{"id":1675089,"date":"2020-07-29T14:54:07","date_gmt":"2020-07-29T21:54:07","guid":{"rendered":"https:\/\/www.retailpro.com\/News\/blog\/?p=1675089"},"modified":"2020-08-26T15:24:05","modified_gmt":"2020-08-26T22:24:05","slug":"5-ways-to-drive-better-results-with-promotions-using-pos-data","status":"publish","type":"post","link":"https:\/\/www.retailpro.com\/News\/blog\/index.php\/2020\/07\/29\/5-ways-to-drive-better-results-with-promotions-using-pos-data\/","title":{"rendered":"5 ways to drive better results with promotions using Retail Pro"},"content":{"rendered":"\n
<\/div>\n\n\n\n
\"\"<\/figure>\n\n\n\n
<\/div>\n\n\n\n

Most retailers may actually be wasting money on poorly targeted promotions, according to research by Nielsen.<\/p>\n\n\n\n

The study found that while only 33% of consumer product goods (CPG) manufacturers consider their investments in promotions to be wasteful, 67% of trade promotions (amounting to more than $400B) either broke even or were wasted.<\/p>\n\n\n\n

In large part, those companies were ignoring analytics that would have helped them understand the impact and effectiveness of promotions, from timing to audience targeting.<\/p>\n\n\n\n

Here are 5 ways retailers can use POS data to drive better results with their promotions strategy.<\/p>\n\n\n\n

<\/div>\n\n\n\n

1: Shape promo pricing strategies with insights from past outcomes<\/h3>\n\n\n\n
<\/div>\n\n\n\n
\"\"<\/figure>\n\n\n\n
<\/div>\n\n\n\n

In addition, POS data can help with pricing strategy by identifying the correct discount depth.<\/p>\n\n\n\n

Sales reports can identify exactly which products or suppliers are driving revenue so stock orders can be placed accordingly.<\/p>\n\n\n\n

Return on Investment can be tracked and plans for future promotions will be more successful with insights gained from on past outcomes.<\/p>\n\n\n\n

Retail Pro promotions come with 8 base types of promotions which can be used on their own or in any combination of promotions:<\/p>\n\n\n\n

  1. BOGO<\/li>
  2. Coupon<\/li>
  3. Item<\/li>
  4. Pack<\/li>
  5. Quantity<\/li>
  6. Rolling<\/li>
  7. Tiered<\/li>
  8. Transaction<\/li><\/ol>\n\n\n\n

    Retailers can create and test as many diverse and complex promotions as their marketing team can come up with.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    2: Pair fast sellers with complimentary items<\/h3>\n\n\n\n
    <\/div>\n\n\n\n
    \"\"<\/figure>\n\n\n\n
    <\/div>\n\n\n\n

    Using POS data can help retailers understand customer tastes and recommend complementary products, which can increase incremental sales.<\/p>\n\n\n\n

    POS solutions have reporting features that can identify important metrics such as profit margins, basket sizes, customer counts, sales trends, and more.<\/p>\n\n\n\n

    By promoting products complimentary to the most popular goods, inventory will turn more quickly, making room for more on-trend merchandise and keeping customer traffic lively across channels.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    3: Keep tabs on stock count for just-in-time replenishment<\/h3>\n\n\n\n
    <\/div>\n\n\n\n
    \"\"<\/figure>\n\n\n\n
    <\/div>\n\n\n\n

    Sometimes, promotions are so successful that inventory runs out.<\/p>\n\n\n\n

    Those missed sales opportunities can hurt.<\/p>\n\n\n\n

    By using real-time retail promotions analytics<\/a>, retailers can identify exactly when inventory is low and can restock in time to not miss a sale: There’s no such thing as a too successful promotion.<\/p>\n\n\n\n

    Conversely, POS data can also unearth slow-moving inventory, which can be cleared out with a specific marketing campaign.<\/p>\n\n\n\n

    Analytics can help retailers focus on products that boost revenue and drop those that are dead weight.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    4: Plan for sufficient staffing during promotional periods<\/h3>\n\n\n\n
    <\/div>\n\n\n\n
    \"\"<\/figure>\n\n\n\n
    <\/div>\n\n\n\n

    The same store data that pinpoints hot products can also be analyzed to enhance staffing during promotional periods.<\/p>\n\n\n\n

    Promotions that aren’t well-supported on the sales floor risk alienating customers, who can become frustrated if they feel neglected or overwhelmed by throngs of shoppers.<\/p>\n\n\n\n

    POS data can provide guidance regarding staffing and store hours, which is especially important for planning for promotions as well as for seasonal fluctuations in sales.<\/p>\n\n\n\n

    <\/div>\n\n\n\n

    5: Personalize promotions based on individual customer behavior<\/h3>\n\n\n\n
    <\/div>\n\n\n\n
    \"\"<\/figure>\n\n\n\n
    <\/div>\n\n\n\n

    When retailers know more about customers’ spending habits, they can go one step further to build a relationship with them<\/a>.<\/p>\n\n\n\n

    Finely tuned promotions help customers feel recognized and valued by retailers, rather than like anonymous, unappreciated wallets.<\/p>\n\n\n\n

    AppCard for Retail Pro uses Artificial Intelligence to analyze retailers\u2019 customer data and send promotions based on their individual shopping behavior \u2013 or lack thereof.<\/p>\n\n\n\n

    A break in shopping rhythm could indicate the customer has gone to other retailers to fill those shopping needs.<\/p>\n\n\n\n

    The AI watches as well for shoppers who break their normal shopping rhythm and sends a promotion to get them back to your stores.<\/p>\n\n\n\n

    Data can make a substantial impact on sales promotions.<\/p>\n\n\n\n

    Building relevant promotions targeted at select customers requires data collection and analysis and will improve the return on trade promotion spend.<\/p>\n\n\n\n

    <\/div>\n\n\n\n
    \n\n\n\n
    <\/div>\n\n\n\n
    <\/div>\n\n\n\n
    \"\"<\/figure>
    \n

    3 Aspects of customer data to
    dig into for increased revenue [whitepaper]<\/a><\/h3>\n\n\n\n

    <\/p>\n<\/div><\/div>\n\n\n\n

    <\/div>\n\n\n\n
    <\/div>\n\n\n\n
    \"\"<\/figure>
    \n

    Effects of Omnichannel Promotions on Retail Profitability<\/a><\/h3>\n<\/div><\/div>\n\n\n\n
    <\/div>\n\n\n\n
    <\/div>\n\n\n\n
    \"\"<\/figure>
    \n

    All Things Retail Webcast: Promotions<\/a><\/h3>\n<\/div><\/div>\n\n\n\n

    <\/p>\n","protected":false},"excerpt":{"rendered":"

    Most retailers may actually be wasting money on poorly targeted promotions. Here are 5 ways retailers can use POS data to drive better results with their promotions strategy. Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":12,"featured_media":1675094,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[131,196,80,30],"class_list":["post-1675089","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-announcements","tag-data-analysis","tag-data-insight","tag-pos","tag-promotions"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t