Retail merchandising refers to different activities that take place in your business that contribute towards improving sales. The merchandising process can be specific such as selecting product colors, choosing the right place to display the items, and as broad as floor planning. Every business has unique merchandise that it offers to its customers. However, you will need to have a system that will help in tracking the progress of the merchandising tactics that you have employed, and that’s where POS systems come in handy.
The point of sale (POS) is a system that helps retailers improve effectiveness in their business transactions and monitoring of sales. Every strategy you apply in your retail store needs to be evaluated and reviewed frequently if it’s not delivering the desired results. The POS will help in identifying the flows in your retail shop by tracking their effectiveness in improving sales. There are several robust POS systems on the market today, and others are being developed to solve various business problems. The systems can also be used in marketing and promotions of your merchandise which helps in attracting customers to your products and eventually increase sales. _
How can you use POS systems to improve your merchandise sales?
1.- Display and Tracking Sales
An excellent example of the retail merchandising and POS is the e-commerce stores which don’t have physical shelves, and they use websites to display their products. However, you can also use the POS systems to help in improving your sales by coming up with the right strategies to improve sales. For instance, the POS system data will show you the best and worst-performing product in your business. Therefore, you will know what to display where and how to do it. You can have offers or discounts for the worst-performing products or shift their display to a place where every customer can see them.
On the other hand, a POS system lowers the operational costs, which makes it a good deal for retail stores. The system will track the inventory, and the sales report will guide you in making the right decisions. You will, therefore, know what to stock and at what time and where to display it. Floor planning is also another merchandising strategy, but sometimes you will need time to know whether you got it right or not. Some products need to be placed where customers can see them, especially the new products that you have stocked. For instance, if you have a new brand in your store, it will be wise to stock it near the entrance so that any customer coming in will see it. With time the POS system report will show you whether that’s working or not, and you will have to change the display.
Retail merchandising also includes attracting customers while keeping the ones you have already, and that’s the only way you can grow your customer base and improves your sales at the same time. Apart from training your employees to offer exceptional services to all customers, there’s more that you should do to encourage customers to keep coming back to your retail store. POS system helps in providing different customer management options such as;
- Maintaining customer database –your retail POS should allow you to create customer profile which can have customer purchase history and contact information. This will help in strategizing sales promotions as well as making it easy for you to reward your loyal customers.
- Creating customer groups –another way a POS system can help in boosting your merchandise, is grouping customers in different categories. For instance, you can have VIP customers, Platinum, or even Silver customers. The groups will help you to tailor promotion messages and sales promotions targeting each group. Customers will feel more attached to your business and might opt to remain loyal.
- Loyalty programs –one of the best ways to keep customers coming to shop in your store is by awarding them the loyalty points. A sound POS system will make it easy for you to reward customers with loyalty points as well as redeeming them. As a result, you will improve your merchandise sales and enjoy more profits.
3.- The POS Report and Retail analytics
The modern POS systems come with different reporting capabilities that help in shaping your retail merchandise. However, the systems have distinct features, and therefore, you should talk to your provider to get the right POS for your business, which will provide you the reports that you desire. Here are some of the primary reports that you will get from a POS system;
- Inventory report –as a business manager, you will need to be informed about how much merchandise you have in your retail stores. Therefore, when you have the POS system, you will run the report to monitor your stock.
- Low stock report –this report alerts you on what merchandise is running low and helps you to avoid out of stock. You are advised to run the report regularly to monitor your inventory. Some systems will even alert you automatically when a particular product stock goes extremely down.
- Merchandise performance report-this report shows you how fast you are selling your products over a specified period. You should also get a breakdown of the total sales for a specific period. Therefore, you will find it easy to make decisions on what to stock and how to boost sales for the slow-going products.
- Sales Summary –every business needs a sales summary to plan for the future. POS system gives you an overview of your merchandise sales for a specified period. It shows the costs of goods sold, margins, gross profit, and expected taxes that you need to pay. You will get proper information about how your money is flowing in your business.
In summary, retail merchandising is made even more comfortable when you have the right POS system in place. You will be in control of your business by managing it via the network. The modern POS systems can even be viewed via a smartphone, which makes it easy for you to monitor your merchandise without even being around the business premises. Sometimes you might not get one POS system that offers everything you need. Therefore, you will have to integrate different systems to get all the features you desire in your business.