Even as India is placed among the fastest growing retail economies in the world, almost 80 per cent of businesses, small, medium and large ones put together, are running the show with traditional means notwithstanding the pressure exhorted by technologically advanced peers, advantages of having POS system at checkouts and growing demand from customers for enhanced shopping experience.
Though there are various reasons for their loyalty towards traditional business transactions, the common one being the misconception about the recurring cost and low business output due to the usage of Point Of Sale (POS) technology products, chiefly at checkouts.
However, the situation is changing now in India as more and more new and existing businesses are relying on POS technology to give customers a unique shopping experience. According to experts, a basic POS system, which contains a cash register, card reader, barcode scanner and a thermal receipt printer, can actually benefit retailers in more than one ways. Though it may require a small initial investment, these systems not only make their retail business organized and attractive for customers, but also help them increase sales and profit without recurring expenses.
With an efficient POS system at checkout, a retailer can enhance the functions of a cash register and cut costs by improving the overall operational efficiency.
Improved Inventory Management
Manually adding and removing items from inventory can be a costly and complex affair. Without an automatic inventory tracking system, one needs more employees to manually account each item. Apart from being a slow and laborious process, this can lead to errors and discrepancies. For businesses located in multiple places, the problems will be acute. The simple solution is to have a cloud-based POS system that allows employees track and edit inventory in real time from multiple locations and place it in one place. This will help stores to keep track of inventory all the time and plan business well in advance.
Avoid Multiple Data Entry
Businesses some time ask customers’ personal details such as their name and contact number every time when they come to the checkouts, thus creating unfriendly atmosphere and increasing transaction time. Such stores will not only lose sales but also their loyal customers who may share their (bad) experience with others costing revenue and clientele. An efficient POS system can help store customer data at a central location (cloud server) from where employees of various locations can access the information on-demand at any time. This also helps to apply loyalty programs and send promotional messages.
Time Saved is Money Earned
POS system helps to improve time management as a large amount of time is normally spent on studying sales patterns, measuring and identifying the popularity of services or merchandise offered and individual staff performance. This will take away the vital time spend on customers to boost revenue through sales. By making complex spreadsheets to calculate and project revenue and losses during business hours retailers may compromise on customer satisfaction forcing them to wait at counters.
POS can provide an exhaustive analysis of revenue and sales with minute details. In a jiffy, it can tell a store manager the real-time inventory positions of various stocks, which are the goods that have been sold and how frequently, and check the popularity of certain items that are stacked. This avoids the time required to sift through huge pile of records to determine sales volume/pattern.
Less Paper Work and More Efficiency
Apart from the above mentioned advantages, with the help of latest POS system, stores can improve organizational skills by reducing unnecessary paperwork. This will affect the efficiency of staff and customer satisfaction, which can cost you dearly by way of clientele and revenue. POS system can also help you reduce losses as it will prevent you to order and stock goods which are already exist in your warehouse. Any missing stock will be reported instantly to the store keepers for remedial action.
Another important advantage is managing huge customer data for promotional and marketing purposes. This will ultimately reduce marketing costs and time in reaching large number of clients.
Reaching Customers Becomes Easy
POS systems can help you contact your customers on a regular basis either through SMS or email to inform them about sales and other promotions thereby reducing the time and cost to reach them out individually through manual process. Through POS, you can simply send mass emails/SMSs in one single stroke.
You can also do a silent advertisement campaign by printing your store’s logo, address and promotional messages on the receipts. Since the cost of printing receipts through thermal printers is going up, people prefer receipts either on their mail box on their mobile. You can also include the store logo and other promotional message in the e-receipts. So, an all-in-one POS terminal can send the receipt directly to customer’s mail account or to their mobile thereby saving the paper cost.
So, what are you waiting for? Get a POS system today and improve your business and customer base.