If you’re still working on a traditional cash register that offers little more than being a cash box and receipt printer, you’re running the risk of getting left behind in a fast-moving and evolving industry. In recent years, POS systems have become essential equipment at the heart of daily operations to help propel businesses to the next level. But what are POS systems?
A business’s POS, or point-of-sale, software is the critical junction where customers pay for their purchases. Depending on the business, this can be at the counter, table, or even on the store floor. With a point-of-sale system, you can maximize this interaction between the customer and your business beyond a simple exchange of product and payment. A POS system is a hub that merges sales and payment processing, inventory management, and customer connections.
Here’s how POS systems help businesses make the most out of every transaction and gain the loyal patronage of customers.
What are POS Systems and What Do They Offer?
1. Driving efficiency
POS systems speed up and simplify daily operations by streamlining several business operations into one system. They also automate several processes, reducing the risk of human error and enabling you to track your business’s performance in real-time.
You also become more productive by getting more out of basic operational tasks. For example, a POS system can automatically update your inventory levels every time an item is checked out, reducing the need for manual stock checks. It's like hitting two birds with one stone.
The best POS systems can also track simultaneous transactions across multiple lanes, locations, and even your online store, so you don't have to worry about consolidating information from different input points.
2. Providing vital business insights
With every transaction, POS systems can monitor trends, track recurring purchase patterns, and help you identify areas for improvement. For example, by tracking your inventory levels and sales numbers, you can pinpoint which products are profitable versus those stagnating on the shelves.
Good POS systems are also built with customer relationship management programs, so you can anticipate their interests and provide personalized marketing based on previous purchases.
3. Increasing revenue
According to one survey, businesses have reported a 200% increase in sales thanks to their POS system's reporting feature alone. POS systems track each sale and automatically update the inventory levels. Thus, you can make smarter choices about which products to re-order and when.
By tracking the right metrics and understanding the data that POS systems monitor, you can identify revenue loss areas to avoid, opportunities to leverage, and seasonal trends to maximize.
Trusted POS systems can store all sorts of data about your business, including your previous orders from suppliers, so you can negotiate for better deals based on historical rates and quantities.
Features to Look for in A POS System
One of the best things about POS systems is that the functionality can be customized according to your business needs. To get started, make sure that your POS system has the following must-have features. Even if these are all you have, you can already reap so many benefits.
1. Inventory management
The capability of POS systems to automatically track and update stock levels significantly reduces the need for manual inventory checks and minimizes the risk of human error. This saves you a lot of time and manpower. When analyzed correctly, this feature can help you make smarting re-stocking decisions, which leads to saving money that is typically lost due to understocking or overstocking.
2. Sales and back-office reporting
The most reliable POS systems have robust reporting features and can store extensive historical data, empowering you to make informed business decisions. Through generated reports, POS systems help reveal critical business insights such as which items are highly profitable based on sales volume. Depending on your POS system model, it can either come with a built-in accounting system or can be integrated with third-party apps for seamless monitoring.
3. Customer relationship management
Build connections with your customers and reward them for their recurring patronage with loyalty programs, gift cards, and other customer engagement programs. A good POS can store pertinent consumer information so that you can provide them with personalized marketing.
4. Employee management
Choose a POS system that helps you schedule staff shifts and track attendance. If analyzed well, a POS system allows you to identify high-value personnel based on the volume of transactions managed per timeslot. You can also make smarter staffing decisions; for example, you can assign your well-performing employees to peak hours so that they can keep the service traffic moving efficiently.
5. Diverse payment processing
With the impact of the pandemic, consumers have increasingly turned to “cleaner” ways to pay such as contactless card payments and mobile wallets. Your business must anticipate and cater to the customers’ evolving payment processing needs to retain their business and keep them satisfied.
6. Data safety
POS systems are a goldmine of confidential information, storing data on your business and customers. Make sure to choose a point-of-sale system that is designed like a fortress, especially if you are using cloud-based POS software, to keep all that sensitive information safe.
Ready to take your business to the next level? True POS is your one-stop provider for all your point-of-sale system needs. We can personalize a business solution for you and offer end-to-end support to get your POS system up and running in a heartbeat. Get a free quote today.