Traditional point of sales (POS) systems consist of cash registers and physical machines that process payments but do not collect or process valuable data. An integrated POS system syncs sales data with other business applications to drive rich insights that help you provide an omnichannel shopping experience to your customers.
With a growing focus on omnichannel marketing and shopping experience, the need for integrated POS systems has increased multifold. According to a survey, 59% of retailers who shifted to omnichannel marketing have made POS their top priority. The same study revealed that another 52% of retailers planned to upgrade their existing POS systems to improve their customers' multichannel experience.
However, adoption of cloud-based POS is relatively low, with only 7% of retailers admitting to using it. With more than 78% of retailers unable to identify their customers at checkout, there is a significant need for implementing an advanced cloud-based POS system.
What is a POS system, and why is it important?
A point of sale (POS) system is a device or software program that helps you accept payments and track your sales. While physical POS devices are helpful in brick-and-mortar stores, cloud-based POS systems help process both online and offline payments. With the rise in omnichannel marketing, most retailers have moved towards a hybrid online and offline order fulfillment strategy.
Consequently, you need a POS that does more than just collect and track payments. You should be able to identify customer purchasing patterns and top-selling products and weave this information with your inventory management, sales and marketing campaigns, and customer loyalty programs. This is where a cloud-based integrated POS system comes into the picture. It helps sync data with other business applications in real time and derives rich and valuable insights.
An integrated POS is an essential tool for the following reasons:
- Helps you receive multiple types of payment
- Stores customer shopping preferences
- Manages inventory and stock
- Generates receipts and processes refunds
- Recognizes shopping patterns and implements loyalty programs
- Provides valuable sales insights for different campaigns
- Helps streamline resource allocation
Here are five ways an integrated POS helps retailers:
1. Improved Inventory Management
POS systems today come integrated with inventory management features. An integrated POS system will tell you how much inventory you must order and when. This eliminates the problem of overstocking and understocking. In addition, you can
- Automate inventory tracking and generate insightful reports.
- Reduce inventory management costs.
- Fulfill orders remotely
- Implement dynamic inventory management and no-contact transactions.
Data generated by a POS and integrated with an inventory management module will help you make demand forecasts that facilitate efficient inventory control, ensure timely replenishment, and eliminate wastage.
2. Streamlined Sales and Checkout
There are different ways of fulfilling orders, and implementing an omnichannel shopping experience is crucial to remain competitive.
Some customers purchase online, and others may buy at your store physically. Few others may look at products on your website and purchase them at your store. People may visit your store and buy the products on their phones if they like them or purchase products online and request a curbside pickup.
Customers are offered many ways to complete a transaction. It is essential to streamline all checkout and order fulfillment methods. An integrated POS system helps you streamline your sales and checkout process and minimizes cart abandonment.
3. Real-time data and analytics
An integrated POS helps you understand your customers' buying patterns and sales trends. You can access this data in real-time and gain insight into different datasets.
With the help of an integrated POS, you can:
- Identify demand and change your products accordingly.
- Identify top-selling products and ensure stock availability.
- Recognize high-value customers and implement tailor-made loyalty programs.
- Personalized customer services based on their purchase history.
22% of retailers use POS data to help customers try new products and services. POS can be integrated with several business tools, and hence the possibilities are endless. It can even be combined with your HRMS and ensure that top-performing employees are rewarded during their appraisals.
4. Security and Compliance
More than 56% of US retailers have started using POS analytics to detect fraud, as Credit card fraud is one of the biggest concerns for retailers and shoppers alike. Many avoid online transactions because they're wary of entering their card details.
Newer POS systems come with fingerprint ID, artificial intelligence, and machine learning technologies to detect fraud. Using a POS integrated with such security solutions helps boost customer confidence and ensures checkouts go smoothly.
There is also a growing need to comply with rules and regulations regarding customer identity. If you are collecting credit cards or personally identifiable information, you must ensure that you abide by the laws and regulations set forth by GDPR. Your POS will help you ensure that you safeguard customer data and maintain a high degree of security standards.
5. Gain a competitive edge
Retailers and small businesses face tough competition from large corporations and big box retailers.
However, integrating a comprehensive POS that includes inventory management, sales and marketing, and CRM can help even small businesses compete with larger ones. They can quickly identify their loyal customers and implement rewards programs so that customers keep coming back.
They can also implement a multichannel shopping experience and gain access to rich business insights, which gives smaller businesses a level playing field. In short, an integrated POS is an answer for most retailers to remain competitive in a highly contested market.
Priority's POS system is an all-in-one solution.
Prioritiy's POS system integrates perfectly with Priority Retail ERP and helps you expand your business and client base.
- You can install additional terminals and ensure there is no downtime.
- Our unified commerce platform enables business continuity thanks to its ability to remain operational online and offline. This means you can continue to process sales even when there is no internet on electricity.
- You can also implement personalized promo campaigns and cross-vertical loyalty programs and understand customers' preferences more deeply.
Contact us today to learn how Priority's POS product can be integrated with different applications for enhanced capabilities.
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