How Much Is Point-Of-Sale Data Worth?
Since Point-of-Sale companies are not collecting Personal Identifiable information, their data revenue starts at the lowest level: syndicated data, delivering aggregate insights across market sectors.
For example; telling you that product A sold more than product B last month. Further filters on syndicated data show you insights like what regions product A performed best in, and at what prices.
The value of syndicated data increases where you can start to analyse discounts & promotions to determine if they’re creating any meaningful lift on item sales.
Due to PCI compliance, the reality is that only payment companies have access to Personally Identifiable information coming from customer card transactions.
So, here is where the payment companies need to be brought into the data discussion.
POS companies need to involve the processors or card networks to match transaction timestamps at the merchant check level with timestamps from the processing stream, thereby marrying the two data sets
Married together this data taps into the high-margin advertising dollars as you are combining item data (which manufacturers care about) with demographic data (which marketers care about).
The key to success is to make enough basket data & personally identifiable Information data available to give advertisers confidence that the information is reflective of the overall market.
This helps explain why Amazon’s own advertising platform is growing so dramatically, with manufactures drawn to Amazon’s ability to link advertising more closely to the actual point of sale and thereby provide a more seamless shopping experience.
This article was first published by Customer Strategy Network. Permission to use has been granted by the publisher.