How Moving to a Point-of-sale (POS) is Beneficial for Small Businesses
Blog: NASSCOM Official Blog
No matter what kind of retailer you are, the implementation of a POS (Point of Sale) system will turn your company around by offering a multitude of daily problems with an all-in-one solution. The fairly common challenges faced by retailers regularly are inventories that fail to fit tallies, unrecorded purchases, human errors, and the time spent on fixing them. When using a POS system that reliably collects and tracks data, they are all easily avoided, allowing you to truly see how the company operates and how to continuously strengthen it.
A recent survey showed that 44 % of respondents prefer to use debit cards to pay and 33% prefer using credit cards as their preferred mode of payment. That implies that cash is slowly losing its reign as king, and there is a new plastic queen in town.
Unlike paper-based cash registers, POS systems measure and track price adjustments automatically while updating the inventory at the same time. This makes it much simpler to handle markdowns and to provide direct input on how successful any promotions are, right down to the last penny. Not only does a modern POS system process sales transactions, but it can also:
- Providing data and analyses in real-time
- Manual Job Automation
- Help manage your stock, staff, customers
- And even more!
Point of sale benefits also includes the ability to accept different forms of payments easily, including EMV chip cards, contactless payments (NFC), and payments for mobile wallets such as Apple Pay, Android Pay, and Samsung Pay. You can raise sales as well as customer loyalty by encouraging your clients to use various payment forms. Here are the benefits of using an advanced and modern POS system:
Benefit#1: Happy customers programs
POS technologies should also provide the capacity for respected clients to build loyalty programs. These programs have been shown to help small businesses expand, produce repeat clients, and increase sales. By using reward points and coupons, this can be done. Besides, POS happy customer loyalty programs allow you to capture information about buyers as well as track buyer patterns. This expertise can be used to produce targeted rewards, as well as promotional campaigns, and, most importantly, create a better overall customer experience.
Benefit#2: Better inventory management
Point of sale technology, unlike a cash register, requires sophisticated inventory control capabilities. From monitoring the amount-on-hand of a product to setting up reorder triggers and a retail matrix, every week, POS software will save you hours of inventory management. And the best part is that you can even get real-time inventory details from your POS machine, something that even the best cash registers can’t do.
Benefit#3: BI for businesses
One central database that is real-time, open, and offers automatic updates should be available for Point of Sale solutions. Advanced POS solutions provide meaningful insights reports that help small businesses to make better-informed business decisions.
Benefit#4: Boosting the profitability of stores
POS methods have the potential to improve the profitability of stores. This can be done by efficient inventory management as well as customer behavior capture, which will in turn promote customized and targeted marketing campaigns. By offering quick access, retail apps of the next generation will also increase profits, allowing you to sell, order, and market anywhere, at any time.
Benefit#5: Multiple payments option
New sales and payment platforms such as e-commerce and e-wallet options will offer you a modern and powerful POS system. This is particularly relevant because the technology just gets better, quicker, and cheaper. The world is heading towards e-commerce and the acceptance of cashless payments, and you’re going to get left behind if you don’t get involved now.
Don’t miss out, therefore. Either set up an online shop on your own or use your POS system to set up one.
Benefit#6: Accurate business reports
Links to numerous customized reports are supported by most of the POS systems. Significant data such as daily sales and stock management reports can be contained in these reports. You can quickly check common sales trends, such as which products are in demand, through these reports, which will allow you to organize your stock in advance or before a specific season.
Besides, these reports will allow you to find places where a lot of money doesn’t need to be spent.
A POS framework makes the organization more cost-focused, provides you with greater insight into sales, saves you time, strengthens consumer relationships, and uses previously collected data to build economic targets.