Why Leading Retail Stores Use A POS System
Ever wondered what secret formula leading retail stores use to stay ahead of the competition? The answer is a POS software solution.
Many retail stores today continue to exist without leveraging cutting-edge technology in their business. While they can operate this way, it will become challenging to keep up with their competitors.
Functioning with manual retail management methods such as spreadsheet software and paper-based tools has several downsides. Firstly, they are prone to causing a plethora of errors. Secondly, they cause information silos and make managing retail activities a cumbersome task.
In addition to that, keeping pace with the latest changes in the retail segment is excruciating without a POS. Installing, maintaining, and upgrading on-premise servers is costly. Not to mention, it is immensely time-consuming as well.
These shortcomings are what sets apart regular retail stores from the leading ones. The latter provides a better shopping experience and earns higher profits. A prominent reason for their success is because they use a POS system.
In this article, we explain why leading stores use one. Let’s begin.
What is a POS software solution?
Retail stores have a myriad of operations to manage. They range from taking care of inventory, and customers to sales and accounting. Streamlining all these activities is crucial for efficient management. And that is hard with manual retail management tools. On the other hand, POS software systems package all retail management functions into a single application. They have an intuitive user interface through which retailers can track, monitor and control all retail operations.
POS software solutions have dedicated features to manage inventory, sales, and more with laser precision. On top of that, they generate comprehensive reports that provide insights into how a store is performing.
Let’s take a deeper look into why retail stores use a POS system.
Why POS solutions are a favorite among leading retail stores
Higher customer satisfaction
POS systems allow retail stores to accept multiple modes of payment. Besides that, they can integrate with barcode scanners, making billing a fast and easy process. When it comes to retrieving customer information, the system can do it within seconds. All of this ultimately leads to satisfied customers who will be likely to return to the store again.
Effective inventory management
POS software solutions simplify the process of managing retail inventory. They give you up-to-date details about what products are there in the inventory, where they are arranged, and how many of them are there. These software solutions send notifications when retail inventory runs low. They can also automate the purchase of stocks.
More customer footfalls
Keeping customers informed about new arrivals, discounts, and offers in your store is essential to attract them. With a POS solution, you can efficiently reach out to a large audience at the click of a button. The software allows you to create engaging content and send it to your customers via SMS, in-app notifications, and emails. You can also create membership and loyalty programs with it. This is how leading stores gain more customer footfall.
Faster and accurate operations
Retail billing software solutions give you a complete overview of the latest developments in your store’s operations. From new inventory arrivals to your sales performance, the software displays them in a single software application. It enables you to take up quick, strategic retail management decisions. And as these software solutions can integrate with barcode scanners, they help retrieve product information accurately.
Comprehensive business insights
Leading retail stores optimize their operations with POS system-provided insights. POS systems crawl through all the information in their database and process them into comprehensive reports. The reports contain information on what products are fast-selling, what promotional campaigns are working, what customers are most interested to buy, and more.
Let’s take a deeper look into comprehensive business insights. It is the result of POS data analytics. POS solutions collect a wide range of data over time. That includes inventory, sales, accounting, employee, customers, and promotion campaign data. You can use such data to your store’s advantage in several ways. We explain them in detail.
POS solutions gather extensive inventory data. From when you place a purchase order from the supplier until it exits your store. The software applications process the data into meaningful insights that reveal the time it takes to restock, what the ending inventory value is, turnover rate, and more.
POS systems also track employee data – including when your staff enters your store, what task they perform, their idle time, and the exit time. Not only does it provide you with elaborate employee insights, but it also frees you from manually supervising your employees. With the employee reports, you can reward top-performing employees and grade staff.
Knowing customer purchase behavior and demographics is valuable to optimize operations for higher sales. POS solutions have feedback and customer information modules. They allow you to gather critical customer data. Furthermore, the applications track where your customers are coming from, what their average is, and more.
Launching promotions are a fantastic way of attracting customers. That said, it is a good idea to test a few campaigns before narrowing down on one. POS solutions help measure the success of a promotion. Every time a customer uses a specific type of promotion, the POS records it and generates reports. Ultimately, it helps you use the discount strategy that works best.
POS system types
Leading retail stores invest in POS systems that suit their requirements. Not all POS solutions are built the same way. They differ in terms of features, User Interface, and more. Depending on the scale of a retail store, there are various types of POS solutions available. The cost of a POS can also dictate the type of integrations it can have. World-class POS systems are capable of integrating with peripheral devices such as barcode scanners, payment terminals, electronic cash drawers, and invoice printers.
Imagining retail stores functioning with a POS is inconceivable. Using the software, retail stores that are just coming up have the potential to make it to the top.
Using POS software on mobile devices
The most common POS systems you will find in many retail stores are either desktop or cloud-based POS. Retailers who have the first type can use the software only from the computers on-premises. Retailers of the second type of POS can access the software from any device that supports a browser and an internet connection.
Those POS solutions simplify retail management and boost business prospects. That said, they have a number of caveats when it comes to conducting business on the go. If you’re constantly on the move and sell goods and services during that time, then it is a good idea to invest in a mobile POS. At this point, if you’re asking “can I use phone as POS?”, the answer is yes.
Mobile POS systems are specially designed for use on smartphone devices. Unlike cloud-based POS software, the user interface and features of mPOS solutions are tailored for easy viewing and use on mobile phones. With just a few taps and swipes, you can manage retail inventory, customers, sales, employees, and more.
What’s even more advantageous in mobile POS systems is that they can integrate with several peripheral devices. The integrations make conducting retail business on the go a breeze. The software can seamlessly connect with portable barcode scanners, wireless printers, portable card payment terminals, and more.
There are many mobile POS solutions in the market. But none like SmartPOS. Our software installs quickly, runs smoothly, and can perform a wide range of critical retail tasks within seconds. Consider purchasing the mobile version of SmartPOS, or complement your traditional POS with our mPOS for the best returns on investments.
The checkout note
If you’re looking to become as successful as the leading chain of retail stores in your locality, then what you need is a Point of Sale software solution. Using that, you can perform crucial managerial functions using a single software application.
Transform the way you operate your retail business with SmartPOS. It is easy-to-use, cloud-enabled, and loaded with the latest features. SmartPOS gives you in-depth insights into what to optimize for greater returns. Making informed decisions is easy when you have comprehensive business data. And SmartPOS provides you with that. Contact us to know more.