5 Retail Challenges Solved by Modern POS Systems

The highly competitive and fast-paced nature of the retail industry brings many challenges. Operating in a cost-effective manner is hard enough, but retail businesses also have to offer something unique to build a customer base. How can this be achieved?

At the core of every successful retail business is an effective POS system. From in-store operations to online strategy, POS technology supports retail processes across the board.

Let’s take a look at how it works. Here are 5 of the biggest pain points that retail store owners face today, and what POS systems can do to resolve them.

1.   E-commerce Integration

The ubiquity of the internet means that it’s now necessary for your business to have an online presence. As of 2020, e-commerce sales accounted for 18% of total global retail sales, and this is only going to increase.

Developing an omnichannel approach, however, entails many obstacles. Data from your online platform must be in sync with your physical store to ensure stock levels are accurate. Customers also need to be able to use their personal account across multiple channels.

POS eases your retail business’ transition to e-commerce. Modern POS software seamlessly connects your online and offline operations so that they work in unison. For example, whenever an online sale is made, this will be registered on in-store systems too. This keeps things consistent across all of your retail channels.

2.   Customer Experiences

Customer expectations are now higher than ever; mediocre service is no longer tolerated. To get the edge on competitors, your retail business needs to offer unique and memorable shopping experiences to its clientele.

The first step is to learn more about your customers and their preferences. This can be deduced from POS-generated reports. Insights about popular products may lead you to place extra customer service staff in busy departments or set up kiosks with your best-selling items available in one place.

Another idea is to equip staff with portable POS hardware so that customers can check out anywhere in the store. These are just a couple of generic suggestions. Once your POS system is up and running, you’ll be able to create differentiated customer experiences that are specific to your business.

3.   Inventory Management

Inventory management is a necessary task in retail. Ensuring that your business has the right amount of stock allows you to keep operating costs in check. However, stock takes are also very time-consuming.

By drawing on sales and supply chain reports, POS systems update stock levels automatically. This means that you can get accurate, real-time information about your inventory. As a result, you can make more informed business decisions about current stock.

With no more manual stock takes, you’ll also have more time on your hands to focus on other areas of your retail business.

4.   Customer Relationship Management

The key to long term growth in retail is to nurture a loyal customer base. With so much consumer choice in this sector, it’s vital that you invest in your Customer Relationship Management (CRM).

POS systems have a lot to offer in this department. They store customer information, track purchase history and segment customers into different groups. Over time, POS software allows you to build an intimate picture of each customer. This then informs how you communicate with them.

For example, you can send personalised promotions to your customer as part of your marketing campaigns. You may invite select ‘VIP’ customers to an event. POS provides key data which can be used to bolster loyalty and keep customers coming back.

5.   Payment

As the last step of the customer journey, payment is your final opportunity to make a good impression on your customer. An unsatisfactory transaction may lead customers to a competitor in the future.

With POS systems, you can make the payment process as smooth as possible. Most customers appreciate POS hardware with barcode scanning capabilities. This process is faster and less error-prone than manually keying in each item.

Unlike many old-school cash registers, the latest POS hardware can also process a variety of payment methods, including digital payments. By accepting contactless payments and mobile wallets, holdups can be avoided and your business can get more money through the tills.

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