A retailer can only grow as far as their business intelligence enables them. Therefore, companies that still use manual processing methods will never be able to compete with omnichannel organizations that utilize modern technology.
By implementing a point-of-sale (POS) system, retailers can generate a POS report on each process to analyze their effectiveness and profitability.
What is a POS Report?
A POS report is a collection of data from a specific POS function, such as employee, store, and product performance.
With every transaction, POS software collects vital information, from payment methods to inventory quantities. This enables companies to generate detailed reports to develop actionable insights.
With POS analysis, retailers can-
- Track revenue
- Analyze sales
- Audit employee performance
- Evaluate inventory management
POS reports help companies better understand their strengths and weaknesses in order to improve business strategies. The reporting features break down different retail areas to determine if sales, employee performance, inventory management, or budgeting are restricting profitability.
POS reporting will look different between retailers, depending on their inventory type, size, and range. The larger a company's range of products, the harder it becomes to manually manage and monitor each line's performance. By utilizing POS reporting features, businesses can automatically collect and generate impactful analyses.
Different Types of POS Reports
While there are many different types of POS reports that retailers can generate based on their unique business, the seven fundamental analyses include-
Maintaining sales is what keeps retailers afloat, therefore, businesses must have a clear understanding of their revenue sources. Simply by selling products, sale systems can break down sales by-
- Shifts, days, and customized date ranges
- Time of day
- Best and worst selling items
- Employees, departments, and sites
- Returns, exchanges, and refunds
- Sales channel
- Payment method
Reports use visual aids, such as pie charts and tables, to explain complex sales trends.
Most modern POS solutions also track inventory levels to ensure that retailers can satisfy customer demand. Aside from product quantities, reports break down-
- Inventory value
- Reorder points
- Warehousing costs
- Raw ingredient reports for restaurants
- Real-time inventory tracking
Inventory reports present vital data in a comprehensive way so that management can make quick data-driven business decisions.
A retailer's success also largely falls on their employees and how well they can initiate and close a sale. While it is impossible to supervise each worker personally, businesses can use their POS system to track each employee's performance.
At the bare minimum, employee reports should reflect-
- Hours worked
- Shift reports
- Cash drawer counts
- Employee sales
Not only do employee reports help retailers determine their top performers, but it also streamlines tax filings.
Retailers that have multiple stores and warehouses need more robust reporting functions that can monitor each location's-
- Inventory levels
- Comparative revenue
By comparing each store's overall performance, companies can determine which sites need improvement.
While similar to inventory analysis, product reports focus on-
- Sales by vendor
- Sales by discount
- Sales over time
- Returns for each line
By combining product and customer reports, retailers can develop buyer personas to create targeted marketing campaigns.
Even with increased sales, retailers can't optimize their internal processes without understanding the consumers that are buying their goods. By collecting customer data from each transaction, POS software can generate reports covering-
- Total sales by customer
- Top customers
- Purchase and return history per customer
- Loyalty members
- Customer profiles
- Sales by payment method
- Sales by buyer persona
Benefits of Running POS Reports
POS reports provide the information needed to improve a business's overall decision-making. Depending on the type of report, retailers can-
Improve Staffing Decisions
Employee reports show the top and bottom performers on staff so that managers can create the best schedule. For example, top salespeople can be given the busiest shifts, boosting their commissions and overall sales.
This information can also be used to determine which workers need additional training to improve performance and productivity.
When combined with the sales report, supervisors can determine how many employees are needed for each shift to avoid over and understaffing.
Enhance Inventory Management
Inventory reports calculate everything from reorder points to the economic order quantity, providing the data needed to optimize stock levels. By identifying and rotating slow-moving stock, businesses can open up storage space for high-profit items and access tied up cashflow.
Understanding inventory needs at all times also improves replenishing strategies, so companies can avoid over and understocking products.
Improve Marketing Strategies
By understanding the clientele, retailers can improve their marketing campaigns and customer reach. Marketers can create targeted promotions for demographics to increase the turnover of specific product lines.
POS reports can then analyze which campaigns were the most effective and generated more first-time customers.
A retailer's growth relies on its ability to retain existing shoppers and attract new customers simultaneously. POS reports provide in-depth analyses on shoppers so businesses can gauge their marketing and loyalty tools.
Retailers may find that their customer service, selection of products, or unique user experience is what drives foot traffic. Whatever the case may be, companies can capitalize on their strengths to boost sales and expansion.
Optimize Business Intelligence
POS reports involve extensive data mining, analytics, and machine learning, significantly improving retailers' business intelligence. At this level of functionality, companies can gain insight into new markets, segments, and customer demand.