A point of sale (POS) system is the software and hardware that allows you to accept payments from customers (in-person or online) and efficiently run your small business.
A POS system has the potential to significantly increase the profitability of your small business.
Here are the top 10 benefits of a POS system in 2023.
1. Get Up and Running Fast
The value of an improved solution is significantly reduced if you have to spend a lot of time on installation or deal with a long learning curve.
With modern-day POS systems, however, you can quickly access the full value of your improved solution.
In 2023, you can find a point of sale system that is easy to install and simple to use, allowing you to get up and running in a day. You should insist on a provider that walks you through the configuration and offers a customizable layout.
2. Keeps Track of Inventory
A POS system makes it much easier to keep track of your inventory; you no longer have to manually track inventory from shipment to sale.
Here’s how it works:
- When you receive a shipment, you scan the items and record the quantities.
- When you make a sale, the item sold is automatically deducted from your inventory.
In addition, you can pull inventory reports that point to your best-performing (and worst-performing) products – showing you the way forward for your small business.
3. View Sales Reports
A point of sale system allows you to track a lot of sales data including:
- Total sales, discounts, net sales, taxes, tips, and size of average order
- Top tender types
- Sales broken down by location and time of day
You can generate reports based on this data, and get actionable insights on your business.
For example, you have a coffee shop and you are open from 8am-4pm every day (8 hours a day). Your sales reports show that you are recording 25% of your sales between 3pm and 4pm, on average. This indicates that your shop is popular among the afternoon crowd – and you may want to stay open a little later.
4. Analyze Employee Performance
Is your small business heavily reliant on human resources? If so, the ability to analyze employee performance is a key benefit of a POS system.
You can track sales per employee and sales per hour worked, to name a couple of possibilities.
By looking at employee reports and the previously mentioned sales reports in tandem, you might uncover several areas of improvement for your small business.
5. Manage Promotions
A POS system allows you to efficiently manage multiple promotions.
With the Clover Station Duo, for example, it’s possible to offer a discount in exchange for customer information – perhaps you offer a $10 discount to those that provide their email address. Then, you have the ability to share valuable offers with your “subscribers” – just don’t overdo it.
In addition, you can customize your promotions (including the percentage and length) and share your promotions on social media platforms.
RELATED: What are Loyalty Programs?
6. Increase Tips
If you own a bar or restaurant, tips comprise a large percentage of your staff’s income. If you increase tips, you may be able to increase staff retention – which would be a huge win for your business.
With a POS system, your customers can digitally add tips during checkout – potentially increasing the total tips received by your employees.
7. Access Data Anytime and Anywhere
In 2023, you can easily find a cloud-based point of sale system, allowing you to securely access your data anytime and anywhere.
Also, your data is protected from any destruction to your physical location.
8. Get Support
With a POS system, after-sales service is a realistic expectation.
Look for a supplier with a support team, and ask the following questions:
- Do they answer questions about how the system works?
- Do they help with technical problems?
- When are they available? What is the typical waiting time?
On the third point, you don’t want to spend days waiting for assistance if your system stops working – for whatever reason. In that case, a timely response might make a huge difference to your small business.
9. Increase Speed of Checkout
Nobody likes waiting in line – a team led by Yina Lu of Columbia University found that long lines result in lower sales.
By hiring more checkout staff, you can reduce the length of lines… but that’s expensive. A POS system is a more cost-effective path to short lines at the front of your shop.
With a point of sale system, you can quickly complete transactions.
10. Access Customer Data
A POS system helps small business owners acquire customer data, which can lead to increased revenue.
Here’s how to leverage customer data:
Track the purchases of customers. By doing this, you can share targeted offers immediately – or later on.
For example, you have a sporting goods store and a customer buys a tennis racket. You can also offer tennis apparel (maybe at a discounted price) – when the racket is purchased or down the road.
Either way, you need previous customer data to make a quality recommendation. In this example, knowing exactly what is typically purchased with a tennis racket is extremely useful information.
It’s possible to execute the above strategy without a POS system. But it’s much easier with a POS system.
The Bottom Line
The benefits of a POS system are a game-changer for many small businesses.
The data on inventory, sales, employees, and customers allow you to quickly identify areas of improvement for your small business.
You can improve the customer experience with faster checkout and better promotions, possibly improving your customer retention rates.
And it’s easy to get up and running – and stay up and running – if you choose a top-notch provider.
Browse POS systems for your small business, and feel free to give us a call at 866-701-4700 if you need help evaluating your options.