True North Energy Selects iControl's Alcohol Payments Solution.
How On-Premise POS Data Insights Create Better Sales Stories For Suppliers
Learn how to use on-premise point of sale data to capitalize on opportunities as a supplier in the alcohol industry.
Today, alcohol sales at on-premise establishments like bars and restaurants represent $250 billion worth of total annual alcohol sales in the United States. So why do so few suppliers leverage on-premise syndicated data and analytics to stay ahead in the highly competitive on-premise marketplace?
Simply put, alcohol suppliers to bars and restaurants can gain a competitive advantage and drive more significant sales by staying informed on how, when, and where their products sell. This data makes the market more transparent and predictable, helping suppliers encourage retailers to make more accurate, larger purchases of the right inventory.
Read on to learn how on-premise POS data insights can help you improve your sales strategy for the alcoholic beverage industry.
How On-Premise Point of Sale Data Insights Help You Improve Your Sales Strategy
On-premise POS systems give you access to systemic sales data from restaurants and bars so you always know what type of alcoholic beverage transactions are occurring, their transactional value, and where they occur.
Let's dive deeper and look at how insights from on-premise point of sale data can help you improve your sales strategy:
Gain a Better Perception about Products
The first step to making more significant sales is developing a strategy based on your current product performance. So ask yourself, do you have full knowledge of where your sales are up, and where they're down across all categories and subcategories? And what about your competitors and their share of these same categories?
With this insight into sales trends, you can do a lot, such as pushing high-performing inventory and ensuring that your flagship brands and new products are selling in the most strategic establishments and locations. You become completely empowered to fill in existing gaps in the market and determine needed and obsolete products.
Place Better Consideration on Product ROI
Having confidence and visibility into the amount of revenue generated each day is critical to the longevity of successful businesses. When you invest in the wrong products, the likelihood of making a profit narrows substantially. To make the right investment decisions, you should first gain insights into the products that promise the highest ROI.
POS data allows you to gain insights on the critical market performance of a specific product, including the exact sales numbers of each offer. It will also tell you the number of products sold in a given duration, including weeks, months, or years. Additionally, you gain insights into each product's profit and how discounts were used during the specific sales period. All this information helps you identify the product that sells the most and the ones that sell the least.
Gain a Reputation as an Expert Supplier
POS data insights will turn you into an expert in knowing which products sell better in different locations. This empowers you to develop effective store or cluster-specific planograms as opposed to generic planograms across all stores. Analyzing POS data helps you pitch a bigger contract to your partnered retailers when there’s an opportunity for it. This can help them avoid inventory shortages and missed sales opportunities that could hurt their reputation and customer relationships. On the opposite end of the spectrum, you can leverage data insights to ensure you don’t guide your partnered retailers in ordering too much of the wrong product, causing them to overstock inventory.
POS Data: Why You Need the Right Systems in Place
POS data plays an integral role in the decision-making process, which is why you need reliable data that provides clear insights into your processes. Unfortunately, most suppliers don't have internal resources and expertise to determine whether the data is good enough to solve their problems and provide significant insights. However, when you put the right third-party systems and infrastructure in place from the start, you can generate data that is valuable, accurate, and easy to interpret.
Insights You Gain With an On-Premise Alcohol POS Database
An on-premise alcohol POS database gives you access to daily restaurant and bar sales data for various alcohol products, including wine, beer, and spirits. It also gives you the data to understand what your competitors are doing, so you can fine tune your marketing and sales strategies to remain competitive. Some of the insights you gain from a comprehensive POS database of alcoholic beverage sales include:
COVID-19 Market Dynamics: As the world slowly emerges from the firm grip of a devastating pandemic, having crucial insights on market performance is key to full business recovery. A POS database gives you access to sales data and trends by specific location一enabling you to determine the geographies and product categories rebounding and the ones still lagging behind.
Location-Based Insights: Speaking of location-based insights, gain the ability to spot emerging regional trends by zip code, relating to flavor and style trends.
Business performance: Gain visibility into your business performance by category, sub-category, brand, and geography, and see how your competitors are faring for comparison. Such information helps you gain a better understanding of how your portfolio is performing in specific markets, as well as what’s your next best move.
Category Performance: See the evolution of alcohol sales at more granular levels with data on branded and non-branded drink segments.
Price & Promotion: POS data also helps you gain visibility into price compliance per product and location一helping you determine the impact that your promotional strategies have on on-premise sales.
Close More Sales With On-Premise Point of Sale Data
In a nutshell, there is no doubt that on-premise point of sale data provides myriads of actionable insights about your products, partnered retailers, and, of course, the end consumer. If you are a business in the alcohol beverage industry, prudent use of POS data insights can be an effective way to improve operational efficiencies, boost marketing efforts and improve your revenues. Want to learn more about how POS data insights set your alcohol business up for success? Check out our recent blog here.