Why is POS software useful? It’s an all-in-one solution that processes your customer transactions, payments, and inventory levels. It streamlines your staff management, provides you with live data access and helps you target customer marketing, among its numerous benefits.
In this article, you’ll get to know the major reasons why it’s useful to have a POS solution and how it can help your business’ checkout process. Here’s an overview of the points we’ll cover:
Have you experienced checking your inventory only to find out it doesn’t match your tallies? If you still operate with traditional cash registers, this is only a few of the problems you’ve probably encountered. Sales can go unrecorded and mistakes can be impossible to trace.
There’s a reason behind the innovations made for the systems that handle your customer transactions and checkout processes. Newer solutions, particularly POS software programs, are enabling users to accomplish their tasks more efficiently. With the rise of technology and the rapidly evolving business landscapes, sticking to an outdated system gives your competitors an edge over you.
Businesses are moving to a POS solution and abandoning their older systems. By the end of 2020, 81% of retailers are planning to offer unified commerce to their customers according to BRP Consulting’s 2018 POS Survey. Meanwhile, 62% of the respondents increased the use of mPOS by the end of 2019. There is also the customer demand for more personalization where 91% of retailers will offer enhanced order visibility within the next three years.
This shift towards POS solutions is due to its indisputable benefits. At its core, the point of sale system is the same as your traditional cash register. But since it operates on computers, smartphones, and tablets, it opens an entirely new world of data and opportunities to streamline and automate your processes. For an in-depth information on its benefits, features, examples, and potential issues, read this what is POS software article.
For instance, 52% of retailers find it difficult to identify and engage their most valuable customers according to a survey by Marketing Charts. The next highest-voted challenge faced by retailers is distinguishing their own brand and experience from their competitors with 51%. Driving traffic to their retail stores through implementing strategies is also answered by 39%.
These challenges are hard to resolve using a basic cash register, However, using a POS system provides you with insights to data and tools to make data-driven decisions on running your business.
If you have been using manual cash registers for awhile, you may find switching to another solution daunting. However, it’s not as scary as it seems. First, let’s tackle the common reasons you may hesitate to transfer your checkout processes to a POS system:
Now that we got those factors out of the way, let’s proceed with answering the question: why is POS software useful?
There are also benefits of using a cash register such as affordability and long lifespan. However, it just doesn’t compare with the innovative and transformative solutions offered by a POS system. Why is POS software useful? It does what a cash register does, and more. Without further ado, here are 7 reasons why a POS solution is useful for your business:
Using a POS system logs your sales and then provides reports in real time. This enables you to make decisions in a timely manner with data-driven facts. Furthermore, gone are the days when you have to be physically in your brick-and-mortar store to monitor your sales.
Cloud-based POS systems connect your data to your smartphone or tablet so you can access your business’ data from any location. No matter where you are, you’re still in control of things that are happening in your store, such as monitoring your back-office server room, for instance. This allows you to make optimal decisions and manage your sales in real time.
Manually tracking your inventory is prone to human error. It is time-consuming and expensive to manage and track your stocks. In a retail business, for instance, products come in a variety of colors, sizes, and variations. Keeping track of each product is a challenge.
With a POS solution, the system automatically updates your inventory when a customer purchases from you. You can also easily categorize product according to brands, types, colors, and SKUs, among others. This means you and your staff will no longer spend additional time in tallying your sales and records or tracing mistakes.
The aspect of POS systems that attract many businesses to switch is how it eliminates manual tasks that take time and, therefore, money. Not only do you get charts and tables of your sales, but you also access integrated reports that show you past transactions, products that are stuck in the shelf for weeks, as well as products that sell best.
Getting your hands on this information is vital for making decisions that can help you gain profit. You’ll know which products your customer likes best, hence, you can ensure to stock on them so it won’t run out of stocks. It also helps you decide on what to do for products that are lagging on sales—whether to market them more or lessen their stocks.
In order to run your business more efficiently, it’s important to connect your systems together and unify their data. This allows you to view all areas of business management in a central location. Once you integrate systems, you can use the data gathered to your advantage in various scenarios such as adjusting prices on slow days, consolidate shipping processes to lessen costs, and checking how certain variables impact your financials.
Automatically syncing data between your POS system and other applications such as marketing and accounting systems eliminates human error and manual data entry. By saving valuable time, you can expedite your processes and prevent slow lines so your customers won’t get frustrated.
Beyond cash flow and inventory, your POS system has tools to help you run your business better. The retail and hospitality industry—the two main industries of POS systems—benefit from its employee management features.
For instance, in a restaurant layout, you can maximize table mapping features to assign sections to a specific wait staff for an effortless experience for both your staff and your customers. It also regulates time clocks, scheduling, and payroll. Furthermore, POS systems increase accountability as each transaction is designated to the employee who processed it. This close monitoring prevents mishandling and theft attempts internally.
POS systems can collect your customer data from their previous transactions. Hence, today’s marketers are leveraging the integration of POS systems to marketing applications by using sales data to connect and reach out to customers in a highly-targeted level.
There are various ways to do so. For instance, you can target campaigns to customers who spent the most in your restaurant during a certain frame to ensure your campaigns are generating a more specific yet relevant group of customers. Additionally, you can consolidate data from multiple business locations if you have more than one branch, anticipate potential spikes in product demands in reaction to your campaigns, and track which campaigns are bringing in guests.
According to TD Bank via Entrepreneur, 58% of business owners find bookkeeping as their least favorite task. On the other hand, you can have more control over your business’ financials by utilizing your POS system’s capability of calculating tax and simplifying accounting and bookkeeping.
Through integrating with your accounting software, information is updated between systems in real-time when changes are made such as the number of employee hours worked, sales that are completed, and stocks reduced from the inventory.
Sales tax is also separated from the cost of goods automatically. Even if you have more than one type of tax for a transaction, the system will credit the amount appropriately. This can help you issue sales tax payments with no worries of data entry errors that could cost you hefty fines.
Now that you have a better grasp on the usefulness and benefits of a POS system, you may be interested to know some examples of POS software. If you’re looking for more options, check out this 20 best POS systems for restaurants. Meanwhile, here’s a quick compilation of some of the leading POS systems today:
FinancesOnline is available for free for all business professionals interested in an efficient way to find top-notch SaaS solutions. We are able to keep our service free of charge thanks to cooperation with some of the vendors, who are willing to pay us for traffic and sales opportunities provided by our website. Please note, that FinancesOnline lists all vendors, we’re not limited only to the ones that pay us, and all software providers have an equal opportunity to get featured in our rankings and comparisons, win awards, gather user reviews, all in our effort to give you reliable advice that will enable you to make well-informed purchase decisions.