Customers are demanding cashless purchases both online and in person. Therefore, a good point of sale (POS) system is essential to any business. Converting to a modern, digital POS system can be not only simple and cost-effective, but it can also streamline operations and offer customers a convenient way to do business.
What Is a Modern POS System?
The primary purpose of a point of sale system is to allow a business to accept credit cards and other non-cash forms of payment for sales. However, the right POS system may also help manage other aspects of business operations, like inventory tracking and accounting.
Point of sale systems come in many forms that may involve hardware and software. They may include terminals, self-serve kiosks, computers, card and chip readers, and more. For some systems, all that is required is a POS app and an internet-enabled device, like a tablet or a smartphone.
Modern point of sale systems is entirely digital, which allows a business to check out customers wherever they are: in a store, online, at a trade show or art fair, etc.. The best POS systems create the ability to accept credit cards as well as other forms of cashless payments, like bank transfers, digital wallets, or mobile transactions.
- The right POS system can mean more sales
The unprecedented surge in cashless and contactless payment is here to stay. Businesses that accept only cash or even credit cards may quickly fall behind their competitors and are able to take on sales from those using alternate methods of payment. In addition, modern point of sale systems integrates cloud and mobile services that have benefitted virtually every industry by helping to maximize sales outside of the traditional storefront setting. With the right point of sale system in place, a business can also create customer loyalty programs that encourage customers to shop at their establishment more frequently.
2. Increased functionality streamlines operations
Beyond allowing the ability to accept payments, point of sale systems can manage and streamline other aspects of a business’s operations. For instance, a cloud-based system can allow a business to track inventory, view and download sales reports, schedule purchases and payments, and much more.
POS systems may also have industry-specific functionality. For instance, a restaurant may require a system that allows them to book reservations and split bills between customers whereas a retail location may be primarily interested in inventory management. Leading POS systems give businesses a clear picture of key aspects that drive their sales as well as manage their costs.
3. POS systems save time and money
In business, time literally is money. Therefore, a point of sale system should increase profitability by increasing operational efficiencies. Let’s look at a few examples. If a store has long queues at its checkout due to an old, slow POS system, it’s inconvenient for customers and costly in terms of lower productivity. Another example involves the ability to retrieve customer sales information. In such a world, a receipt is good enough to allow a return credit to go directly on a bill rather than require a new swipe of the card. Or, let’s say a customer wants to know which product they purchased on their last visit. A simple look-up may allow sales staff to make another sale.
POS systems also reduce the possibility of human error. For instance, if employees were to take orders or process sales manually, the likelihood of error increases exponentially. Newer POS systems minimize these errors and help business owners understand the source of losses.
4. Better business intelligence leads to better business decisions
The leading point of sale system allows businesses to generate reports based on customer data, time periods, promotions, individual stores and clerks, and much more. These reports shine a light on which products are or are not selling, which marketing campaigns are the most effective, which employees are performing at high or low levels, etc. When you have real data in real-time, business decisions no longer need to be based on instinct. Rather, you can take actions based on legitimate analytics.
5. Improved customer experiences improve your bottom line
Smart POS systems enable payment forms that customers may prefer. This flexibility makes the buying experience easier and more pleasant. This added convenience results in higher immediate sales and returning customers.
The best POS systems have the power to transform your business. The perfect solution will result in increased efficiencies that increase your bottom line and provide an amazing customer experience. Be sure to partner with a POS vendor that offers the right solution for you.