Understanding the modern POS system

Thinking of the traditional customer checkout experience, the first thing that comes to mind is likely a cash register. The difference between that traditional solution and a more modern system is the additional features the latter offers.

Typically with a cash register, a salesperson takes cash, hands out change and maybe uses a receipt printer. Modern POS systems, meanwhile, do that and much more. Going beyond cash, modern point of sales systems accept many types of payments, like credit, debit and EBT. The new systems are payment processing software that help your data reporting, loyalty programs and inventory management.

Changing depending on what exact solution and plan you choose, the key features of modern point of purchase solutions POS features, have a few important common characteristics, all designed to improve the point of sale transaction for customers and businesses:

• Processing a wide range of payment methods, from cash to online payments
• Accepting contactless options using mobile payment methods like Apple Pay
• Management features for employees, like tracking time in and time out for staff
• Tracking loyalty program management, including setup and management of loyalty points
• Recording and real-time monitoring of product-specific inventory and other inventory management features
• Integrate data reporting options, including live data feeds sent directly into your customer relationship management (CRM) system

Put it all together, and the POS system becomes a powerful tool and comprehensive solution to organize, monitor, and create revenue for your business.

Modern POS software accepts most, if not all, common payment methods your customers might prefer.

Topping the list, and the backbone of the payments taken by businesses daily, are debit card and credit card processing options, including Europay, Mastercard and Visa (EMV) payments through the card's chip.

Processing gift card payments and Android and Apple Pay mobile alternatives are also payment features included in POS systems.

Making brick and mortar stores competitive with their ecommerce counterparts, POS systems allow for business to process online orders.

Staying versatile is the calling card of this system and typically offers your customers’ preference for payment.

Streamlining payment systems is nothing new. Evolving technology has attached all the required software to mobile devices, creating more flexibility that's especially relevant for small businesses.

Mobile POS systems, or mPOS, don't require stationary software and hardware that is bound to one place. Requiring just a few hardware attachments to process sales, they're attached to mobile devices like smartphones or tablets.

Moving to a mobile system comes with a few core advantages:

• Increase security and accessibility with data that no longer needs to be stored on a local business server but moves to the cloud.
• Stay mobile with a system that travels with the user. Need to take your food truck or craft booth on the road? Not a problem.
• Increase ease of use dramatically with a simple mobile app, instead of entirely different and new technology.
• Reduce costs, especially at the beginning when all you need is some targeted equipment instead of a bulky new register.

Add it all up, and a cloud-based mobile POS system becomes especially beneficial for small businesses just dipping their toes into the technology.

Moving to a POS system comes with tangible benefits for business owners looking to improve their daily operations. Here are four of the most important benefits POS systems offer small businesses.

1. Improve your customer experience

Beginning with the most obvious and potentially important advantage: You improve the lives and value of your customers during what might be the biggest bottleneck of their experience in your business.

Giving customers a choice between payment methods, like contactless options, or using pre-filled data, the check-out experience improves drastically and you are less likely to lose a sale. You also improve customer loyalty when the checkout process is easy and fast.

2. Enhance your business operations

Enhance efficiency at every level of the business.

• Onboard new staff and reduces friction for users with a lower learning curve.
• Track work time and efficiency for each employee using it with employee management features.
• Reduce overhead and expensive contracts, and cut the tech burden with the need for different technologies and server space, especially for small businesses.

Combined, each of these items serve to improve your business operations over time.

3. Optimize your sales reporting

Merge the systems you’re already using to check out customers, generate revenue reporting and compare costs into one system. Make better business decisions in the future with features that allow you to track inventory and analyze data.

Generating can come with any POS system, but the best POS systems then use that data to create actionable reports, helping you better understand your business without the need for manual functions and multiple software platforms.

4. Streamline customer communications

Directly to your CRM, attaching specific purchases to the customer’s record. Giving you more personalized customer communications, like sending recommendations and new promotions to customers who’ve purchased a specific product in the past. Create a better communications flow that both improves the customer experience and the effectiveness of your messaging.

Entering the POS landscape brings you to various options, like selecting between mobile or a traditional POS. Typically, though the software and hardware requirements change depending on the industry, POS solutions fall into three main types: retail, hospitality and service.

1. Retail POS systems

Modern retail POS systems help retailers sell goods, track inventory and staff efficiency, whether you sell clothing and apparel, groceries, convenience goods or even liquor. Benefit with a solution that can build purchase orders in the POS, create ecommerce integrations and lets retailers sell outside of their retail store.

2. Restaurant POS systems

Put patrons at the top of the value chain. Streamline your restaurant POS system with app and kiosk ordering, smartphone payments and more. Expand your services with integrations like delivery dispatch, guest engagement and tableside ordering. Optimize your hospitality operations with a POS system built to give a unified view of everything — from back of house to check in.

3. Service-based POS systems

Manage customer cards, buy products and services, and allow customers to pay from anywhere with a POS system with business and home services in mind. Enter and track work orders, schedule jobs and even automate their invoice delivery. Giving service professionals their time back, the flexibility of the mPOS becomes a crucial feature to optimize operations.

Modern payment solutions are not just a bulky POS terminal. Giving the tools businesses need in their hand, it's typically a smartphone app available on multiple devices. Leveraging its touchscreen as the physical register, alongside a number of attachable hardware components, the point of sale software then lives on a smartphone or tablet.

• A card reader, which may be a standalone Bluetooth device or physically connected to the hardware.
• A barcode scanner, particularly in retail environments.
• A receipt printer, although many solutions also offer the option to email the receipt.
• A cash drawer for POS systems in which cash payments are still common.

Varying based on the specific platform and customer size, it's not uncommon to see small retailers forgo some of the hardware components with leaner software due to their narrower needs. Consider the above a standard setup, with the ability to customize. Keep the ability to process upfront payments and integrate with other software no matter what setup you choose.

Building on the basic functionality of any modern POS platform, another crucial way to optimize your business efficiency is accessing the reporting features offered.

Analyzing every transaction in a single place can easily turn into intuitive sales reports with the right reporting solution.

Gain insights on which of your items are selling out quickly, track the efficiency of your promotions or your loyalty problem, get the overall trajectory of sales as you near your end of month goals.

All that data allows you to understand exactly how your business is performing, which helps you as the business owner project future trends and make smarter decisions in the process. Use it to make more informed pricing decisions based on your profit margins and sales data.

Extend your CRM’s capabilities through your POS system and easily track exactly what customers are buying and when. Know when they select email as their preferred receipt and gather that customer information. Add when they buy a specific product to their customer record.

Imagine just how beneficial this data can become for your business and your customers alike. Integration with your CRM system allows you to perform exactly what that abbreviation stands for — managing and improving your customer relations.

Selecting the right POS system can double as an inventory management system, optimized to help you make better ordering, reordering, and pricing decisions.

Streamline your reordering process and plan ahead with new wholesale or manufacturer orders to make sure you never run out of key items. Having an effective system to track your stock levels automatically can make all the difference in business success, and small retailers know inventory is one of the biggest challenges.

Know exactly when and what to order ahead of time. Adjust your pricing to improve your product margin if inventory dwindles. Tailor your purchasing strategy specifically to buying trends, avoiding either overspending or underspending in the process.

Making the data you already have can help with efficiencies with hospitality systems. Tracking your food stock levels helps you understand exactly when you need new ingredients for your kitchen and helps reduce waste.