With the uncertainty surrounding the COVID-19 pandemic, the retail industry, just like any other sector of the economy, has been affected. So, to ensure continuity of retail businesses, the National Retail Federation may be forced to shift the focus to the online transaction. There is a possibility that many restaurants, bars, and retail shops will soon start transacting online. There are expectations that online sales will increase quickly to a significant percentage. According to research, this trend will require improving the current POS systems‘ efficiency, especially for small business owners.
A POS system includes software and hardware components, and between the two, the software POS system happens to be the simple component to adjust. The POS software tool plays a vital role in the retail business operations more than any other. Therefore, it is believed that upgrading the POS system will be cost-effective, and small businesses will be able to grow their sales. The feature will increase online ordering and contactless payment, which will help small businesses move to the next level. Here, we are going to learn about the POS software component and its uses. But before looking into that, let’s first define the POS system.
1#) Point Of Sale System (POS) Definition
The point of sale system, also known as POS, refers to a device with a combination of software and hardware that small business owners use to complete the sales transaction. The equipment used to conduct the sales can be a tablet, iPad, or computer. POS system is in the form of a software app that powers the point of sale system.
You can use the toil to store data, process payments, drive the growth of your company, and manage your business’ functions. Today’s modern POS system software is an integral part of any business. It increases efficiencies for small businesses such as bars, retail shops, restaurants, as well as online stores.
2#) POS System Software Components And How It Works
The POS system can dictate core functions with the current modern technology we have today.
However, the features you include in your platform will be based on your choice of the software. POS system providers have their way of downloading and installing the software to your platform. Some may follow a simple process, like downloading an application to your iPad or tablet. Some procedures can be long and complicated.
While POS software products store a small amount of data on the hardware, most of the POS software products we have today keep information on the cloud. When you utilize cloud data, your application will be able to synchronize with other terminals to give you an offsite entry or access.
The component of the software is capable of calculating the item’s total price and processing transactions too. The more features you have on the POS software, the more you will be able to input products, pre-set prices, descriptions, images, and other range of elements. For instance, when it comes to restaurant applications, you can be in a position to build menus.
What is also amazing about POS software is that you can have access to your reporting data. This way, you will be able to keep track of your sales, item popularity, staff performance, trends, as well as other metrics. You can also import things such as menus, products, and other points of sale elements from an offsite location.
3#) Additional Software Components From POS System Providers
1. Inventory management:
Whichever business you are operating, inventory tracking is essential for managing a business. A right POS software product will enable you to track inventory. It is also capable of setting alerts whenever you run low on items. Some can even order new stock for you.
2. Staff management:
Besides using point-of-sale systems to manage your sales, you can also manage your staff’s schedule and working hours.
3. Customer relationship management:
Having a software system will help you manage relationships with your customers and track their spending habits. This way, you can offer special promotions to take care of customer service and meet their individual needs.
4. Gift card management:
You can also get a POS software program with a feature to help you offer gift cards to customers. The program issues gift cards with serial numbers that will help keep track of balances once the cardholder starts spending the money.
5. Loyalty programs:
You can use POS software to reward those customers who spend their money on your establishment. It is like offering incentives to loyal customers. A POS software app is capable of tracking each customer’s spending and then rewarding them.
The COVID-19 has changed the traditional way of doing things, especially in the small business industry. More than ever, we are going to see more online transactions, and this calls for a reliable and efficient POS system that can protect both the business owners and the customers. And there is no software that can work well other than the POS software component.