticscapability to report performance, inventory movement, customer contacts, employee attendance, customer feedback and more.The more you dig into this data, the more productive insights you can derive from it.
Many companies rely on POS driven-data for tracking sales performance. By defining pre-determined metrics or Key Performance Indicators (KPI), a retailer monitors day-to-day performance to see how their business is doing.
Let us look at the 5 metrics that retailers really care about.
Product Performance/Sales Activity:
Access to sales report on how much of what is selling, and which category is selling more? What is the daily, weekly, monthly or annual sales break-up? You can track all this information on your POS in real-time and, collaborate online with your team to discuss the same; provided your device is a smart one and that you have mapped the categories accurately.
A standard sales report looks like this:
– Sales activity by day/date range
– Sales by category, employee, department
– Returned and exchanged items
– Gross profit by period
– Top and worst selling items
It is important to be aware of your top selling and low selling products, at all times.This will help you to quickly assess requirements, customize promotions to drive business.
What exactly are the values of your opening and closing inventory, reorder inventory, and shrinkage? Track inventory movement through a real-time inventory tracking report in order to understand your Stock Turn, Sell Through and GMROI.
a) Stock Turn
Get to know, how much inventory is consuming shelf-space? This is an important parameter for analysis so that you never have any surplus inventory or run-out of stock. Stock Turn or Inventory Turnover is the number of times stock is sold within a given period (cost of goods sold/average inventory). A high Stock Turn is good for business.
Regular inventory check through your POS data is a great way to understand the stock trends, minimize problems related to inventory, and to come up with innovative marketing tactics to sell more or price better.
b) Sell Through
Sell-Through rate is the percentage of goods sold versus the total goods available. 100% sell-through means completely sold out. Some fast moving retailers like Big Bazaar are interested in knowing their daily sell-through percentage and, expect an 80% sell-through. It’s easier to get these figures quickly on a POS, and tack a discount if needed to improve the sell-through on some slow-moving items.
c) Weeks of Supply
POS data helps us ascertain how much stock we need to keep in order to have our shelves stocked at all times. Each time your stock dips below a particular level, the POS system will notify you in real-time. Once you know the total inventory-in-hand and average weekly sales figures you can easily calculate weeks-of-supply.
d) Gross Margin Return on Investment (GMROI):
How well your inventory is generating cash for your business? Every business needs cash flow especially if the goods are fast moving. GMROI is the money you have earned to every investment that you made in inventory. Total sales less cost of goods divided by average cost of goods will reveal the GMROI value. The faster your inventory sells, the higher the GMROI and vice-versa.
POS payment report gives an insight into how much money you are making. All cash flow, credit card payments, gift card payments, discounts and benefits, taxes paid, voided sales, refunds and tips are detailed in the report, and you can view this information by date and percustomer.
Keep track of your team and monitor sales on a daily basis. A secured ID is attached to every user of a POS system for the purpose of bringing accountability to business. The system will record all purchase history, payment mode, and loyalty benefits extended to the customer by your rep during the buying process. All transactions are recorded and monitored to avoid any case of employee theft or misappropriation.
The employee tracking report reveals time-in and time-out or number of hours worked, sales by employees, employee shifts, the commission by employee and profitability.
Armed with this data, you can come to know if there is any inventory shrinkage, any administrative errors causing a discrepancy in your inventory record. Thereby, guiding you to improve your store process, employee training and security.
How many visitors come to you? What is your customer conversion ratio? It is essential to know your daily customer traffic to keep your business look.
Customer details, purchase history and feedback is valuable information to any business. Repeat customers or loyal customers bring profits, and so are often rewarded by loyalty points or discount benefits each time they visit the store. Identifying your top customers and reaching out to them with customized promotions is a good strategy. Improvising your services based on their feedback and asking them to advocate your business offerings to others are few things you can explore.
Advanced POS systems are touchscreen enabled, with large yet sleek display monitors to give a visual overview of analytical data about business performance. A comprehensive dashboard that reveals data on various KPIs. Overall, it is a very intuitive interface with real-time data reporting to help in predictive analytics and important decision making.