Gone are the days where retailers run their business on cash registers. While the world is shifting towards being more digital, retail has also accelerated its digital transformation. Hence, as a retailer, you cannot keep spending long hours on accounting, experience human errors or time-consuming processes. Whether your retail business is small or large, a Point-of-sale (POS) is a necessity. Choosing the right POS for your retail business is paramount to optimise workflow and increase efficiency. There are some essential qualities that a POS should possess for your business to excel and grow, which we will help you understand .
Understand your needs: how to choose the right POS?
Retailers must look for a user-friendly POS to ensure the staff's fast training and smooth operations on a day-to-day basis.
Reporting functionality of POS
Reporting is the most important aspect of any POS that helps retailers understand and plan their business operations. Sales reports, EOD sales declarations, items in demand and fast-selling items aside, the POS needs to keep a track of other essential reports such as profit reports in a month/year, products that need to be liquidated, performance analysis of sale cycles/ seasonal sales, and most importantly, an analysis report of customers’ preferences. Based on these reports, retailers can plan their in-store campaigns, discounts and marketing executions.
Seamless third-party integration
To streamline business operations, your POS should support easy integration with third-party softwares, including renowned ERPs, payment gateways, digital wallets and peripheral devices. Easy integration benefits the retailer with seamless data sync, allowing access to customers’ repositories, master data and more, for planning promotional campaigns. It also allows the retailer to utilise advanced payment modes, enhancing the overall customer experience.
Running promotions and campaigns
A POS should have the capability to run personalised promotions and campaigns based on customer buying patterns, to help retailers increase their wallet share.
A vital feature for any POS is inventory optimisation. Your POS should streamline your product orders for you to not run out of stocks or experience overstocking.
Before investing in a POS, it is important to consider the price. While the running costs of a POS are low, setting up an entirely new POS can be moderately high. It is advisable to opt for a POS that can be easily integrated into a legacy POS to save additional costs. If you are going to purchase a totally new POS, the initial cost can be higher. There are some key factors that you should do your research about. A robust hardware system is mandatory for a POS and there are multiple options in the market for minimal hardware expenses. A credit card reader, cash drawer, receipt printer, computer screen, barcode scanner and label printer are some of the components that every big or small business owner would need in an ideal POS.
The customer management capabilities of a POS enables retailers to understand and analyse purchase histories, identify valuable shoppers and proactively help increase personalised offers. Customer Relationship Management (CRM) is an important functionality integrated into a POS that manages customer relationships for a variety of purposes. Based on data collected from customers’ preferences and purchases, CRM helps create targeted campaigns and retail customers.
A POS helps retailers manage store staff, employee’s day-to-day operations and their work hours. Employees are provided a unique employee ID that can be monitored with timely check-in and check out logging. The POS also manages numerous needs of employees and helps streamline their leaves. Additionally, it helps maintain every employee’s performance score, daily accounting reports and balance sheets to help maintain transparency and a fair work culture.
Latest trends in POS solutions
While the POS solutions for retailers are constantly evolving, there is a shift happening towards cloud-based POS. Many retailers are opting for cloud POS as it offers real-time data, has a low running cost and increases efficiency. Mobile POS is also gaining popularity.
Before making an investment in a POS, as a retailer, you should list out your business requirements and indulge in your fair share of research.
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