The POS or Point of Sale System is here to stay with liquid cash on the decline and plastic money driving the cashless economy. Demonetization and the subsequent pandemic have led to a 40% year-on-year surge in card issuance in India. Retailers have adapted to the changed scenario, and you pay for the services or purchases using your credit or debit card. A card swiping machine makes your shopping experience seamless and secure. In return, it helps the retailer’s business prosper in manifold ways. Let us take a closer look.
What is a POS system?
The retailer’s POS system is the central component where the entire gamut of business operations like customer management, sales, and inventory management, among others, merges. Service providers equip the retailer with the essential hardware and software components against POS charges that are either rental or outright purchase.
How does the POS system function?
The traditional POS is not a standalone application replacing the physical cash management but a complete system. The POS system is the endpoint where you pay for the services or purchases at a store. However, the frontend interface is the visible element in the system, but the backend analysis and management functions are far more critical.
Top 5 Benefits of the POS system:
The POS system is a comprehensive package, and what you choose for your business is customized to your needs. Retailers big and small avail of the system from services providers regardless of the POS charges as the benefits outstrip the costs. While the checkout reveals the visible module of your POS system, you stand to benefit in several of your business spheres. Let us explore the top 5 critical benefits from the many that come with the system.
1. Improved Efficiency
Your POS system embraces state-of-the-art technology both on the hardware and software fronts. Thus, your TAT at the checkout is much faster under the POS system despite managing the entire transaction process. The right tools like the scanner and a card swiping machine hasten the process manifold compared to liquid cash. The customer leaves the store satisfied, and you have ended with a storehouse of data to aid your management information system. Moreover, the system’s inherent security ensures that your account is settled accurately.
2. Alternative Payment Capabilities
The POS system caters to the customer’s delight providing multiple digital options to conclude the transaction. Thus, you offer card swiping machine payments through EMV chip cards, contactless cards, and several mobile wallets. In addition, the payment alternative through the secure gateways providing the customer and the retailer interface is a sure step to retain and earn customer loyalty. As a result, the seamless shopping experience translates into business growth.
3. Ensured Accuracy
The vital feature in a POS system is the element of functional accuracy. The system’s data integrity is beyond question. The elimination of the manual system replaced with a modern digital interface is a sure recipe for accuracy, helping the management information system reap the maximum benefits. The POS technology ensures accuracy at every functional stage that helps the business grow through adopting suitable marketing strategies.
4. Inventory Management
The POS system monitors inventory movement with improved management capabilities. The retail matrix at your fingertips covers tracking the on-hand product quantity to trigger a reorder setup when the situation demands. The most significant advantage you can exploit in the POS system is the updated inventory data in real-time to mold your strategies accordingly. Your POS system software helps save hours of inventory management consistently every week.
5. Reporting Features
The POS system’s reporting features cover a broad business spectrum like sales, expenses, and profits. The reports are drawn from real-time data in easy-to-read formats enabling you to make data-driven business decisions. Furthermore, if your PS system supports cloud storage, you have the added advantage of accessing the reports from anywhere, even when you are mobile. Thus, you can monitor Key Performance Indicators (KPI) anytime and anywhere. The gained insight helps you adopt measures and adjust to profitability and competitiveness.
Do POS system advantages end here?
It is hard to imagine where the POS system advantages end. It offers a lot more than lowering your operational costs and improved productivity. Finding the right POS system and upgrading with emerging technologies is a sure way to improve your bottom line. The card swiping machine is only a tiny cog in the wheel, and the comprehensive POS system is designed with more outstanding capabilities and worth the POS charges you pay.