There are many reasons for the growing popularity of retail point-of-sale systems: faster and more accurate transaction processing, enhanced employee management, and real-time inventory tracking are just a few. Perhaps the greatest benefit of clothing store point of sale systems to retailers is in how the systems help stores meet their customers’ growing expectations. Consider these statistics from Smallbizgenius:
- 82 percent of Millennials, including those who shop online, name in-store shopping as their preferred retail channel.
- 54 percent of all in-store shoppers value prompt service over all other aspects of the experience, the highest percentage for any single characteristic.
- 53 percent of Millennials believe sales associates lack the tools they need to provide quality customer service.
The reason cited most often by consumers for choosing a brick-and-mortar store over online shopping was the ability to experience the products first-hand, especially to try on clothes before buying them. One of the great benefits of clothing store point-of-sale systems is that they give store owners deep insight into their customers’ preferences and behavior. This allows retailers to personalize the shopping experience for their clients, which increases the likelihood that they will become return customers.
Get to Know Your Customers via Sales Analytics
The key to gaining a better understanding of the products your customers prefer and the services they expect is by parsing the details of their past purchases. Clothing store POS systems let you collect and analyze customer information by creating records detailing when they visited the store, what they purchased, and how much they spent. Customers are able to receive store credits automatically and maintain balances on a house account. By integrating loyalty programs, clothing store point-of-sale systems encourage customers to return often and receive automatic discounts when they reach specific spending levels.
One way clothing store owners are able to enhance the shopping experience for customers is by equipping their sales associates with tablets or POS smartphone apps, as Software Advice points out. This allows workers on the floor to answer customers’ questions and determine on the spot whether items are available in specific sizes and styles, for example. By adding the ability to process payments with mobile devices, stores can replace some of their clunky checkout stands, which frees up space to make the store interior more inviting to customers.
In addition to the names, phone numbers, and email addresses of customers, clothing store POS systems can collect information about the customers’ favorite brands, as well as birthdays and other important dates in their lives. In many cases, POS systems allow loyalty programs to be linked to popular social media platforms.
A survey conducted by the Harvard Business Review found that 73 percent of retail shoppers use more than one channel when they shop for an item. Only 7 percent of the survey respondents shop exclusively online, and just 20 percent shop only in brick-and-mortar stores, according to the survey results. A retail POS system should make it easy for a store’s customers to shop via multiple channels, so they can order online and pick up the items a the store, for example.
Staying Up-to-Date on Inventory Improves Efficiency and Sales
Much of a clothing store’s success depends on its product inventory. Inventory ties up more of a retailer’s cash than any other expense. Here are the inventory-management features to look for in a clothing store POS system:
- The ability to calculate inventory turnover, which measures how quickly a retailer has to replace items in stock.
- Gross margin return on inventory investment (GMROI), which is a popular way to gauge a retailer’s profitability.
- Sell-through rate, which compares the number of products a retailer receives from a manufacturer with the number the retailer actually sells to customers.
- Fill-in orders, which are the “open stock” items in a retailer’s inventory that are readily available from the manufacturer or wholesaler, so stock on hand can be kept low even when sales are good.
- Alerts that indicate both when inventory levels are low on specific items and when items are sitting on the shelves forever (“dead” inventory).
- The ability to track markdowns (the difference between the original retail price and the actual selling price) and shrinkage (stock lost due to theft, administrative errors, or supplier fraud).
How POS Reporting Enhances a Clothing Store’s Profitability
It’s difficult to manage anything you can’t see, so the more visibility a clothing store point of sale system provides into its operation, the easier it will be to keep the store running smoothly. There’s the importance of reports that indicate the amount of revenue each product is generating, not simply which products are recording the most unit sales. This allows retailers to focus on promoting the products that contribute the most to the store’s bottom line.
In addition to predefined reports on daily, weekly, monthly, and quarterly sales, the POS system should allow retailers to generate custom reports emphasizing the data that is most important to a particular store’s operations. In addition to viewing sales data in real-time, a clothing store point-of-sale system should provide details on all cash drawer activity, keep track of voids, show each employee’s sales performance, and provide insight into the impact of labor costs on the store’s performance.
By identifying the times, days, and seasons when business is booming, and when things are slow, a POS system’s reports allow retailers to adjust staffing and plan product promotions to ensure the most efficient operation possible. Some of the benefits of POS systems are ones that allow retailers to apply filters to create custom reports that cover specific timeframes and categories of products, for example.
Microsoft’s Retail Trends Playbook 2020 states that we have arrived at the “world of consumer-controlled retail.” Data-driven intelligence makes it possible for retailers to better understand their customers, streamline their supply chain, empower employees, and adopt a model based on the products that customers crave. The glue that binds all these disparate retail components is today’s intelligent POS systems that seamlessly link all of a store’s many separate functions and deliver timely information to store managers.
Learn more about how the talech POS system helps clothing stores, restaurants, and other retailers improve the experience for their customers and optimize the management of all their operations. We work with you to determine the best ways to meet the needs of your customers and employees so your business can thrive. We take the time to learn your business so we can balance your specific needs with your budget and comfort level in a custom POS system implementation. The result is a valued investment that will pay for itself in short order. Reach out to us today to sign up for a free demo and learn more about how talech can be your valued partner in the POS world.
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