- Why Every E-Commerce Business Needs Omnichannel Strategy Today?
- What is a POS System?
- POS Hardware
- POS Software
- Payment Processing
- Sales Management
- Inventory Management
- Order Management
- Employee Management
- Customer Relationship Management
- Analytics and Reporting
- Types of POS Solutions
- 1. Cash Register/POS Terminal
- 2. Mobile POS
- 3. Cloud-Based POS
- 4. Integrated POS
- 5. Open-source POS
- 6. Self-service Kiosks
- 7. Online Ordering POS
- 8. Omnichannel POS
- 9. Industry Specific POS
- Choosing the Right POS Solution
- 1. Business Size and Type
- 2. Budget
- 3. Hardware Compatibility
- 4. Software Compatibility
- 5. Customer Support
- How To Get The Most Out Of Your POS System
- 1. Train Your Employees
- 2. Use The Reporting Features
- 3. Integration with Other Systems
- 4. Use The Data To Your Advantage
- Final Thoughts
Consumer-oriented companies continue to adopt commerce technologies as more and more transactions migrate to the internet. According to the RCP survey, in 2021, 85% of retailers considered digital commerce a top priority.
Even though accommodating online transactions is essential for business success, one thing shouldn’t be overlooked. According to Wunderman Thompson’s “Experiences, Customers Want” study, 42% want a seamless experience via all channels, anywhere, anytime.
Why Every E-Commerce Business Needs Omnichannel Strategy Today?
The internet has changed the way we do business. Now, the competition is much tougher than ever before. Having a website or even an e-commerce store is no longer enough. You need to be omnichannel to stay competitive and grow your business. However, you are probably not ready if you don’t know what omnichannel strategy is.
A point-of-sale solution, also known as a POS solution, is critical for all businesses aiming to remain competitive. In addition to automatically determining how much to charge, a POS system allows an enterprise to accept payments and ensure that stock and sales numbers always match.
While POS systems can bring numerous advantages to an enterprise, you must implement more than any POS solution. Purchasing or developing a POS that is unsuitable for your business could prove useless for achieving your exact goals and could be a waste of money and effort.
This article aims to describe what POS systems are, what features they offer, and which types of POS solutions are available. As a result, you can decide whether to choose a turnkey POS or use POS software development to get the tool that meets your needs.
So, What is a POS System?
In general, a point-of-sale system is a tool that connects cash registers to an electronic network and allows enterprises to track their inventory, process transactions, and receive payment. A point-of-sale system can be a stand-alone device that stores information and will enable employees to record transactions, such as a register that can be attached to a countertop or wall.
Alternatively, it can be a separate computer that runs applications and communicates with other systems through the internet. For example, point-of-sale systems are typically installed in the front of a store. These systems can be mobile, allowing them to be used in a store, warehouse, or field. Like any other computer technology, there are two fundamental parts of a POS system, Hardware and Software. Let’s try to understand both of them first.
A POS system requires hardware. The POS hardware usually consists of a computer, a scanner, a printer, and a display screen. Some POS systems also have a keypad for entering data or performing cashier transactions, while many now use a capacitive touch screen. The hardware is the physical part of a POS system that helps perform the basic tasks. A computer is the heart of any POS system. It stores information, sends data to other systems, and performs tasks. For example, a POS system with a scanner can be used to identify inventory items and add them to a transaction. It helps to increase efficiency and save money. In addition, a POS system can print receipts and labels using an in-built printer since receipts are very important for customers.
The second part of a POS system is the software. The developers write the software to perform all the major functions of a POS system. In an essential sense, POS software is responsible for receiving data from the hardware and displaying it on the screen. But POS software is also responsible for collecting, calculating, and storing the data. It can be used to record sales, track inventory, and manage customers’ account information. POS software is available to organizations in various forms today, depending on various parameters, including the devices your company uses, whether you sell your products online or have physical stores, and many more. There are many POS software solutions available in the market, but here are some of the most common ones:
An important function of a POS system is to deal with and streamline transactions made by visitors to the store. In consumer-focused businesses, short transaction execution times are crucial, so ensure that your POS system supports robust payment processing by default. In an ideal scenario, POS should be versatile and accept different currencies, credit cards, and online payments.
A POS system is often the last point of contact for customers, so it should be able to capture as much information as possible about them. For instance, it should be able to identify the products they have purchased, the brands they selected, and their past purchases. Then, the system will automatically read the barcodes on the items on the shelves and update the inventory count accordingly. This function is especially useful when you have many products in stock. Customer Relationship Management Customer relationship management (CRM) is a big part of a POS system. It helps store information about your customers and their purchasing history, and it can help your sales staff keep track of their customer relationships and follow up with them after a sale. It’s also a great tool for keeping tabs on your business’ finances. You can even use it to plan out promotions and special offers.
An inventory management POS system equipped with an inventory control feature allows teams to track how much of a commodity has been sold. This information can then be used to order more stock when necessary. Additionally, an inventory management POS system can also be set up to automatically reorder products when they fall below a certain threshold. This way, businesses will never run out of stock unexpectedly.n inventory management POS system with an inventory control feature allows teams to track how much of a commodity has been sold. This information can then be used to order more stock when necessary. Additionally, an inventory management POS system can be set up to reorder products when they fall below a certain threshold automatically. This way, businesses will always have enough stock
A POS system can help businesses keep track of their orders and customers. This is especially useful for businesses that take orders over the phone or online. With a POS system, businesses can create an order, assign it to a customer, and track the order’s status. POS systems can also generate reports on orders, which can be used to analyze customer behavior and make decisions about marketing and sales strategies.
Businesses can use sales and transactional data to monitor employee performance and identify top performers. Additionally, companies can use the POS system to manage employee schedules and track employee time off.
Customer Relationship Management
When you combine a POS system with a CRM module, you get a powerful tool for managing customer relationships. With CRM, businesses can track customer contact information, sales history, and purchase behavior. Additionally, businesses can use CRM to segment customers and target them with marketing campaigns.
Analytics and Reporting
POS systems generate a wealth of data that can be used to improve business operations. For example, POS systems can track sales data, inventory levels, employee performance, and customer behavior. This data can then generate reports to help businesses make better decisions about everything from pricing to product stocking levels.
POS systems often handle sensitive customer information, so they must be equipped with security features to protect this data. For example, POS systems should have features like encryption and password protection to prevent unauthorized access to the system. Additionally, POS systems should be able to generate audit trails to track who accessed the system and when.
A POS system is a vital piece of equipment for any business, big or small. It can help businesses keep track of their sales, inventory, and customers. Additionally, a POS system can be used to generate reports and analytics that can help businesses make better decisions about their operations. Finally, a POS system can help businesses protect their data with encryption and password protection. Now, let’s look at the types of POS Solutions available in the market.
Types of POS Solutions
Since there is no one-size-fits-all solution for businesses, there are a variety of POS solutions available in the market. Below, we’ve outlined some of the most popular POS solutions to help you choose the right one for your business.
1. Cash Register/POS Terminal
A cash register is the most basic type of POS system. It is typically used by small businesses that only need some embellishments of a more advanced system. A cash register can track sales and inventory, but it doesn’t have all the features of a more sophisticated system.
2. Mobile POS
A mobile POS (mPOS) system is a portable version of a traditional POS system. It allows businesses to take payments anywhere, whether in the store, at a trade show, or even at a customer’s home. An mPOS system typically consists of a smartphone or tablet and a credit card reader.
3. Cloud-Based POS
A cloud-based POS system is a POS system that is hosted in the cloud. It means that businesses can access their POS system from any internet-connected device. In addition, cloud-based POS systems are typically more affordable than traditional on-premise POS systems.
4. Integrated POS
An integrated POS system is a POS system that is integrated with other business applications. For example, an integrated POS system might be integrated with the company’s accounting software. This integration can make it easier for businesses to manage their finances and operations.
5. Open-source POS
Since we just talked about integrated POS systems, how can we leave behind open-source POS systems? Open-source POS systems can be integrated with almost any API or software. It gives businesses much power and flexibility when choosing the right POS system for their needs. Open-source POS systems are also ideal for companies aiming to reduce the length of their software development cycle. As a result of its open-source nature, corporate POS software can quickly be expanded with new functional modules, updated, and identified and fixed for bugs.
6. Self-service Kiosks
When it comes to creating ease for customers, self-service kiosks are the best. Nowadays, almost all types of businesses use these to one extent or another. What these systems do is that they reduce the need for employees to handle transactions. As a result, it helps businesses save on labor costs. In addition, these systems can also help businesses improve their customer service by reducing wait times.
7. Online Ordering POS
There are a plethora of eCommerce platforms available in the market. So, it is no surprise that businesses use them to take orders and payments. Online ordering POS systems make it easier for businesses to take orders and payments online. These systems can also help digital businesses track their inventory and customers.
8. Omnichannel POS
An omnichannel POS system is a POS system that can be used across multiple channels. For example, an omnichannel POS system might be used in-store, online, and through a mobile app. This POS system can help businesses provide a consistent customer experience regardless of how they interact with the business.
9. Industry Specific POS
Some businesses have specific needs that a generic POS system can’t meet. For these businesses, there are industry-specific POS systems. These POS systems are designed to meet the unique needs of businesses in specific industries. For example, there are POS systems designed for restaurants, retail stores, and even salons.
Now that you know about the different types of POS systems, it’s time to choose the right one for your business. You must consider your business’s needs and budget to make this decision. Once you’ve done that, you can start evaluating the different POS systems on the market.
Choosing the Right POS Solution
Now that you know the different POS solutions available, it’s time to choose the right one for your business. To help you make the best decision, we’ve outlined some factors you should consider when choosing a POS system.
1. Business Size and Type
First factor to consider is the size and type of your business. If you have a small business, you might only need some of the features of a more advanced POS system. Conversely, if you have a large enterprise, you might need an enterprise-grade POS system to handle all your needs. Additionally, you need to consider the type of business you have. For example, if you have a retail store, you’ll need a POS system with features that are specific to retail stores. However, if you have a restaurant, you’ll need a POS system with features that are specific to restaurants.
The next factor to consider is your budget. POS systems can range in price from a few hundred to several thousand dollars. So, setting a budget before looking for a POS system is important. Additionally, you need to consider the cost of installation and training when setting your budget.
3. Hardware Compatibility
Another factor to consider is hardware compatibility. You need to make sure that the POS system you choose is compatible with the hardware you already have. For example, if you have a Windows-based POS system, you’ll need to ensure that your computer is compatible. Likewise, if you have a Mac-based POS system, you’ll need to ensure that your computer is compatible.
4. Software Compatibility
In addition to hardware compatibility, you also need to consider software compatibility. You must ensure that the POS system you choose is compatible with your existing software. For example, if you use QuickBooks for accounting, you’ll need to ensure that the POS system you choose integrates with QuickBooks.
5. Customer Support
Another factor to consider is customer support. If something goes wrong with your POS system, you need to be able to get help from the manufacturer. So, choosing a POS system from a company that offers good customer support is important.
How To Get The Most Out Of Your POS System
Once you’ve chosen the right POS system for your business, it’s time to start using it. To help you get the most out of your POS system, we’ve outlined some tips for using it effectively.
1. Train Your Employees
The first tip is to train your employees to use the POS system. POS systems can be complex, so it’s important to make sure that your employees know how to use them. The best way to do this is to have a training session for your employees. During the training session, you can go over all the features of the POS system and show them how to use it.
2. Use The Reporting Features
One of the most powerful features of POS systems is their reporting capabilities. POS systems can generate reports that give you insights into your business. For example, you can use reports to track sales, inventory levels, and customer behavior. Additionally, you can use reports to make decisions about your business. For example, if you see that you’re selling more of a certain product than you thought, you can order more.
3. Integration with Other Systems
Another way to get the most out of your POS system is to integrate it with other systems. For example, if you have a loyalty program, you can integrate it with your POS system. This way, your customers can earn points for every purchase they make. Additionally, you can integrate your POS system with your accounting software. This way, you can keep track of your finances in one place.
4. Use The Data To Your Advantage
Finally, once you start using your POS system, you’ll have a lot of data. It’s important to use this data to your advantage. For example, you can use the data to track your inventory levels and ensure you’re never out of stock. Additionally, you can use the data to track sales trends and decide your marketing strategy.
A POS system is an important investment for any business. So, it’s important to choose the right one. In this article, we’ve outlined each and every aspect of choosing the right POS system for your business. By taking into account all of these factors, you can be sure to choose the best POS system for your needs.