Point-of-sale systems are a must for any business. But not everything that’s available in the market will be right for you. Learn how to determine which system fits your business.
Choosing the right point-of-sale (POS) system for a business requires precision. It’s not something you can do without much thought. In fact, if you go down that route, it can do more harm than good to your business.
Why?
Modern POS systems are not like cash registers. They’re versatile tools designed to enhance efficiency in your business. Not to mention improve your customer’s experience and elevate your sales metrics. As such, you have to find one that’s right for your business.
Now, finding the right one might seem challenging. The good news is that this article can serve as your guide in selecting the ideal POS system for your business.
But why should you ensure your system of choice aligns with your business’s needs and growth objectives?
Understanding the Importance of a POS System
Simply put, inefficient POS systems can disrupt your business operations.
Consider the potential lost sales if your system doesn’t support popular payment methods, like Apple Pay or Google Wallet. If your customer can only pay using those methods, it means you’ll lose the sale.
Also, think about the challenges of managing stock. Without real-time inventory tracking features available to POS systems, you risk having inventory issues that will lead to lost sales.
So, a POS system isn’t merely for handling your transactions. It’s also crucial for your business’s day-to-day operations.
6 Key Features to Consider
Feature #1: Payment Flexibility
The advancements in technology mean customers demand diverse payment options. They now expect to be able to pay for their purchase through digital means as well.
So, your POS system should accept not only conventional methods like credit cards and cheques but also modern approaches. It must also be able to handle mobile payments and digital wallets like Apple Pay or Samsung Pay.
To give you a better perspective, here are some numbers worth mentioning:
In 2023, the total value of transactions made through mobile POS payments is expected to hit AU$56.61 billion. Additionally, the average amount spent per user in this market is projected to be AU$12.64 thousand. And by 2027, it’s expected that there will be 6.9 million users of mobile POS payments.
By promoting payment flexibility, you can enhance customer experience and ultimately maximise your sales potential.
Feature #2: Inventory Management
Inventory serves as the foundational pillar of many businesses. Maybe yours is the same. As such, your POS system should not only process sales but also be able to vigilantly monitor your inventory. It must be able to track your inventory in real-time and promptly notify you of low stock levels.
Some leading POS systems can even automate reordering, preventing the costly issue of stockouts.
In fact, according to RetailDive, stockouts can result in a huge loss in potential sales. Harvard Business Review also says that between 7% and 25% of shoppers will keep browsing if the item is out of stock. But they won’t buy a substitute item for what they wanted. Meanwhile, 21% to 43% will actually visit a different store to purchase the item they originally wanted.
Feature #3: Reporting and Analytics
In our data-driven era, providing accurate analytics is crucial. But only the elite POS systems go beyond logging sales.
According to The Ascent, the top POS systems gather information that influences various aspects of a business, including sales, inventory, and marketing.
Such systems can also offer insights into sales trends, high-traffic hours, and customer buying habits. With this data, you can refine your business strategies and maintain a competitive edge.
Feature #4: Customer Management
Customers now prioritise meaningful engagements over mere transactions. As such, your POS system should be able to handle your customer retention strategies.
Think loyalty schemes, purchase histories, and individualised customer profiles.
Leveraging them with the help of the right system not only bolsters brand loyalty but also encourages repeat business. As per Bain & Company, your profit could potentially increase by up to 95% by boosting customer retention by just 5%.
Feature #5: Ease of Use
When picking a POS system, you want one that’s easy for everyone to use.
A good POS makes sales smooth and helps your team work fast—that means more time with customers and less time spent dealing with a clunky system. Your POS should make your team’s life simpler.
A clear layout, easy steps, and quick checkout are essential. They make training on its use quick and results in a faster sales process, which keeps customers happy and coming back.
So, before finalising, make sure to watch the POS you’re eyeing in real life. Can your team use it easily without getting lost or making mistakes? Is checking out customers a snap?
Remember, the right POS will keep your business buzzing.
Feature #6: Integration Capabilities
Most businesses utilise diverse tools, ranging from accounting solutions such as QuickBooks to CRMs including Salesforce.
If the same is true for you, then ensure your POS system seamlessly integrates with these existing platforms. This way, you can have a cohesive workflow that streamlines your operations, prevents redundant tasks, and boosts efficiency.
Weighing the Cost and Benefits
In a cost-conscious economic climate, the instinctive thought to adding any equipment to your business is to look for the cheapest option. But for essential tools like a POS system, it’s wise to view it as a strategic investment rather than just another expense.
So, look beyond the initial costs. Conduct a comprehensive cost-benefit analysis, comparing the range of features with their associated costs. You must also factor in long-term value and anticipated returns on your investment.
Choosing a cheaper system lacking critical features might seem cost-effective at first. Yet, its shortcomings can lead to operational challenges, missed sales, or even force an early system replacement. Such issues can significantly increase your operational costs in the long run.
The Power of Hands-on Exploration
Choosing a POS system is like forming a new business partnership. Like all major commitments, you must thoroughly understand its features and benefits before deciding on one
It’s best to actively test the system’s demo or trial version. Having hands-on experience will let you see the system’s functionality and integration capabilities. You’ll also get to know how well it fits your business.
What’s more, remember that your staff will interact with the POS system daily. Therefore, involve them in the evaluation process. Their real-world feedback can spotlight overlooked features or potential operational challenges.
Ready to Find the Right POS System?
Choosing the right POS system can transform your business operations and significantly enhance customer experience. So, take the time to assess your business’s unique needs, then research your options. That’s how you’ll make an informed decision and get a suitable system.
But perhaps you need funding to purchase the perfect system for your business. If so, Unsecured Finance Australia is here to help. Apply for a loan online and you can receive your approval within 24 hours.
Find out more by taking a look at our unsecured business loans.
