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11 Ways How POS System for Small Businesses Can Be a Game Changer

Published April 04, 2024 Business
11 Ways a POS System Can Be a Game-Changer for Your Small Business
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“Quick summary” In this era of rapid business innovation, small firms are continuously looking for game-changing solutions to improve productivity and customer satisfaction.

Modern point of sale (POS) systems stick out above the rest. It has emerged as a game changer and adaptable tool, providing various benefits that can substantially influence small businesses.

According to a recent study, small firms with sophisticated point-of-sale (POS) systems experienced a 20% boost in sales, a 15% rise in customer satisfaction, and a 25% increase in customer retention, compared to those without such systems.

Because of the various benefits and impacts, more and more businesses are switching from a conventional cash register to a POS system. To know more about the benefits of POS systems for small businesses, keep reading.

11 Best Benefits of POS system for small businesses!

Point-of-sale systems are becoming extremely important, providing more versatility and support for businesses than ever before. This technological change gives small businesses powerful features and helps them climb the ladder of success(in an easy and structured manner).

1. Inventory Management

Inventory Management

Inventory management is among a POS system's most known and effective benefits. Regardless of your business size, effective inventory management is more than important.

  • Real-time stock monitoring: It allows you to know what's needed and available at all times, sell quickly, and stay up to date on inventory levels.
  • Trend insights: Recognize patterns in sales to determine which products to carry.
  • Effective Inventory Control: Steer clear of excess inventory, cut expenses when possible, and maximize available space and resources.

It simplifies the process of managing your inventory. Imagine having real-time knowledge of everything you own, everything you need, and everything that is selling quickly. This goes beyond simple item counting to include a deeper understanding of your business.

A good POS system can show you inventory patterns, such as which products are selling well and which are not. You always have what your consumers need, so you can make wise decisions about what to order and how to keep them satisfied.

Additionally, you'll be less likely to overstock unsold things, which will save you money and space—both of which are crucial for small enterprises.

2. Improved Customer Satisfaction

Customers are at the core of the business and keeping them satisfied and happy are the two key fundamentals of businesses.

Improved Customer Satisfaction

Here’s how modern POS system helps small businesses in boosting customer satisfaction:

  • Improved Transaction Efficiency: Facilitates a more seamless customer experience by expediting transactions.
  • Personalized Customer Interactions: Keeps track of past purchases and preferences to provide customized advice and assistance.
  • Precise and Easy Service: Guarantees prompt service and precise invoicing, boosting client contentment.

A modern point-of-sale system for small businesses enhances the client experience by speeding up transactions, giving accurate pricing, and even enabling personalized interactions.

To provide your customers with more individualized advice and service, the system offers the ability to store customer preferences and purchase history. This level of personalized options and care makes customers feel valued when they receive this, which in turn drives repeat business and adds up customer loyalty. Furthermore, with speedy service and correct pricing, clients leave happy, knowing they received what they wanted swiftly and without difficulty.

3. Easy to use & manage

When you are a small business owner, you have to deal with so many different things, and on top of it, you don’t want to complicate things. This is when POS system comes to the rescue, it makes managing your business operations so much simpler and more convenient.

  • Fast Learning Curve: POS systems save cash and other vital resources for small businesses by making it simple for you and your staff to learn and operate the system.
  • Accurate and Efficient Transactions: It assists in enabling accurate and efficient sales processing with a lower chance of errors.
  • Consistent Customer Service: It guarantees consistent levels of service quality regardless of the specific employee working at the register.
  • Simplify operations: Point-of-sale (POS) systems assist small business owners in streamlining their operations and centrally controlling all of their information.

The user-friendly interface is a significant advantage. Its ease of use saves training time and expenses for both you and your staff. This simplification not only improves overall productivity but also enhances customer experience by reducing wait times and ensuring accurate order processing.

In summary, an easy-to-use POS system is an invaluable asset for small businesses, optimizing daily operations and providing a solid foundation for growth.

4. E-Commerce Integration

In this digital age, e-commerce is an essential component of practically every business—nearly 80% of consumers purchase online at least once a month. The greatest point-of-sale (POS) systems come equipped with features that enable you to link your online and offline sales channels, regardless of whether you operate an online store or just take takeaway orders.

A POS system that integrates with e-commerce can be used for the following tasks:

  • Free online shop: Some POS systems provide a free online store. These are quite easy yet are recorded in your POS system. While some offer a full e-commerce system, others just offer the tools you need for selling on your page or on social media.
  • Inventory sync(online and offline): POS systems enable you to keep track of inventory item sales both in-person and online, giving you a precise idea of how much inventory you have on hand and when you should place an order.
  • BOPIS (Buy Online, Pick Up In-Store): The popularity of this option has grown dramatically. In 2020, it expanded by 106% (and then by 10% in 2021). You can take advantage of this feature for your small business with the help of point-of-sale (POS) systems.
  • Integration with third-party food delivery company: Receiving, controlling, and tracking orders become easier when you integrate your POS system for restaurants with third-party delivery companies.

5. Real-Time Insights

While you can manually measure key performance indicators (KPIs) using spreadsheets and shared drives, this can soon become burdensome and time-consuming, diverting your attention away from more important business problems.

Real-Time Insights

With a point-of-sale system (POS), the majority of this tracking is automated, allowing you to concentrate on other productive duties like customer service, sales floor merchandising, marketing, or other important business tasks.

The best part is that you can view your active costs vs sales in real-time by pulling reports at any time, allowing you to make changes while they still have the potential to affect your bottom line.

For example, if your sales are fewer than projected for the day, you can issue a sales push using your social media, text, or email marketing channels. If it's a busy day and you're about to run out of your most popular jeans, you may make a rush order to ensure that your supplier restocks them. That's how the real-time information from your POS system may help you maintain your competitive edge and guarantee the results your small business needs.

6. Automation of Tasks

If you are a small business owner with a busy schedule, automation can help you manage your business more correctly and efficiently. Many of your tasks can be automated with the correct point-of-sale system. Even the POS system can be customized to automate the operations. This reduces the labor-intensive task of keeping an eye on stock levels and helps to avoid expensive problems like stockouts, excessive dead stock, poor staff performance, and other crucial tasks.

Early clock-ins, unauthorized extra hours, and "buddy punching" (where one person clocks in for another) are all examples of time theft, which can cost a company up to 20% of its earnings.

By automating your inventory, including establishing automatic buy orders, low-stock warnings, and online ordering channels, you may further reduce costs. Advanced capabilities like vendor management and predictive analytics are also available in some point-of-sale (POS) systems, which can help you automate more processes and take some of the effort off your plate.

7. Employee Management

Employee management is challenging, particularly if you're a small business owner with numerous other matters that require your attention. A smart POS system will assist you with this thanks to its employee management feature.

You are able to:

  • control employee data
  • Keep track of each employee's hours worked
  • sales revenue they produce,
  • and more!

But, wait, that's not it.

The personnel management function of your POS system will include a shift feature that needs employees to clock in and out using a PIN. This makes it possible for you to correctly and fairly compute their wage by keeping track of all the hours they have worked.

This function also allows you to monitor what and how much your employee sells during their shift. So you'll know who's working and who's not. With the point-of-sale system, you may designate distinct jobs to individual employees, such as shop manager or cashier, based on their background. This way, each employee will only have access to the specific features and functionalities required for their role within the system.

It is appropriate for controlling access to sensitive data, including sales reports, and for preventing fraud. To inspire your entire team to work better, you can also utilize our personnel management function to recognize and honor top performers.

You can even determine when you're busiest so you can effectively arrange your employees' schedules.

8. Faster & efficient checkouts

Faster & efficient checkouts

POS systems automate the check-out process, making it faster and more efficient than older methods. This is crucial in establishments where customers anticipate a quick checkout experience, such as convenience stores and liquor stores.

  • Speedy Checkouts: Customers can complete transactions quickly and efficiently.
  • Enhanced employee productivity: This boosts business productivity by allowing employees to handle more clients in less time.
  • Higher Customer Satisfaction: Promotes recurring business by guaranteeing quick transactions and checkout.

All in all, when everything is digitized and at your fingertips, the checkout procedure goes quickly and easily. It is ideal for clients who are in a hurry and do not want to wait in large queues.

No matter how big or small the transaction, it guarantees that it is completed quickly, satisfying both the workers and the clients. In the end, improved client experiences are the main benefit here. Customers will enter and exit more quickly and there will be less waiting. Being more efficient will help you reduce lost sales, increase average orders, and develop loyalty.

9. Range of payment methods

Range of payment methods

These days, carrying cash isn't the most convenient way to make payments. Rather, in this rapidly expanding digital economy, cashless payment is starting to gain popularity.

However, not everybody has access to a debit or credit card.

What then is the solution? Mobile payments and e-wallets. You may easily conduct transactions by connecting your bank account to your smartphone. You can also use it to send money across e-wallets in order to make payments.

Modern point-of-sale systems (POS) make it simple to accept a growing number of payment methods, including debit and credit cards, contactless payments, near-field communication (NFC), internet, and mobile wallet payments (such as Apple Pay and Google Wallet).

Adding extra payment alternatives to your acceptance list can boost revenue and enhance client satisfaction for your small business. Without a POS, you may require a number of devices to accept today's ever-changing payment choices; but a POS centralizes card processing for your firm.

10. Higher Sales

Higher Sales

A well-implemented POS system helps you streamline your day-to-day operations but also serves as a powerful tool for small-scale businesses to increase sales through smart marketing strategies, personalized recommendations, and efficient customer management.

Let’s dig in to find out how.

  • Upselling and Cross-selling: POS systems provide targeted and personalized prompts or suggestions for upselling and cross-selling during the checkout process. By recommending complementary products or suggesting upgrades, businesses can increase the average transaction value and maximize revenue per customer.
  • Targeted Recommendations: Advanced POS systems can analyze customer purchase history and preferences, enabling targeted product recommendations. By offering personalized suggestions based on individual buying patterns, businesses can enhance customer satisfaction and encourage additional purchases.
  • Loyalty Programs: Many POS systems integrate seamlessly with loyalty programs. By tracking customer purchases and rewarding loyalty through discounts, points, or exclusive offers, businesses can not only retain existing customers but also incentivize them to make more frequent and larger purchases.
  • Promotional Pricing and Discounts: POS systems allow businesses to easily implement and manage promotional pricing, discounts, and special offers. Timely promotions can attract customers and drive sales, especially during specific seasons or events.
  • Customer Relationship Management (CRM): POS systems with built-in CRM capabilities enable businesses to track customer interactions, preferences, and contact information. This data can be leveraged for targeted marketing campaigns, email newsletters, and personalized communications to nurture customer relationships and drive repeat business.

11. Seamless third-party integrations

The seamless integration of a Point of Sale (POS) system with various third-party tools can be a game-changer for small-scale businesses, offering varied benefits to enhance efficiency and overall operations for small-scale businesses. Integrating a POS system with other tools not only streamlines workflow but also provides valuable insights to make future decisions for future growth.

How the POS system integration with third-party tools helps businesses:

  • Data Accuracy: Seamless integration reduces the risk of errors and discrepancies by automating data transfer between systems.
  • Time Savings: Automated processes eliminate manual data entry, saving time and reducing the likelihood of errors.
  • Efficient Workflow: Integration streamlines operations, promoting a more cohesive and efficient workflow.
  • Enhanced Customer Experience: Integrated systems provide a unified view of customer interactions, enabling personalized and seamless experiences.
  • Financial Accuracy: Integrating the POS system with accounting software ensures that all sales and financial transactions are accurate and easier to reconcile, and financial reporting.
  • Compliance and Security: Integration with compliance and security tools helps businesses adhere to industry regulations and standards.

Let’s simplify this with an example: A customer makes a reservation through the restaurant's website and the staff is instantly notified about the reservation(through the integrated POS system for the restaurant), allowing them to prepare accordingly.

Meanwhile, the integrated delivery service receives and processes online orders directly through the POS system, updating inventory levels and ensuring accurate order fulfillment. This interconnected system not only enhances customer satisfaction but also optimizes the restaurant's workflow for maximum profitability.

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To Conclude

Here’s a wrap of the 11 best benefits of modern POS systems for small businesses. If you are also a small business owner wanting to grow, streamline your operations, and keep your customers satisfied, then getting a POS system is the best thing to do.

Well, we have highlighted all the good things. On the other hand, a POS system will just be a mere card reader when you have not implemented it properly, chosen the wrong provider, or haven’t got the right one as per your specific business requirements.

So make sure to do your research and find the right one. If you are looking for one, you can reach out to OVVI. We have a range of POS systems available for different industries and businesses. We have a professional team as well who can help you get the right POS system for your small business solutions, its implementation, and even beyond.

So, what are you waiting for? Book your demo with us right away!

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Frequently Asked Questions(FAQs)

The cost of a POS system can vary based on factors such as the type of business, features required, and the number of terminals needed. Generally, prices can range from $300 to $5000. The number can be more or less depending on your provider and other factors.

While the initial investment might seem significant, the efficiency gains and potential for increased sales (due to its one-of-a-kind personalized features) often outweigh the costs. Cloud-based systems with subscription models can be more affordable for small businesses as they spread the expenses over time.

Cloud-based POS systems and mobile-based POS systems are often a good fit for small businesses due to their affordability, ease of use, and scalability. These systems offer flexibility, take less or no space, provide real-time data access, and are usually more budget-friendly for businesses with limited resources.

Yes, recurring costs can include monthly subscription fees for cloud-based systems, software updates, and support fees. Additionally, businesses should budget for potential hardware maintenance and replacement costs over time.

Small businesses should prioritize features such as user-friendly interfaces, inventory management, sales analytics, and integration capabilities with other business tools. Also, make sure your POS provider is providing your support to deal with any downtime or problems.