How to Choose the Best Point of Sale Software for your Retail Company
Whether you have a small business or a large company, one of the most important decisions for your retail company is to choose the best point of sale software. This decision will determine how your business information flows and how your sales evolve.
Regardless of whether you have a good ERP (Enterprise Resource Planning) system, a point of sale system is essential to manage a retail company since it helps you to automate payment processing, as well as track sales and relevant data for operating a retail store, such as the availability of your products or items in stores and warehouses, your customer profiles, among many other management features.
Currently, there are many different options of point of sale software available on the market, so it’s important to find the right POS option for your retail business needs. And we want to help you to do that!
In this article, we will share 5 things you must consider to choose the best Point of Sale software for your retail business, after the COVID 19 pandemic redefined the way retail companies operate. A solution that allows you to be at the forefront of technology while you meet your customer needs.
What is a Point of Sale (POS) System?
Point of sale software is computer software that helps retail companies run their business operations. Talking about the POS hardware, it can be used on desktops, laptops, or even mobile devices such as Android tablets or iPad POS, and it can include management features such as ordering systems, cash registers, inventory control, payment processing, barcode scanners, and point of sale screens where transactions are completed in front of customers.
There are many different types of POS software available on the market today, however, it is important to know how to choose the best, so it can meet the most current requirements that customers are looking for and is both easy to use, as well as a powerful system for your business to empower your sellers.
How to know if a Point of Sale software is good?
- It is simple and uncomplicated: The software should be easy to learn and use, especially for new employees.
- It offers Data Tracking: A retail industry needs to be able to track sales, general data, and other important metrics.
- It offers strong security: POS software should include features that protect against fraud and theft.
- It is customizable: Vendors should offer a wide range of customization options, allowing retail managers to create a system that feels unique to them.
- It has a friendly interface: Good POS solutions allow employees to use them intuitively, without the need for constant training.
- It helps business owners to make real-time decisions: a cloud based POS system will allow immediate updating, synchronization and real time reports, so that the decisions you make are based on the correct information at the correct time.
Sales management, advanced inventory management, and being able to link inventory to sales are also important. Without accurate records of what is in stock and what has been sold, it becomes impossible to manage your finances or track the activity of your customers.
A good retail POS system also allows you to track sales and inventory levels on a daily, weekly, or monthly basis, so you can make informed decisions about future product launches and pricing.
In addition, a comprehensive Point of Sale system provides tracking capabilities for your customers. For instance, being able to know who is buying what and when, or which products are flying off the shelves and which are not.
5 Tips to Choose the Best POS Software for Your Retail Company
1. Consider what your business goals are. What will you use the POS system for?
Before choosing a POS software, it’s important to determine your company’s business goals. Like any important decision, the strategy you are considering implementing is a key factor in a world with so much competition, and in which the rules change and are reinvented every day. So it will be very important to ask yourself questions such as:
Do you want to increase sales? Control inventory? Reduce administrative costs? What do you need the software to do? Do you need to track sales and data? Create customer profiles? Do customer management? Do payment processing? Support a Loyalty Program? Serve your customers instore and online, or through multiple channels? Upgrade your system to be omnichannel?
All these mentioned tasks can be performed with different POS systems. Answering these questions before making any decisions about which POS to implement, will be of great importance in meeting your retail company’s goals.
2. Evaluate the cost-benefit relationship
When choosing a point of sale software for your retail business, it is important to consider the cost-benefit ratio. Point of sale software can improve efficiency and save you time by speeding up transactions, but it’s important to weigh the benefits against the costs. The following five keys can help you calculate the cost-benefit ratio:
- Evaluate how much transaction or payment processing time is wasted due to inefficiencies in your current system.
- Determine how much money could be saved by eliminating errors and speeding up transactions. How long are you taking to generate reports, and how much does it cost your business.
- Calculate the potential gross margin for each point of sale system in your retail business.
- Calculate how much additional investment you are making in marketing because you do not have a system that allows you to integrate your marketing strategies and contact your customers, or implement customer management strategies.
- Compare price points and POS features to find the best option for your needs.
And of course, it will be essential to consider your budget. Consider how much you are willing to spend on a POS system, since some of the more popular systems can range in price from $100 to $10,000.
Another factor to determine the cost-benefit ratio is to evaluate the current technological infrastructure of your company. Perhaps a large investment in POS hardware has already been made and the best option is to take the most advantage of it. However, in the cost-benefit ratio, no cost is greater than the need to stay current, satisfy your customer needs, and generate more sales.
Without any doubt, being up to date with an omnichannel point of sale system is one of the best investments that you can make. Far from being an additional cost or a “nice to have” software, your point of sale system will determine the company’s future, since it simplifies the management of your business and increases your sales.
3. Compare different types of POS software: on-premises, cloud based, or hybrid.
POS software comes in three main types: local, cloud based, and hybrid. Each of them has advantages and disadvantages.
Local software is installed on company servers. This means that the company has full control over it and it can easily update it. However, this type of POS software is more expensive to install and maintain than the other two types.
A cloud based software runs on a remote server owned by the company or a third party. This means that the company does not have to invest in hardware or software, but sacrifices some control over how the software is updated and managed. Cloud based systems are easier to use than on-premises systems, and nowadays they offer much better security and performance than on-premises systems.
Hybrid systems combine elements of all three types of software. That is why it will depend on your needs to choose the modality that best suits your retail company.
4. Make sure the POS is Omnichannel
Omnichannel POS refers to the use of multiple channels (internet, smartphone, mobile applications, e-commerce) to interact with customers and manage sales transactions. Leveraging these channels, companies can improve customer loyalty and service, and increase revenue by eliminating the need for customers to visit multiple locations or make multiple phone calls.
There are several factors to consider when selecting an omnichannel POS platform: the digital and distribution channels that businesses use most often, how much customization is desired, for example, pricing, scalability, integrations, and partnerships available, among others.
Advantages of having an Omnichannel POS
The first benefit of an omnichannel POS is that a company can increase its sales in a short period of time. Omnichannel POS software enables the retailer to track customer behavior and preferences across all channels, enabling the business to provide a more customized shopping experience. This means that customers are more likely to purchase items they have been interested in, and are not as influenced by advertisements or other promotional materials. Additionally, if an item is out of stock in one channel but available in another, the retailer can automatically order it from the out-of-stock channel, saving time for the customers.
Retailers who adopt an omnichannel point of sale (POS) software can obtain several important benefits.
- Omnichannel POS terminals enable retailers to handle transactions in a more efficient and customer-friendly way.
- Using omnichannel POS systems allows retailers to track sales, inventory, and data in a more effective way.
- Using omnichannel POS systems can help drive customer loyalty by making it easy for them to shop across a retailer’s store network.
- Omnichannel POS systems can help retailers reduce costs associated with traditional retail operations, such as labor and overhead.
- Adopting an omnichannel retail POS can position you as a leading provider of consumer services across all channels.
- An Omnichannel POS system provides a better service, helping reduce customer complaints.
5. Make sure it will help improve Customer Experience
Retailers who want to improve customer experience and increase customer loyalty, should choose the point of sale (POS) software that meets the needs of their business. The right POS software can help ensure accurate sales transactions and save you time, while it also offers reduced wait times for customers.
Clients increasingly demand great customer experiences in all aspects of their lives, specially the ones they got while shopping. This has led to a demand for POS systems that provide an excellent customer experience. Retail companies need to consider how they can best meet this demand and keep costs down.
There are different ways to improve customer experience with POS systems. Some popular techniques include providing friendly and helpful staff, user-friendly menus and kiosks, and layouts that are pleasing to the eye. It is important for retail managers to choose the right POS software for their needs, as not all systems will offer all of these POS features.
Retailers can also benefit from using retail POS systems that provide real time reports and daily analytics. This can help them understand how their customers are using the system and what areas could be improved in the future.
The retail industry has a wide range of POS software to choose from, each with its own set of pros and cons. The right POS option will depend on the specific needs of your retail company.
With so many options available, it’s important to do your research and find the right software for your business needs. There are many factors to consider when choosing a point of sale system for a retail business, however, business owners can find the system that allows them to be at the forefront of technology and be part of the businesses that thrive in the new post-COVID19 reality.
Are you ready to choose your Point of Sale (POS) software?
Teamwork Commerce is an omnichannel solution that provides retailers with POS, OMS, Inventory Control, CRM, and Analytics. As a leading partner of Apple, Teamwork is constantly evolving and ensures the use of cutting-edge technology. The world’s leading retailers use Teamwork Commerce to create a customer-centric omnichannel experience and be frictionless. For more information, visit www.teamworkcommerce.com
As retail businesses strive to stay competitive and relevant in the ever-evolving digital landscape, it is important to understand what trends will shape their business models over the next few years. 2023 Trends in the Retail Business By 2023, retailers will need to...
Perspectives for the Andean Country In this outlook series of Retail in Latin America, we provide a vision of the challenges and perspectives of the retail sector that changed so much during the pandemic, and that forces us to change priorities to take advantage of...
The holiday season is upon us and that means it's time to start shopping for gifts! If you're looking for some inspiration, look no further than our holiday shopping guide. Also, Black Friday and Cyber Week are just around the corner, so you can buy your gifts at a...