Practical – 3

Name of Student: Radhika Hossale

PRN: 2000201042
School/ Programme – BBA Retail Management (SEM – 4)

Subject Name and Code: Retail Information Systems (RETL403)

___________________________________________________________________________
Title – Analyse the importance of POS systems for retailers in terms of getting valuable
customer insights and their utility in other functions and operations
Aim – To analyse the rationale behind the integration of advanced POS system with different
modules of ERP system
Methodology Used – Detailed discussion on the application of advanced POS systems with
appropriate examples and case studies
Tools/Equipment/Resources Used – Videos, interviews of industry veterans, research
reports published by various organisations and articles/blogs published in various media etc.
Brief Description –
Analysis and discussion on –
● Importance of POS systems
● Applications of advanced POS system
● Its integration with other modules
Result Achieved:
Delving deep into –
● Areas that need to be focused on enhancing the effectiveness and efficiency of various
retail operations and functions by using the integrated POS data and insights
● Why the retailers are increasingly focusing on deploying the advanced POS systems
Conclusion – Collect all types of customer data from POS transactions, such as names,
billing and shipping addresses, emails, loyalty program membership details, and order
histories. Helps businesses organize, synchronize, and distribute this information to different
departments – sales, marketing, customer service, and technical support – to improve the
customer experience.
Practical 3 Analyze the importance of POS systems for
retailers in terms of getting valuable customer insights
and their utility in other functions and operations

What’s the Point of a Point of Sale (POS) System?

A point of sale system, or POS, is the place where your customer makes a
payment for products or services at your store. Simply put, every time a
customer makes a purchase, they’re completing a point of sale
transaction.

The latest point of sale software goes beyond credit card processing to
help retailers and restaurants incorporate mobile POS features and
contactless payment options, ecommerce integration capabilities, and
more.

Importance of Point of Sale in Retail

Optimize the checkout process
A POS system speeds up your checkout process significantly. By having a
centralized database of your products, pricing, and customers, you can
quickly find the products, assign the order to a customer, and apply
discounts with little effort.
 Provide more payment options
Payment technology has changed significantly in the past 5 years and
retailers are under great pressure to adapt to these changes. In addition to
cash and credit card, customers can request to pay with eWallet, in
installments, or they may want to combine different methods to pay for
one order.

Offer discounts that benefit you and your customers

A POS system is important because it gathers all your data on sales,

inventory, and customers. With this information, you can calculate and run
marketing campaigns that encourage customers to come to your store
while maintaining your bottom line.

Run loyalty programs

In addition to promotion, running loyalty programs is a guaranteed

method to attract new customers and increase repeat purchases.
Integrating programs such as membership or gift vouchers into your POS
makes sure your customers are rewarded for every purchase without
extra work for your staff.

Eliminate human errors

If your staff is manually entering the products and prices, there’s a high
risk of error, especially if they have to handle a high number of
transactions every hour.
A POS system ensures you’ll always have the correct product SKU,
consistent prices across your system, and correct order amount at any
time.

Reduce your losses

Intuit Market Research showed that retailers with revenue of $300,000
can cut costs by close to 10 percent or $30,000 a year. One of the biggest
problems many retailers struggle with is inaccurate inventory. These
losses can be quite painful to absorb if can’t get to the bottom of the issue.

Manage your employee

Coordinating and managing employees can be tricky if you’re using
separate worksheets. A POS system helps you keep track of who worked
each shift. An advanced POS system can even provide you with reports on
the sales performance of each staff and calculate the commission rate.

To sum up
The retail landscape is changing more and more rapidly, and you wouldn’t
want to get left behind due to manual and outdated systems. It’s time to
understand the importance of POS systems and consider an upgrade to
your operations.
In case you’re unsure if they are the best tool to move your business
forwards, check out the guide to switch to a new POS system.

If you’re a Magento merchant considering different POS providers, grab a

free copy of our Magento POS system comparison chart to save you
research time.

Types of POS Systems

Based on what products you will be selling in your outlet, some specific
features and customization can help you be more efficient with order
processing. While some systems are built to address these specific needs,
the basic setup almost always remains the same.

 Apparel– Garment sellers will notice that each of their products

might need a composite (parent) SKU that represents the brand. They
also need multiple child SKUs that identify each individual product
within the parent SKU. You need to upload products as such into the
digital catalog.
 Electronic goods- These goods need serial numbers to identify
not just the model and make, but also the specific item within the
store. Serial numbers are uploaded into the POS software and
identified when the item is scanned.
 Packaged products and groceries- These categories need
both a Unit-Of-Measure (UOM) and an expiry date. You use expiry
dates to identify goods that are fast approaching their use-by date
and to sell them at a discount. UOM helps you define which product
quantity you need to bill at what price.
 A restaurant- A POS that has a single screen for managing
reservations, processing orders and accepting feedback makes the
dining experience better.
 Jewelry- A POS software in stores that sell high-value products
might raise alerts for wrong/ duplicate billing. It can also send
reminders for frequent stock audits.