Though retailers in India are increasingly using Point of Sale (POS) software to execute sales, majority of them do not know the full potential of this automated POS billing system.
With the help of PoS software, retail business houses can track real time sales data wherever and whenever needed, introduce discounts and promotions, manage inventory, create sales reports and forecasts, store customer data and perform analyses of price, cost and profit.
The top most functions a PoS software system can perform are - tracking sales, inventory and customer information. Let’s analyze each of these functions in details and see how it can add to a business’ bottom line.
PoS software varies from business to business, and in many cases, it is custom-made to suit particular retail business environment. So, apart from helping the retailer to fulfil his mundane works such scanning barcodes, listing items and generating bills and receipts, POS software has immense use in generating all kinds of sales data.
From sitting at distant places, a retailer can see the day’s sales volume in his multiple stores, most selling products, customers’ footfalls, low selling items, which products need to be pushed at POS counters, etc. Resellers can create POS sales data on several metrics which can be assessed and interpreted to arrive at several crucial business decisions.
Inventory management is the most crucial part of any retail business. Owners should know exact amount of stocks and how much more to be bought to meet the demand. POS software automatically updates the inventory level after every sale giving retail owners an ideal about the real time stock position of various items and when to replenish goods which are about to be out-of-stock.
This avoids retailers ordering items which are sufficiently present at their warehouses. At the same time, they also get the details of unsold inventory, goods which are going to be expired and stocks which are wrongly positioned. Inventory tracking solution can help retailers to improve customer handling ability, decrease order processing time and reduce shipping time up to 35 per cent. By avoiding out-out-stock conditions for high-demand products, retailers can increase their sales up to three per cent, according to a research analysis.
Collecting customer data
PoS software which integrates payment and POS terminals along with other POS hardware components such as POS printers, hand-held POS devices, Barcode scanners, automatic cash drawers, etc, can collect vital customer details which can be used by the retailers to enhance their business.
Customers’ names, purchase history, demographic information, payment time, purchase frequency, contact information and more are recorded in the local system of the retailers which are programmed to be secure and protected from being compromised.
Such information are used for effective marketing campaigns, identify target audience, potential new markets, sending offers and coupons, sharing new arrivals and sending greetings on special occasions to improve customer loyalty and relations.
Hence, Sales, Inventory, and Customer information are the three important aspects which can aid the growth of any retail business. Retailers need to accurately track and analyze each one to ensure success.
And, all these are possible only when you have an efficient retail POS retail software.