TMCnet Feature
August 07, 2020

Understanding Point Of Sale (POS) Tech and its Importance for Small Businesses



Starting a new business is undoubtedly a daunting process. There are many tough decisions to be taken before you actually get into selling goods or providing services. While envisioning any new venture, we often tend to get ahead of ourselves. However, we must understand that some of the decisions we take at this stage have a significant role in determining our success in the future. In today’s rapidly changing business landscape, the selection of an appropriate point of sale or POS system is one of the most critical business decisions.



What is a Point of Sale System? 

Commonly referred to as POS systems, point of sale systems are what the customers of a business use while making payment for a product or service. Depending on the system, it is possible to run an entire business these days through POS systems equipped with extraordinary features.  Some of the top-tier points of sale systems can help users manage their inventory; provide detailed reports, as well as analytics. With eCommerce integrations, these systems can be used to sell online. Built-in card processor services are also available with many POS systems. 

Understanding POS Software Options

Before selecting your POS, you will have to take plenty of factors into account. First of all, try to figure out whether you need a locally installed or cloud-based system. Locally-installed systems are more expensive and can be accessed only at the server’s physical location. Cloud-based systems, on the other hand, can be accessed from anywhere with a mobile device or tablet just by paying a monthly software fee. Before signing up, you should also find out whether the system runs on Android (News - Alert), iOS, or both types of devices. 

Understanding POS Hardware Options

Regardless of your business size, in order to get up and running, you would require some basic equipment. Many convenient hardware packages are offered by different POS system providers. Some extremely useful hardware options you may consider include cash drawers, card readers, receipt printers, barcode scanners, tablets, scales, etc. 

Important Features of POS Systems

While looking for a new POS system, you will soon find out that all these systems are not similar. Even within the same price range, the systems may offer very different features. Mentioned below are some features you may want to consider.

  • Inventory Management: This feature allows retail establishments to track inventory across multiple locations and create their own purchase orders. Restaurants can use this feature for real-time ingredient tracking and automatic stock alert setting.
  • Customer Database:  With this feature, you can build up a customer database by collecting and storing customer information.
  • Loyalty: Some POS systems come with loyalty programs that allow customers to earn rewards or store up points based on the amounts spent by them.
  • Employee Management: This feature can be present in your POS system in the form of a built-in time clock capable of keeping tabs on hours.
  • Reporting: Most of the good POS systems offer some kind of reporting capability. This feature can be particularly useful for businesses looking to track their efficiency or pinpoint their star employees or top-selling products,
  • Integrations: This feature gives businesses the ability to set up online ordering or eCommerce. Many of today’s popular POS systems can integrate with marketing software like MailChimp and accounting software like QuickBooks or Xero.  

Selecting a POS System 

Prioritize the features that you require from your POS system and find out the most cost-effective systems with those features. Narrow down your search to three or four companies and contact them for a free trial or demo. With so many available options, you will surely find out the one that is optimal for your requirements. Alternatively, you may also visit Clientron for a wide range of top-notch POS systems tailored to your exact business requirements.

  



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