Maximizing Efficiency and Profitability with Digital PoS
Maximizing Efficiency and Profitability with Digital PoS
Digital PoS are usually used in areas with payments. Read here in detail about the definitions, advantages, and specific areas of application. At the end you will find tips and what role our software plays in this topic.
What is a Digital PoS?
A digital PoS refers to a digitized point of sale. The term is an abbreviation for “point of sale” or “point of service”.
The terms cannot be clearly distinguished from each other. “Point of sale” refers to the point of sale. “Point of Service” describes more the complete sales process from order to invoice. We typically abbreviate both with PoS and use the term as a synonym.
The typical PoS includes, for example, the classic cash register in retail. But also the waiters or waitresses in the restaurant or the salesperson are part of it.
Digitization of the PoS includes, for example, tablets for sales, networked as well as fully automated checkout or ordering systems.
How to Choose the Right Digital PoS System
Choosing the right digital Point of Sale (PoS) system is a critical decision for any business, as it can significantly impact operations, customer experience, and profitability. Here are some steps to help you choose the right one for your needs:
Identify Your Needs
Different businesses will have different needs. To identify your needs for a PoS system, you should begin by thoroughly understanding your current business operations. Consider aspects like inventory management, employee scheduling, customer relationship management (CRM) capabilities, reporting and analytics, and more.
Identify the payment types your business needs to accept and ensure your PoS system can handle them. You also need to consider your sales volume and customer traffic.
The technical competence of your team should also influence your choice, ensuring the chosen system is user-friendly or advanced as per your team's capabilities.
Your budget is a crucial factor when selecting a PoS system. It should account for both the upfront costs of the hardware and software, as well as any recurring expenses like software subscriptions, updates, and maintenance costs. Furthermore, consider the costs associated with customer service support, potential hardware upgrades, and any payment processing fees.
Remember, a cheaper system might seem appealing but could lack essential features or reliability, while a more expensive system might offer more than what you actually need, so aim for a balance between cost and functionality.
Ease of Use
The PoS system should be user-friendly for both your employees and customers. Look for a system that has an intuitive user interface, easy-to-understand functionality, and provides effective training resources.
Integration in a digital PoS system refers to its ability to connect and work seamlessly with other software platforms you're using in your business. This can include accounting tools, inventory management systems, email marketing software, e-commerce platforms, and others.
High-quality integration significantly streamlines your operations by automating data transfer between systems, reducing manual work, and minimizing errors. When choosing a PoS system, it's essential to ensure it integrates smoothly with your existing software, providing a unified, efficient system for managing various aspects of your business.
Check what kind of customer support the vendor offers. Reliable, 24/7 customer support can be a lifesaver when you're dealing with technology that's critical to your daily operations.
Hardware requirements for a digital PoS depend on the specific system you decide on and the nature of your business. They can include devices such as receipt printers, barcode scanners, cash drawers, customer display screens, and card readers. It's essential to ensure that the PoS software you select is compatible with your existing hardware or that you're willing to invest in new hardware that is compatible with your chosen system, to guarantee a smooth and efficient operation.
A PoS system will handle sensitive customer data. A secure PoS system should adhere to the latest security standards and regulations, like PCI DSS, and feature robust data encryption methods to protect against breaches. Furthermore, it should have mechanisms in place for fraud prevention and disaster recovery, ensuring your business and your customers are well-protected.
Scalability describes the ability of a system to grow and adapt to your business's changing needs. This means it should be able to handle an increase in transaction volume, new locations, or additional features as your business expands. Picking a scalable PoS system is important, as it ensures your technology investment is future-proof and will continue to serve your needs as your business evolves.
Trial Period or Demo
Many PoS system providers offer a trial period or demo version of their system. This is an excellent way to see if the system fits your needs and is easy to use before making a commitment.
Which Advantages have a Digital PoS?
The most essential advantage of digital PoS systems is their seamless integration into a digital sales workflow. Interfaces to ERP and accounting allow the complete sales process, from order to invoice, to be transparently recorded, monitored and controlled. Spontaneous offers or price changes are synchronized promptly and can be implemented immediately.
1. Multiple Payment Process
Contactless payment via smartphone or credit card prevents the wrong change from being given out and makes theft a thing of the past. Digital signage offers the ideal solution here. The payment goes directly into the accounting system. You can display your sales at any time at the touch of a button. So digital payment systems not only offer the opportunity to minimize errors, but also to accelerate the payment process and keep track of everything.
Accepting increasingly popular payment methods, such as mobile wallets and Google Wallet, online payments, and contactless, NFC payments, is becoming increasingly convenient.
2. Connectivity via Interfaces
Interfaces make it possible to integrate different ecommerce applications like stores, ERP, inventory tracking and more. This means, for example: Availability and prices no longer need to be obtained through lengthy inquiries. An interface to merchandise management provides this important data in seconds at the push of a button.
You will get exact real-time data. A tracking system records a successful sale promptly and processed quickly with reduced waiting times. Other software reminds you to reorder food when it's unavailable or when it's not available. More Connectivity leads direct to the next topic.
This is a great way to run your business more efficiently. You can automate tasks like employee scheduling and inventory management. If you like, you can set up your system to let you know when there is a shortage of something or when someone is about to go to work overtime. This makes it easier to keep track of stock levels and prevents problems like stock outs, too much dead stock, or too much overtime.
4. Timely Update of Sales Material
Mobile tablets with Internet access are replacing thick product catalogs. Salespeople no longer laboriously search through thick tomes, but instead display the product on a slim tablet. Product updates are available immediately. As a result, the sales department works more efficiently and successfully with the digital solution and thus has an enormous advantage over the competition.
5. Customer Feedback
Feedback provides valuable insights into what customers like or dislike about a product or service. Companies can now use software to gather feedback immediately and, of course, also from various sources, such as social media, email, chatbots, and surveys. This makes it easier and quicker to collect customer feedback, which can then be analyzed and acted upon in real-time.
Improve Customer Experience Pays Out
A Talkdesk survey found that 60% of consumers said their customer service expectations are higher now than they were before the COVID-19 pandemic. An ACA study (PDF) find also out: Over half of Americans are willing to pay more for good customer service in 2021.
6. Virtual Product Demonstration
Salespeople present their products virtually on the digital display. The car in a different color? Configure the new kitchen directly from the furniture store? No problem! The different goods no longer necessarily all need to be right there in the store. Your customers get incentives to buy right on the screen because they not only see how the products look, but also how they are used and how they work.
7. More Personal Level
This can be achieved by using POS data to target campaigns with personalized messaging and promotions. The global personalization software market is expected to exceed $1.7 billion by the end of 2025, growing from $620.57 million in 2020.
POS systems help with personalization efforts by the ability to add marketing apps and features. These tools may include email, social media, SMS, and other channels. Well-designed POS systems use customer shopping history to offer personalized sales, discounts, or other marketing communication beyond just adding their name to an email.
8. Self-Service Checkouts
So-called self-scanning or self-checkout in retail reduces labor costs and frees up space. Two self-service checkouts typically replace one conventional cash register. Self-service checkouts combined with conventional checkouts result in shorter queues as the checkout area works faster.
9. More effective Workflow & Time Saving
Digitally mapped sales processes save time, minimize communication errors and improve controlling. The captured order automatically finds its way to the next processing station. The Communication with the customer improves significantly.
Choosing a cloud-based POS that works with your other business software saves you time. You purchase and receive inventory in your POS and sync your sales data directly with your accounting software.
How to use Digital PoS?
The primary use for digital PoS is payments and invoicing. Interfaces and data synchronization expand the application possibilities for sales and marketing. As a rule, you will find digital PoS in car dealerships and furniture stores, in retail and in gastronomic businesses.
Use Case 1: Furnishing Stores
Show your customers how their new bedroom or bathroom will look like. The virtual presentation makes it easier for the customer to imagine the new purchase. Interactive info terminals relieve your service staff, who can then take care of the customer more intensively. Digital signage at the PoS enhances your image and improves customer service.
Use Case 2: Car Showrooms
Optimize your sales. Customers inform themselves at the interactive electronic displays located next to the vehicle in question. If they are interested, they will also request a salesperson via this device. The salesperson uses a tablet to create further incentives to buy by configuring and explaining their new vehicle together with the customer. Customers feel more involved. Digital signage thus offers various solutions and optimizes sales in car dealerships.
Use Case 3: Supermarkets and Drug Stores
Self-service checkouts save on labor costs and speed up shopping. Checkout staff work more accurately and efficiently when they scan products using a barcode and the payment process is digitized. Retailers in particular can benefit from the symbiosis between digital signage and in so-called smart retail technologies.
Use Case 4: Restaurants and Catering
Your employees record the requests of your guests with an electronic ordering device. Or the guest orders directly with the digital menu board. The order automatically reaches the kitchen and the cash register at the same time. The waitress can print out the receipt directly at the table.
There is more time for the guests. Calculation errors no longer occur. The kitchen understands the order and no longer needs to decipher handwritten hieroglyphics. The guest is happy that he receives his order faster and there are fewer misunderstandings.
The manager, on the other hand, gets an overview of current orders, sales, and his food inventory at the touch of a button. He can plan his purchases in groceries more efficiently and thus optimize his use of materials.
Integration should make your business operations smoother and more efficient, not complicate them. So, choose a system that allows for easy and secure integration with the third-party applications you need. Several factors need to be considered:
Compatibility: Firstly, ensure that the PoS system is compatible with the third-party applications that your business already uses or plans to use. This can range from accounting software and CRM tools to e-commerce platforms and inventory management systems.
API Access: The PoS system should provide access to its API (Application Programming Interface), which allows third-party applications to interact with it. Without API access, integration might not be possible or could be very limited.
Seamless Data Transfer: The integration should allow for seamless data transfer between the systems, reducing manual input and the potential for human error. This can greatly improve efficiency in your business operations.
Cost: Some PoS systems might charge extra for integrating with certain third-party applications. Make sure you understand any additional costs that might be associated with integration.
Support: The PoS provider should offer support in case you face any issues during or after the integration process. This might include technical support or help resources like guides and tutorials.
Security: Data security is paramount during integration. Ensure that the PoS system and the third-party application both follow stringent data security protocols, including encryption and compliance with regulations like GDPR or CCPA, depending on your location.
Cybersecurity Risks for Digital PoS
A digital Point of Sale system is a potential target for cybercriminals. To address them, we have first to learn about them. Let's take a look at the eight most dangerous threat scenarios.
Data Breaches: Since PoS systems handle sensitive customer information like credit card details and personal data, they are a worthwhile target for hackers looking to steal this information.
Fraud: If security measures are not robust, there's a risk of fraudulent activities like counterfeit transactions, skimming card details, or transaction reversals.
Malware and Hacking: PoS systems are vulnerable to malware that steals data or disrupts operations. Hackers can also attempt to gain unauthorized access to the system.
Physical Theft: Physical devices associated with the PoS system, like card readers or tablets, can be stolen or tampered with to gain access to data.
Insider Threats: Employees with access to the PoS system could misuse the information or inadvertently cause a security issue, like falling for a phishing scam.
Non-Compliance with Standards: Non-compliance with security standards like PCI DSS (Payment Card Industry Data Security Standard) can lead to fines and reputational damage, aside from increased vulnerability to attacks.
Data Loss: In the event of a system crash or a ransomware attack, critical data could be lost if proper backup and recovery procedures aren't in place.
Third-Party Integration Risks: Integrating your PoS with third-party applications can create additional security vulnerabilities if those applications have weaker security protocols.
To mitigate these security risks, it's important to use a PoS system that prioritizes security, complies with industry standards, employs strong data encryption, and provides robust fraud prevention mechanisms. Training staff on security best practices and maintaining secure, regularly updated backups of data also help secure your PoS system.
Our Offer for your Digital PoS
SmilControl offers you flexible and open software for digital PoS. We consider transparency, interfaces, and interoperability to be the be-all and end-all of a professional solution. You can select separately your hardware and install our software, or you buy bundled solutions from our hardware partners.
Short Hardware Guide
For talking to customers and taking orders, touch-enabled handheld tablets and so-called signboards are suitable all-in-one devices.
Pay attention to the selection of your PoS screens, absolutely to the suitability for continuous operation. Evidence to this comes in two categories, therefor: 18/7 or 24/7. Depending on your opening hours, probably suffice the 18 hours variant. For mobile handheld devices, on the other hand, stable network connections and long battery life are important.
We put great emphasis on the ability to cooperate when designing our media players and management software.
Every company has individual structures and processes, especially in the PoS area. Our digital signage software solutions are all uncompromisingly based on the open industry standard SMIL. This openness and transparency greatly simplify the collaboration of different systems.
All our digital signage software based on the open industry standard SMIL without any compromises. This openness and transparency greatly simplify the collaboration of different components.
We can therefore implement your individual wishes in a cost-effective and uncomplicated way. For example, the data exchange with your CMS, CRM or ERP.
Do you want to publish freshly designed product catalogs or offers simultaneously on your digital advertising displays? Do you want to update your digital advertising displays and sales with new product data?
All this is possible! We are undoubtedly the right people for “complicated” things.
You save money, time, and nerves. In addition, you invest in a future-proof system, which they can expand and adapt at any time.
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