The 4 Major Roles of a POS System in Retail Stores

For smooth shop operations, small business owners need tools such as stock management solutions, employee time tracking systems, CRMs and many more. A point of sale (POS) system is one such tool dedicated to making payments easier.

The basic job of a POS device is to process payments. But modern POS systems are also equipped with a host of value-added features. This combination of tools does a wide range of jobs for you, from processing payments to analysing customer behaviour and tracking employee output.

‘Point of sale’ refers to a place where transactions occur between a customer and business. A typical POS system contains hardware and software.

Hardware includes components such as cash registers, card readers, processing units, barcode scanners and similar machines. The software that goes into a POS system is generally the payment processing solution. 

When it comes to operating your store, having a point of sale system is essential. It can bring a good deal of value to your shop. 

Let’s look at four major roles offered by POS systems that can benefit your retail business.

Processing Payments

The main feature and role of a POS system is to process payments. There are several ways your POS system can facilitate transactions. The most common payment processing feature is debit card or credit card processing. 

You will require card readers, generally magstripe card readers, to facilitate credit card and debit card transactions and include other forms of payments when setting up POS for your offline store.

These days, credit card chip readers and Near Field Communication (NFC) readers are ideal options to facilitate payment from mobile devices. It can allow your customers to pay from their chip-containing credit cards and provide them with increased security.

NFC card readers make use of payment apps such as UPI and mobile wallets. Your customer can easily pull out their smartphone, choose their payment app and place it near your NFC reader to make a payment.

When it comes to staying ahead of the competition, you need to ensure you have state-of-the-art and advanced payment solutions.

When you offer several payment methods, you help to encourage customers to purchase from you while at the same time you also get to understand their spending habits.

Managing Transactions

Another essential feature of a POS system is transaction management. This includes issuing receipts or invoices, managing inventory database and understanding customers. 

Each time your customer makes a payment, you are required by law to print a receipt or email digital receipts to them. Some of your customers may request a physical receipt, while others may be happy with a digital receipt. Your POS solution should be able to provide you with both options.

Reporting Sales

As a valuable tool in tracking how your retail shop performs, your point of sale system can come to the rescue. It can help you understand important business metrics and generate sales reports that give you an in-depth look into how your business is operating financially.

Advanced POS system solutions allow you to run sales reports that can give you an overall view of your business’ performance and help you make informed business decisions.

Sales reports are important in leveraging sales data. It can show you which products are selling well, your margins, the amount of money you generate every month and more.

Having real-time sales reports can help you boost your business operations and find the right path to profit. 

Using a data-driven system to run your business can help you have the edge over the competition.

Ensuring Effective Stock Management

If you are in the business of retailing products, you need to have inventory management or stock management functionalities in your POS system.

Your POS solution can help you track selling products, goods coming in, going out of stock, and more. The right point of sale solution will benefit you by setting reminders and notifying you at the right time to reorder supplies. 

When you choose an optimal POS system, it can also allow you to place automatic purchase orders to buy more stock levels when a particular item is reaching out of stock levels.

Having real-time inventory tracking on your fingertips can give you an instant understanding of your stock levels. Knowing exactly how many goods are getting sold or going out of stock can help you optimise your product line and concentrate your energy on growing your business.

In addition, there are a couple of important features you may want to consider when looking into a point of sale system. They are:

Managing Customers

When selecting the right POS system, ensure that it meets all the above roles. In addition, an advanced and modern POS system can also help you build customer relationships and track your customer data as well.

Your POS system can help record data that can show you how to build a strong relationship with your consumers.

For instance, you may want to reward your loyal customers with a loyalty programme or discounts. That can encourage your customer to do more business and receive a positive and personalised experience.

In addition, you can also make use of your point of sale system to send out promotional emails to your loyal customers after they have made a transaction.

Supervising Employees

Your modern POS system can also help your retail store in managing your employees. You can track their working hours, sales commissions, work schedules and more.

When finding the right POS solution, look for a system that gives you more than just basic features. Having a modern POS system without investing in expensive hardware and software can provide you with a wide range of features and benefits without the cost. 

Zadinga’s one-stop shop management app can bring tremendous value to your retail store by managing your point of sale, payment processes, inventory, customer loyalty, employee logistics and more. Find out how Zadinga’s feature-rich, mobile-based shop management app can work for your business and boost your sales.