Technology is becoming an increasingly vital and integrated part of our culture. From mobile wireless internet, to television on a hand-held device, advances in technology often mean radical changes in how we perform many of our daily activities. Technology within the retail world is no exception. No business can be truly competitive in today’s marketplace without taking full advantage of the many technological advances in inventory, customer and sales tracking. Therefore, it is crucial that all retailers eschew the idea of a simple cash register and begin researching a full Point of Sale system (POS).
Unlike traditional cash registers, which simply tally the sales for a certain station on a particular day, a POS system allows a business to fully track customers, inventory, merchandise received, sales, and all other accounting transactions. In addition, a POS system with a barcode scanner will decrease time spent at the checkout counter, thereby increasing customer satisfaction. Each of these elements is of the utmost importance to a retailer’s success, so we will review each individually.
Customer tracking is the first element of point of sale software that should be considered. This feature allows the retailer to input data about customers, such as address, phone number, shopping preference, birthday, etc, thus providing the retail management will all the information they need to market specific products to the correct customers and establish a personal relationship with their clients. The end objective is enhanced customer loyalty and increase spending.
In addition to tracking customers, a retail POS should also provide accurate, real-time inventory tracking. This means that the entire inventory of the store is contained within the point of sale system, and as items are received from vendors, the quantities listed in the system increase; conversely, as items are sold, the inventory listed in the POS system will decrease. This allows sales people to accurately inform customers of merchandise availability and allows buyers easy access to current inventory information so they can make informed re-order decisions.
When a retailer accepts delivery from a vendor, good point of sale software will allow the receiving department to connect directly with the accounting data to keep track of all merchandise received into the store and the anticipated accounts that will be payable and when. In addition to updated the inventory as described above, this process also updates funds available to make additional purchases.
No retail business will have any success, however, without sales. Selling merchandise to the end-user customer is the ultimate goal of a retailer, and point of sale systems provide invaluable information to the retailer regarding purchasing preferences of customers, and which items often sell together. Sales in a POS system are also time and date stamped, allowing the retailer and buyers to see what days and times of day are the busiest, providing excellent information for properly staffing the retail store.
Besides reporting sales and inventory figures, good POS systems also acts as cash registers, each with the appropriate hardware such as a POS cash drawer, barcode scanner, and receipt printer. The cash drawer, as with traditional cash registers, provides a safe place for currency received during the day to be stored. These drawers should automatically open at the end of a transaction, and automatically lock when closed.
The barcode scanner’s importance cannot be over-emphasized. While most customers enjoy or at least realize the necessity of selecting the actual items they plan to purchase, once they arrive at the cash registers to complete their transaction, they are interested in only one thing- leaving the store with their merchandise in hand in the shortest time possible. Barcode scanners provide the speed necessary for cashiers to service the customers accurately and efficiently, thus improving overall customer satisfaction and subsequent loyalty.
Finally, a very fast receipt printer will further enhance the customers’ shopping experience. Waiting for a receipt to print slowly at the end of a transaction can be the ultimate frustration of a shopper, and many will leave without it if it is taking too long to print, but will expect that their return be honored on a future date even if they come back without their receipt in hand. A rapid receipt printer solves both the problem of frustration during the purchase and of confusion during the time of a return.
It is apparent that a good POS system is absolutely mandatory if one is to have success in the retail world. From tracking customers, to sales, to inventory, it will be the most important tool you have in growing your business and ensuring your success.