10 Benefits of Using a POS System

There are many benefits to using a POS system, but the biggest one is that it allows businesses to cut down on payroll costs and provide employees with greater flexibility.

The “advantages of a pos system” is a blog post that talks about the benefits of using a point-of-sale system. This includes how it can help with inventory control, customer service, and more.

For brick-and-mortar companies, a point-of-sale (POS) system is a common tool. The old-school cash register has been replaced with a more sophisticated, tech-forward approach to the checkout process. Changing your company from a cash register to a point-of-sale system may be a difficult undertaking. However, considering all of the advantages a POS provides—such as improved operational efficiency, better sales, and happier customers—will make your decision clear.

Let’s take a closer look at ten of the most important POS advantages:

1. Saves time for managers

POS systems are more than just a means of accepting money. They’re becoming more and more the central center for all of your small company software, from scheduling and payroll to accounting and inventory management. Modern cloud-based POS systems either feature all of these elements in one package or allow you to connect to other software programs to create a full software solution. “Integration” or the use of “integrated applications” are terms used often to describe this process.

Choosing a cloud-based point-of-sale system that interfaces with your other company software saves hours of management time. In your POS, you may buy and receive merchandise, as well as sync your sales data with your accounting software. Many POS systems, like as Square, provide payroll services to manage the financial aspect of your company with just a few clicks, in addition to linking with conventional accounting software. In your POS, you can also create staff schedules and manage employee hours.

Steam Whistle Brewing, a Canadian brewery and event venue, has adopted TouchBistro to help simplify its expanding operations. It discovered that using the iPad POS allowed it to stop manually compiling daily reports in spreadsheets. This one modification in the company’s operations saved its executives two hours every day.

2. Improves Service Speed

About half of shoppers prefer to purchase in person, and 65 percent say the longest queue at the checkout is their greatest gripe. Point-of-sale features come into play in this situation. POS systems simplify and speed up the checkout process, as well as improving every stage of the buyer experience, from research to post-purchase.

It’s critical for retailers to think about the consumer experience, not simply their logistics and backend requirements. For a corporation with $1 billion in yearly sales, a modest improvement in customer experience may raise average revenue by $823 million over three years. That’s a huge leap!

Consumers in the United States will abandon a checkout queue after eight minutes. You may speed up the checkout process in two ways with an advanced POS:

• Allow for a variety of payment methods: Get rid of the awkward situation when your clients have to search through their wallets to locate the proper card. Offering e-wallet, contactless, and PayPal payment alternatives may help consumers complete purchases in less time.
• Saved payment types: When you save a customer’s favorite payment method in your POS, they won’t even need to take their wallets out. This model is ideal for boutique and service firms with strong customer ties.

Square POS is used by Bang Hair in Seattle to accept a number of payment methods. These skills have proven to be important to the company, particularly because debit and credit cards account for 95 percent of its transactions.

Modern POS software may help companies enhance the customer experience even more by enabling them to set rules for line busting, which entails identifying methods to reduce or eliminate queues in their establishment.

Here are some other line-busting tactics that a POS may assist you with:

• Check out the following items on the sales floor: Customers may be reached wherever they are, without having to wait in line. Associates may ring transactions on the sales floor using mobile and tablet POS systems as soon as customers make a purchase decision.
• Sell online: BOPIS (buy online, pick up in store) might help you avoid long lineups. Customers merely need to come into the shop to have their orders filled. Customers may pick up their orders at the curb using online checkouts, reducing waiting time.
• Customers may order things online or over the phone and have them sent from the shop without having to wait in line. This is especially useful for large goods like furniture and appliances.
• Self-service kiosks: Allowing consumers to make their own orders decreases ordering time, lowers labor expenses, and boosts revenues, especially in the food service business. McDonald’s installed kiosks to certain locations, which resulted in a 5–6% boost in sales.

Toast, Toast, Toast Orders are placed and payments are processed using two portable devices. (Image courtesy of Toast)

The Square Terminal is a device that handles transactions and mobile payments as well as printing paper receipts. (Image courtesy of Square)

Upserve’s mobile POS is elegant and well-designed. (Photo courtesy of Upserve)

When Creeds Collective opened its pop-up store in New York City, it used Lightspeed’s mPOS functionality to shorten lines. iPads enabled staff to do transactions from everywhere in the multi-story store.

3. Provides in-depth customer insights

You may create targeted campaigns using all of your POS data to reach out to prospective consumers with customised messages and promotions. Despite the fact that more than half of marketing executives boosted customization spending in 2018, it remains a top problem for small businesses. These customization initiatives are easier to manage and more successful with a POS.

Many POS systems include marketing capabilities or allow for the addition of marketing applications and functionalities. Email, social media, SMS, and other platforms may be used.

Impactful message templates are included in Square’s built-in marketing tools. (Image courtesy of Square)

Users of TouchBistro POS may simply integrate a customer loyalty program onto their system. (Photo courtesy of TouchBistro)

Small food companies may simply customize messages using Toast’s email templates. (Image courtesy of Toast)

Your loyalty program is an effective customer retention strategy that stimulates repeat purchases, increased spending, and increased word-of-mouth marketing. It’s critical to concentrate on client retention since even a 5% increase in loyal consumers may result in a 25% increase in revenue. In addition, loyalty program participants spend around 37% more than non-members. With the help of a competent POS, you can simply access these benefits for your retail business without wasting a lot of time.

It must be simple to sign up for and utilize a successful loyalty program. With a user-friendly interface, POS systems make it simple to enroll clients in your loyalty program and earn benefits when they check out. This is particularly crucial when considering that 28% of Gen Z customers would not join a loyalty program if it takes too long, and 40% of buyers believe loyalty programs make it too difficult to receive any benefits.

TheSuperCool, a Melbourne-based gift shop, manages its Amigos customer loyalty program utilizing iPads, Vend POS, and its Collect Rewards connection. It has automated much of this process, allowing the corporation to concentrate on enhancing the customer experience rather than on the onerous task of maintaining a database of program participants. As a consequence, in only three years, the company’s email list rose by 750 percent.

Customer feedback that can be tracked (and acted upon)

Customers’ input is not only collected, but also listened to and addressed by savvy merchants. You can do more with a POS system than just keep an eye on your Yelp page. You may utilize a POS to ask consumers for immediate feedback after a purchase through in-store surveys or targeted emails.

Customers may interact with the POS and express their opinions. This makes it simple to submit feedback, which is significant given that one study revealed that 32% of buyers are eager to provide feedback in person, and that collecting in-person input may boost revenue by 22%. As a result, it’s a smart idea to take advantage of these possibilities whenever possible.

Birdeye and Lightspeed POS work together to provide real-time client feedback. (Photo courtesy of Birdeye)

On digital receipts, Square POS technologies capture consumer input. (Image courtesy of Square)

You may use your Square POS software to immediately address unfavorable client experiences. (Image courtesy of Square)

Toast POS asks customers for feedback right at the time of sale. (Image courtesy of Toast)

Another intriguing finding from the poll is that 19% of customers want to provide feedback during the transaction, 34% shortly following, and 34% within 24 hours. You may use your POS to send automatic emails asking for feedback after a purchase. A unfavorable experience might have been improved by 52 percent of consumers if they had the ability to provide real-time feedback. These reviews are unedited and provide you a more complete picture of your customer’s experience.

4. Has software that adapts to changing business trends

Cloud-based POS systems update their software on a regular basis to keep up with changing customer preferences. As a result, a good point-of-sale system will keep your organization current as client tastes evolve. New payment forms, including as mobile wallet payments (like Apple Pay and Google Wallet), internet payments, and contactless, near field communication (NFC) payments, are simple to accept with a POS.

According to a recent study, 18% of US customers would consider utilizing cryptocurrencies for future retail transactions. When this occurs, shops that use point-of-sale systems will be miles ahead of the competition.

The Ako ChatBot is a simple Shopify POS add-on. (Image courtesy of Shopify)

However, a POS’s versatility extends beyond payment forms. With a POS connection, you may quickly add custom-supporting software to your website, such as live chat. Live chat has greater customer satisfaction scores than other help channels, and it is the favorite support channel among millennials. Some POS systems, such as Lightspeed Retail, include live chat software built in. These tools may answer basic queries (such as hours of operation and parking information), process simple orders and appointment reservations, and notify clients about the progress of their purchases.

Voice ordering is on the verge of becoming another huge change in consumer demand that will affect small merchants and eateries. Every year since Apple launched Siri in 2011, customer dependence on voice assistants has grown. According to a Microsoft survey, by 2024, more than half of customers intend to use voice search capabilities to make purchases. Voice-ordering integrations are currently available on POS systems like Revel Systems (through RedShift Voice Technology), and there will certainly be many more in the future.

5. Increases Revenue

We’ve previously discussed how a POS system increases income by increasing customer experience and keeping up with technological advancements. Even if you don’t have such cutting-edge capabilities, a POS may help you increase your sales by expanding the amount of income streams—or sales channels—that your small firm can manage.

Customers may connect with your company in new ways beyond traditional in-person purchases or appointments, such as via online sales, mobile events, pop-up shops, catering, or subscription services. An online shop for a salon’s recommended range of hair care goods could be added by a salon that specializes in cut and color services. A well-known burger shop may seek to branch out into catering. A vintage clothes company might simply take its business on the road, meeting clients at neighborhood events or outdoor markets.

Lightspeed Retail POS has subscription management capabilities built in. (Photo courtesy of Lightspeed)

Shopify POS integrates with over 15 subscription applications, allowing consumers to choose their favorite. (Image courtesy of Shopify)

A point-of-sale system enables you to monitor sales and expenditures across dozens of revenue centers, from different parts of your store to different online or offsite outlets. (Image courtesy of Toast)

A cost center, on the other hand, is another term for a revenue stream. A point-of-sale system helps you classify your sales so you can correctly manage your expenditures. You’ll be able to see in real time if your new pop-up store concept is viable or whether you need to recruit extra chefs to support your catering business.

6. Provides up-to-date, accurate data

While manually tracking key performance indicators (KPIs) using spreadsheets and shared files is possible, it may soon become boring and time-consuming, diverting your attention away from more important business issues. With a POS, the majority of the tracking is done for you, allowing you to concentrate on other important chores like as assisting customers, merchandising your sales floor, or creating new menu items.

You can easily monitor these retail KPIs with your POS in addition to daily sales:

• The average amount spent by a consumer when they buy with you is known as the average transaction value (ATV).
• Items Per Purchase: How many things people buy on average; items per purchase, also known as units per transaction (UPT), is a metric that evaluates the average number of products sold during a consumer transaction over time.
• Sell-Through Rate: The proportion of a product that is sold in a certain period of time.
• Sales per square foot: The average revenue generated per square foot of sales space in your shop.
• The number of individuals that enter your shop or visit your website against the number of people who complete a purchase is referred to as the conversion rate.
• Cart Abandon Rate: The proportion of online customers who add products to their shopping cart but then depart before making a purchase, thus leaving their virtual cart.
• Customer Retention Rate: The ability of a shop to maintain existing customers and keep them coming back.
• Gross Margin: The profit proportion of a store’s or a product’s revenue.
• Total sales per category: A retailer’s total sales for each kind of goods.
• Sales per Employee: How much money each employee brings in.

Similarly, independent restaurant proprietors may use their POS to measure KPIs such as:

• Check the average: the amount of money spent on average by a client in your restaurant.
• The number of clients you serve in a day is referred to as the cover count.
• Food cost: The amount you spend on the food you sell, given as a proportion of total sales.
• Labor cost: The amount spent on employee pay, usually stated as a proportion of total sales.
• Productivity: An integrated kitchen display system (KDS) allows you to measure how long it takes your crew to create and serve particular items.

Most importantly, you can run reports at any time to receive a clear, real-time view of your current expenses vs sales, allowing you to make changes while they are still having an effect on your Conclusion. For example, if sales are fewer than planned on a given day, you may use your social media, SMS, or email marketing channels to deliver a sales push. You may make a fast order in time for your supplier to refill if it’s a busy day and you’re near to selling out of your most popular pants.

7. Tasks are Automated

Automation is a fantastic approach to improve the efficiency and accuracy of your organization. You can automate operations like personnel scheduling and inventory management if you pick the correct POS. You may set up your system to notify you when there is a shortage of supplies or when workers are approaching overtime. This eliminates part of the tedious job of keeping track of stock levels and helps to avoid expensive problems like stockouts and extra dead stock.

Most POS systems include built-in employee schedulers or link with high-end software like 7shifts and Homebase. These technologies may automatically generate your personnel schedules depending on sales and staff availability, as well as arrange your POS to reject early clock-ins and overtime hours. Time theft includes early clock-ins, unlawful overtime, and “buddy punching” (when one employee clocks in for another), which costs US firms up to $400 billion every year. If your shop has a management team, you’ll save some managerial time as well; studies suggest that managers spend up to 20% of their time drafting schedules.

Automating your inventory—setting low-stock alarms, producing automated buy orders—and using online purchasing channels may help you save even more money. Advanced features like as predictive analytics and vendor management will be available on certain POS systems.

8. Provides Operations and Analytics from a Centralized Location

A POS system combines data from several sources to provide all of your company’s information in one location. Consumers in the United States buy from storefronts, online retailers, Amazon, eBay, Instagram, Snapchat, and Facebook, to mention a few. Even conventional brick-and-mortar businesses are embracing these methods. Single-channel commerce is a thing of the past.

Consumers of all ages are inclined to purchase from a number of sales channels, according to the BigCommerce Omni-Channel Consumer Shopping Research Report. (Photo courtesy of BigCommerce)

Emerging sales channels are an exciting opportunity to expand your retail company, but they also bring new logistical issues with them. A point-of-sale system may assist with these issues. The greatest POS systems act as command centers for your retail or restaurant business, allowing you to link your sales data to a variety of other software applications.

These tools might be enhanced tools from connected third-party applications, or they could be built-in POS modules like sales, employee clock punches, and incoming vendor orders. Many high-performing POS systems can transmit all of this data to a mobile reporting app that you may view from any smartphone.

Your POS management dashboard, such as this one from Vend POS, displays a large quantity of information at a glance. (Image courtesy of Vend)

On your smartphone, the Lightspeed Live app displays extensive data. (Photo courtesy of Lightspeed on the App Store)

Drill down to precise sales and performance statistics with dynamic color coding and customizable displays. (Photo courtesy of Lightspeed)

Adding third-party connectors, such as these from Lightspeed, extends the capabilities of your POS. (Photo courtesy of Lightspeed)

9. Ensures information security

With all of this talk about expanding income, sales, and operational capacity, you’ll want to be sure your (and your customers’) data is safe. Cyber-attacks are becoming more common as technology and data management improve. Payment data and ordering streams are secured by reputable POS brands, safeguarding your consumers from fraud and your organization from liability or data breaches.

In a system like Square, setting user rights by role or by employee is simple. (Image courtesy of Square)

According to a PwC poll, following pandemics and health crises, CEOs’ top worry in 2021 will be cyber risks. In 2017, 35 percent of customer records and 30 percent of staff records were compromised, according to a 2017 edition of this research, while 29 percent of survey respondents experienced some type of internal data loss or damage. Surprisingly, workers continue to be the primary cause of data security breaches. To reduce these risks, you may utilize a POS to create user accounts with varying authorization levels.

10. Is there to help you when you need it

Your new POS system can do a lot more than a basic register, and you should learn to utilize all of the functions to get the most out of your investment. Customer support resources are included with all top-of-the-line POS brands to guarantee you get the most out of your system.

Many offer searchable online knowledge bases or blogs that you can use at any time to understand new features that might help you grow your company. For example, this Lightspeed blog article describes how to install consumer Wi-Fi in your store and utilize it to gather data for marketing campaigns.

Retailers and restaurant owners are eager to move forward from the COVID-19 epidemic. Despite this, it’s vital to recall how POS partners came to their customers’ aid throughout the social distancing period, offering discounts and business advise. These are just a few instances of how point-of-sale providers helped small businesses during the pandemic:

Having and running a small company has always been difficult. With a powerful POS partner on your side, navigating a retail world that is changing quicker than ever can be a lot simpler.

Conclusion

Finally, POS systems allow tiny, independent stores and restaurants to function as efficiently as much bigger companies—yet they’ve never been more economical (many well-known POS firms like Square and Toast provide systems with no software costs). If you’re deciding between a register and a point-of-sale system, seek for a company that provides free trials or short-term contracts and uses gear you already have (like an iPad). To choose a POS system that meets your requirements, read our guide to the top POS systems for small companies.

The “5 disadvantages of pos” is a list of the possible downsides to using a POS system. The 10 benefits of using a POS system are:

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