How a POS system (point of sale system) can transform your business

POS systems (point of sale systems) have existed in the retail industry for a long time. In the modern marketplace, there are many options available, ranging from traditional checkout systems and cash registers to high-tech, integrated platforms.

The emergence of cloud services and mobile technology has given companies a whole new generation of POS systems to leverage. For many of the organizations, not to mention their customers, introducing the platforms can be a huge step forward.

Is a POS system the same thing as a cash register or checkout system?

The lines between terms like cash register, checkout system and POS system can sometimes appear blurred, but there are major differences. Cash registers and checkout systems are generally basic solutions, used to register and process transactions. The systems can keep count, manage transactions and render reports, which is far short of what most of today’s POS systems can accomplish. In this article, we will explore the true capabilities of modern point of sale systems.

How does a POS system work?

As previously mentioned, a POS system offers so much more than a checkout system, e.g. in terms of functionality and integrations with other architecture within the organization. It can absolutely serve as your cash register and checkout system, but it can also be used to manage inventory, customers, orders and much more. A POS system can be integrated with other business platforms, such as accounting systems or CRM systems.

Modern POS systems leverage the combined strength of hardware and software, in one powerful platform. An abundance of functions and tasks can be covered by the system, and therefore streamlined. Useful features and integrations makes it an invaluable part of the business architecture.

What are the main advantages of a high-quality POS system?

Your organization has a lot to gain by implementing a high-quality POS system, especially if it’s the right match for your needs. Here you can learn more about some of the main advantages.

Efficient and failsafe

A POS system leads to less hands-on work, streamlined processes and a reduced amount of mistakes caused by human error. This will free up valuable time that can be used on other tasks.

Real-time inventory updates

A POS system is connected to the inventory database, which means that you can keep track in real-time. It allows you to follow up on your merchandise, prevent overstocking and reduce the risk of service interruptions.

Accounting and reporting integrations

POS systems can be integrated with your accounting and reporting processes. This means fewer manual errors and effective accounting. It makes it much easier to keep track of sales, costs and profits. Processes are streamlined, but at the same time you will also get a better grasp on the company’s economy.

Promotion, discount and campaign management

With a high-quality POS system in place, you can smoothly implement and manage promotions, campaigns and loyalty programs. The system's functionality will allow you to do it faster and easier. As previously mentioned, the reduced hands-on work lessens the risk of errors.

Reports and analytics

A POS system offers you comprehensive reporting and analytics features. You’ll have the tools to quickly generate sales reports, customer analyses and inventory reports. The features provide the information you need to make well-founded, strategic business decisions.

Improved security

Quality POS systems offer a high level of security, e.g. transaction and user encryptions. You can also use the systems to monitor and report discrepancies or suspicious activity at checkout, preventing losses due to theft or fraud.

Improved customer experience

Retail customers appreciate, and have come to expect, a smooth point of sales experience. However, “a smooth experience” doesn’t necessarily mean the same thing to all customers. The POS system can prove useful in evaluating your customer's preferences, like their consumer behavior and payment methods of choice. You can use this information to speed up their checkout process, and also to create personal promotions based on customer data from the system.

Enhanced employee performance

Customer experience is a big upside to POS systems, but the employees have a lot to gain as well. Having the system in place will streamline processes, making everyday tasks more practical and less stressful. You can also use the data to benchmark employee and team performance.

Multi-channel sales

The system can also help you tie your sales channels together, creating a seamless customer experience. Cloud-based POS systems, which we will have a look at next, are the perfect tool to achieve this.

Cloud-based point of sale systems

The retail industry is facing many new challenges, one being how the modern customer expects a seamless experience across different platforms. To truly achieve this, the physical point of sales experience and the online experience needs to be synced in real-time. Ideally, the customer shouldn’t be able to distinguish them. A cloud-based point of sales system is the way to offer this type of customer experience.?

A cloud-based system also means that you and your employees can access the system from anywhere, as long as there’s an internet connection available. The systems are easier to install and update, and they are also more secure, e.g. by providing automatic backups. Many of the cloud-based systems have user friendly interfaces and allow smooth integrations with other technical solutions already present in the organization.

What are the most important functions in a modern POS system?

Some functionality, such as managing payments and orders, are present in virtually all POS systems. However, just like organizations are different, so are the systems. Some platforms are standardized, while others can be tailored after every need.

Your organization and its industry decides the system features which are most important. You need to evaluate your specific needs and make the appropriate choice to create the most optimal point of sales setup. POS technology is under rapid development, and modern companies with innovative solutions are the ones that stand to succeed in the current retail landscape.

Which POS system should you choose?

Now you know more about the many benefits of POS systems, including cloud-based ones. What should you think about when choosing a system for your business?

Industry and company requirements

As previously mentioned, you have to consider the needs of your organization and its industry. Every business is unique, and therefore also what is required of its POS setup. A restaurant might need special functionality connected to orders and kitchen management, while a retail store needs more focus on inventory and campaigns.

Are there any particular rules and regulations that the system needs to have in mind, perhaps connected to security or encryption? This is definitely something you need to investigate when making your decision.

Another aspect of this are the requirements regarding integrations and mobility. The system needs to harmonize with other technical solutions already in place. Also, many organizations have a lot to gain from having a POS system that is accessible for co-workers in the field, e.g. employees out on sales calls or conferences.?

Budget and scalability

Of course, the budget is also a factor. POS systems exist in many different price ranges, and it's also important to factor in the subscription fees, training and installation, as well as transaction and upgrade costs when comparing them.?

Scalability and adaptability are two of the major advantages of POS systems. If your business is expected to grow, you need a system that can easily be scaled up and adapted to the increased demands. Otherwise, you might be facing unexpected downtime or costs when scaling up or down.

Lastly, it is also good to conduct your own research. Read reviews and testimonials, and see a demo or try the system live, if possible. After all, nothing really replaces a hands-on experience.

POS systems - Conclusion

Now you know more about what POS systems can offer you and your customers. If you’re ready to unlock your point of sales potential and stay ahead of the curve, you’re super welcome to explore our cloud-based Hii Retail Platform!

Ready to transform your retail business? Book a demo