Analytics data from your chosen point of sale (POS) system is collected in real-time when a customer makes a purchase. It can provide a complete view of your company's sales, customers, inventory, and other data.
Ways to Use POS Analytics for Targeted Marketing Campaigns
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This makes it even easier to create targeted marketing campaigns using the saudi arabia numbers customer data and analytics that are automatically collected after every transaction. With this in mind, let’s look at some key ways to leverage point-of-sale data in your marketing strategy for a campaign that stands out in all the right places.
Can you use point-of-sale data to personalize your next marketing campaign?
If you regularly use a point of sale system in your physical store, you are unknowingly collecting large amounts of valuable customer data.
As consumers make purchases and interact with your business, your point-of-sale system stores real-time data about orders, payments, product information, and customer details that can be leveraged to influence your segmentation efforts.
For example, let's say your POS system records a customer who repeatedly purchases the same beauty product. In that case, you can use this information to create a personalized discount campaign that offers customers discount codes for specific products.
Taking a data-driven approach to your marketing efforts is the key to achieving more conversions and better results.
Using a POS system to automate and streamline the collection of this data frees up your team’s time to analyze the results and create marketing strategies that directly target loyal customers.
What types of data can you leverage from a POS system?
If you have a modern electronic point of sale system in your physical store, there are many ways to use your checkout software to gain insights. Here are some ways to gain insights from your POS to create better, more effective marketing campaigns.
First, you need to understand what kind of analytics your POS system will provide you with, for example
Sales transactions. Details of each transaction, including items purchased, quantity, prices, discounts applied, and total amount paid.
Product information. Information about products sold includes product names, SKUs (Stock Keeping Units), descriptions, categories, and prices.
Customer information. Customer data includes names, contact information, loyalty program or membership details.
Payment information. Information about the payment methods used, such as cash, credit card, debit card, mobile payment or gift cards.
Timestamps. Date and time stamps indicate when each transaction occurred, providing insight into sales patterns and peak times.
Inventory Levels. Real-time inventory levels are based on the products you have sold across all sales channels.
Sales Channels. Data from the sales channel in which the transaction occurred, such as in-store, online, or through your mobile app.
Next, this article will explore nine ways you can leverage the POS analytics mentioned above to create targeted marketing campaigns that resonate with consumers:
1. Understand customer preferences
One of the most valuable assets a point of sale system offers is customer data. Using a modern point of sale system, you can gain insights into your customers’ favorite items on the menu or the clothing size they purchase at your retail store.
By analyzing your customer data, you can highlight any purchasing trends that can be used to influence your next targeted marketing campaign.
Take Starbucks for example. Their point-of-sale system regularly tracks customers’ beverage orders, allowing marketing teams to create discount codes and offers based on individual preferences.
Starbucks
This increases conversions tenfold , as customers are twice as likely to engage with an offer code on their favorite drink order as a pose to something they’ve never tried before.
2. Segment customers
Data and analytics are increasingly important for businesses to better understand their customers.
You can analyze point-of-sale data to create customer segments based on demographics, purchasing behaviors, frequency of visits, preferred marketing channels, product preferences, and spending patterns.
This will allow you to plan and create marketing campaigns targeted at specific customer segments and increase engagement with those customers. The result will be more targeted and effective communication, which will improve your relationship with those customers.
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3. Monitor campaign performance
Analytics from your POS system, such as sales of the promoted item or coupon code usage, can help you accurately evaluate the effectiveness of your marketing strategies .
For example, a restaurant could run two campaigns. One could offer diners a coupon for a dessert purchase, while the other could be a discount code for 20% off the bill. You can then analyze point-of-sale data to see what customers want and what to promote in your next marketing campaign.
This approach enables companies to make more informed decisions about managing marketing resources and allocate funds where they will get the most return.
4. Optimize marketing spending
Point-of-sale data can help you identify which marketing channels , messages, or creatives are performing well and which are performing poorly. You can then optimize marketing spend by reallocating resources to the channels or campaigns that produce the highest return on investment (ROI).
Additionally, if you have more than one store or restaurant, you can sync data from each location into a single system. You can then use the data to identify the highest-performing locations and determine where marketing spend should be allocated.
5. Best-selling products
Inventory analytics show you which products aren't selling well and which are, allowing you to increase sales of these products through personalized marketing campaigns.
Popular items often do well in promotions, so consider updating your website or menu to highlight bestsellers or train your employees to promote popular items.
Additionally, you can also upsell products that need better performance to ensure you don't waste stock. For example, if a product isn't selling as well as you expected, let your email subscribers know it's now on sale or promote it more on your social media.
6. Send automated emails
You can use your point-of-sale data to create customer profiles and collect contact information. You can then use automated email marketing tools to reach out to customers based on their purchasing habits.
For example, you can email customers personalized data such as their name, city, or offers related to previous orders. Customers are more likely to engage with an email that is personalized to their preferences and based on their previous experience with the store.
In fact, MailModo experts suggest that 72% of customers are more likely to engage with personalized email messages.
Additionally, why not use automated email marketing to retarget customers who haven't made a purchase in a while? Point of sale systems can send reminders, discount codes, etc. to customers who have not yet made a purchase within a certain time frame.
7. Introduce specific prizes
If you want to take your segmentation efforts to the next level, implementing a loyalty program into your marketing strategy will be a game-changer.
Even better, a POS system makes the loyalty program process even easier. By tracking and storing customer spending habits, POS systems make it easy to create a targeted reward system based on each customer’s purchasing history.