Small businesses are the lifeblood of the US economy. According to the Small Business Association, small businesses make up 99.9% of businesses and employ nearly half of all workers. At the same time, nearly one in three small business owners are still using their personal bank accounts for their business.
Financial institutions are the key to unlocking value and stability for so many businesses nationwide. But to better support small business customers, you need a way to reach them. SKU-level data provides in-depth insights to help banks, credit unions, and other financial institutions reach the right customer at the right time.
SKU Level Data—More Than Inventory Management
The stock keeping unit (SKU) is often seen first and foremost as an inventory management and product performance tool. As each product or service has a unique SKU, keeping track of product movement and popularity becomes a matter of simply checking your inventory dashboard.
For small business owners using SKU numbers, inventory levels are effortlessly managed, and ordering stock at the right time is a simple matter. But for financial institutions, an SKU analysis offers a glimpse into what customers need today and tomorrow.
Many organizations can gain additional insights into the popularity of certain products and consumer behavior, which can translate into outreach opportunities. A bank or banking service provider can use SKU-level data to better understand their customer needs and recommend relevant services based on their customer’s history.
SKU Level Data Benefits Small Businesses
Tracking the historical data for a specific SKU number can provide several insights for small business owners. Consider these use cases:
Reaching Out to Retailers
Consider the new small business owner looking to turn thrift store finds into new and trendy outfits in their online shop. Since they aren’t paying for manufacturing or other expensive costs related to traditional retail, they might believe that working out of their personal account is a simple solution.
However, if her bank is using SKU-level data, her new customer behavior would soon show a pattern more related to business accounts. At this point, the institution could reach out and explain the benefits of opening a business account, as well as provide details on potential suppliers, and financing options.
Expansion of Local Clinic
For example, small clinic owners have begun to offer pharmacy services outside of their psychiatric practice. As a result, they are purchasing an inventory of bottles, paper bags, and other essential packaging and office supplies.
Using an SKU analysis, their credit union can recommend potential suppliers that are offering a sale on related products or offer these items at a lower price. They may also be able to organize and categorize transactions through a customizable banking app, which can help them to pay off a loan.
Start Discovering Customer Insights
In an uncertain economy, the ability to see customer behavior is critical for business growth. At the same time, leveraging SKU-level data to anticipate small business needs provides them with the financial tools to grow.
Itemize is an intelligent automation-powered solution provider that partners with financial institutions to provide expense management technology and enhanced data insights. As an account payable platform, we provide end-to-end AP workflow coverage, including receipt scanning, invoice processing, and organizational tools to help small businesses thrive.
To learn more, book a call with us today.