How Retail Businesses Can Plan Merchandise Better Using POS Software

Retail Businesses can optimize their merchandise by understanding the dynamics of sales they make over time.

POS software for retail businesses help understand a lot of trends that occur in a business’ sales cycle every year. This helps managers and owners take sound business and merchandising decisions.

Here are a few ways in which retail POS software analytics help in merchandising effectively:

1. Understand customer buying behaviour
With the help of sales analytics, you can create customer segments as per their buying patterns and behaviour. There are customers who buy in large quantities at once, while others prefer buying small quantities often. This helps package and place products in a certain way.

Also different customers prefer buying products at different points of time during the month or year, which helps in taking inventory decisions.

Merchandisers can assess what placement works in increasing sales of a certain kind of product.

2. Identify bestsellers
With the help of sales analysis, merchandisers can understand which products sell the best over time. You can identify staples for your business—products which have to be kept in stock all year round or during a season. These are the products which are present in maximum number of purchase baskets of customers. Such products have be kept in stock in quantities enough to meet customer demand.

3. Identify products that sell together
By studying product baskets of customers, merchandisers can recognise the products that sell together. They can use that information to place or package complementary products together to encourage more customers to increase their basket size.

4. Know preferred price points and price elasticity
Sales data is a great way to analyze which price points are preferred more by customers. Merchandisers can offer two or more similar products with different price points to customers and see which ones are preferred by them. They can even introduce seasonal price variations for certain products, so that price elasticity of customers can be evaluated. This insight helps in pricing the products optimally to maximize revenue.
All these methods can be used by merchandisers to maximise customer purchase basket and lifetime value. They can use a POS software for retail businesses to make their decision making robust and scientific.

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