There’s a very good reason why 62% of new merchants prefer cloud-based point of sale (POS) systems: They make businesses more profitable.
Retailers know that the best way to increase their sales and profits is by keeping their customers happy. As Forbes reports, the future of retail is enhancing the customer experience by:
- Putting more power in customers’ hands.
- Personalizing the shopping experience.
- Automating routine tasks so that employees spend more time interacting with clients.
- Using data analytics to get to know your customers better.
All of these goals are easier for retailers to achieve when they take advantage of the capabilities of modern cloud-based POS solutions. In particular, these five retail POS system features are key to boosting sales and profits by better serving your customers.
1. Make checkouts faster, more convenient, and more accurate
The reasons why people love to shop are many and varied:
- It gives people a sense of control when they find and purchase the products they need and want.
- They enjoy the sense of discovery when they encounter new designs and innovative products.
- They value the social interaction with knowledgeable sales staff.
One thing about shopping that nobody enjoys is standing in a checkout line waiting to make their purchase. Modern POS systems eliminate the wait by bringing the “cash register” to the customer in the form of mobile POS terminals that support credit and debit cards, digital wallets, and other forms of contactless payments.
Stores are able to run their custom apps on tablets, smartphones, and other portable devices that complete transactions and serve up a wealth of information about the store’s products. Retailers are able to take their store on the road, whether it’s just out to the sidewalk or to events across town. Not only are checkouts more convenient for customers, they’re also faster and more accurate, which boosts worker productivity along with increasing sales.
2. Reduce inventory costs by improving the efficiency of product orders
Excess inventory eats into a retailer’s profits by tying up money in products sitting on shelves and by requiring more space to store it all. Yet few businesses take advantage of the advanced analytics features built into their POS systems to make their inventory management more efficient and reduce their inventory costs.
- “Perpetual” inventory management in POS systems automatically adjusts inventory counts with each transaction, which obviates slow and expensive physical counts.
- Accurately calculating minimum inventory levels and automatically reordering products all but eliminates disappointing customers by running out of stock on items.
- POS systems integrate online and in-store sales tracking to provide more accurate inventory counts that can be accessed in real-time by managers and employees.
- The up-to-date inventory numbers make it easier for stores to identify purchasing trends and keep pace with changing customer preferences.
- Retail employees spend less time tracking down mislabeled and misplaced items, and other product shrinkage can be reduced.
3. Create a customer loyalty program to boost return business
According to retail services firm Invesp, it costs retailers five times as much to attract new customers as it costs to retain existing ones, yet most stores focus more of their marketing efforts on gaining new clients than on bringing current customers back. A modern POS system helps retailers unlock this potentially lucrative revenue stream by collecting and analyzing information about your customers’ characteristics and preferences.
- Employees are able to view customers’ purchase histories and suggest products based on what the people have bought in the past.
- POS systems make it easy for retailers to create loyalty programs that reward returning customers with discounts, product bundles, and other promotions.
- By collecting customers’ email addresses and phone numbers, stores are able to stay in touch with customers to alert them to sales and special events.
- Regular customers can be encouraged to download the retailer’s custom mobile app to their phones and other devices to provide another avenue of contact.
4. Gain greater insight into which products are selling, and which aren’t
A typical retail sales report lists the store’s sales for the day, week, month, quarter, or year, but it doesn’t provide much insight into why sales are trending one way or the other. One of the most valuable retail POS system features is the ability to transform customer sales data into actionable intelligence:
- Customer lifetime value determines how much revenue the retailer has realized from all of a customer’s purchases.
- Sales per unique customer calculates the total amount the customer has spent at the store in one year, whether via multiple purchases or one large transaction.
- Retail profit per transaction tells the store how much profit it makes on average for each sale it completes.
- Enterprise value gives the retailer an estimate of what it is worth in the market.
- Revenue growth is a part of enterprise value that shows how much the business has grown across all of its operations.
- Free cash flow determines the amount of money that’s available to the store to distribute to shareholders or to invest in the business.
- Return on investment capital tells the retailer how much profit it has generated from investments in new technologies and enhancements to the operation.
5. Boost online sales via automated upselling and promotions
It’s no secret that online sales skyrocketed as a result of the COVID-19 pandemic, and the trend shows no sign of abating as shoppers realize the many benefits of shopping online. The challenge for retailers is to keep the online sales momentum going by offering customers incentives for making online purchases.
- Make your store’s site fun and easy for customers to use by taking every opportunity to interact with them via digital receipts, follow-up messages, and special offers customized to their shopping preferences.
- Ensure that customers’ personal information is protected, including their credit card and other financial data.
- Create a site that communicates your brand and mirrors the in-person shopping experience.
- Provide customers with personalized offers that appear automatically when they make a purchase, search for an item, or perform some other online operation.
Retailers can’t afford to squander any opportunity to increase sales and enhance their profitability. By choosing a modern, cloud-based POS system they’re able to operate more efficiently, empower their employees, and provide a higher level of service to their customers. These and other retail POS system features offer the tools and insight that give stores an edge over the competition.
Getting the most out of your retail POS system requires working with a partner who learns about the unique features of your operation and teams with you to craft a solution that’s tailored to your store’s needs. Find out how a modern POS solution from talech can benefit your business by signing up for a free demo.
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