What is POS software and its benefits?
If you want to start selling in person, you need POS software. Whether you want to sell at events, plan your first pop-up store, or are ready to open your first permanent location, the POS software is what you will use to manage store operations, communicate with customers, accept payments, and track store sales.
Top POS systems facilitate transactions, allowing customers to make a purchase and pay applicable sales tax. The point of sale is often seen as an internal storage station. However, virtual POS systems are often used for online shopping.
POS systems quickly replace traditional cash registers due to their convenience and ease of use. POS systems can also be portable, allowing payment where the customer is, for example at their table in the restaurant. POS tablets have become popular among businesses, including restaurants.
What are the benefits of POS software?
POS software that connects to your online store helps you run your entire business from one system. When retail and e-commerce stores talk to each other and are managed in the same place, it makes your business management and development clearer.
One of the advantages of the POS system is that it makes price cards unnecessary. Employees simply scan the barcode, making it easier to change prices and apply discounts. Other benefits for companies include inventory management features and loyalty programs.
1. Better inventory management
POS systems are not only tools for processing payments - they are increasingly a hub that connects all your small business software tools, from scheduling and payroll to accounting and inventory management.
Modern peer group-based POS systems include all these tools in an all-in-one system or give you the option of connecting to other software applications to build a complete software solution, referred to as "integration" or using "integrated applications."
Choosing a cloud-based point of sale that integrates with other business programs reduces administrative working hours. For example, you can buy and receive inventory at your POS and sync your sales data directly with your accounting software.
In addition to connecting to traditional accounting software, many POS systems offer payroll services to handle the financial component of your business with a few clicks. You can also create employee schedules at your POS and manage employee hours. Employees can log in and out through the log (or mobile app), and information can be transferred directly to your payroll processor.
2. Invoices are simple
POS allows you to register and assemble all your bills. There are several categories of invoices to be managed in the company and it is important to be able to easily differentiate them. You can find invoices for purchases, sales, repairs, rentals, shipments etc by program.
Easy billing management is especially important for your accounting processes. It is proof that you have sold a product or service. The invoice contains important information to the buyer such as transaction value, number of goods sold, description of goods etc.
Making this follow-up will be complicated if done manually. Thus, the point of sale makes it possible to invoice and record purchase and sale information faster than if done manually.
Manually managing your bills can become complicated. To learn more about this, read our article about the different types of control systems here.
3. Fast Payments
Point of sale helps speed up payments. The employee identifies the products the consumer wants to buy and the system automatically calculates the price. The invoice can be emailed or printed directly immediately using a receipt printer.
Depending on mergers and terminals, customers can pay in cash, credit or debit card. This makes it quick and easy for the customer to complete the transaction.
With the point of sale, waiting time is greatly reduced for consumers, and employees can be more efficient in completing transactions.
4. Better customer management
By having a POS system, it is possible to document your customers' information in your system.
It can be name, phone number, procurement, email etc. By getting customer data, you can get a better overview of the target market, as well as customer groups (e.g. new or loyal customers).
You can send promotions to your customers to motivate them to visit your store often or to build customer loyalty. The system can help you track each customer to make targeted promotions. Managing appropriate customer information allows you to accurately understand target customers and make better business decisions
5. Engaging customers on a more personal level
Along with improved customer service, customers are directly involved. Using all your POS data, you can create targeted campaigns to reach potential customers through personalized messages and promotions. In 2021, 60% of shoppers surveyed said they were more likely to become frequent customers after a personal experience. POS makes these customization efforts easier and more effective.
Many POS systems have built-in marketing tools or the ability to add apps and marketing features. This may include email, social media, SMS and other channels. Customization can go beyond adding their names to an email; The best POS systems can take the customer's shopping record into account when offering sales, discounts or any other marketing communications.
6. Better procurement and supplier demand management
Buying equipment for your business is essential. This is why the POS system is useful for managing your purchases from suppliers properly. It allows you to track all orders made.
Some POS programs have an open API that allows you to connect directly to your resource. When you place your orders from your point of sale, you will be able to view all your bills for your orders in the POS system. This gives you purchase control and allows you to track the required items from suppliers. When you buy equipment from a supplier, you will receive an invoice containing all information about your purchases. This includes products purchased, quantity, description, cost and more.