10 Signs That You Need a New POS System
POS system updates can be a touchy topic for small business owners. You may postpone replacing your POS system due the investment required to buy a new system, but trying to hold on to an outdated POS system can lead you to lose revenue and to miss out on vital opportunities to connect with customers. Contrary to popular perception, most POS systems will pay for themselves within a few years of implementation. There’s no reason to run your business with archaic hardware when you can boost store efficiency and reduce calculation errors by updating your POS system.
An outdated POS system can hold your company back from achieving its full potential. If you suspect your store’s POS system is keeping your company from maximum profitability, here are ten indications that it’s time to make a change
Sign #1: Your high margin items aren’t selling
If you aren’t getting any turnaround on your high margin products, a little research on your store’s sales patterns might be long overdue. Many POS systems have the capability to keep track of your daily sales to help you monitor which items are top performers. By tracking which items are getting the most traction on your sales floor, you can shift the location of high margin items to draw customer focus to your most desirable (and profitable) inventory.
Sign #2: The store is constantly running out of inventory
In this omnichannel world, customers have run out of patience for stores that run out of their favorite products. Avoid losing customers due to out-of-stock items by using a POS system which provides you with real time inventory updates, including notifications when your store is low on a specific item.
Sign #3: There is no loyalty program in place for your customers
Running a retail business can get competitive and loyalty campaigns have become the gold standard for retailers working to stay in the game. A good POS system can save you time and effort when clienteling by tracking customer purchases and automatically updating your online client database, making it easy to follow-up with customers by email.
Sign #4: Scheduling employees has become a problem
Employee scheduling can be tricky. Since every employee has their own scheduling requirements, it can be difficult to please everyone and to maximize store productivity. By using POS system technology to automatically generate employee schedules, you can ensure that your store’s schedules are made error-free and without bias.
Sign #5: Customers aren’t finding what they’re looking for in your store
If your store has plenty of foot traffic, but somehow it still isn’t making numbers, it’s probably time to start looking for a POS system with data forecasting capabilities. By using sales data to forecast trends and future purchases, modern POS systems can help ensure you’re only investing in products which are sure to be hits with your customer base.
Sign #6: The system isn’t compatible with modern software
A key component of the modern POS system is its ability to simplify in-store processes by seamlessly integrating with other programs. These programs may include new software, CRM systems and back-office functionalities. If your POS isn’t compatible with other products, it’s holding you back by reducing the efficiency of your store.
Sign #7: Payments aren’t processed through your POS
Processing payments through your POS system reduces your likelihood of making costly mistakes such as missed payments or not recognizing when you’ve been overcharged. These types of errors are easy to make, but by streamlining payments through a capable POS system you’ll save money by reducing the margin of error through automating payment processes.
Sign #8: Your business is struggling with internal shrinkage.
It’s difficult for a store owner to know whether resources are dwindling due to internal errors or employee theft. Luckily, internal shrinkage can be greatly reduced by upgrading to a POS system which tracks your inventory and makes any discrepancies easily recognizable. Thus discouraging employee theft and giving you peace of mind!
Sign #9: Employees are wasting floor-time rebooting the system
Stores lose out on sales when customers can’t checkout with their products because of POS system failure or internet outages. There are too many options out there for customers to continue revisiting a store once they’ve had a negative shopping experience. To maintain a professional atmosphere and to retain customers, invest in a POS system that keeps working even when the internet is down.
Sign #10: Your POS system lacks analytical capabilities
Customer data is essential to forecast inventory and to monitor store traffic in order to create employee schedules and identify ideal times for in-store sales or promotions. Without the capability to retain and analyze customer and sales data, you can’t use your POS system to assist with store functions to maximize profitability. Why continue wasting time and money on an outdated POS, when a great POS system makes every other element of running a business go much more smoothly?
The Final Word:
Retail is in a state of evolution; a new Mobile-enhanced Consumer shops across all of your channels, seeking value, service, experience, relevancy and personalization. As a Retailer, you chances of providing all of the above are slim-to-none if your Brick-and-Mortar employees are trying to manage these experiential shoppers via a legacy POS behind a dusty counter.
To optimize the Customer Experience, and to capitalize on the Omnichannel Consumer, Retailers need to shift to a new paradigm in which their Store Associates are enabled, and not hindered by the technology. Where customer inquiries on product information and availability are handled quickly and efficiently. Where Employees are free to engage the customers on the Salesfloor, armed with the latest technology and knowledge at their fingertips. Where integrated CRM help your Employees to better know the Customer, and how best to Service them.
The Consumer has evolved. Retail is evolving as a result, and as part of that Evolution, the POS must evolve.
Advantage2Retail has partnered with Veras Retail to help bring back the magic to the In-Store Experience, learn more about how a Modern POS can help your organization evolve and compete for the modern consumer.