With over the decades of technological progress, cash registers are being replaced with smart POS solutions in the retail world today. They have become a crucial aspect of business operations to run them smoothly, effectively, and quickly. The point-of-sale system (POS) simplifies retail marketing operations while streamlining customer touchpoints. We will take a look at why an advanced POS system is essential in your retail marketing plan.
The effectiveness of the POS system goes beyond transaction management at the checkout counters. In retail marketing, it aims at improving sales. Common advantages include automating mundane tasks, managing inventory and sales reports and analysis, and assisting customers. With its integration, many retail companies have been reaping big rewards. This article offers an insight into how advanced POS systems are hacking most retail marketing plans.
Advantages of using an advanced POS system for your retail marketing plan
1. Optimization of the checkout process
Up first, is the main reason why POS systems have been making a breakthrough into the retail world, the checkout process. An advanced POS system can help to significantly speed up the checkout process.
The centralized data in the system offers a good view of the products, their pricing, and customers at the same time. In addition, retailers can swiftly find necessary products, assign them to the customers and offer discounts, if any, with minimal human effort.
With an integrated POS system, common tools like barcode scanners run faster. This prevents long queues at stores that may leave customers unsatisfied. The smooth operation of the POS system ensures that no customer leaves the retail stores without making a purchase.
Keeping the checkout process smart and convenient is a big win in the eyes of the customers. It may be one of the reasons why customers may remain loyal to a particular brand for the longest period.
2. Flexibility in payment options
In the last few years, payment technology has skyrocketed. Retailers are under great pressure to adapt to the significant changes.
Today, apart from cash and credit/debit card payment options, customers are using digital wallets and contactless payment options like eWallets, GPay, to name a few. In addition, customers are allowed to make requests to pay in installments through digital payment modes or simply combine different payment options to pay for their orders.
With the help of an advanced POS system, retailers can provide more payment options for customers to rely on. This may guarantee that customers are making the purchases while bearing a good brand impression in mind.
3. Offering discounts
The advanced mechanism of a POS system helps to gather all the data related to sales, inventory, and customers. Using this data, retailers can calculate discount schemes to improve their marketing campaigns. While maintaining the bottom line, this enables an increased number of potential customers to make more purchases from your store.
With the help of the capabilities of an advanced POS system, retailers may carry out flexible promotion plans. Such promotions may be based on factors like order amounts, order items, or membership tier. The POS system automatically applies the chosen promotion schemes to the sales, saving the retailer time and effort invested in manually calculating them.
4. Initiatives for customer loyalty programs
Besides promotions, loyalty programs are a great way to increase customer attraction and induce them to make repeated purchases. By implementing customer loyalty programs like memberships or gift vouchers, you can boost retail sales. It creates a higher level of brand engagement with the customers.
An advanced POS system may take a step ahead and display the loyalty program features to the customers. It may encourage them to make more purchases. Due to the offers and rewards provided with every purchase, more potential targets will be willing to frequent a particular retail store. It helps customers to track every step in their purchase and receive rewards for every purchase made, so they are bound to stay more loyal to a particular brand.
On the other side, retailers and cashiers must be able to access the members’ accounts without having to use a barcode scanner on a loyalty card or using their phone numbers. This would otherwise lead to loss of sales from customers who have no such loyalty cards or another membership status.
5. Eradication of human-made errors
With hundreds of transactions taking place regularly, there are high chances of the retail employees to make errors when entering the products and prices at checkout.
With the help of an advanced POS system, there are nearly no chances of such human errors. A complete picture of the sales order data is recorded and available for review and reference when necessary.
Despite several transactions made per hour, the system ensures that the retail store has the right product SKU, product consistency across the system, and correct order amounts every time.
6. Employee management
Using separate worksheets to coordinate and manage employees may seem daunting. The advanced POS system comes to the rescue by keeping track of employees working in different shifts.
In addition, the centralized system can provide monthly and yearly reports of the sales performance of each of the employees while calculating their commission rates. This allows the retailers to track employee progress towards definite goals. Accordingly, they may reward or support the employees.
7. Advanced database marketing
Collection of relevant customer data like email and residential addresses, birthdays or anniversaries, and purchase history is necessary at the point of sales. Based on the type of retail business, the retailers may also ask for customer preferences and parameters.
To channelize database marketing in the retail marketing plan, retailers must begin by segmenting the database for identifying relevant customers to send offers and invitations. From the gathered customer information, retailers may send targeted offers to customers based on selected events that may be of interest to the individual customers.
Customers may also be segmented based on parameters like demographic group and zip code. Better targeted database marketing initiatives will lead to higher customer satisfaction and sales rewards. The rewards and offers must however be targeted to the right group of customers.
8. Extension of customer relationship management
The built-in CRM or customer relationship management feature in an advanced POS system helps retailers to promote special offers and discounts. It accelerates the transaction process, ensuring the customers are paying the exact amount for the purchases made.
In particular retail segments like specialty stores, the associates may use their mobile devices to take the decisions on point of sales. It allows them to sell products to customers based on the information available in their databases like previous purchases or wishlist products.
Waiting in long queues with slow progress may simply add to customer dissatisfaction. After a certain time period, they may start preferring competitive retail stores to receive faster checkouts and better customer experiences.
A smart POS system therefore offers features like seamless customer ordering and inventory tracking. It allows retail stores to quickly look through and order required products from their partnering stores in a short period.
Helping customers to personalize their shopping experience and product details with kiosks and handhelds helps to upshift retail sales. Despite the size of retail businesses, POS solutions help to achieve the targeted sales, reduce operational costs while increasing customer satisfaction.
9. Detailed receipt printing
Shoppers usually do not give much importance to beautifully designed advertisement flyers. They may however hold onto purchase receipts and read them for obvious reasons. Printed fliers are a critical factor in marketing. Retailers have the freedom to customize and relay any message of their choice to their customers.
With the help of an advanced POS system, receipts may be converted into fliers with intricate details like incorporating loyalty programs and coupon savings. Their contact details and social media handles may also be incorporated in the flier receipts. It aims to increase future interactions with potential customers.
10. Increasing efficiency by tracking sampling and demonstration efforts
To retail store owners, sampling and demonstration are two of the most crucial retail marketing strategies to keep an eye on. Usually, foods and beverages in retail stores are most commonly sampled. They typically generate generous sales returns every time.
With the help of advances in a smart POS system, this notion can be eliminated. Surety in generating higher sales can be brought through affirmative sales tracking using a centralized system.
At times, certain sales do not lead to increase in profits. It rather causes more reduction in sales. Similarly, such a notion seems fit for selling electronic applications through demonstration efforts.
Earlier, retailers were under the assumption that simply sampling and demonstrating products would offer better results. Today, with the help of advanced sales software, detail-oriented tracking has disapproved of the notion. Some of the products are sold better with mere demonstration efforts, whereas other products need to be taken a bit further to increase sales.
11. Real-time actionable insights
Retailers may not always be physically present in the stores to manage and keep track of their businesses. A cloud-based POS system offers more data to help them gain insights and create strategies on the way.
Any retailer is now free to manage his or her business from anywhere at any time. All the data is stored in the cloud. This allows all the employees to access relevant information when needed. The centralized system however restricts access to certain data based on their level of expertise.
Without being physically present or any help from employees, the retailer can track the number of stocks available in the inventory. The built-in analytics feature helps them to access specific information. Such information may range from best-selling items, peak or off-peak hours, low performing categories to reserve amounts of a particular item.
12. Control over inventory management
An advanced POS system offers consistent, reliable, and accurate information from all the inventories into the centralized system. This helps to eliminate the need to manage and receive information separately.
It prevents the chances of receiving mismatched data from the inventory systems. With the help of POS tracking solutions, retailers can avoid overstocking or understocking their inventories.
An important asset of having POS systems is to be able to receive accurate data in real-time. If all of them have the same system, then inventory management and distribution can run evenly. An advanced POS system uploads and syncs inventory data accurately. It helps to monitor stock amounts and stock in transit, and stay updated in time.
Its user-friendly interface offers better visibility on controlling orders, their status as well as current stock levels. With the help of one unified management system, all incoming and outgoing inventory shipments can be managed and controlled.
13. Selling based on suggestions
POS solutions can be used widely in retail marketing. They may be configured to print sales for generating relevant marketing messages. They offer endless rewards to retail marketing plans starting from announcing upcoming promotions to suggesting sales communication.
For increasing retail sales, a strategy can be programmed that reminds servers and cashiers with mobile devices to employ suggestive selling strategies while taking orders or ringing customer purchases.
14. Time and cost-effectiveness
With the guidance of an advanced POS system, retailers can increase their business profitability in multiple areas apart from sales. As the efficiency in business processes increases, it keeps creating a significant impact on the bottom line.
An effective POS solution keeps the retail business focused at all times. It may further act as a motivating factor for the employees to meet their individual sales targets while fulfilling the overall business objectives. As effective time and finance management are crucial for efficient retail marketing, an advanced POS system can indeed make the difference.
With rapid changes in the retail landscape, outdated systems are mere shackles that are preventing retail businesses from unlocking their full potential. It’s time to understand the importance of an advanced POS system and upgrade to support retail marketing plans.