Hopefully, the point of sale (POS) system that you have incorporated into your business does infinitely more than just communicate with your payment processor. If it comes with robust analytics functions, your POS device can soon become a source of invaluable information, including customer profiles, and target market data. Armed with this intelligence, you can catapult your company to the next sales tier.
Tapping into the goldmine you already own.
Although it depends on the payment processor and ecommerce platform you have chosen, there is a good chance that you already possess a great deal of valuable data that you can use to your advantage. This includes:
- Customer browser preferences.
- Where your customers live.
- The devices they prefer (iPhone vs. Android).
- Data about sales (what items sell the most, when, and where).
With just a few clicks, you can ask your integrated POS system to generate a report that can give you data-driven guidance about what products to highlight and to whom. Making your site mobile-friendly further enhances the power of this information.
Integrating your POS system with supplementary business tools.
Although your POS serves as a mighty and multi-functional business partner in its own right, it is not the only tool in your arsenal. No doubt, you also use third-party payroll or accounting software, and/or a customer relationship management (CRM) platform. When you marry your POS to these business tools, you can boost your revenue even higher.
Your CRM program can also provide a plethora of helpful details about your valued customers. With it, you can easily learn which of your channels is the most successful, and which marketing campaigns are the most effective, as well as which are not worth your time or effort. Appealing to your target market with the products and services they want – and getting it right the first time with the help of laser-focused data – is one of the best ways to minimize errors, increase efficiency, and bring the profits rolling in.
Cutting down on fraud.
Identity theft and other kinds of data breaches rob consumers and businesses of millions of dollars each year. Providing thorough training to your staff about the red flags to look for when customers purchase items on your website or in person is an indispensable way to protect yourself from criminals. However, there is still more that you can do thanks to your payment data.
As stated above, your POS software is working constantly behind the scenes, keeping track of all manner of business-related information. Since it already registers the identities of all buyers who have purchased items using their credit cards in order to tabulate loyalty rewards, you can tap into this information to spot any behaviors that seem unusual.
For example, you may have a long-time buyer who never spends more than $200 on purchases. Then one day, your POS report shows that she bought more than $1,000 in goods. A simple phone call or email to her will be sufficient to learn if she has been the victim of crime, and she will probably thank you for your concern.
Identifying what is working in your store.
You probably already evaluate the success of your stores based on their size and their sales numbers. In addition to that strategy, you can use customer payments data to make the picture even clearer.
For instance, your payment processing reporting can tell you how many refunds take place at each store, who is making them, and on what specific products. If you have several different locations, you can determine which are the most similar to each other. Once you know this, you can test various layouts, sales strategies, and innovations to see which are most effective. In addition, the location-based data from your POS can help you to determine if expanding to a new physical space makes financial sense.
Since you have invested time and dollars into your payment processing solution, you might as well make the most of its many capabilities. By maximizing its functions and incorporating them into your financial, marketing, and sales operations, you can increase efficiency, boost sales, and enrich those all-important customer relationships.