Using POS Data to Make Educated Business Decisions
Making tough business decisions is rarely simple. But using POS data from the system you have in place will help you better understand trends in your business, pinpoint areas of concern, and make choices based on solid information.
In most cases, your POS system is already collecting an overabundance of data. So it’s just a matter of learning how to access the data and compile it into useful analyses and reports.
Better Understand Your Business by Using POS Data
If you think of your POS (point-of-sale) system as little more than a fancy cash register, you may not be aware of its potential. POS data can help you see what’s happening in your business so you can make key decisions.
Every time your employees use the POS system, it records many pieces of useful information, such as:
- what is being purchased
- who is buying it
- which employee is handling the transaction
- how long the transaction is taking
- whether any discounts or adjustments were used
You can use POS data to get a sense of average customer purchases and spending, and whether your staffing levels are appropriate. You can also drill down to individual transactions and employees, so you can spot potential problems or non-compliance with your policies and procedures.
Measuring Employee Productivity
If your POS system tracks staff performance by individual employee, you have a basis for comparing how much each employee accomplished in a given day.
You can also determine the average number of transactions an employee handles during the shift. By identifying who is above and below average, you can reward people who are top performers and counsel those who aren’t as productive.
Analyzing Customer Returns
Returns, exchanges, and refunds chip away at both profitability and employee productivity. Using POS data, you can identify the root causes of returns and refunds. If an employee handles an unusually high numbers of returns and refunds, it may be a sign they are involved in fraudulent activity.
Data gathered by your POS system may help you optimize staffing and reduce the need for costly overtime.
- Number of transactions
- Employees scheduled
- Hours worked
You can adjust scheduling so you have the ideal number of employees on hand to handle the business you expect on a particular day and time.
The data captured by your POS system can also provide insight into employee theft and fraud.
Paying attention to the number of exceptions can also help you identify employees who may be honest but are simply making too many mistakes. Using POS data in conjunction with synchronized video is a way to identify dishonest employees and gather evidence to support termination or prosecution.
Best Practices for Using POS Data
Whether your POS system provides summary reports or an interactive dashboard, reviewing data as part of your daily routine will help you identify trends and patterns offering insight into your business.
DIGIOP CARBON works with many top POS systems to assemble cross-sections of data. Contact us today to schedule a DEMO to see how DIGIOP CARBON’s capabilities can help you derive more value from your current POS data.