POS integrations can pose a challenge for retail and hospitality chains. Getting a POS system to work with different types of data analytics can be a complicated process, particularly for retail and service experts who may lack technical knowledge and skills.
Fortunately, many modern POS systems allow for additional functionality via an application programming interface (API). Combining the point-of-sale system with actionable data through a POS integration API can provide valuable customer insights into the business and customer experience. These insights can then be applied to streamline processes, improve inventory management, sales and revenue, and provide a satisfying customer experience. to encourage positive interactions as well as increased average spend, repeat business, and customer retention.
All POS systems gather data when a transaction occurs, possibly including customer information, payment type, stock and inventory information, and staff productivity. A retail or hospitality POS system can be integrated with data analytics APIs to create a wealth of insight that can be used to improve key metrics in an increasingly competitive business environment.
For example, POS integrations can be used to direct customer management activities. A customer can register to receive special offers, in a loyalty or VIP program; then the customer activity is tracked down to the granular level. Customers can be segmented based on demographics, shopping history and habits, geographic location and more.
Databases can be combined and centralized for further analytics, including real-time activities and opportunities for instant promotions and market growth.
These insights and actionable data can be converted to sales and revenue because it helps you to:
1. Identify Opportunities
A retail or hospitality enterprise can use customer data to identify opportunities to grow reach, increase sales, or cut back on waste. For example, a marketer can target a customer by location and present them with a special offer when they are physically near a store.
Predictive analytics can be applied to provide insights into customer behavior like future purchases and average spend that a company can use for planning and forecasting activities, such as inventory, staffing, marketing, and promotions, to improve efficiency and responsiveness throughout the business.
2. Analyze And Respond To Trends
With POS integrations, a business can use analytical tools to view trends accurately: is a particular item selling faster than usual, and how does that affect inventory and stock levels? If sales are declining, would a real-time push promotion be effective? Which customers are most likely to respond?
A business can also determine the busiest times of day, week, month or year, and plan promotions, inventory and staffing accordingly. Trend analysis may be applied to limited-time promotions to increase foot traffic during slow periods or to promote specific products that are trending down in sales.
3. Personalize Incentives
With a comprehensive data analytics solution, a company can personalize incentives that it offers to customers based on an infinite supply of data intersections.
For example, perhaps VIP customers making weekly purchases respond better to a buy one, get one (BOGO) promotion than a reduced-cost offer. Double-point accumulation for a limited time may drive foot traffic for members of a loyalty program, while bundled items may increase the spend of all customers regardless of category.
Segmenting your audience into different groups in a variety of ways allows your business to send the right offer to the right group of customers. Personalization can maximize responses and ROI of incentive programs and drive customer loyalty and behavior to align with the strategic objectives of the organization.
Conclusion: POS Integrations Provide Data-Driven Results
Regardless of which POS system a business may use, it can always benefit from additional capabilities from expert vendors who are rooted in data analytics. Enabling a third party to provide additional services via a POS system API allows a merchant to gain new insights and capabilities that their POS wouldn’t otherwise provide.
These services can engage customers to maximize results: whether increasing sales, moving inventory, driving traffic, or improving promotions, POS integrations can help a business make real-time decisions to reach strategic goals.
Como Sense, the most innovative customer engagement toolset on the market, already integrates with 80+ POS systems worldwide. Start gathering actionable customer analytics to help you bring them back while increasing their spend.
Contact Como to find out more about the actionable insights and advanced analytics that can help your business grow.