How Can a Retail POS for Business Help You Make Better Decisions
Your Retail Point of Sale system can help you run your small business. The system can act as a right hand, especially when it comes to understanding and managing your business.
If you are like most retailers and business owners, your Point of Sale system is the hub of your business operations whether that is managing inventory, running sales or tracking employees.
Smart retailers know the best way to achieve success is to use the information the POS provides to make informed business decisions that increase the performance of your business. We will show you how the Retail POS for business can help you make better decisions and why it is important.
Improve the Decision-Making Process
A modern and high-quality Point of Sale system collects data (as part of its operation) to important areas of the business, for example, inventory, transactions, employees, and more.
For successful business owners, that data is a huge resource they can use for strategic, business decision-making.
Due to the nature of POS systems, you can always reference this data, at any given time. All you need is a laptop or tablet and an internet connection. We usually think that it is easier to follow our instincts and make decisions based on what feels right. However, this can sometimes lead to flawed decisions. One of the reasons is because your gut can be wrong. You can’t rely on your gut for an important business decision.
Sometimes, you don’t know all the facts for a certain situation. That is where analytics, reporting, and data come into play. They help you complete the whole picture, allowing you to consider all the details before deciding.
Modern Point of Sale system solutions are designed for small business owners. If you are worried that reading reports might be too complicated, don’t. The reports are easy to read. They are focused on specific information, allowing you to find what you need and get back to your regular responsibilities.
What Decisions Can a Point of Sale System Help You Make?
The data provided by the Point of Sale system shows you how all of the important components of your business work together. In other words, what happens in one part can impact what happens in another.
To help you understand the decisions a Point of Sale system can help you make, let’s take a look at each area separately:
Checking sales reports is the best way to determine the most popular products. Once you know what they are, you need to make sure you have enough products in the inventory to satisfy the demand.
This is where inventory management reports come into play. They show the quantity of each product you have in stock so you know when it is time to make new orders. Your POS system can also supply you with information such as the overall value of your inventory and help you take a better look at your current cash flow situation.
Email receipts, gift cards, loyalty programs, and etc. are all marketing strategies that can be managed through a Point of Sale system. By using your Point of Sale system, you can create customer profiles to track their purchase history.
Also, you can monitor the number of email addresses you collect to measure the list of email growth. You can track the number of gift cards you sell and discover when people pay with them to determine the success of the gift card program.
Since your Point of Sale system is where you complete the sales, it should help you understand the performance of your store and the sales completed. That goes far beyond acquiring information like how much you sell per day or month.
Other metrics like gross profit or profit margin are also included in the POS’s report. You can use the information to keep track of the profitability of your business and make sure the inventory you currently have is helping you generate more sales.
When you perform an inventory count, you need to make sure all of the numbers add up. If you notice that your Point of Sale system alerts that you have more stock than what is available in your store, you may have an inventory shrinkage.
Keep in mind that there are a variety of ways that loss can happen so double check things like staff hours and schedule, supplier invoices, and other security measures to determine the reason for the loss.
Employee Hours & Shifts
Your Point of Sale system can tell you exactly who your best employees are and what days are your most profitable ones. You can use sale by employee or sales by hour reports to complete this determination.
Once you have all the information, schedule your best salesperson to work at the most profitable days of the week to boost your profits. You can also see which employees aren’t performing as well as others.
Is Retail POS for Business Better Than a Cash Register
While the old electronic cash register is still a popular device, it can be used for one purpose only – ring up sales. A Point of Sale system is a system designed with hardware and software that allows you to serve your business’s needs, your customers’ expectations, and run your company, all at the same time. Point of Sale software system provides retailers with analytics capabilities that a traditional cash register doesn’t offer. These tools translate the data integrated by the system into a report that keeps you aware of your business’s performance and the overall success of the company. If you want to know what days are the most profitable ones, which payment method is preferred or what your most popular product is, it is all possible with your POS system.
It is more than clear that with a modern POS system, you can gain insight into every aspect of your business. A cloud-based POS offers significant advantages over a traditional cash register.