Most businesses use a POS system, and there’s a common misconception that it’s little more than a glorified cash register. The reality is that since its humble inception as the simple cash register, the POS system has evolved greatly over time to become what it is today: a valuable growth tool for your business.
In this blog post, we’ll explore some of the ways you can use POS hardware and the accompanying system as a sophisticated business solution and a tool for growth beyond making a sale.
Analyse and Leverage Your Sales Data
Everyone is familiar with the role of POS systems in facilitating transactions between consumers and businesses. Yet when you peel back this surface layer, you’ll find that modern POS systems go much further than this and offer advanced sales analytics.
The newer POS systems often feature multi-channel sales integration so you can manage your sales in-store, online, and even in-app from a single centralised source. This makes it easier for you to identify trends and see what’s working, and apply a multi-channel strategy that works to your strengths.
POS systems also allow you to accept various payment methods, which is increasingly important as cash usage is in decline. The following graphic shows the usage of payment methods in the United Kingdom from 2017 to 2023, demonstrating how customers prefer to pay these days.
Additionally, you can interpret raw sales data and transform it into actionable insights to drive business growth.
For example, you can:
- Track KPIs
- Analyse sales trends over time
- Identify your best-selling products or services
With this powerful sales data analytics behind you, it’s never been easier to use historical data to drive future growth.
Streamlined Inventory Management
To effectively scale your business, you need to keep tabs on your inventory at all times and manage stock to react to fluctuating consumer demand and changing preferences or trends.
Modern POS systems offer real-time stock tracking which reduces the risk of overstocking or stockouts, so you don’t have to worry about tied-up capital in inventory excess. It also allows you to guarantee that whatever your most popular products are, they’ll be available to customers to meet demand.
Some POS systems additionally offer automated reordering, which means you can set a minimum stock level, and the software will reorder stock when inventory levels run too low.
As a result, it can capture what would otherwise be lost sales resulting from out-of-stock products.
More advanced inventory management features include:
- Handling product variants
- Selling in bundles
- Tracking serial numbers
POS Systems as Customer Relationship Management Tools
CRM (customer relationship management) solutions are a necessity for the modern business which needs to nurture and cultivate its customer relationships. The primary purpose of a CRM tool is to collect and store key information on customers, so you can use these insights to personalise your offerings.
Modern POS systems encompass the functionality and features of CRM tools, allowing you to target customers with individualised marketing campaigns and personalised promotions based on their preferences, interests, and past purchases.
With a CRM in place, you can develop a comprehensive strategy for business growth based on increasing customer lifetime value and customer loyalty for repeat business. Customers care a lot about brands, and their loyalty to yours can be a key driver of business growth.
The Power of Business Intelligence
You can think of the modern POS system as more than just a data-collecting sales platform, as it also thinks for itself (in a way). Over time, it has developed to be so much more than what it was in years past.
With built-in business intelligence, newer POS systems can act as business consultants, advising you on moves you can make to get more from your customers and increase sales.
For example, your POS system might flag certain opportunities, such as if several products have historically sold well together, presenting you with a marketing idea to increase average order value (AOV).
Likewise, your POS system might also tell you how your sales are affected seasonally. It could be the case that certain products are always out of stock in the winter months, which could help you develop a proactive approach for the following months and seasons.
As you grow your business, it’s likely that your needs will shift. Maybe you expand to a new location, diversify your products or services, or decide to expand into e-commerce and set up an online store.
However you want to scale your business, a modern POS system will support you and adapt as you grow. This is especially true for cloud-based POS systems, which allow you to access your sales data across physical stores and online stores, and provide remote access to inventory information.
Cloud adoption is becoming increasingly important, and implementing a cloud-based POS system could help ensure that you remain a step ahead.
Streamline the Scaling Process with a POS
To stay ahead in the current business climate, it’s important to stay on top of all your data and know how to optimize it to offer the best customer experience.
A modern POS system puts you in an excellent position to grow sustainably and adapt to changes in your business. Whether you’re looking to add staff, diversify what you offer, or expand to the online space, a POS system can help facilitate this growth.
