4 Critical Warning Signs That Indicate it’s Time to Upgrade Your Legacy POS System
Over the course of the past few decades, advanced technology and innovative products have been developed to help retail stores serve the customer better and transform sales interactions. One such groundbreaking tool that closed the bridge between today’s digital native shoppers and sellers within brick-and-mortar stores is a ‘POS’ system.
Compared to the traditional pen and paper approach, a POS system functions as both a cash register and retail management tool to keep a record of consummated sales and their transactions as well as handle everything from replenishing stock and processing payments to training your employees. As an entrepreneur , you should not take any chance of putting your business at risk of security breaches and insolvency.
Throughout this blog post, we are going to cover four extreme warning signs that indicate you’ve outgrown your POS system, and it’s time to upgrade it, so let’s take a look at them.
1) Outdated Hardware
According to a survey conducted by Boston Retail Partners, the lifecycle expectancy of a Point-of-Sale (POS) system varies from a more conservative duration of 8-10 years to a much shorter 3-4 years. Even if your POS system was cutting-edge at the time of your store’s founding, on average, it’s going to be outdated after 3 to 7 years. Majority of the latest software isn’t compatible with obsolete hardware models, cash drawers, and terminals, which cause various malfunctions such as fuzzy monitors, recurring connectivity issues, and inconsistent printers. From an operational standpoint, you need to ask yourself these following questions to identify areas where your business is falling behind.
a) Is the checkout process taking longer than it should?
b) Are your consumers able to process transactions with their preferred payment methods such as debit cards, PayPal, credit card, Apple pay, and more?
c) How many hours does your POS system take to conduct an inventory audit?
d) Does it let you view and manage stored customer data, purchase history, and other engagement channels?
e) Do you always need to perform some inconvenient procedure to make changes to products, prices, and other data across all of your interconnected terminals?
2) Outdated or Limited integration Features
If you always hurdle back and forth between numerous apps or programs to complete your day-to-day operational procedure, you need to get your hands on a robust, contemporary POS system that can interact with cohesive, uniform business management solutions. There are various cutting-edge POS devices out in the market that streamline the flow of data by empowering you to use core features, including third-party tools, add-ons, social media channels, and loyalty programs, etc. Let’s take a closer look at a few essential aspects:
- Real-time reporting
- Employee management features
- Email marketing campaigns
- Customer information and purchase history
- Additional support teams
- E-commerce Platform
- Social media integrations
- Digital receipts and order screens
- Customer loyalty programs
- Accounting software package
- Gift card support
To learn how to choose the right POS system for your business, read this POS buyer’s guide.
3) Inadequate Reports
One biggest reason companies invest in a POS system is to truly understand how their business is performing in a timely fashion and improving the flow of sales. A POS device enables them to analyze business data and generate customized, in-depth reports about ongoing consumer purchasing trends, sales stats, inventory statistics, comparison reports, and more. Not to mention, it also assists businesses in making critical, informed decisions regarding inventory, personnel, marketing, sales operations.
Here are some critical reports your POS system should provide at defined time intervals:
✓ Total number and value of sales
✓ Sales value by mean, median, and mode
✓ Sales by item modifier, product, and variant
✓ Sales by category, department, and supplier
✓ Sales by employees and customers
✓ Sales by tender type (debit card, gift card, coupons, credit card, or eCash bank)
✓ Inventory value report
✓ Individual customer loyalty statistics
✓ Inventory adjustment record
✓ The efficacy of promotional campaigns and transactions (e.g. payments made using coupons, gift cards, sales, special offers, etc.)
4) Inventory is a nightmare
Talking about the bottom line, you can bet your bottom dollar that the inventory management has the power to make or break your business. According to Wasp Barcode, around 46 percent of SMBs either don’t track their inventories at all or take a manual approach. A different report conducted by CNBC demonstrates that Retailers’ inability to effectually manage inventory cost them nearly $2 trillion (to be exact $1.75 trillion) in 2015.
While keeping not enough products in your stock can damage your potential sales, overstocking of inventory can cut your cash flow. It’s no secret that inventory management is one of the most tedious, time-consuming tasks a business has to deal with while operating a retail store, but that’s where a POS system can pull their weight and give them a hand. A point-of-sale device can help you effectively maintain the right level of inventory both in quantity and quality. Once you purchase the right POS system for your business, everything from updating product items and tracking stock count to getting a detailed insight into client behavior will be as simple as ABC!
Whether you’re looking for a reliable, secure POS system for your enterprise or professional mobile credit card processing services to set up a merchant account, feel free for a customized quote, call (877)720-0033.