Benefits of POS Data
Alignment of Ad Budgets Ad spend must be applied most effectively. Retailer POS data can help direct ad spend to its greatest sellout potential.
Example:
Out-of-stock products in a retailer location shouldn't be advertised to that location's users. Ad spend should shift to locations with large inventories or at risk of perishability.
Operations Improvement If the retailer provides supply chain information in the POS feed, that data can improve production/shipment decisions, timing an speed.
Example:
Production and logistics decisions could be informed by the rate of sell out at a retailer’s distribution center vs. just the brand’s orders, inventory, and shipments.
Additional Use Cases The facts available through retailer POS data may include facts that have not been available before to the brand. Shopper-behavior data results from a digital campaign with the retailer by the brand, and payment information can help determine co-branding opportunities with the brand. Example:
The value of a retailers POS data will be determined in part by the commercial value proposition for the data.
If the retailer directly, or indirectly charges for the data, that cost must be made up by the benefit from using that data. Ideally, the benefit would significantly outweigh the costs. Though the opportunity cost of NOT having the data needs to be considered as well; including the potential for competitors to achieve some advantage from using the data.
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