In Part Two of this series, we discussed how discovering purchasing affinities in point of sale data has a positive effect on displays and promotion. Going one step beyond, mining point of sale data to discern “who buys what with what” –and when–can also serve as the linchpin of effective individualized marketing campaigns.

Here’s how it works. Customer files collected during each card use and tracked by the database or data warehouse include shopper name or household, address, demographics or additional geography, purchase records, response to promotions and total purchases made at the store by the consumer. While leveraging this data, retailers can analyze what products customers are most likely to buy and what products they buy simultaneously during shopping trips.

Then, instead of generic print ads, retailers can tap into individualized digital messaging, personalizing product promotions and discounts using consumer point of sale data and appropriate analytics software. For example, if a customer bought lipstick on her last visit to your store, email her a coupon for a second lipstick—plus eye shadow.  In a variation on this idea, one independent grocer creates a personalized ad flyer deliverable over e-mail, the Web, or in-store kiosks—whichever vehicle customers designate when they sign up for the merchant’s frequent shopper program. The program, which gives loyalty discounts based on previous POS data, is now used by more than half of the retailer’s customers.

Similarly, some retailers are taking a look at point of sale data analyses and tailoring their pitches to a wireless world with time- and location-based mobile marketing. For example, a convenience store owner might text information about a lunchtime deal to a “frequent shopper club” member’s  cell phone at noon, and then, once he’s in the store, offer additional personalized promotions in line with previous purchases.

Of course, a comprehensive point of sale solution such as pcAmerica’s Cash Register Express seals the deal. To learn more, visit www.pcamerica.com.