We want you to know the top advantages of POS systems (point-of-sale systems) versus credit card machines, financial software, and traditional cash registers. So we will start there and then let you know some concerning findings that make POS systems more vital than ever to overwhelmed business owners.
After that, we’ll dive deeper into the nuances of POS systems efficiency and what it can mean for small businesses today and those headed toward a promising future.
7 Big Advantages Of POS Systems
#1 Inventory tools like automatic reordering and detailed inventory reports.
#2 Faster checkout processes that improve customer experience.
#3 POS systems can store customer data, track purchase history, and make loyalty programs measurable, manageable, and scalable.
#4 Easy to track employee hours and performance and relieves scheduling hassles.
#5 User-friendly reports on sales, inventory, returns, refunds, types of payments used, etc.
#7 Modern POS platforms reduce human error in transactions, inventory counts, and financials.
See, your POS system is capable of so much more than accepting credit and debit cards, although that’s obviously vital too!
At National Processing, we encourage all our customers to utilize their POS systems to the fullest. We believe doing so can cut down at least ten percent of the wasted time that comes with repetitive tasks and manual processes.
And in today’s environment, there’s never been a greater need for business owners to cut out wasted time.
POS Systems Benefit Overwhelmed Business Owners
These three stats blew us away (we will add one more toward the article’s end).
- Over 50% of small business owners worry that the long hours they work impact their relationships with family and friends (Inc).
- 75% of small business owners are concerned about their mental health (Inc).
Not only is it a challenge to make a business successful, but it’s also rare to do so without being overworked and eventually getting burned out. This means it’s imperative to use all the tools available to lighten your workload while still getting crucial tasks done.
Here’s where your payment processing platform comes in. If you learn all the features and benefits of your POS system and put that knowledge to use, you will find your workload becoming less of a burden. Your staff will thank you too.
Sound impossible?
Less Work Is A Key Advantage Of A POS System
It is possible, and you deserve all the small business POS advantages, including an innovative benefit (cloud-based POS) that is still fresh compared to payment platforms of the past. Cloud-based POS systems don’t just provide better security. They allow you to remotely access your payment platform and the valuable data inside it.
This is a huge POS advantage compared to the past when business owners had to manually compare sales figures or drive to their business to download reports. The cloud makes a POS platform more flexible and adaptable to your needs and lifestyle.
Related to the cloud is the mobile aspects that come with many POS platforms today. Think tableside ordering and payments at restaurants and cafes as well as retail stores during peak times to reduce customer checkout waits. An example is how Chick-fil-A drive-thru workers run your credit card as you order to reduce wait time when you get to the pick-up window.
What about analytics and reporting benefits? See the POS advantages below:
- Track sales trends
- Manage inventory efficiently
- Deeper understanding of customer preferences
- Optimize pricing strategies (some large businesses are implementing “dynamic pricing,” for example)
Then you have to consider the AI advantages of POS systems. AI and machine learning, when used ethically, have huge upsides for small, medium, and enterprise businesses. While these tech tools can do predictive inventory management and recommend ideal marketing strategies, perhaps they are best at customer behavior analysis (more details coming up).
Three more ways a quality POS platform lightens your workload:
- Self-serve kiosks allow customers to order and pay without staff to assist.
- Makes subscriptions easier to manage.
- Provides multi-location businesses with real-time data and notifications.
Now, we’ll look closer at how customer behavior analysis can help business owners — 53% of whom worry about doing their work all alone (Inc).
Small Business POS Advantages Mean You Don’t Have To Go It Alone
When you have insights into customer behavior, you can leverage this knowledge in powerful ways.
First, it helps you develop personalized marketing. This is proven to increase sales. How? Studies show that consumers are unhappy with ads and offers that don’t fit their needs.
They prefer relevant offers. For example, a pet store sends a loyal customer cat food coupons, but the customer has a dog — that is wasted marketing. A quality POS system helps avoid those blunders and improves overall marketing efforts.
Next, a deeper understanding of your customers informs you as to which products you should stock or develop. Same goes for services. An example is automated tracking of returns or chargebacks. This would help eliminate products that are often returned because they aren’t durable or fail to satisfy customers.
Sign up with National Processing for a payment processor focused on your satisfaction.
Another benefit relates to customer touchpoints
Many busy business owners have misconceptions about the steps it takes for a customer to…
- Become aware of the business
- Compare its offers to competitors
- Choose the business or product
- Make repeated purchases
- Refer others to the business
This insightful customer journey becomes clear when your POS system highlights it through the data it automatically tracks and organizes for you!
Last point on customer behavior. Have you heard of “churn prediction”? In a nutshell, your POS can spot reasons customers stop buying from your business. The data inside the payment processing platform reveals tidbits that give the system predictive abilities. This is great because when it alerts you to this churn possibility, you can take action to avoid losing a customer.
An example: A loyal customer stops coming in for oil changes on their two-year-old F-150 after being a regular since the day they bought the truck. Keeping them coming to your dealership for oil changes boosts odds they will buy from you when they want to trade in the truck. An email coupon and or postcard with an oil change discount could be triggered by your POS system to bring them back.
Conclusion
We sure hope you’re impressed by all the advantages POS systems have in store for your business.
There’s no doubt that you put in tons of hours making your business a success. So, we think you deserve a break. However, a break doesn’t mean things won’t get done or that your business will falter. In fact, if you lean into all the features and advantages of a solid POS platform, your business will be more efficient and profitable.
The difference will be obvious in the extra free time and breathing room you get as a result. Your family and friends are likely to notice the difference too!
Thanks for reading. Below are some frequently asked questions that will finish covering POS system efficiency, benefits, and advantages over other payment processing options.
FAQ: Advantages Of POS systems
How does a POS system differ from a traditional cash register?
Cash registers mainly record sales and calculate change, while POS systems offer features like inventory tracking, customer relationship management (CRM), and detailed reporting. That said, many POS include cash registers / drawers.
Can a POS system help with employee management and scheduling?
Yes. Many platforms offer time clocks, employee performance tracking, commission calculations, role-based staff access, highlighting of employee patterns like common sick days or months, etc.
How can a POS system help a business be better connected with its customers?
Many experts say artificial intelligence is being utilized in questionable ways and gobbling up natural resources. This means true human connection could be the greatest USP (unique selling proposition) a small business has over the next decade. Using POS technology responsibly, a business can better understand the needs, wants, problems, preferences, and habits of its customers. Taking time to implement these POS tools and listening to customers mindfully is the best way for companies to provide true human connection in business relationships.
