This article attempts to introduce readers who have experience in the retail industry to Point of Sale systems and describes what a point of system is, what they are made out of and how they are used in the retail industry.
Some beginning retailers wonder what point of sale systems are and what they are good for. It turns out that point of sale systems can help retailers gain special insights about sales trends,
customer service trends, merchandising and other aspects of their businesses. As a result, retailers can use point of sale systems to increase their business’s bottom line.
Here is a brief introductory guide about point of sale systems that explains how they work and what they are good for. It includes a brief description of what point of sale systems are, what they are made out of and how they are often used in the retail industry.
What are point of sale systems in the retail industry?
A point of sale system in the retail industry is a checkout system that is used to process customer transactions for merchandise and services.
What are point of sale systems made out of?
Most point of sale systems contain several things that work together to process customer transactions. These things usually include:
1) A cash register that is hooked up to a computer that processes transactions.
2) Software packages that process transactions such as sales, exchanges and payments.
3) Physical space that allows transactions to occur.
4) Trained clerks who operate the cash register and execute transactions.
Some newer point of sale systems may also include a virtual interface that allows customers to conduct transactions without needing to see a person or a place in real time. A good example of these virtual point of sale systems include the checkout cart interface that most websites have that allow people to pay for products and services online.
How are point of sale systems used in the retail industry?
Retailers use point of sale systems to perform tasks that go beyond processing customer transactions. Retailers can use point of sale system to do other things such as:
1) Track how much merchandise is sold in a given time period.
2) Track how well clerks are providing customer service.
3) Track the how much revenue per sale is generated.
4) Track which merchandise needs to be re-ordered for faster inventory turnaround.
All of these extra uses of point of sale systems are important for retailers because the data that are generated from these applications can improve a retailer's bottom line. This is true because the data that point of sales systems generate can show people which parts of the business are doing well as well and which areas need improvement.
While these insights may seem pedestrian to most people who manage retail stores, these insights are important because they provide the most accurate barometer of the overall well-being of a retail establishment.
As a result, new features are consistently being added to point of sale systems that allow retail store managers to gain more accurate information about such things as sales trends, customer service trends and marginal revenue streams.
Therefore, retailers should try to see point of sale systems as being something much more than a place where transactions are conducted.
