Nowadays, every business environment requires a network strategy that includes secure IoT connectivity. Besides collecting payments and processing transactions, a Point of Sale (POS) system does much more. It will help you in all possible ways to increase the profit of your business, so choose them wisely. For various advanced features, smart POS systems use the Internet of Things (IoT), from which every business owner get benefitted. Here is some information on the POS system that all you need to know about.
What is a POS system?
POS refers to the place a customer pays for goods or services. The point of sale system relates to both hardware and software components that facilitate the possible transaction. A POS system includes
- Payment processing solution
- POS software
- Touch screen computer or tablet
- Barcode scanner
- Receipt printer
- Card reader
If you run a physical shop or business, you will need a cash register anyway, but most of you might don’t know that a cash register can do many things other than finalizing transactions. POS system is a technology that is used by businesses to accept payments from their customers. In the back end, it can also manage inventory and even order new stock. It will be very useful to keep track of sales and how well your team performs on the floor.
Integrated vs standalone
An integrated Point of scale – POS software maintains all the business data and functions connected. To enhance the service and accuracy, pricing, inventory, transaction and client’s data can work in concert. It connects the dots and merges all aspects of your business across multiple locations and eCommerce channels.
This POS software serves a singular purpose to complete a transaction. Updating inventory or verifying pricing need to happen manually because it remains separated from another business system.
Simply entering a PIN or tapping a card belies many hided complexities. In contrast, payment processing handle every security, settlement, authorization and reporting. Business owners can expect a smooth and low risk transaction from a payment processing solution, and security should be the most important priority, and costs should be low.
POS system hardware
The hardware system comprises the physical components accountable for the input and output of the sales transaction of the POS software at the point of purchase. Some of the POS system hardware’s are:
Touch screen computer or tablet
Nowadays, most modern electronic devices incorporate user friendly touch screens because there are easy to use, portable and come at a lower cost. Just with a smaller footprint, they develop a more inviting user experience.
A Barcode scanner is also referred to as a POS scanner or barcode reader. A Barcode Scanner is a handheld device that is used to capture and feed product information into the POS system. But now, with the advanced tech, this specific technology allows mobile devices to benefit both the retailer and the customer. Barcodes scanners have two different types, such as 1D barcode scanners and 2D barcode scanners.
It is the primary hardware that retail customers are used for interacting. It has become smaller, faster and often contactless due to recent improvements. You have to pick the card reader that prints or emails receipts and allows POS integrated payment processing.
Before a recent technology evolves, there is a traditional method that includes a paper receipt generated by a dot-matrix thermal printer. But with the advancement in technology, make printers wireless, less clunky, portable, and with Bluetooth capabilities. The advanced POS software allows businesses to personalize receipts based on specific customer information. The information also includes rewards, recommendations and much more. For advanced marketing, some business also offers paperless receipts sent in the form of an email or text.
What does a POS system look like?
More than you think, there is not much wide array of tools is required for this system. It consists of hardware and software, where hardware is the physical element that you and your customers use to finalize transactions. Nowadays, other than coming with software that needs to be installed on each device, often every point of sale system run on cloud-based servers. Both customers and businesses have many benefits from it.
POS system allows you to manage other parts of your business from anywhere globally and also mobile checkout and payments and collects advanced customer data. If you are looking for POS software, then it is essential to know that it shouldn’t only be valuable to the business owner but also make the lives of the operators a little easier. Every business owner can access their POS system from anywhere and anytime.
POS connectivity challenges
The absence of proper connectivity of POS tools can drive to many challenges or any blend of them. Especially if you are running a mobile business, you may undergo a lack of connection. Some POS connectivity challenges are:
Inconvenient transaction – When the point of scale failure means customers have to withdraw cash to complete payments.
Low business efficiency – due to lack of connectivity, you may experience delays and transaction errors.
Unhappy customers – there will be an increase in customers waiting time at the counter due to slow payment. It will lead to unhappy customers.
Vulnerable security – you may experience a high data loss and leakage of customer personal data if POS fails.
How POS is evolving
It provides systems that go far beyond the cash drawer. As you have seen above, the pos system blend hardware, software and payment processing components to execute the transactions instantly, but the truth is there is more than that. It is evolving in many ways, such as mobile and omnichannel retail, CRM integration, Artificial Intelligence (AI) and many more. One among those is the Internet of Things (IoT).
Internet of Things (IoT)
Most retailers have a smart point of sale (POS) system with the IoT. The cloud based POS systems built with the Internet of Things (IoT) offers the best real time interaction between a real time customer expectation and business openers. To bring the POS system to the customers on the sales floor, most of the retailers are arming sales staff with mobile devices.
POS Software with IoT enables inventory checks and sales very instant. With this incorporation, you can have instant inventory checks and sales without having to go to the register. A smart POS system with IoT makes it more comfortable to handle and control transactions from even the highest retailers from a central location. The incorporation of the Internet of Things (IoT) in POS systems also makes the process and work far more secure.
What is IoT enabled retail POS management?
Smart POS software can go beyond processing transactions and allows the user to operate anywhere. Only with the WIFI connection, then the smart system can track customer behaviour, update inventory, and enable sales staff to complete transactions anywhere.
Key benefits of IoT enabled POS
There are many benefits to IoT enabled POS systems for both business owners and customers. Some of its benefits are
- Customers can make transactions from anywhere, so by this, you can prevent long queue lines during peak hours in your stores.
- When there is something out of stock, you can automatically update inventory and receive notifications.
- By using POS software, you can collect data on customer behaviours and better customize loyalty programs.
- The smart POS enhance retailer confidence, transaction speed and compliance, customer satisfaction, promotional opportunities, data integrity, cashier confidence and more.
- It optimizes real time data, accurate reports and allows you to share data across departments.
- The appropriate security measures are built into the solution; it will highly secure all your data.
- The IoT enables POS systems to provide better business continuity by connecting employees, departments and locations.
- It will also increase the integration flexibility, transaction accuracy, operations control and effectiveness and training effectiveness.
- It improves all the areas of customer experience and customer satisfaction and has more efficient inventory.
Features that smart POS systems must include
For every business, runners like retailers, service providers and their customers expect ever more ways to pay and extra associated services. Offering additional services will add more convenience. In addition, you also need to compete with new players popping up, so your devices should offer:
Future payment and services
The future of POS systems is growing fast, so your devices and POS software should develop and be renewed with required new features. Working with emerging 5G ready devices will bring unique and different service sets.
The downtime of POS software will frustrate customers and reduce sales. So it is essential to have consistent and dependable POS connectivity.
Security and compliance
The point of sale device that you use must conform to PCI-DSS (Payment Card Industry Data Security Standard) standards. You have to guarantee your customers personal data, purchase history and card information are secure.
Flexibility and mobility
Every customer will expect the POS systems to have the ability to pay where and when they want. This expectation is mainly due to avoiding long queues at the checkout.
POS needs high data IoT connectivity
Other than payment processing tools, it has evolved into databases for valuable customer information and retail insights. With the rapid growth in the POS options calls the online transactions have moved into inventory management, supply chain management, customer relationship management and more. So to meet all the upgrading challenges, it is essential to utilize high-speed global Internet of Things (IoT) connectivity. It is nothing but using cellular connectivity as a part of the POS connectivity strategy to cope with demands.
The smart POS system with IoT can bring practical diversity by giving real-time, secure financial transactions and personal data transfers. It will take your business to a new level, optimize performance and reduce transactional risk. A POS system with the best data IoT connectivity ensures reliable and secure transactions. It will make the transaction processing time much quicker that results in reducing the customer queue those are waiting at the checkout counter.
With the help of a POS system with IoT, you can enhance your customer satisfaction and improves business efficiency, which results in high sales. It will enhance productivity by having all your POS devices communicating and sending information from multiple locations. With this, you can also meet customers’ expectation that is set by smart technologies.
Applications of IoT in POS
The number of applications that IoT has is limitless, and new ones are being developed every single day. Here are some common applications of IoT in POS systems.
Time is more valuable than ever, and people don’t want to spend their time simply waiting in the queue. Internet of things enables you to set up a system that reads the tag on each item when a customer leaves the store. IoT enables automated checkout saves customers precious time when completing a purchase, and save labour cost.
This application enables you to send personalized discount codes, product suggestions and a lot more. Before the implementation of IoT, the level of personalization has not been feasible.
Connect consumer’s online and in-store experience
Internet of things enables you to keep track of items that consumers are looking for on online sites. When the same people enter physical stores, the sensors that you have there will detect their smartphone and send personalized discounts on the item that they look for online.
Effectively manage inventory
Managing the list is an enormous drain of financial resources for retailers, which can end up both understocked on certain items and end up missing sales events. Implementation of IoT in POS innovative technology can even alert you when in-store theft is detected.
Summing it up
Other than this, there are still more applications such as robot employees, optimize supply chain management and more. As of now, you might get to know everything about POS systems with IoT. There are many benefits in using utilizing a POS system with IoT in your business, but the benefit is how effectively you are using smart POS with the Internet of Things.