The cash register has evolved from a basic order-taking device to the lifeline of a business. Nowadays the traditional cash register has been replaced with point-of-sale (POS) systems by most major companies.
Unlike cash registers, POS systems have advanced computing capabilities giving business owners more control over their business. Since most POS systems work on the cloud, operators can manage one or multiple branches from anywhere in the world.
After working with 100s of business owners we’ve noticed there are a few key areas that successful owners focus on with their POS systems. These include paying close attention to POS sales reports, integrating customer loyalty, and monitoring all levels of inventory.
Track Your Sales
Most modern POS systems allow you to enter your catalog or menu so you can easily check out guests for the items they need. When a transaction is completed on a POS system, the sales data is sent to the back office reports. Most modern POS systems work off the cloud, so these reports are normally real-time and accessible from any device with the internet.
Successful business owners use this stored data to brainstorm ideas and reinforce decisions. For example, menu and catalog planning for the next quarter can be done by studying reports such as top-selling items, high margin items, low selling items, and low margin items. Reports like these help you easily see what is driving your revenue and what is tying up your cash.
Most systems also allow you to compare reports based on timeframes. For example, summer is just around the corner. You want to be prepared for the season, but you’re not sure what items are going to be a hit. Instead of guessing, pull a report from last summers’ sales to see what could be the best sellers and least sellers this season.
There are tons of other reports that are super useful, but the bottom line is that you should always be studying them frequently!
Build Customer Loyalty
We all know that it costs five times more to get a new customer than it does to get an existing customer to return. Luckily, you can leverage your POS system to help you get guests to come back. One way to create loyal customers is by offering an in-house rewards program.
The most common reward programs are points programs. For example, a customer spends $1.00 and they earn 1 point which is worth a penny. When setting up the offer, you would dictate how many points someone gets per dollar spent and much a point is worth when redeeming.
This instantly incentivizes the guest to return so they can take advantage of the rewards they’re now building. It’s almost like a cash-back offer but is redeemable only at your business.
Not only can you create in-house rewards for your customers, but you can also use your POS for outbound marketing. A rewards program is also a great way to justify collecting your customers’ names, phone numbers, and email.
By collecting your customers’ contact information, you’re now able to reach them when they are away from the business. Most modern POS systems integrate with external marketing apps to send automated emails and SMS messages.
Be sure to review any related laws or regulations on SPAM to make sure you’re properly reaching out to your customers!
Get Control of Your Inventory
POS systems have robust inventory systems that are extremely underutilized by operators. Unfortunately, about 50% of business owners we speak with do not utilize their POS system’s inventory module. This is normally because they believe the juice isn’t worth the squeeze.
We’re here to tell you the juice is most definitely worth the squeeze. We’ll be honest, setting up your inventory the first time is a bit time-consuming. The reward is that the system will do everything for you afterward and then some!
After loading your initial inventory into your POS system, the only manual work you’ll need to do moving forward is marking received items from orders as well as spoilage, wastage, and theft. In return, the POS system will now track any discrepancies in your inventory as well as what you have on hand. This is extremely powerful and goes hand-in-hand with leveraging your reporting.
What are some good POS recommendations?
If you need help finding a POS system that can smoothly handle the features and functions we mentioned above, please reach out! MiPago has spent years in the POS industry to find the top options out there for small businesses. Get in touch with us today to help find the best POS system for you!