At first glance, a point of sale system looks relatively unremarkable. You might even mistake it for nothing more than a tool used to read customers’ debit and credit cards, or communicate with their mobile devices in order to transfer funds from them to you.
The reality, however, is much different.
The modern POS has numerous capabilities that most companies can leverage to streamline their operations, delight their customers, and pave the way toward elevated sales and success.
What is a POS system?
A POS is a combination of hardware and software whose primary purpose is to securely transact payments. Additionally, it offers a host of tools, including inventory management, marketing and advertising, customer insights, and reporting and metrics.
Before we dive into the details, it is important to understand what a POS system is, and the role it plays.
A point of sale, or POS system, is made up of hardware (a terminal or tablet and a card reader that takes in customer payment data, barcode scanners to read product details, receipt printers, and cash drawers) as well as the software necessary to communicate with the other players in the payments process. Taken as a whole, the POS holds much power to streamline business operations.
Contained within the POS solution’s software is a robust database function that is at the core of its offerings. Utilizing this repository, businesses can store customer data, keep track of inventory, and monitor employee productivity.
The stored data points can also be used to create and generate reports about sales trends that can form the basis of more streamlined operations, intelligent marketing campaigns, and satisfied customers.
Enhanced inventory management.
Your point of sale system can automate inventory management, including tracking inventory in real time, alerting you to decreases in quantities, and triggers for re-ordering merchandise.
The products you sell are the foundation of your success – but only if they are available and in keeping with what your customers are demanding. With the help of your POS, you can automate most aspects of your inventory functions, thanks to its database tools.
After inputting details about every piece of merchandise with your barcode scanner, you can track each item, including when the sale is made. As soon as the payment is registered in your POS, an SKU is automatically deducted from your inventory.
As a result, you always know the exact quantities of all merchandise in real time. Additionally, your system can let you know when you are running low on specific items so that you can initiate the re-ordering process, sending purchase orders to suppliers in plenty of time to ensure that you never run critically low.
Better marketing and advertising.
Most types of POS systems also allow you to generate reports on sales data. Use them to target customers, create personalized promotions, mount email campaigns, and launch loyalty programs.
The information you gather about your customers is a veritable gold mine that can spur your advertising and marketing initiatives beyond your wildest dreams. Gathering contact information and additional nuggets about your buyers enables you to divide them into groups or segments.
According to the preferences and demographics of each of these niches, you will be able to direct targeted messages and promotions that add a new level of personalization to their shopping experience.
Another vital capability that your POS makes possible is the creation of a loyalty program. Using information that customers have voluntarily supplied at sign-up, your POS has customer relationship management software that tracks each person’s purchases and keeps tabs on reward points and milestones.
With your POS on the job, your clients no longer need to keep track of physicalcards, allowing them to simply enjoy the benefits.
Advanced customer service.
Because of its customer-relationship management integration, your POS allows your customer service team to excel. With the information it furnishes, it can provide better answers to questions and issue resolution, as well as more relevant upselling and product recommendations.
An informed customer service team is one that can truly deliver the best care to your shoppers. A good POS contains the full range of data that can support your staff, enabling them to consistently give stellar information and problem resolution.
That’s because the POS contains detailed records of a client’s entire buying history and preferences. This enables your team to instantly see what the person has purchased should concerns arise, with no long waits or uncertainty.
These insights also make it possible for your employees to make the best product recommendations that align fully with the shopper’s expressed needs and wants. This leads to increased satisfaction and a greater likelihood of sales in the future.
Easier payroll processes.
A POS makes employee monitoring and payments seamless. With it, you can make schedules, track hours, increase accuracy, and integrate it with your accounting software.
If your payroll system does not run smoothly, your entire operation will quickly grind to a halt. Your POS can take the guesswork out of effective payroll processes by automating many of the tasks that are most prone to human error.
With its help, you can easily set and change schedules from anywhere. Additionally, it’s a snap to track workers’ hours in order to optimize coverage and ensure that all vital tasks are being fulfilled.
Since these jobs are done automatically, data accuracy will be increased. What’s more, the information can be seamlessly transmitted to your third-party accounting packaging, making everything from funds dispersal to tax filing a breeze.
Advanced reporting and metrics.
A POS’s report features allow for robust insights. These include sales trends, average transaction value, gross margins, sales per employee, and inventory levels.
When you run a business, it is easy to get mired in day-to-day challenges. As a result, it can be nearly impossible to get an objective idea of how well you are performing. Fortunately, the metrics your POS stores can be used to compile game-changing reports.
With just a few clicks, you can command your POS to produce clear, insightful documents. These can give you an insider's view into essential outcome metrics, including buying trends, the average value of each transaction, the exact amount that each employee sold, and the precise levels of particular items in real-time.
Armed with these details, you are in the perfect position to run your business on a daily basis as well as to make smart predictions that help shape your future goals and campaigns.
A point of sale solution can truly be the silent partner that elevates your performance and profits. If you haven’t already put its numerous capabilities to work for your company, make a commitment to your success. Contact your payment service provider today to get started.
North is a leading financial technology company that builds innovative, frictionless end-to-end payment solutions designed to simplify and grow businesses of all sizes. From the front door, to the back office, the developer world, and partnerships that expand the payments landscape, North offers proactive, comprehensive merchant services, in-house processing, and more.
