In a world filled with a hyper-competitive market, every business is searching for that extra edge. To gain this advantage, companies need the perfect marketing tool to hit the target audience. This is why many companies are leveraging big data to transform their POS systems into invaluable marketing assets.
Table of Contents
Over the years, the trend of companies making huge investments in big data has spiraled. According to a report by Forbes in 2018, 91.6 percent of Fortune 1000 companies have increased Big Data investments.
According to a survey by IDC Estimates, the US has a market share of over 50% in the big data analytics market. Below is a graph from Statista about the global interest in big data as a topic:
Source: Statista
The Role Of Big Data In Marketing and POS Systems
Over the years, the primary function of POS systems has evolved beyond merely processing transactions. Due to daily technological advancements, traditional cash registers have become marketing tools that provide valuable data insights.
Today, the use of big data has revolutionized the role of point-of-sale systems, transforming them from mere transaction processors into practical marketing tools. When companies have access to the daily transaction data of every customer, they can gain insights into individual preferences. This will not only allow companies to increase sales but also create a more targeted marketing strategy with a suitable customer base.
However, many POS systems are equipped with extensive data analytics functions. This feature helps to highlight customer data based on demographics, purchase history, and other information. Hence, business managers can create campaigns and offers directly at the point of sale.
These sophisticated POS systems can carry out inventory optimization and tracking and critical performance indicators. In a 2023 survey conducted by McKinsey, about 53% of supply chain leaders rated the quality of their supply chain data as either sufficient or high. In essence, companies with high-quality data were approximately one and a half times more likely to avoid challenges arising from supply chain impacts.
Analyzing Buying Habits
One critical role of extensive data analysis is identifying the fastest-selling products, enabling precise demand forecasting to meet customer needs effectively. Since POS systems can access order histories, companies can customize recommendations based on customers’ purchasing patterns.
While many advanced POS analytics provide personal information on buyers, companies can personalize the offers of every customer. This will not only aid the selling process but also enhance the overall customer experience.
By using an integrated POS system like EPOS systems, businesses can efficiently take advantage of big data analytics, enabling more targeted product marketing strategies. This system is beneficial and essential for maintaining a competitive edge and ensuring long-term success.
Tracking Inventory
To achieve success as a retailer, companies need to optimize inventory management. Over the years, many big businesses have relied on manual inventory tracking methods. Unfortunately, this results in errors and inefficiencies in marketing.
Today, modern POS analytics tools ensure accurate stock management during restocking activities. To avoid exhausting market stock levels, companies can use data analytics in POS systems to guarantee their shelves remain adequately stocked.
While managing inventory counts can be tasking for more significant retail operations, POS analytics will enable detailed product lifecycle tracking. This is why many big companies, including Target, Walmart, and Amazon, have reduced out-of-stock by about 20%.
Big Data Analytics
On a large scale, big data performs personalized analytics that goes beyond customer order histories. Some POS systems are equipped with algorithms that track credit card transactions and customers’ IP addresses. With increased data collection, businesses can analyze historical spending patterns to generate personalized recommendations.
Thanks to data insights, retailers may improve consumer experiences by analyzing preferences and making relevant product recommendations. These advanced algorithms have marketing intelligence that creates innovative strategies based on daily trends and user history.
Meanwhile, a recent study conducted by Statista revealed that leveraging big data analytics could elevate retail operating margins to $103 billion by 2027. Here is a chart displaying the future of the retail industry with big data analytics:
Source: Statista
This year, the global Big Data market is valued at about $7 billion in 2024 and is projected to reach tens of billions by 2030. In the long run, the big data market will shape the future of marketing.
