Last updated on June 5th, 2023
Technological advances are impacting the way we live and work each day. With the help of computers in your company, you can completely control and regulate refunds, sales, routine sales reports, and even stocks.
It is the point of Sale system for small businesses that have replaced cash registers due to its convenience and user-friendly features. It provides complete information for the management of decision-making.
What is the reason POS is necessary?
If you’re searching for useful software to aid you in managing your business, then the POS (Point of Sale) program is the most secure. It will provide more effectiveness in improving your business. It includes a range of options that can benefit diverse businesses. These features will allow you to perform various tasks according to your company’s requirements.
It is possible to integrate the system with other devices such as smartphones, tablets, desktop computers, or laptops.
10 Benefits of Point Of Sale System for Small Business
1. Saves Managerial Time
POS systems are not only tools to process payments increasingly, but they are also becoming a hub that connects all of your small business software tools, from scheduling and payroll to accounting and inventory management.
Modern cloud-based POS systems can either incorporate all of these features in one integrated system or give you the option of connecting with other software applications to create your complete software system also known in the context of “integration” or “integrated applications.”
A cloud-based POS system that integrates with other business software can cut down the time spent managing. For example, you could buy and get inventory into your POS and also sync sales data directly to the accounting program you use.
Alongside connecting to the traditional software for accounting, a lot of POS systems such as Square provide payroll services to manage the financial aspect of your business with just one or two clicks. It is also possible to create staff schedules using your POS and control your employees’ hours. Employees can check into and out via their register (or mobile application) and the information can be sent directly to payroll.
2. Improved Customer Experience
As retail stores, it’s crucial to take into account the customer experience and not just your logistical or backend requirements. About 60% of customers in the Talkdesk survey reported that their expectations of customer service were greater today than they were before the COVID-19 epidemic. In addition, over 50% of Americans are willing to pay more for better services to customers. With a modern POS you can enhance the customer experience in a variety of ways:
- Allows for a variety of payment options: Eliminate that embarrassing moment where your customers have to dig through their wallets looking for the correct card. Offering e-wallet, contactless and PayPal payment methods will help speed up the process for your customers to finish transactions.
- Types of saved payment: Returning customers do not even have to pull their wallets with them by saving their preferred method of payment at your point of sale. This is a fantastic method for boutique and service companies that have strong customer relationships.
- Information about customers that are saved: As important as saving payments is the ability to save customer information. This could include loyalty points from programs, contact details (for service companies that make appointments), or something as basic as calling a customer’s name.
- Self-checkout: Some people don’t like self-checkouts or ordering kiosks but those who do like the speed and convenience of self-checkouts. Self-checkouts are also a great way to reduce the cost of labor.
- Checkout at sales floors or tables: Reach customers where they’re where they are, without having to stand in queues. Tablet and mobile POS systems allow employees to make transactions ring in the store when customers make a purchase.
- Simple search for items: Customers appreciate getting rapid answers about the cost and location of the item they want. POS systems allow your salespeople and cashiers to gain access to this information in a few clicks or with a barcode scan.
3. Engage Customers on a More Personal Level
Alongside improved customer service, you can now engage customers directly. With all of your POS information, you can develop targeted campaigns to connect with potential customers with personalized messages and special offers. In 2021 60% of customers polled said they are more likely to be loyal customers following an experience that was personalized. A POS allows these personalization efforts more manageable and efficient.
A lot of POS systems include integrated marketing tools or the capability to integrate marketing applications and features. They could include social media, email SMS, as well as other channels. Personalization may go beyond the addition of the name of the recipient to an email and the most efficient POS systems will consider the history of a customer’s purchases into consideration in offering discounts, sales, or other types of marketing.
A loyalty program can be a very effective tool to retain customers that can encourage customers to return to your store, and spend more and more word-of-mouth advertising. According to the statistics that are often reported the customers of loyalty programs typically spend 20 percent more than other customers.
The best loyalty programs must be simple to join and use. POS systems allow you to enroll customers in your loyalty program and then redeem rewards at the time they leave through the user-friendly interface.
Trackable (and Actionable) Customer Feedback
The savviest retailers do not just collect, but also listen to and actively address feedback from customers. A POS system lets you not only monitor the performance of your Yelp page. It is possible to use the POS to ask customers for immediate feedback through surveys in-store or even targeted emails following purchase.
Customers can access the POS to share their opinions. This is vital since 71 percent of customers stated that they would write reviews if the business allows them to leave a review.
Important Article: How can Custom POS Software Benefit Retailers to Improve Customer Experience?
4. Offers E-commerce Capabilities
E-commerce is an essential element of retail and restaurant sales in the post-COVID world. 23 percent of customers indeed claim to shop online at minimum every day! Whether you are taking orders for food through the website of your business or offering products through an online store the most effective POS solutions have the capability of connecting your in-person and online selling capabilities.
Here are some things you can accomplish using an integrated POS that integrates e-commerce:
- Online store with no cost: Some POS systems, such as Square provide a free online store. They’re fairly easy to use and are tracked by the POS system. Some offer tools to sell on your social media. Some, such as Shopify provide the complete e-commerce solution.
- Tracking inventory: The majority of POS systems such as Shopify can track both in-person and online transactions of items in inventory to ensure you are aware of the number of items you have in stock and when you’ll need to purchase.
- BOPIS (Buy online, pick up in-store): Buying online and then picking it up in-store has seen an explosion as a service. It increased by 106% in 2020 (and an additional 10 percent in 2021) due to COVID. nearly half of the customers stated that they would utilize it for convenience. A majority of POS systems have this feature.
- Orders for food: The majority of restaurant-based POS solutions let you integrate with delivery services like DoorDash. The most effective systems also send online orders directly to your kitchen display or POS following the priority you choose.
5. Grows as Business Trends Change
Cloud-based POS systems are continuously upgrading their software to meet new trends in consumer behavior. So, a good POS keeps your business current as consumer preferences shift. It’s simple to accept popular payment options such as mobile wallets (like Apple Pay and Google Wallet) and online payment and contactless close-field communications (NFC) payments through a point of sale.
A study conducted by GlobalPayments discovered that more than 50% of merchants are planning to expand their payment methods in 2022. This includes including digital wallets (60 percent) and QR payment codes (60 percent) and accepting electronic invoices (51 percent). In fact, by 2023, electronic wallets will be expected to make up 30 percent of POS transactions. A majority of POS devices are ahead of these developments.
An increasing trend is the use of chatbots and live chat for customer service. StartupBonsai claims that chatbots are the fastest-growing communication channel for brands. If you’re looking to include live chat-related software on your site, you can quickly do so by integrating the POS integration. Ratings of customer satisfaction for chat live are typically greater over other chat channels and it’s the most preferred channel of support for Gen Z.
Certain POS systems — like Lightspeed Retail–integrate with live chat software. These software tools can help customers find answers to basic questions (like the hours of operations and parking details) and can process basic orders or appointment reservations, or notify customers of the status of their shipment.
Consumers are at the cusp of another significant shift that could affect independent stores and restaurants that use voice ordering. The time since Apple released Siri in 2011, the public’s dependence on voice assistants has grown every year. A Statista study suggests that the e-commerce transactions made using voice assistants will amount to $19.4 billion by 2023.
POS platforms such as Revel Systems already have voice ordering integrations (via RedShift Voice Technology) and there are many more that will be announced in the future.
6. Boosts Revenue
We’ve previously discussed a variety of ways in which the POS system can increase your revenues by enhancing customer service and advancing at the speed of technological advancement. However, even with those modern features a POS can boost profits by increasing the number of revenue streams – or sales channels that your small business can manage.
In addition to simple sales in person or at appointments, you can create other ways for customers to connect with your company through mobile events, online sales pop-up shops, and catering services. Here are some examples:
- A salon that specializes in cut and color services could also consider adding an online store selling its preferred line of hair products.
- A popular burger restaurant might consider expanding into catering.
- A vintage clothing shop could easily set up shop in the open air to greet customers at festivals or community events.
7. Provides Accurate, Real-time Data
Although you can keep track of important indicators of performance (KPIs) manually using spreadsheets or shares of drives, the process can become time-consuming and cumbersome which can distract you from the more important business issues. With a POS system, the majority of the tracking is completed for you, meaning you can concentrate on more important tasks such as helping customers, selling your products on the sales floor, or creating new menu products.
The best part is that you can access reports at any time to obtain a real-time overview of your ongoing expenses and sales, so you can make informed decisions even if they could affect your bottom revenue. For instance, if sales aren’t as high as you’d like for the day, you could send an advertisement for sales on your texts, social networks, or other email marketing platforms. If it’s a hectic day and you’re about to be sold the last of your sought-after jeans, you can make an order a rush in time for your retailer to replenish your stock.
8. Automates Tasks
Automation is an excellent method to manage your business more effectively and efficiently. If you select the best point-of-sale system for small businesses, you will be able to automate the tasks of employee scheduling and managing inventory. You can modify your system to notify you of low inventory levels or employees nearing the end of their overtime. This can take the stress off of keeping track of the stock levels and helps avoid the cost of issues such as stock shortages, excess dead stock, or overtime.
It is also possible to reduce expenses by automatizing your inventory, setting low-stock alerts, creating automatic purchase orders, and online ordering channels. Certain POS systems can also include advanced features like predictive analytics and vendor management, too.
9. Centralizes Operations & Analytics
If you have multiple stores or an entire franchise or a chain of shops, then you might require the ability to keep track of the information for each and all in a single. Furthermore, you may need to connect between stores, like transferring products or inviting employees from one store to assist others in the event of a need. When you use POS Software, you can enjoy several of these options.
The new sales channels that are emerging can be an exciting method to increase the size of your retail business, however, expanding also brings new logistical problems. A POS will help you overcome these challenges. The most efficient POS systems serve as command centers for your restaurant or retail operation, allowing you to connect the sales data you collect to various software applications.
They could include built-in POS modules such as sales employees’ clock punches and incoming vendor orders or they could be added by third-party applications integrated into. The centralization process is so sophisticated that top-performing POS systems can send all of this information to a mobile-based reporting application accessible on any smartphone.
10. Ensures Secured Information
With all the talk about increasing revenue, sales growth, and expanded capacities for operations, you’ll want to make sure that your (and your customers’) data is safe. As technology and management of data evolve and so do cyber-attacks. Trustworthy POS companies ensure that their payment data as well as order streams are secure safeguarding the customers you serve from fraudulent transactions and securing your company from any liability for data breaches.
Related Article: All You Need To Know About POS Software Solution For Your Business
Searching for the best Point of Sale System for Small Businesses?
In the final analysis, the point of sale system for small businesses allows small independent restaurants, small-scale retailers, and even restaurants to function in the same way as larger companies. They aren’t ever cheaper. If you’ve been struggling with the issue of whether to use POS or registers choose a brand that provides free trials or contracts for short periods and runs on the equipment you already have. Explore iTechnolabs’s guide to the most effective Point of sale system for small businesses to discover the one that meets your requirements.
