Reshaping Retail Strategies with POS Systems
Posted By : Arpita Pal | 28-Sep-2023
What is POS?
A point-of-sale (POS) system consists of various hardware and software technologies integrated with an internet connection that facilitates the smooth operation of receiving customer payments in multiple digital mediums. It supports businesses by offering multiple options for payment processing such as cash, cheques, debit and credit cards with both magnetic strips and embedded chips and virtual payment systems such as mobile wallets, united payments interfaces (UPIs), etc. Its integral role in facilitating the financial requirements of businesses makes it an irreplaceable component of daily functioning. The projected growth of POS systems is expected to reach 1.28 trillion US dollars by 2027, which serves as an indicator of its increasing importance in managing businesses.
Essential Components of POS Systems:
Efficient POS Software: This feature provides multi-integrated solutions for vital functions namely sales, customer and inventory management. The POS software enables functionality through retrieving data regarding transactions, customers, inventory etc., supporting transactions, getting insights from reports and assisting in overall operations for retail and other aspects of the business.
POS Display Equipments: The POS features include interactive displays that businesses can place to provide digital accessibility to its customers. It provides features such as filling customer data, placing orders, finding related information, choosing from multiple payment options, offering feedback etc., which reduces the burden on occupied employees and offers additional customer support.
Receipt Statement Printer: Receipts as proof of sale are necessary for both the business and the customer to keep records of transactions that took place between them. Once the customerâ€™s account is debited, the handheld printer releases a small statement of the payment made for their purchase of the product or service. These receipts come in both digital and physical options. Physical receipts are printed on the spot and handed to the customer whereas the digital receipt is received as a text message or an email on their device.
Reader for Different Payment Modes: For the convenience of payment to the buyers, the business would be expected to provide multiple payment options in terms of cash, credit cards, debit cards, virtual payment options etc. POS systems provide ease in performing transactions with the help of features such as an integrated reader that is able to recognize cards embedded with magnetic stripes or chips along with other payment options.
Barcode Scanner: This feature allows the equipment to scan barcodes that retrieves related information about the scanned product like their purchasing price, availability in inventory, applied discounts and offers etc., on the computer screen of the employee performing the task. This enhances accessibility and helps to reduce the time taken to complete a sale.
Cash Drawers: Elaborate cash drawers assist in effective cash management for business operations. With integrated POS features, the business can track the cash flow which helps in avoiding fraud and improving accountability.
Scaling Equipment: Businesses dealing in perishable items such as groceries require scaling equipment to measure and record the weight of products bought by customers. Integration with POS systems allows the maintenance of records relating to specifications of products purchased for future usage of the business.
How does a POS system support a business?
1) Enhanced Sales Growth & Management
Sales management is a multi-faceted aspect of business that involves sales & purchases, invoice management, payment processing, sales reporting and more that requires comprehensive monitoring to understand and analyze whether the business is able to achieve its sales objectives. POS systems with their detailed tracking features ensure greater functionality, ease of operation and beneficial insights on important sales-related metrics for data-driven decision-making that as a whole aids in better performance and growth.
2) Omnichannel Presence
With frequent technological advancements in payment systems, people now have numerous options to make payments for purchasing their preferred services or products. The introduction of digital payment options such as mobile wallets, QR codes, and united payments interface (UPI) has been the latest addition to existing payment options such as cash, credit & debit cards etc.
It also enables easy integration of e-commerce websites to build a greater brand presence where customers can shop according to their preferences. To keep up with recent trends and offer high-value services, POS financing systems enable businesses to have an omnichannel presence that can accept payments from various mediums and stay ahead of the competition.
3) Improved Customer Satisfaction
Customers from diversified backgrounds prefer different monetary options to make payments. Also, the ability to make payments from wherever you are adds a great deal of satisfaction and convenience to the customer experience. POS systems with their multi-modal approach offer enhanced flexibility for tasks of necessity and user interfaces that are visually appealing. They also provide self-service features with display devices which proves the efficacy of POS systems in providing specialized and personalized services from businesses to their customers.
4) Elevated Operational Efficiency
POS systems remove hindrances in the sales process of a business that might occur during its daily functioning and assist in providing a frictionless experience for both the business and the customer. By assisting customers in their buying processes through providing useful information regarding products, checking their availability, recommendations etc., POS systems aid employees of the business in enhancing the overall efficiency of the sales process.
5) Greater Accessibility
Businesses may require access to information that can be difficult to obtain beyond working hours. POS systems make sure that concerned people have access to relevant data and insights 24/7 so that necessary decisions can be taken at the required time to grab opportunities and avoid errors.
6) Better Inventory Management
Effective inventory management can only be ensured when the business has correct inventory data at times of requirement. To maintain the appropriate amount of stock for the business consistently, POS systems provide real-time information of the inventory stock so that the business doesnâ€™t miss out on beneficial opportunities and can support the buying process in times of necessity.
7) Robust Technological Support
The success of providing a digital payment experience to the customer greatly relies on the technological infrastructure of the business systems and its ability to keep up with technical developments taking place from time to time.
POS system provides robust technical support to businesses that help in facilitating seamless daily functioning, smooth payment processing and aesthetically pleasing interfaces that can contribute to improvement in the performance of the business.
How to Integrate PoS Systems in Upselling
What is Upselling?
Upselling is a concentrated effort made by employees of a business that involves recommending products of higher price ranges or additional products that have the capacity to offer higher value to the customer than what they were initially leaning towards buying. The employee can make these recommendations before the customer completes their purchase, during the checkout phase, or after they have completed purchasing the product.
These recommendations should be catered towards the benefit of the customer and should not feel like the employee is forcing them to buy more expensive products. These attempts can help make a positive difference in terms of profitability for the business, build stronger relationships with its customers and increase overall sales.
How Integration of POS Systems With Upselling Can Increase Sales
A POS system with its multi-faceted features can enhance and streamline functionality for a business by facilitating greater accessibility. It includes providing real-time information regarding their inventory, aiding seamless operations through faster payment processing, quick retrieval of necessary data, and building lasting relationships with customers through attractive offers and reward systems.
When an employee attempts to upsell the products or services of a business, one can utilize these features to his/her advantage in facilitating customer experience enhancements. This will ensure that the customer is able to realize the higher value of the product being offered as an alternative to what they were originally going to buy. Businesses can employ POS systems in their upselling endeavors to gain the following benefits:
1. Multichannel Support:
As both purchases and payments can be received from multiple platforms, a business should be ready to facilitate the required functions effectively for successful sales attempts. The business should be prepared to receive orders and payments from multiple platforms to guarantee maximum convenience to the customer and achieve greater number of sales.
POS systems provide integrated support for multiple platforms in receiving orders from both online and physical stores. It also offers numerous payment options to remove any hindrances in completing transactions so that customers feel comfortable in exploring higher-value options when guided by employees.
2. Build Customer Loyalty with Rewards System:
POS systems have the ability to influence customers at multiple points during their shopping experience. With the help of display equipment, businesses can showcase offers and loyalty programs that can interest customers to build a longer association with them.
When customers provide their details, businesses can offer memberships and loyalty programs which would encourage buyers to shop with the business multiple times after their first purchase. Similarly, before completing the sale, employees with the help of POS display systems can inform buyers about new and existing offers on products and services that they can receive if they upgrade their purchases.
3. Provide Beneficial Suggestions & Reminders to Employees:
With constant revision in business strategies and policies, businesses would require their employees to follow new tasks and rules to achieve the newly updated objectives and adhere to the policy guidelines. POS systems can be utilized to inform employees about new strategies and reminders to follow when interacting with customers and tasks that need to be done to achieve upselling targets.
4. Provide Better Customer Data Management:
Businesses can build a detailed customer base with POS systems to keep a record of customers' buying history, preferences, frequently purchased products, etc. to understand customer behavior and re-evaluate business strategies to design them in such a way that aligns with current trends and customer preferences. An aligned business strategy would help to elevate sales and profitability by recommending areas of improvement and adding more stock to meet potential demand as per current trends.
5. Offer Personalized Recommendations & Alternatives for Products:
By developing an elaborate customer database that can showcase customersâ€™ past purchasing history including their most frequently bought items, most explored categories, last viewed items, etc., employees are able to analyze this information to provide personalized recommendations and alternatives of higher pricing that can offer greater value to their customers and increase the average upselling sales targets.
They can also engage in a concept known as bundling, where additional products can be suggested along with the customerâ€™s preferred product to increase the total order value for the business.
For businesses, customer satisfaction and experience are central to the idea of success and increasing total number of sales for maximum profitability. POS systems in retail technology serve as reliable support for elevating customer experience while providing the ability to maintain high standards for its daily operations. Its multi-platform support ensures connectivity and smooth functioning which allows businesses to be at the top of their game while serving its customers.
It aids in building credibility and reputation for the business among customers which helps in developing longer associations with them. By thoroughly understanding their taste, preferences and requirements, employees with the help of POS systems can provide greater value to the buyers. By developing and utilizing an optimum POS system for your business, it can help you transform your business with greater performance and higher profitability.
Oodles Technologies is an innovation-driven company that offers specialized solutions for wide-ranging technical applications including POS systems. Our POS services offer comprehensive abilities that can manage your vital business functions from payment processing, sales, customer management and more. If your business is in requirement of an all-inclusive POS system to manage your operations, we would be happy to your partners in building customized solutions fit for your business needs. Drop us a line here and our experts will get back to you within 24 hours.