Retailers have operated some type of POS system since the first retail stores were opened for business. In simplest terms, a POS (point of sale) system is the system put in place that handles all types of transactions in a store. These transactions occur at the point of sale, which for most stores is the cash register. In today’s modern world, retailers still use a POS system, but one that features many more tools for managing transactions and other relevant store data. A modern POS system will therefore feature a number of different types of software designed to track and manage data for practically anything in your store.
Any successful retailer knows the importance of maintaining accurate inventory records. Too little inventory can cost you business and repeat customers. Too much inventory can leave you strapped for cash at the end of the month when its time to pay the bills. With a modernized POS system that includes inventory management, you can rest assured that your store will never be short on products. You will also be able to track the performance of certain items, as well as markdowns of items and shrinkage (the loss of product to damage or theft).
Modern POS systems go far beyond a daily register count. Updated software will let you track reporting according to daily and hourly increments, along with a real time sales report. This accurate data will give you a better understanding of multiple sales trends, allowing you to forecast for the future and make more informed budget decisions going forward.
The modern POS system can be a great asset when it comes to building and managing your staff. Some of the more advanced POS systems will allow you to track the performance of your employees on the sales floor. In addition, you can use data from your POS system to help you set upcoming schedules and track the amount of hours each employee works.
Planning sales and promotions can get a whole lot easier with help from the modern POS software that tracks customer data. Imagine trying to decide what items to put on sale before learning which ones are most popular with your customers. You will be essentially playing a guessing game, which can lead to poor sales and unnecessary inventory costs. Now imagine making the same decisions based on cold hard facts about what items your customer bought, and what they chose to leave behind. You can also tailor your promotions to individual customers based on their previous purchases, which gives them far more incentive to shop with you in the future.
Loyalty Programs and Gift Cards
While we’re on the topic of customer incentive, we should discuss how modern POS systems can improve your loyalty programs. Simply put, a customer who is given the added incentive of a loyalty program will spend more money. Modern POS systems make it easy to track their purchases and incorporate discounts, giveaways or promotions automatically into their transaction. Gift cards also add incentive for customers to shop more at your store. Furthermore, gift cards allow for more flexibility among your customers when it comes to giving gifts, meaning you will likely make more sales over time.
One of the best features common to modern POS systems is the amount of flexibility they offer a retailer when it comes to creating useful data reports. Every system will give you the option to tailor your reports according to the data that is relevant to your store, but it is important to find a program that features reporting software that suits your needs. If you run a store that places an emphasis on employees making sales, be sure to choose software that lets you track the data relevant to your sales staff. In addition, you can have your POS system display alerts for certain events like a major sale or meeting a daily quota.
To find out more about how a well designed modern POS system can improve your business, be sure to contact one of the friendly experts at Millennium Bankcard today.