If you’re a small business owner, you want to streamline your processes to not only make your job easier but also ensure customer satisfaction. From ensuring accurate inventory management to better customer experience, there are several tasks that small businesses have to deal with.
And a point of sale or POS system can do all that and more for you!
Below, we’ll look into the many advantages of POS systems for your business and explore what POS systems you need to get started.
What is a POS System?
A point of sale (POS) system is your modern-day cash register that can process cash, credit cards, debit cards, and even mobile payments with great proficiency. It can be used in-person, at brick-and-mortar stores, or online at an e-commerce storefront.
It comprises two parts, hardware and software, which not only help you accept payments from customers but also carry out various other functions to ensure the smooth functioning of your business.
Software Components
The software of POS systems is constantly evolving and can integrate with third-party software to meet the specific needs of your business with robust features.
And these systems go beyond transactions; they also help monitor buying trends, ensure customer engagement, and track inventory without requiring a human to do any manual work — which explains why its global market worth reached a massive $11.99 billion in 2022.
That said, on-premise POS systems can be rather limiting for larger businesses, as that would require investing in multiple components for different POS systems in different locations and still need help putting everything in one place.
For them, cloud-based software would be the best choice. It will centralize the entire process, from processing payments to reporting sales, for easier management.
Hardware Components
The hardware of a POS system works hand-in-hand with its software to deliver better efficiency. Here are some hardware components your POS system will benefit from.
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Barcode scanner: It reads the item’s product details and adds it to the checkout total while ringing up sales. It can also integrate with inventory management software to keep track of inventory.
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Credit and debit card readers: They could be in a swipe, tap, or EMV-chip format.
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Monitor/tablet: To display information.
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Receipt printer: To show proof of transaction and to enable returns, if applicable.
If you accept cash as payment, consider investing in a cash drawer to have an organized place to put the bills your customers use to pay for your products or services.
6 Benefits Of Point Of Sale Systems & Why You Need One For Your Shop
POS systems do more than just make processing payments a breeze — they also simplify other business-related functions to streamline your workflow.
Here’s how they do that:
1. Reports Sales
POS systems help you track business metrics like sales data (both online and offline) to keep track of which products are selling and how much profit (net and percentage) you’re making with them. It can integrate with POS systems in other departments to give you a complete understanding of how your business is performing across all sections.
Your POS systems can provide you with clear reports and better insights so you can explore ways to optimize your operations and make them more profitable.
2. Ensures Employee Management
POS systems can help you track how your employees are performing.
With team management software, you can:
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Track sales commissions to see who your top performers are.
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Check employee work schedules, which can be modified to reflect any changes.
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Fairly distribute tips based on information collected via the POS software.
It can also provide employees with the facility to clock in and clock out, which can help you keep tabs on the number of hours they work for payment-related information.
3. Processes Payments
To stay at the forefront of payment solutions, a POS system can accept different types of payment with the right hardware, including but not limited to:
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Cash
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Chips cards (credit or debit cards), which are paired with NFC-enabled readers
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Contactless payments via a mobile wallet like Apple Pay
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Gift cards
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Magstripe credit cards, which are swiped through a credit card reader
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Secure online payments through eCommerce storefronts
It also facilitates card-not-present transactions, which is when a customer manually adds their credit card info during checkout — bonus points for accessibility!
4. Manage Transactions
Once a transaction is completed, you should provide a receipt or a digital copy for customers to make refunds easier.
As around 43% of the adult customer base tips their wait staff, businesses in service-based business will also benefit from integrating POS systems with a solution that allows customers to add a tip.
5. Helps You Manage Inventory
POS systems track and record your sales data to track what products you have, giving you an accurate view of the quantities of products in your catalogue.
As carrying excess inventory results in loss of sales in 77% of businesses, this POS system feature could help you prevent mismanaging your inventory. Simply put, it makes restocking inventory less of a guessing game and more of a calculated decision, helping you meet demand without having dead stock.
Some POS systems also help you set reminders to restock items when your inventory reaches a certain threshold, allowing you to re-order best-sellers when it counts.
6. Manages Customer Relationships
POS systems can be linked with Customer Relationship Management (CRM) software to record customer details like name, email, phone number, birthday, etc.
You can use this information to nurture relationships with clients by offering personalized communication (calls, emails, and texts) and suggesting relevant products based on purchase history. It can help build brand loyalty and lead to repeat business. And as loyal customers become more profitable over time, the heavy lifting required for this due diligence will fizzle out a little bit with each passing year.
How to Use POS Systems
Here’s a quick step-by-step guide on how to use an ELO POS machine:
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Scan the product’s barcode. It’ll appear on the system, after which you can adjust the quantity purchased to ring up the sale.
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Ask for a member loyalty card (if applicable) and apply discounts on purchases.
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Take payments with the customer’s desired payment option to transfer funds from their account to yours. This will require some sort of hardware, but a POS system can allow you to calculate the accurate amount automatically.
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Print receipts. For this, you’ll need to integrate the system with hardware during setup and installation.
And that’s it; you’re all set!
In Conclusion
A POS system can be one of your best assets to boost your business. It can ensure a seamless customer experience while also helping you tap into your customers’ spending habits and improve your business processes. If you, too, want to benefit from this convenient system, it’s time to integrate Elo Touch solutions into your business processes to bring simplicity and elegance to the point-of-sale process!