POS 101 – POS Meaning and Basics Explained
If you run a business, you most likely have heard of a POS. You might be trying to decide whether or not to purchase a point of sale system, so, it is only rational that you are trying to find out more about POS meaning. Good business decisions can only be reached by getting familiar with the product in question. You might be wondering what the characteristics of a POS system are and what to expect if you run a business. Here, we go into explaining the basics.
Apart from POS meaning, are there any specific factors that make one system better than the other? Of course, you would expect that a POS system ought to make business operations more efficient. It has to be aligned with your goals. The growth of your business is important and any investment should drive you towards your goals.
Features of POS systems
As part of the POS meaning, it’s important to know the basic features:
- Reports: this provides you with updated information concerning your business to facilitate accessing, processing, and printing data that helps to satisfy business and consumer needs.
- Security: you get high-level security which means less worry. Your business stays protected and your customers do not have to worry about losing credit card info.
- Sales: now it is easy for your business and customers to check out. Say goodbye to long checkout queues.
- Inventory: totally reduces the level of difficulty associated with stock management. Gives you insight about where to withdraw investment and helps to guard against scarcity of stock through real-time tracking.
- Clientele: if you’re looking to grow a clientele that is loyal, a POS system can help. It keeps a record of customer purchase histories so that you can understand your customers better and know the things that they mostly like purchasing. You can easily initiate a rewards program that serves as an incentive to increase your sales.
- E-commerce: all you have to do is create an online store so that you can access even more customers. And then, go ahead to integrate with a POS system
Point of Sale System or Electronic Cash Register?
All businesses will be hit positively or negatively by the industry. Regardless of this fact, let us go into a little comparison to understand more about POS meaning.
Picture two stores side-by-side. One operates using a point-of-sale system while the other store which specializes in the same industry makes use of an electronic cash register. Will there be any difference?
A lot of small-scale businesses today do not like POS systems mostly due to the cost. Then again, it is possible that they are comfortable with the manual processes involved in working with a cash register.
Business owners fear to put their money and resources into point-of-sale systems that may end up not working out the way they would have loved it to. Owners of businesses know that everything concerning point-of-sale systems is never cheap. However, this fear is what causes a lot of businesses to stay stagnated rather than grow. Electronic cash registers are mostly built to just take records of sales which means that businesses will be deprived of other elements which can improve their operations and growth. A point-of-sale system has the capability of equipping your business with important tools that cannot be gotten elsewhere. You get transactions that are free of errors, the right prices every time, the ability to accurately manage your inventory, improved ability to track clients and forecast, generate reports, etc.
How POS systems affect ROI
The only way a business can grow in the long run is to actually invest in the first place. Whether you choose to invest time or prefer to invest money, the truth remains that your growth is tired to really investing. This becomes even more evident if you think about the things which your business lacks that are essential.
One of the strong arguments for getting a POS system is to solve the problem of long queues when customers have to checkout. It that is involved is scanning the items, having the scanned items removed from inventory automatically, coming up with the aggregate price, taking cash from customers or having them pay through a card swipe, generating a receipt, putting the purchased goods into a bag, and all the customer has to do is take their leave. All of this can happen in less than half the fraction of time needed to process customer purchases if you didn’t have a POS system.
If you had to work with the traditional cash register, how long do you think this will take? Also, remember that you have to deal with the inventory count. If you want to make turnaround times more efficient, you need to understand that even a fraction of a second is important. With a POS system, you get to check your customers out faster.
Wait, There’s More
There’s also more to POS meaning. Point of sale systems gives you updated information needed for effective decision-making. It comes with tools for managing an inventory. It also facilitates the generation of reports in a flexible manner while saving resources that would actually be invested in labor and costs. These tools make it possible for businesses to find out areas of vulnerability.
One other thing about point of sale systems that gives even more credibility to POS meaning is the fact that loyalty programs exist for customers that shop frequently. Customers get to be rewarded for staying loyal by receiving incentives which keep them coming back for more. This is beneficial to the longer growth of a business.
POS meaning – E-commerce Integration
Businesses today know how attractive e-commerce is. There was a time when large corporations were the only ones who could engage in electronic commerce. Today, small businesses can easily sell products online. If you are a business owner thinking of carrying out online retailing, making use of a point-of-sale system is one of the best ways to actualize that. You can easily synchronize physical sales with online sales.
This synchronization makes it easy for your online shop to identify when sales have been made at your brick-and-mortar store and automatically deduct this item from the online shop. The best part is that it is a real-time function which provides convenience. Then again, adjustments in prices could discrepancies that may set back your business operations. With a POS system, you can easily streamline coupon codes as well as apply discounts seamlessly. With these benefits, you get to exercise total control over your business and run it efficiently to ensure your customers stay satisfied.
A lot of POS systems are usually equipped with the ability to integrate with e-commerce. A POS system might also come with other capabilities. Which is why it is necessary to choose the right system. Find a POS system that has features that make it easy to streamline it with your online cart. By making use of a POS system, you successfully put your business on a pedestal for growth no matter how big or small your goals are.
You will stand a chance of beating your competitors with the leverage to make better business decisions.