Small and large businesses require point-of-sale (POS) systems to complete sales transactions. It is the point where a customer makes the payment for goods or services. POS systems perform simple tasks such as processing cash payments to complex tasks such as inventory management and sales reporting and analytics. POS systems software can be categorized from a technical and business perspective. From a technical perspective.
The different kinds of POS systems –
- Terminal POS: It is a device with a blend of hardware and software that is used in physical stores. It is used when the customer checks out his purchases.
- Online POS: Retailers who do not have a physical store can use online POS solutions. They can log in to the system and conduct transactions. These systems can be hosted on-premise or in a public or private cloud
- Mobile POS: Mobile POS systems can process customer payments for products and services through a payment processing application on a smartphone or handheld device. It is useful if the customers who do not want to deal in cash and also in today’s digital business world where cashless transactions have gained traction
- Self-Service POS: Self-service POS systems allow customers to input the requisite data and check out purchases on their own. These POS systems need not have any operators and are used in use cases where sales personnel are not required to be physically present to manage the sales process.
From a business perspective, POS systems can be classified as –
- Retail POS: These POS programs are used in supermarkets, malls, and retail stores. They will have features such as barcode scanner or e-commerce integration.
- Restaurant POS: These are used in the food and beverage industry. They will have features such as splitting of cheques, tracking tables’ status, etc.
- Hospitality POS: These are used in hotels to complete check-in and check-out formalities for guests.
1. It saves time
- Speed up the checkout process – Scan it and bag it. Every item with a barcode can be easily scanned and tagged. You also have the option of accepting payments anywhere in your store. Just carry an iPad or iPhone enabled POS system with a credit card reader and you’re ready to go.
- Speed up Inventory management – With a built-in inventory and barcode scanning system, you won’t have to rifle through many options when ringing up a sale. It’s automatically deducted from your current inventory, so you won’t have to manually do it.
- Faster payroll processing – The system will automatically compute payroll and can even print out a payslip for your employees. No more logging in manually.
2. You’ll be in the know
- Up to the minute sales reports – Numbers don’t lie. Know how much you’re selling and if you’re on track or not.
- Real-time inventory tracking – With real-time inventory tracking and management, the system will alert you when you’re running low, complete PO’s and track your vendors.
- Know what’s hot and what’s not – Want to know what your best-sellers are and who’s selling the most? The reporting capabilities of the POS system can take care of that for you.
3. Better CRM
- Up to date customer information – You can email receipts to your customers, so updating their information has never been easier. You can also send them emails on sales and specials.
- Customer Rewards – Know your customers better by tracking what they buy and offering them points for every sale.
- Loyalty programs – Discounts and freebies can easily be managed for loyal customers.
Why Do You Need a POS software application?
- Increased Process Efficiency: POS systems automate routine tasks. They also ensure that transactions are processed without errors. They have intuitive user interfaces making it easy for end-users to learn and use the system. POS systems make processes like checkout, product return and data update of back end systems more accurate and quicker. It is not possible to manage all these functions with cash registers. End Customers also find it easier and quicker to use POS systems to complete their shopping experience. This leads to increased goodwill for the business in customers’ minds.
- Multiple Payment Capabilities: POS systems can process diverse payment types such as cash, cards, chip-based cards, mobile wallet payment options, and contactless payment options. This will allow increasing revenue as the business will be able to service more customers and it will increase customer satisfaction as customers have multiple payment choices.
- Improved Inventory Management: Unlike cash registers, point of sale applications facilitate inventory management. They have features like product quantity tracking, reorder triggers’ set-up, product return management and provision of real-time inventory data within the outlet and across outlets. This helps to keep costs under control, minimize wastage and prevent pilferage.
- Enhanced Reporting Capability: The business can generate comprehensive and accurate reports.