Using your POS system for Product Line Optimization
Improving your product lines can be a daunting task, but, with the help of your Point of Sale system, you have all the tools you need to get started. Your Point of Sale (POS) system is at the center of your business and it records every transaction that occurs. These transaction details provide all the information you need to successfully conduct product line optimization. Use the following POS features to get started.
Review Your Inventory Management
Most POS systems include inventory management, which tracks items that enter and leave your store. Inventory Management can help you seamlessly order new inventory and understand what items are most popular with your customers. But how does this feature help you optimize your products? By analyzing your inventory details you can understand what is and what is not selling- this will help you make important product improvements. For instance, say you own a restaurant, and, through inventory management, you’re finding that your vegetarian burger is one of the best-selling items on your menu. That information can help you improve your products (in this case, your menu) by placing more vegetarian options on the menu.
As another example, perhaps you own a clothing store. By tracking inventory through your sales, you’re finding that wool socks are outselling other varieties. This might lead you to seek out different types of wool socks or other wool products and to stop offering less popular options in your product line.
Use Omnichannel Integration
Using your POS machine to create an omnichannel experience for your customers can easily help you optimize your product lines. How? Integrating all of your stores, including all physical and eCommerce locations, provides you with a single view of customer data and their purchase history, regardless of where they shop. Additionally, omnichannel integrations increase your customer satisfaction by providing them a unified experience, no matter which store they’re at.
The comprehensive reporting information that is created through omnichannel integration will allow you to understand what products and features are popular, what time of year, and where. For instance, by operating an integrated omnichannel business, you might discover that online, your discount products are most popular, while in-store your customers are drawn to mid-level or high-end options. This may lead you to remove your low-end items from your physical locations, or it may push you to create a sale for your mid-level products online.
Create Flexible Product Packages
POS systems provide you with an easy solution to sell your products as one-offs or as bundled solutions. Your system should provide the functionality to automatically group or ungroup items, create prices and, and add them to the checkout system. By reviewing the data captured by your POS machine, you can learn what your customers are buying most, then you can optimize your product by selling them as an increased stand-alone product or as a discounted bundled product. The best part is that by bundling your products, you’re creating a whole new product for your customers to fall in love with.
As an example, if you sell skincare products, you might find that customers prefer to purchase all their skin care products at once. In this case, you can bundle your skincare “basics” in one set. This will lessen the time that customers shop, increase their happiness, and allow you to sell more products at once, thereby increasing your revenue.
Always Test and Learn
With the flexible reporting and metrics your POS system can provide, you have ample opportunity to test and learn with your products and product prices. By carefully presenting products and their features and tracking the results, you can learn exactly what customers like day-over-day, month-after-month, and year-over-year. This will help you create new products or discontinue old products, all based on the tests you track via your POS reporting features.
For instance, if you own a restaurant you can consider testing the results of a new menu item as a seasonal promotion. If it’s a success you might consider adding it to the menu year-round.
Request Customer Feedback
Customer feedback is the best way to optimize your products. Customers will let you know what they like about your products and what features are undesirable. Your POS system can help you in two ways. 1) If your customers provide feedback at the register, employees can easily track their comments in your POS machine. 2) Your system can work as a Marketing Platform and CRM, helping you send out customer feedback emails and then tracking their results. Even better, you can review and report on all customer feedback with your reporting tool. Simply take your customer feedback and apply it to your next product improvements.
Does your POS offer your business the support you need to optimize your product lines? Are you ready to simplify your business with the use of a new POS? SilverEdge can help. If you are ready to talk with a SilverEdge representative about the right choice for your business, contact 970-800-2890 or email firstname.lastname@example.org today.