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.