In today’s extremely competitive business landscape, the difference between thriving and merely surviving often rests on whether or not retailers embrace the right technology. Among the many pieces of tech retailers utilize in their day-to-day operations, the point of sale system or POS system definitely takes center stage. But the question is: why would retailers even invest in one, knowing that the traditional cash registers have sufficed for decades?
Contrary to popular belief, POS systems are not just glorified cash registers. Although it can be argued that it did go through that phase during its early stages, modern-day POS systems have become a seamlessly unified combination of software and hardware that allows consumers to transact with businesses with more ease than ever before. It sounds like a simple and insignificant benefit, but in reality, a POS can be game-changing for a business for many different reasons.
The operational advantages of a POS system
To start, a POS offers various benefits that can supercharge businesses’ daily operations. A key advantage lies in its ability to expedite sales transactions. With quick scanning or data input capabilities, cashiers can easily take orders and payments with virtually no manual work in terms of creating invoices, tracking inventory, and other tasks, as the POS can do these things for them at the click of a button. This efficiency not only boosts transaction speed but also reduces the likelihood of human error in processing, which is common for those operating manual cash registers.
Since POS systems track inventory in real time, retailers will be able to keep their stock levels in check without needing to do manual tallies for every item sold, as the POS will automatically update inventory counts as soon as sales are made. This also implies that retailers will be able to identify which items are selling well or underperforming, allowing them to make more informed decisions on which items should get restocked more often and at what quantities.
From these simple automations alone, one can imagine the possibilities: hassle-free tax compliance since the POS can compute sales tax on its own, reduced paperwork through digitized receipts and electronic transaction records, and many more. In fact, advanced POS systems can even assist retailers with employee and omnichannel management and other tasks, but the point is that even the most basic POS features can already make a business more efficient.
POS systems enhance data security and compliance
A POS’ role in enhancing data security and compliance cannot be understated. With a series of robust security features, retailers can have their peace of mind even when working with a large team through various security features. For example, user management modules allow retailers to create users with different levels of access to the company’s information; that way, the software will only display the right data to the right people, effectively preventing data from getting into the wrong hands.
Since POS systems monitor all transactions, some of them even come with fraud detection capabilities, alerting retailers to suspicious activity. Regular software updates and compliance checks are also done by POS providers so that they can constantly address security vulnerabilities and ensure compliance with new regulations.
With these security features, POS systems not only protect the business and its customers’ data, they also help ensure that retailers operate within legal frameworks and standards required in their industry. This is especially crucial in the current era of retail, where data breaches and cyber attacks have become more of a serious threat.
Data-driven decision-making with a POS system
Regardless of what products or services they sell, retailers will be able to access detailed information on their sales and inventory using a dedicated POS. This is because POS systems can track and analyze sales data in real-time, providing detailed reports on which products are selling well, peak sales times, and even customer purchase patterns—all of which are crucial for inventory management, marketing strategies, and optimizing product placement.
These analytics have many implications for retail businesses, even in terms of internal functioning. For example, software can also track the performance of individual employees or store locations, which can help retailers identify areas of improvement in their staffing and resource allocation.
At its core, these analytics can pave the way for enhanced decision making. With a holistic view and understanding of their operations, retailers can be more strategic across all aspects of their business, from marketing and sales to inventory management and their supply chain.
Enhancing the customer experience with software
Imagine one of the busiest days in your retail store. Your customers are getting impatient, for example, and some opted to just leave–all because the queue at your cashier grew longer by the minute. Then picture the same situation, but this time with a device that made the checkout process faster, logged your sales and inventory for you, created instant invoices for your customers, and offered them flexible payment options. With this device, the queue was able to move quickly, satisfied customers filled your store, and most of all, no sales were lost due to potential customers leaving after a bad experience.
Of course, that device is a POS. Since it enhances your business operations, it also ends up giving your customers a better shopping experience. And the good thing is that the positives don’t even end there. A POS can also help you implement personalization; that is, by tracking customer preferences and behavior, which then enables tailored recommendations. It can even implement customer loyalty programs to incentivize repeat purchases and promote brand loyalty, all through the use of cutting-edge software.
Overall, a POS system can greatly improve the customer journey at various touch points, leading to greater satisfaction among customers.
POS systems can drive sales
When customers are consistently satisfied, a retail store achieves more social proof, which, in turn, amplifies word-of-mouth recommendations, fueling a business’ growth and reputation.
Word of mouth is crucial for businesses, as shown in an old Nielsen Global Trust in Advertising report. According to their findings, 92% of consumers around the world trust personal recommendations from friends and family above all other forms of advertising. Of course, this can be a double-edged sword if a customer has a bad experience with your business. Instead of them promoting your brand to their peers, they could become a reason why the people around them choose to avoid your business.
With a POS, retailers can help ensure mostly good experiences among their customers due to how it streamlines business operations, therefore increasing businesses’ scalability and potential for growth.
In fact, POS systems can help even in the process of business expansion because they can easily accommodate new products, staff, and additional locations without major system overhauls. Plus, advanced or cloud-based POS systems can also serve as a single source of truth for all store branches; meaning, data from all locations can be synchronized in real time, allowing retailers to check how their business is performing with just an internet connection.
The return on investment for businesses
Just like all investments, however, there’s no guarantee that a POS system will give your business a good return on investment or ROI. But if the system you use ends up meeting all of your specific needs, then you will definitely reap all of the benefits a POS can offer.
Take our Basic Plan here at PinoyPOS, for example. For as low as 33 PHP a day, our subscribers get a real-time sales and support dashboard, basic sales and BIR reports, the ability to input unlimited products, suppliers, and promotions, support for e-wallet payments, and other useful features for small- to medium-sized businesses.
All things considered, it’s no longer a matter of whether or not retailers should invest in POS systems, but rather, when they will invest in one. The market is becoming more and more competitive by the day, and embracing innovative tools such as POS is one of the ways to thrive and succeed in such an environment.
