Return On Investment On POS Systems
When you are talking about your point of sale system, return on investment (ROI) should be a part of every conversation. Many view the point of sale system as a necessary evil and it is often neglected as the place where real income can be generated. Your system should have built in capabilities that will produce a measureable ROI. So, how does your current point of sale system stack up? Have you realized a return?
In this short article we will touch on just three examples of how the right POS system can generate a return. Keep in mind that there are dozens of ways to save money with the right system implemented in the right way.
The most obvious way to return significant money on your investment and to be well on your way to a true ROI is a reduction of labor costs. As we all know, labor is usually the largest line item in any retail store’s budget so time savings should be a priority when it comes to ROI. As more efficient systems are put into place, labor costs can be trimmed. These are real expenses to a business and those expenses can be cut by a POS system if properly matched to your needs and implemented.
One example of time savings that can be realized and one that everyone in the grocery business seems to struggle with is the time it takes to hanging shelf labels. Although, they have become more affordable, electronic shelf labels are not always the best solution, so improving the current process maybe the place to start. We have all been to or worked at a grocery store with the old process of labels stacked in dozens of piles on a long table with a couple of employees sorting them out into various departments or aisle locations. One store admitted to us at POS Plus that it can take nearly a week to get all of the labels in place in the right locations. A very simple solution to this time waster is to have a point of sale system that will print all of the labels in the order of the layout of the store. That feature is available on many POS systems today.
Think about it. No more sorting. No more employees wandering from department to department or hiding in the back office stacking and restacking. Instead, there is a quick process where the employees hang tags, by starting at the front and then work their way back. The POS system works by simply printing every shelf tag in order for every shelf and every aisle. Suddenly, hours dedicated to shelf tags can be reduced substantially.
On the management end, some stores still do not have real time reports that can easily compare sales stats year to year, month to month, week to week and day to day. Currently available POS systems can bring those stats and many others together in clear, easily constructed reports. With the right software for front and back office the management team can understand numbers that they never even had the opportunity to track before. You can find out specifically what is selling and what is not by tracking top sellers and comparing those to any other period of time in the past. With POS systems available, owners and management can track specific items, how well sales items are doing and forecast sales in advance.
Also, a manager should be able to pull together any report type that is desired with great flexibility. This will give management the opportunity to work smarter not harder. And afford them the ability to be on the floor leading their team instead of in the back office crunching endless numbers. All of these tools are currently available and with these tools you should be able to spend more time managing and less time compiling numbers from various reports and spreadsheets.
Lastly, does your POS system have a built in loyalty program? An easy to use and implement program will reward your best customers and give you increased returns in the form of fuller shopping carts and more trips to your store instead of the one down the street.
These programs can make it hard on your loyal customers to go somewhere else. That’s the point. Psychologically speaking, it is called “Previous Investment,” where if the customer feels they have something at stake, even if it is minor, it will become a strong driver of behavior.
The system must be simple and measureable. Current POS software can assist with both implementation and measuring. Also, a loyalty program must be flexible, bending to meet market trends and the consumer on their level. For instance, in some markets a coffee club would work great to get return customers, however, in other areas coffee is passé. Earning simple points may work in one location, but be a total flop in others. Regardless of what loyalty program you wish to run, your POS system must be flexible enough to handle it.
The customer benefit program must also be consistent. Is it something that can be set up and generally run on its own? Nothing is more infuriating than to get a program up and running and then have to manage it as a full-time job. Up to date POS systems are able to make these type of programs easy to maintain over the long-haul.
As stated previously, these are just a few ways that you can achieve ROI with your point of sales system. IF you have any questions regarding a free analysis of your current system contact us at email@example.com.