What Is POS and Why Is It So Important?

Hence, we’ve decided to walk you through the POS (the nerve of any successful business in our modern world) and how it has been proven to work for leading merchants. Keep reading to know why POS is a true game-changer for merchants today.

What is POS?

A POS stands for Point of Sale, also known as Point of Purchase. It is a place that allows customers to execute their payments for goods and services and check out, whether online or in a physical store. Simply put: it's a cashier or checkout counter that can be in a mall, store, or even on the internet.

POS is increasingly interactive and powerful for merchants, particularly in the hospitality industry, who want to track their day-to-day payments, identify their best sellers, and provide various payment options for their customers.

How Does a POS Work?

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Benefits of a POS System

Incorporating the POS will hugely impact your brand with a lot of beneficial resources, especially when it comes to streamlining the payment process, acquiring big data about your customer's behaviour, managing your inventory efficiently, and much more. Let's dive into it.

1. Payment Process

POS makes the payment process much easier and faster. Imagine not having a suite of technology like POS; you'll probably be overwhelming yourself with tons of sheets, invoices, human errors, etc.

In an effort to make retailers', restaurant owners', and merchants' lives easier, POS enables them to manage their payment process anytime, anywhere, and on any device. It helps them have a multi-payment method that can quickly add the products purchased to the transaction and submit the transaction on the system so customers can receive the invoice in no time.

2. Powerful Insights

All business insights, including sales reports, customer data, inventory, staff, and loyalty programmes, will be united in one place to track them at your own pace. For example, what products you have sold, how many products are left in inventory, if there is a discount on a product — it cuts the price instantly — and more importantly, how much your business has earned daily, monthly, or annually.

Accordingly, this will contribute to making more informed decisions about your business, such as identifying your bestsellers and creating the optimal plan for your business growth.

3. Time-Saving Reporting

Sharing and exporting the reports to the management team in no time is now becoming a piece of cake. Whenever you want to do this, you can easily export the reports from the POS system portal in an Excel sheet format and share them via email or any other suitable communication channel.

4. Employee Management

You can track your sales by team members and the schedule of the employees to determine which time has the highest sales, for example, and which team member contributed to it. With this feature, you can measure the performance of each employee and reward those who contributed the highest revenue. In contrast, provide those who haven't delivered their targets with adequate training and development.

A POS system is your way to go if you want your employees to ace their jobs day-by-day.

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Top 5 Common Features

Transactions Recording

Whether buying, selling, renting, or even repairing something in your store, you will still need to record, track, analyse and report it. And here comes the POS role. Similarly, one of the POS's main features is tracking the overall payment transactions in real time.

Also, to make your business ROI skyrocket, you can integrate other software alongside the POS that boosts your customer retention and provides you with insightful data tools to understand your customers better. At Zeal, we provide our merchants with world-class data and loyalty solutions that increase their profit margin.

These transaction recordings are essential for any business that wants a high retention rate and fast sales growth. The data of these recordings will be analysed and then tell you the direction that you need to take to make this growth.

Payment Processing

You need to have more than one payment option in your store, so the POS helps you with that by providing cash, credit card, and other payment solutions that you can integrate based on your location and what provider is frequently used in your area.

Inventory Management

After every transaction via your POS system, a just-in-time adjustment is made to your inventory records; this will help you monitor and track the changes accurately. It also allows you to access your current inventory status, get your needed materials fast, and better understand your business workflow.

Loyalty Programmes and Customer Engagement

To build and maintain customer retention, you need to incorporate loyalty activities such as gift cards, collecting points, and free punches. To do so, you have to integrate your POS software with specialised loyalty software like Zeal to make sure that your POS has this integration feature.

Reporting Business Data

After you have all your data, the POS will help you get it all in one place by reporting it once you need to inspect it. This makes it easy for you to measure your current performance and conduct valuable optimisations depending on these reports.

These reports can be for different departments and have various purposes, such as tracking the store's revenues or inventory management data. Mainly, it depends on which department and why exactly it's needed.

Conclusion

The POS system is simple in its concept but very different in its features. So make sure you choose the right one based on your actual business needs to help you operate and grow your business efficiently without any hassles.

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