Though India is one among the fastest growing markets for retail businesses, still for many of us the terminology ‘POS’ remains an alien. So, what is POS?
POS represents Point Of Sale, the place where customers pay to shopkeepers for the goods they buy from them. Point of sale can also be termed as checkouts, cash counters, payment counters, billing desk, and so on, in many places.
But in modern terms, POS not only denotes the place where the actual sales happen, but also indicates the technology (both hardware and software) used in dealing with customers by way of billing, payment and other engagement activities.
Why is POS used?
POS as technology helps retailers to avoid time consuming manual works and automate most of the critical and mundane process to facilitate fast billing, inventory management, reduce errors, automate business process, effective staff management and improve customer experience. Latest POS technology facilitates store owners to automate the entire business so that they can utilize more time in business development. With one single POS software, store owners can monitor the business in multiple chains of stores at any point of time and even on the move.
Where it is used?
POS is required for all retail businesses, both offline and online. Whether small, medium or big business, POS system can be modified and custom-made to suit the business orientation and model. Whether you own a grocery store, kirana shop, supermarket, departmental store, convenient store, textile showroom, drug store, electrical and electronic shop, hardware store, stationery business, or just any kind of retail activity, you can augment your business by using POS technology, which is user friendly and cost-effective too.
How POS can help retailers?
The POS system can do a lot of functions for store owners which in conventional way would be difficult to manage on a daily basis. Some of them are given below.
Hand written bills are passé. Latest POS technology helps retailers to print the bill in a jiffy with complete information such as names of the merchandise sold, amount to pay, discounts, credit points and name of the store and logo with address. With barcoding becoming the norm of the day, retail store owners use barcode scanners to scan the barcode on each packet quickly to prepare the bill which reduces customers’ stay at bill counters.
Fast billing by using hand-held mobile POS devices can help store executives bill customers wherever they are, so that they don’t need to come to the checkout section. For fast billing, the hardware required are a computer system (POS terminal) with suitable retail POS software integrated with barcode scanner, receipt printer, cash drawer (optional), pole display (optional), electronic weighing scale and currency counting machine (optional).
Inventory and sales management
Taking stock position manually can be too cumbersome and error prone. With new POS technology, inventory management has become automatic and store owners can find the stock position anytime they want and take appropriate action.
Not only this, they can get the reports which can give information about the most sold product, less popular goods, peak hour selling products, staff performance, customer preferences, daily, weekly and monthly footfalls, real-time multiple store data, et al.
Customer relation management
With suitable POS software, store owners can track customer movement and their preferences and send them personalized offers, discount coupons and information about new arrivals as messages on their smart phones and e-mail inboxes. Store owners can send customers greetings and wishes on special occasions such as birthdays and festivals which will strengthen the relationship and improve their loyalty.
POS can be utilized fully to make use of right number of staff for both back end and front end store operations. One can also monitor staff attendance, individual performance, and customer feedbacks and allocate right number of staff for peak hours to meet the demand.
Apart from the above mentioned advantages, POS Machines can also be used for effective parking management, real time sales analysis, tax calculation, purchase management, etc.
So, switch to POS today.