Technology is evolving at a fast pace. What was state-of-the-art a few years ago is now obsolete. The same applies to POS systems. With constant innovation, POS solutions are becoming more capable by the day to handle complex operations.
Many retailers continue to use quite old POS systems to run daily operations. Those software systems can do the job. However, they will most likely struggle to bear new customer demands and management needs.
Like how all technology becomes outdated at some point in their lifetime, POS solutions also age over time. Recognizing that a POS system needs upgrading and acting on it saves retailers from several operational woes. And it can be costly. So in this article, we help you determine if your POS is suitable for modern business requirements.
Here are the essential characteristics of a retail POS system for modern business requirements. If your retail management solution lacks these characteristics, it calls for an upgrade. Let’s get started.
Downsides of outdated POS systems
Before we get into what makes a retail POS solution modern business-ready, let’s go over why using an outdated POS system is detrimental to business. Timely upgrades are crucial for keeping retail establishments efficiently functioning. The following downsides hamper customer satisfaction and pose obstacles in competing with rival retailers.
Old-fashioned POS systems:
- Slows down operations
- Opens up room for errors to occur
- Require extensive manual operations
- Lower quality of shopping experience
- Raises expenditure
Characteristics of an excellent POS solution
Providing a convenient shopping experience to customers is pivotal for garnering good customer footfalls and generating profits. One area that customers find most frustrating is dealing with long checkout lines. It is the result of poor billing strategies. A modern POS solution shortens the checkout queue and speeds up billing processes by integrating with barcode scanners. Furthermore, the simple scanning of barcode tags to facilitate checkouts eliminates any room for errors.
Retail management automation
Some retail activities are repetitive in nature. Performing them manually day after day takes up human resources. Instead, managers can assign them to higher-value tasks. And automation can take care of routine tasks.
POS software systems for modern business requirements possess automation capabilities. They autonomously take charge of:
- Sending out purchase order forms when the inventory runs low on items
- Assigning work shifts to employees
- Monitoring employee performance
- Generating reports
Cloud technology promotes business continuity by allowing retailers to take their business with them anywhere they go. On top of that, the cloud eliminates data silos, ensuring store data is up to date and of the latest version. Retailers leveraging the mobility this technology offers manage operations on the go.
All they need to access a POS system via the cloud is a device that supports a browser and an internet connection. Being cloud-enabled is an integral feature of modern-day POS software applications.
Ever since the pandemic struck in 2020, consumers have become wary of and want to minimize physical contact with surfaces. It prevents the transmission of viruses, especially the novel coronavirus. Due to that, customers are rapidly switching to contactless payments. NFC technology and the internet make them possible.
Old POS systems lack the features to accept such payments. New POS solutions, on the other hand, accept contactless debit/credit card transactions and mobile wallet payments.
Omnichannel inventory management
Today, retail stores use several channels to receive and fulfill orders from customers. Besides the traditional brick-and-mortar store way, there are social media channels and online stores. Outdated POS systems fail to manage the inventory in all these channels effectively, leading to poor stock visibility and errors in stock reports. Modern POS solutions track sales across all channels in real-time.
How to use contactless POS?
Imagining a retail store that doesn’t have the facility to accept contactless payments is inconceivable. Customers have begun using payment methods like Google Pay, Samsung Pay, and Apple Pay over traditional physical currency. And the transition is happening rapidly. So when purchasing a POS in 2022, choosing one that can process contactless payments is of utmost importance.
POS systems that accept contactless payments complete transactions in two ways. One is the QR code method. In this way, the cashier will need to generate a QR code against a customer’s invoice. The store staff can display the code on the POS terminal. Once the customer is done scanning and processing the payment, the system automatically generates a bill for the transaction.
The second method of using and accepting contactless POS is by accepting EMV chip cards. Traditional magnetic stripe credit/debit cards require swiping and the input of a pin to complete payment. Whereas EMV chip cards complete transactions differently. Customers tap or hover the card over the POS terminal’s sensor. It is an instant process for transmitting funds instantaneously.
Setting up contactless payments on the POS is a simple process. All the retailer needs to do is select the payment gateway. And towards the end of the checkout process, the software records all contactless transactions and logs them in the database systematically.
POS retail solutions boost store operational efficiency and improve store prospects. But an old POS system that cannot keep up with modern business requirements causes the opposite. Whether you want to know if your retail management solution is still relevant in modern times, or want to purchase one, consider the essential characteristics mentioned in this article.
Are you looking for a POS system with cutting-edge, future-proof features? Then get SmartPOS. We offer regular updates that keep it up to date with the most recent industry standards. Contact us to book a demo session of the software today.