Point of sale (POS) has come a long way since the days of the simple cash register, with the latest systems offering businesses a comprehensive and integrated solution to managing daily operations.
When was the last time you updated yours? 5 years ago? 10 years ago?
Change always comes with new challenges, but the cost of sticking with a system that doesn’t fit your business’s needs can be even more expensive in the long-term. If you’re experiencing any of the problems below, it might be time to switch your POS system.
1. Your system is outdated
The first – and most obvious – sign you need a new POS system is that your current set-up is simply out-of-date. As consumers, we’re prone to replacing technology in our personal lives every few years in order to keep up with the latest upgrades, so why should the mindset be different for business?
Most new software isn’t compatible with old hardware and many systems are unable to accommodate the level of sophisticated functionality that is under constant development. Buggy and complicated software or terminals that experience regular malfunctions are all issues that will cause unnecessary downtime which could easily be avoided.
2. Business is growing
In the early days of your business, you may have started with a basic system that provided you with all the functionality needed to get by comfortably. But as momentum picks up and sales begin to grow, managing your operations can become complicated and time-consuming.
You’ll quickly find that you’re spending hours on admin, moving between systems to transcribe receipts or manually add up employee hours for accounts. You may even be losing track during the process and having to spend time rectifying issues.
3. There's a lack of payment options
As consumers look to convenience for their transactions, it’s no surprise to see reports suggest that cash will only account for 17% of transactions by 2022. In that same period, 1.5 billion people are expected to be using digital wallet payments in the form of smartphone applications like Apple or Android Pay. If your POS doesn’t accept and integrate a form of ‘tap’ payments internally, it’s time to consider upgrading. Not only will it simplify transactions and reduce queue times, but it will also help to protect your business from fraud liability.
4. Stock management is a guessing game
One of the biggest drains on cash flow for many businesses is inventory. Whether it’s slow-moving stock that’s sat on shelves or an item that’s always selling out, your sales revenue ultimately suffers. It can be hard to find a balance – especially if you’re selling both online and in-store – but this is where your POS can help.
If you find you’re part of the surprisingly large number of businesses who either don’t have an inventory management process or use a manual method that is tedious and prone to human error, your current system isn’t doing its job.
Your POS should automatically sync across all channels, allowing you to keep track of sales, automatically re-order based on trends and manage stock as it moves in and between locations.
5. You can't track your KPIs
Knowing where your strengths and weaknesses lie is key to healthy business growth. That includes knowing your best and worst selling items, staff performance levels and how consumer spending habits are changing. Can your current POS system provide you with that breakdown?
While most systems will have a set of predefined reports you can run, you’ll want more advanced, tailored data in order to identify trends and areas of improvement.
6. You want to target your marketing
If your POS system isn’t integrated into a customer database, you’re missing out on valuable customer insights that could potentially be used to segment specific marketing campaigns and loyalty programs.
You can provide customers with exclusive access to promotions, sneak peeks at upcoming sales and the option to sign up for memberships to encourage repeat business and higher average spending.
How many of the points above apply to you? The start of a new year is the perfect time for change, so if you’d like to make the switch to a new POS system, get in touch to speak to one of our expert team.