Looking at recent sales can offer a basic understanding of what your customers want, but deeper analysis provides far more reliable forecasting.
When you use the data within your POS, you gain a detailed picture of buying behavior that can help you anticipate demand, refine inventory planning, and strengthen long-term profitability.
Key metrics to track
Your POS system’s sales and reporting tools reveal trends that guide smarter decision-making.
Transaction volume and transaction value
Start by reviewing transaction volume and transaction value. Total transaction value gives you a clear look at how many successful orders you processed, while average order value shows how much customers typically spend.
Together, these metrics shape your understanding of overall demand and customer purchasing power.
Preferred payment methods
Next, examine payment method preferences. Your business likely accepts payments through credit and debit cards, digital wallets, ACH or e-check, and possibly multi-currency processing.
Tracking which methods customers use most helps you identify friction points and adjust your checkout experience to meet their expectations.
Transaction success rates
Transaction success rates offer another important signal. A high number of failed transactions can suppress your sales totals and lead to incorrect conclusions about demand.
Monitoring these numbers helps you spot preventable payment issues before they distort your projections.
Timing and frequency
Timing and frequency trends matter as well. Knowing when transaction peaks occur allows you to anticipate staffing needs and stock levels.
Meanwhile, customer lifetime value (CLV) highlights the long-term revenue potential of each customer segment, helping you identify which groups are likely to drive future demand.
Returns and disputes
Even returns and disputes provide important insight. Elevated refund or chargeback rates may indicate issues with product quality, fulfillment, or customer expectations. Addressing these problems can improve customer retention and strengthen demand forecasts.
Forecasting demand with payment insights
Payment data serves as a real-time reflection of customer interest. By analyzing transaction patterns across days, weeks, or seasons, you can identify sales cycles that guide both short- and long-term planning.
Linking transaction spikes to specific promotions or campaigns helps you evaluate the true impact of your marketing efforts. When internal strategies align with measurable increases in transaction volume, you gain confidence in replicating these tactics.
You can also assess gaps in your sales pipeline by examining authorization rates and reasons for payment failures. If customers abandon the process due to payment errors rather than lack of interest, resolving these issues can uncover previously hidden demand.
Finally, segmenting your customers by payment habits lets you tailor outreach to your most valuable buyers. CLV calculations and payment method trends help you refine your marketing approach and create more accurate forecasts.
Modern sales and reporting tools make these insights accessible at any time. By monitoring and acting on this data, you can predict demand more accurately, fine-tune operations, and deliver a better buying experience. With a strong merchant services account provider supporting your efforts, you can build a forecasting framework that keeps your business prepared for whatever comes next.
North is a leading financial technology company that builds innovative, frictionless end-to-end payment solutions designed to simplify and grow businesses of all sizes. From the front door, to the back office, the developer world, and partnerships that expand the payments landscape, North offers proactive, comprehensive merchant services, in-house processing, and more.
