Things to Consider and Key Features to Look for in a POS Software

Things to Consider and Key Features to Look for in a POS Software

Making a list of all the features you need and asking for an opinion from other retail business owners is a good starting point during the search. The POS software should be easy-to-use, agile, easy to maintain, scalable and flexible. POS solutions are available in abundance with varying features and prices. But there are a few features and things businesses should consider before deciding on any solution including:

Inventory Management

The most important component of the system that automatically updates the inventory and makes it easier to manage stock quantity. The IM tools allow users to digitally scan and count items, manage stock by creating different variations such as color and size and identify products with a unique number.

Multi-location businesses need a software that supports inventory tracking across different locations and allows consolidating purchases and orders. Many POS systems come with more than just inventory management tools, including automatic re-stock reminders, purchase order creation and stock transfers between different retail locations.

Customer management

Allows sales and marketing teams to keep in touch with the customers and build a strong relationship. The POS software should be able to integrate with a CRM, allowing it to automatically pull customer data. The customer management tools keep track of the purchase history and attach transactions to customers.

The customer management module should be able to record important customer information and connect with email marketing to stay in touch with the customers. Many POS systems come with a customer management system that have a loyalty program built-in.

Sales Reporting

Records all sales data and provides users with the tools they need to analyze trends and make informed business and sales decisions. The sales reporting tools allow users to generate sales reports based on different criteria, including by product, by amount, by profit margin and so on and provide snapshots of sales performance in an easy-to-understand form.

Employee management

Keeps log of work hours and sales and makes it easier to identify and reward top performers and employees who need some extra coaching. Makes it easier to manage performance and ensure that sales targets are being met. The employee management tools allow adding employees, creating and adding employee schedules according to the forecasted activity and tracking work hours/overtime.

Integration Support

Chances are good that you are already using an accounting software and other systems to manage business operations. A POS system should be able to integrate well with your existing software such as email marketing, which reduces the amount of data entry work required and ensures consistent and up-to-date information across all systems.

Integrations with other systems can save a lot of time and work hours required in inputting data in different systems. A POS system should not be judged only based on the cost and features it offers. Integration support is equally important and a POS system should support most (if not all) third-party solution you already have (or plan on using in the future).

Payment Methods

The POS system should be compatible with the payment methods you want to use, including chip-enabled debit/credit cards. An EMV-compliant terminal minimizes the risk of fraud liability and is a must-have for any modern retail business.

Cost

Cost is often the main reason small retailers don’t use POS systems. However, POS systems are available at different price points, including affordable monthly subscriptions and expensive made-to-order software. Gone is the time when small businesses could not afford POS systems. SaaS (Software as a Service) POS solutions have leveled the playing field and it’s not difficult to find reasonably priced options.

What make things a little complex is availability of so many POS systems, including a good amount of mediocre ones. Inconsistent pricing is one sign of a mediocre system, but you still have to test-drive a solution to see if it works as per business requirements. The pricing should be transparent and straight forward with no hidden fees. It’s better to go for no-contract option if available instead of opting for mandatory contracts.

Contract Terms and Length

Some providers require you to sign long-term contracts, while other allow you to cancel anytime. That’s why it’s recommended to test-drive a solution before committing to anything and read the SLA (Service Level Agreement) to understand what service level to expect and obligations of the provider. Another thing to consider is hidden fees and other costs such as training and installation. Ask the provider in advance if there are other costs involved such as implementation fees, training fees, support and maintenance fees.

Proprietary Hardware

Although proprietary hardware might save you some time and provide smoother functionality, it can make customization difficult and might not be compatible with the third-party software/hardware. It’s better to invest in hardware that’s compatible with other systems, allowing you to use it with the software of your choice.

Support

Buying a POS software is like entering into a relationship with the vendor. The service providers must have the resources required to support the relationship in the long-term. Issues related to POS systems can cost retailers a lot of revenue and time, which is something they cannot afford every now and then.

Most of the employees using a POS system probably won’t be tech-savvy people. Quality support ensures timely resolution of issues when they arise and makes it easier to setup the system and answer questions users might have from time to time. Different providers offer support via different channels, including email, phone, ticketing system and live chat.

Make sure to confirm if the provider offers support within a reasonable time period via your preferred channel. Support should be unlimited and not come at an additional cost. It’s not that difficult to determine the level of support a vendor offers, thanks to review sites and forums.

Usability

Easy-to-use and simple solutions make it easier for IT teams to train employees and boost the adoption rate. It’s recommended to visit stores around you and investigate how usable is the solution they are using. Retail businesses cannot afford to use a software that makes the users feel overwhelmed. They need to take their time to test-drive different systems or ask other fellow retailers to during the research phase.

Training

Training is directly related to usability and high employee turnover in the retail businesses. An easy-to-learn software usually comes with simple training procedures resources. It’s not practically possible for small and medium retail businesses to provide extensive training to employees when the turnover is high. That’s why they need a software with streamlined training processes and plenty of learning resources.

State of a Business

The current business situation plays a pivotal role in determining the kind of POS system you should buy. Businesses upgrading from an old cash-register might need something different than new ventures and businesses switching from an existing POS system (something might not have been working as expected in their current situation, so they are looking for a new system that resolves those specific issues).

Conclusion

The right POS system can play an important role in the success of a retail business. However, with hundreds of POS vendors and all claiming to be the best, it can become difficult to choose the right one. The good news is that there are plenty of resources to help you pick the right solution and now might be the right time for small and medium businesses to invest in a POS system.

Choosing the right POS system from the start ensures smooth operations and minimizes the chances of lost revenue and time. It makes businesses more competitive and establishes credibility with its customers. However, it’s important that the vendor also shares the vision of its clients and be willing to contribute in their success by providing customer-focused solutions and great customer services.

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