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How to Achieve POS System Data Accuracy for Retail Success

October 15, 2020 / 6 minute read / By Zoya Naeem

How to achieve data accuracy for retail success

Uncover the downside of inaccurate POS system data and how to improve your retail business with accurate product and sales data.

To succeed in retail, you need to know what your customers want and how to sell those products to them effectively. This involves figuring out the best prices, discounts, locations, and seasons to offer those products. To develop this level of understanding, you need accurate sales and product data.

At Celerant, we have worked with thousands of retailers over more than 20 years, and have loads of experience in regards to retail data and POS systems. In this article, we will walk you through our approach in how to maintain accurate sales and product data, the ways to use it, and how it can help you achieve success in your retail business.

But first things first, why is data accuracy important for retail success?

Well, accurate sales and product data can help you make better decisions and answer some of your burning questions, such as:

Which products to stock in your store?
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What prices should be set for your products?
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Which promotions to run to attract customers, and when?
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Where to open new retail stores?
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Collecting and maintaining accurate sales and product data doesn’t come easy. Keep reading to learn how you can improve your process for collecting data, and more importantly, how to make better decisions based on those key metrics.

Challenges Retailers Face with Sales and Product Data

As a retailer you face numerous challenges in maintaining accurate and consistent sales and product data. The list can go on and on, but here are our top 5 challenges that we have seen with our retailers.

5 Data Challenges Retailer Struggle with:

Inaccurate inventory counts:
Retailers often struggle with inaccurate inventory counts, which can lead to stockouts or overstocks.
Inconsistent product data:
Product descriptions, images, and other information may be inconsistent across different platforms, making it difficult for customers to find the products they are looking for and for retailers to manage their inventory effectively.
Incomplete product information:
Product styles, colors, sizes, widths, and other important details may be missing or incomplete, making it difficult for customers to make informed purchasing decisions and for retailers to fulfill orders accurately.
Inaccurate inventory value:
The value of inventory may be inaccurate, which can lead to financial problems for the retailer.
Unfavorable sales-to-inventory ratios:
A high sales-to-inventory ratio can indicate that the retailer is not stocking enough inventory to meet customer demand, while a low ratio can suggest that the retailer is overstocked.

These data quality issues can have a ripple effect throughout the retail business, making it difficult to access your product availability and make decisions.

Inaccurate Data Results in Retail Struggles with:

Forecasting inventory:
Retailers need accurate inventory data to forecast future demand and ensure that they have the right amount of stock available.
Controlling spending:
Inaccurate data can lead to overspending on inventory or understocking, which can have a negative impact on overall profitability.
Reducing overstocks and stockouts:
Overstocks and stockouts can both have a negative impact on sales and customer satisfaction.
Lookuping products:
Accurate product data makes it easy for employees and customers to find the products they are looking for.
Allocating products:
Retailers need to accurately allocate products to different stores and channels to meet demand and avoid stockouts.
Fulfilling orders:
Inaccurate or incomplete product data can make it difficult to fulfill orders accurately, which can lead to customer frustration and returns.

Poor data quality can also have a negative impact on marketing efforts.

In fact, according to a study by Forrester Consulting, over 35% of retailers said poor-quality data contributed to inaccurate targeting and wasted marketing spending. (Forrester Consulting survey, May 2019).

By addressing these data quality issues, retailers can not only improve their efficiency and profitability but also customer satisfaction.

How to Improve Sales and Product Data Quality

Achieving accurate sales and product data is possible, but it requires a comprehensive approach to data management.

In today’s complex retail landscape, data quality can be compromised at any point in the supply chain, from sourcing vendors to order fulfillment. Therefore, retailers need to adopt a holistic approach to data management that addresses data quality issues throughout the entire process.

This comprehensive approach involves implementing processes that ensure data integrity and consistency across all stages of the supply chain.

Key Strategies to Improve your Retail Data:

eCommerce, POS, mobile shopping app and more

Implement a robust Point-of-Sale (POS) system as the central hub for recording all your sales transactions, tracking inventory levels, and gathering customer data. Choose a Retail POS system that is reliable, up-to-date, and easy to use for employees to accurately enter product information and sales records.
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If you buy from multiple vendors, standardize product data (names, descriptions, images) from each vendor.
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Add, update, and manage product data in a single retail database so that you have a single source of information.
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Combine product, sales, and customer data across all channels with an all-in-one retail software solution
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Control access to the data through the point of sale
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Leverage a system that updates inventory in real-time (or close to it) after each sale
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Complete a yearly physical inventory; and perform regular cycle counts without waiting all year
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To be successful, your data must be accurate and consistent across all retail channels– whether you have 1 or multiple stores, remote popup shops, eCommerce, online marketplace accounts (Amazon, eBay, Walmart, etc.), or a combination of all.

By leveraging a modern retail technology that integrates and connects all of your retail channels, you can more easily achieve consistent and accurate data.

By adopting a holistic approach to data management, retailers can overcome the challenges of maintaining accurate sales and product data, paving the way for informed decision-making, improved efficiency, and enhanced customer satisfaction.

Learn how Celerant can help you maintain accurate data across all retail channels.

Watch Demo

How to Achieve POS System Data Accuracy for Retail Success

Uncover the downside of inaccurate POS system data and how to improve your retail business with accurate product and sales data.

Which products to stock in your store?

What prices should be set for your products?

Which promotions to run to attract customers, and when?

Where to open new retail stores?

Challenges Retailers Face with Sales and Product Data

Inaccurate inventory counts:

Inconsistent product data:

Incomplete product information:

Inaccurate inventory value:

Unfavorable sales-to-inventory ratios:

Forecasting inventory:

Controlling spending:

Reducing overstocks and stockouts:

Lookuping products:

Allocating products:

Fulfilling orders:

How to Improve Sales and Product Data Quality

If you buy from multiple vendors, standardize product data (names, descriptions, images) from each vendor.

Add, update, and manage product data in a single retail database so that you have a single source of information.

Combine product, sales, and customer data across all channels with an all-in-one retail software solution

Control access to the data through the point of sale

Leverage a system that updates inventory in real-time (or close to it) after each sale

Complete a yearly physical inventory; and perform regular cycle counts without waiting all year

Retail Resources You May Be Interested In…

SGE Is Changing the Way Your Website Ranks on Search: Here’s What Retailers Can Do

Template vs. Custom-Built eCommerce Websites for Retailers

Best Practices for Inventory Management for Small to Medium Retailers

About Celerant

Learning Center

Partners

How to Achieve POS System Data Accuracy for Retail Success

Uncover the downside of inaccurate POS system data and how to improve your retail business with accurate product and sales data.

Challenges Retailers Face with Sales and Product Data

How to Improve Sales and Product Data Quality

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Retail Resources You May Be Interested In…

SGE Is Changing the Way Your Website Ranks on Search: Here’s What Retailers Can Do

Template vs. Custom-Built eCommerce Websites for Retailers

Best Practices for Inventory Management for Small to Medium Retailers

About Celerant

Learning Center

Partners