As a business owner, utilizing technology may seem challenging or unnecessary, especially if you have been running your business without it for the last few years. There’s nothing wrong with doing business the old-fashioned way, but the time will come when you will need to embrace technology to remain competitive in your industry. But with all the apps and software available for small-to-medium businesses, which one should you prioritize?
What is a Point-of-Sale Software?
The use of a reliable point of sale (POS) software is crucial in growing a business and achieving success. But first, what is a POS software, and how does one integrate it into the business operations? Do all companies need to use a point of sale software?
POS software is a part of a computerized system where a purchase transaction for goods or products is completed. The sale is processed and recorded by the point of sale software as it happens, but other back-office tasks can be performed with the help of a POS system. Most will think that POS software’s only purpose is to let businesses track their retail transactions. But in general, a POS software, which is part of the POS system, helps companies to stay on top of the different areas of operations by:
- Tracking Sales: recording, tracking, analyzing sales and revenue information
- Keeping Tabs on Inventory: find out which items need to be replenished, and which products are not moving
- Monitoring Employee Performance: track employee’s sales and performance, as well as their hours at work
- Managing Customer Relationships: monitor customer purchases and maintain communication through modern POS systems’ integrated marketing tools
What Kind of Businesses Utilize POS software?
Most businesses that use point of sale software are involved in selling a product or service to its customers. Some industries rely heavily on POS software for their daily business operations while others use it less. Businesses that regularly utilize a point of sale system are:
- Retail sector: Businesses such as supermarkets, department stores, drugstores, and any store that sells alcohol, beauty supplies, books, clothes, electronics, food, shoes use a POS system for managing price, promotions, and inventory.
- Hospitality industry: Businesses involved in food and accommodations rely on restaurant management software features for keeping track of customers and their transaction history.
- Other Services: Businesses that are involved in consumer services (such as a salon or car wash service) to take advantage of point of sale software for faster service delivery. It may also be used by multi-service businesses (such as hospitals or theaters) to access service or product information, manage an extensive database, and view spending/earnings reports.
What Problems Can a POS System Solve?
Business owners encounter different kinds of challenges and problems every day. One of the best ways to have control over the retail section of the business is deploying a point of sale software.
While utilizing a POS system will not solve all the problems a business may face, it can minimize errors in recording sales, tracking inventory, and analyzing the business’ performance. Find out how a point of sale software can benefit companies, no matter what size they are.
Point of Sale Software: Ways It Can Improve Business Success
For business owners and operations managers, a point of sale system is a hub where all the vital information about the business goes. Whether the concern is sales and revenue, customer management, employee performance, or inventory, managers and business owners can generate the necessary data or reports using POS software. It is, therefore, crucial to understand what the capabilities of the right POS software can do for the business. Here are five ways a point of sale software can lead the company to success:
1. Accurate and Valuable Information
To ensure the growth and success of your business, you need access to accurate information from reliable POS software. Having access to a variety of business-related data is key to a better understanding of how the company is performing and how it can be improved. POS systems are more than just electronic cash registers (See POS Systems vs Cash Registers). Most point of sale software lets you mine the following valuable information to manage the business properly:
- Inventory: The most apparent information that you obtain from your POS system is the inventory. Since the POS system will immediately reconcile the stock count after every transaction, you will understand how every product that you carry moves. It also allows you to serve customers better by allowing you to provide answers to stock availability queries.
- Refunds, Returns, and Replacements: POS systems allow businesses to find out why certain products are returned by customers, as well as when and why a product is sent back for a refund or replacement.
- Sales Reports: The primary purpose of a POS software is to track and record sales transactions, which means business owners can mine valuable data to help them understand sales trends. Some businesses must generate sales information that will help in coming up with sales forecasts and making informed business decisions.
- Customer Information: One of the most critical data that business owners like you can get your hands on is customer information. Every time a customer makes a purchase, the POS system collects bits and pieces of valuable data. These pieces of information are used to generate useful customer profile reports that can be used to create email marketing campaigns and direct mailers. Businesses thrive mainly because of customer patronage. Thus, it is possible to take better care of clients by understanding their purchase habits and preferences.
2. Enhanced Productivity
The right POS software helps a business grow and succeed by enhancing the productivity of employees and improving the efficiency of many operations. No one wants to deal with a company that delivers slow service. Inefficient service frustrates customers and potential clients who may bring them to your competitor’s doorstep instead. Boosting the company’s reputation is challenging if customers are not satisfied with their experience with your business.
Providing fast and reliable service is a must in every industry. A point of sale software is user-friendly and helps an employee process sales transactions faster than conventional methods. It also helps the company save money by preventing human errors, which may happen due to manual encoding. The key to avoiding sluggish service and preventing mistakes is to help employees work smart through the use of a point of sale system.
3. Better Business Control
Utilizing a point of sale software makes life easier for everyone in the organization. Aside from minimizing the time spent by employees in processing customer transactions, owners and managers have better control of the business no matter where they are. There is no need to rush back to the store locations to be able to make an informed business decision.
Back in the day, only larger businesses had access to cloud-based POS systems. But there are more options nowadays for small to medium-sized companies, such as online retail POS. A cloud-based point of sale system offers flexibility, convenience, and valuable business insights.
4. Cost Savings
Many businesses fail due to inefficient handling of resources. A computerized system allows you to keep track of all inventory to reduce or even prevent wastage and theft. Furthermore, POS software can be integrated with the company’s existing accounting software, making it easier to audit the use of financial and material resources.
Another way POS systems can help reduce costs for the company is by simplifying business processes. With an efficient point of sale system, less workforce is required to operate the store. Reduced paperwork means there is no need to hire more accountants to monitor and maintain the business’ financial transactions. Although a POS system requires a significant amount to install and integrate, the long-term savings and increased efficiency in business operations outweigh the initial investment.
5. Improved Customer Service
Businesses should invest in creating and nurturing relationships with customers. Happy customers will likely come back to you, resulting in repeat business sales. A POS system keeps a record of customer data such as name, address, phone number, email address, age, and date of birth. The information POS systems provide helps businesses stay in touch with customers.
Customers feel important when a company sends a greeting on his or her birthday, or when they receive a notification about an upcoming sale or loyalty program. Building brand awareness and loyalty are possible by integrating a suitable point of sale software to complement the business operations. A POS system allows customers to pay quicker than it will be when using a regular cash register. The timeliness of service delivery directly influences customer satisfaction – and this is what can be expected when a POS software is appropriately utilized.
With the help of technology, small and medium businesses can compete with more established companies. The fear of spending a sizable amount and lack of technical knowledge should not prevent organizations from investing and integrating a POS system. The benefits of a POS software go beyond just stock management and analysis – it allows the company to grow and succeed by enhancing productivity, increasing sales, and developing better customer relationships.
If you need a POS system, you can compare POS systems & save here.