Retailers rely on technology – and at the very core of successful retailing is a retail POS system, enabling smooth customer transactions and capturing key data about sales and shoppers. Choosing the right POS solution is an important decision – top POS software platforms offer the potential to transform * a retail business, increasing efficiency, growth and profits. So how does a retailer go about selecting the right retail POS system for their business, for now and into the future?
iVend helps retailers select the best point of sale system.
Read how in our detailed ‘POS Buying Guide’.
Retail is always changing, so it’s essential to pick a retail POS system that will adapt, support business growth and stand the test of time. A retailer needs to be able to handle the ever-changing demands of consumers: including frictionless checkout, experiential shopping, personalisation, and omnichannel transactions such as click and collect or Buy Online Return In Store (BORIS). A retail POS system needs to manage and provide information from every part of the retail operation, including inventory, sales, returns and loyalty. With different specialties within retail (such as grocery, apparel, pharmacy) operating in different ways, choosing the right POS solution to support the business processes is essential. With the right POS solutions for business, retailers have a solid foundation that will support agility and growth.
Enterprise-class retail management platform
The most effective and flexible form of retail POS system is the enterprise-class retail management platform – a single, integrated, purpose-built system with POS at its core. A platform will manage all aspects of a retail operation in a single system. It’s a more effective option than ‘bolting together’ a disparate range of tools that are not designed to work together or exchange data. Successful retail is the sum of many parts, and by integrating the management of all those parts, retailers can be more productive, save money and make data- driven decisions . **
Three key questions to ask when selecting a retail POS system
Choosing a retail POS system is a decision with lasting impact, so retailers need to make sure they ask the appropriate questions before buying. Here’s our POS buying guide to the top three ‘must-ask’ questions, to simplify the process of choosing the right POS solution.
- Does it incorporate the required functions?
Retailers should consider all the functions that they need to manage, analyse or automate, and make sure that those form part of their point of sale selection. It’s important to think ahead – even if the business doesn’t need, say, a mobile retail POS system right now, if the strategy indicates that it could be required in future, retailers should consider a platform that includes it. The same goes for inventory, loyalty, promotions, and a host of other top POS software features. The wrong decision could limit flexibility, agility and growth in the future.
- Where does the retail POS system run?
A retail POS system can run on servers in the retailer’s own organisation. Whilst this offers a high level of control, it is also a big drain on resources – to install, manage and upgrade the software, and to purchase and run the required hardware. Often this means investing in hardware that’s not yet needed, simply to have the headroom for growth.
Alternatively, software can be provided ‘as-a-service’ and run in the Cloud. This approach offers lots of benefits:*** it reduces the skills and resources the retailer needs, eliminates upfront investment, ensures systems are always up to date, and provides exactly the capacity (and only the capacity) required. But it does rely on network connectivity, a fact that makes some retailers nervous.
The ‘best of both worlds’ solution is an ‘as-a-service’ system that also has the capability to run offline if connectivity should be lost. This is a very attractive option to most retailers.
- Does it offer specialist retail options?
Whilst the fundamentals of retail are universal, there are significant operational differences between specialisms – like grocery, apparel, optical, pharmacy, thrift, electronics, hospitality and hardware. Tailoring a ‘general’ retail POS system requires an investment of time and/or money. So top POS software systems offer versions designed for specific types of retail.
Addressing these three questions is a good way to ensure a top point of sale system. But point of sale selection is a big topic, so we’ve gone into more depth in our POS Buying Guide eBook. Check out The definitive guide to selecting the perfect enterprise-class retail management solution ****.
What about incorporating new technology?
Technology is moving at a faster pace than ever, so an important consideration is how readily your selected POS system can incorporate new technologies. Artificial intelligence (AI) is a case in point – it’s being used by retailers for customer service, fraud detection and prevention, optimised inventory management, and personalisation. **** In order to add value to these disciplines, AI must analyse the data and insights that come from the POS system, so the ability to incorporate AI with the POS platform is essential.
What are the benefits of selecting the right POS system?
The benefits of selecting the right pos solution are many and far-reaching, and include:
- Efficient operations including process automation
- Smart inventory management, including returns
- Promotions and marketing that drive increased sales
- Flexibility to meet changing customer demands and improve customer experience
- Clear visibility of every part of the business and the ability to link information
- Better decision making
- Profitability and growth
References:-
* https://www.mckinsey.com/industries/retail/our-insights/the-tech-transformation-imperative-in-retail
** https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2023/12/14/data-driven-decision-making-in-retail/?sh=69a1af6b3153
*** https://www.deloitte.com/global/en/services/consulting/perspectives/ftware-and-that-future-is-now-cloud-adoption-software-as-a-service-erp-oracle-digital-transformation.html
**** https://www.forbes.com/sites/forbestechcouncil/2023/08/31/how-four-retail-basics-are-better-with-artificial-intelligence/?sh=1027cf01f6a4
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