For a business owner, an integrated point of sale (POS) system can be the lifeline of their operations, whether it’s run brick-and-mortar style or online. The demand for POS systems is increasing at a rapid pace: by 2025, the global POS software market is expected to grow from $17.66 billion to $30.86 billion. However, to leverage the complete benefits at the point of sale, you need an integrated POS system that brings together different functions. Let’s understand what an integrated POS system is, and how it can make a difference to your business. An integrated POS system is a platform which connects sales data with your other business apps so they can exchange data seamlessly. Traditional POS systems just had a sales record book or a cash register. You would then have a separate payment system, another one to manage your stock, another one to track your product list, and so on. As you can imagine, this is cumbersome. Many of these operations are manual. And, as you tackle the different parts of your business in silos, you constantly struggle to keep them in synchronization and understand the big picture. On the other hand, an integrated POS system encompasses some or all of the below features: There are many integrated POS systems in the markets, and you will find that each system has its own strength. While one has robust employee management functions, another focuses on CRM. The convergence of so many functions in one place obviously makes a strong case for an integrated POS system as opposed to the hassle of managing multiple systems in addition to a standalone POS terminal. In particular, an integrated POS system scores over a non-integrated POS system in the following aspects. From receiving multiple payment types and storing customer shopping preferences to managing inventory and receipts, POS integrations make an impact in all areas of your business. As an integrated POS system streamlines your operations and reduces administrative burden, your team can focus on aspects that really matter—offering excellent customer service. Beyond improving the checkout process, an integrated POS system can give you valuable insights into the behavior and purchase patterns of your customers. You can leverage such data on the shop or café floor, but it can also be shared with internal UX analysts, brand marketers, and pricing teams to help inform marketing campaigns and increase profitability. Let’s dig a little deeper into the benefits of integrated POS systems. Read our recommended top 7 POS integrations to help you run a more efficient business. All you need in one place Integrated POS systems can seamlessly connect with third-party apps including marketing automation software, accounting software, and loyalty management systems. This expands the scope of what a POS system can achieve and opens possibilities. A single POS system eliminates the hassle and cost of dealing with different vendors and instead, you just need to deal with one POS provider and govern a common data pool. Make sure you’re getting the best from your business’ POS system by learning how to choose the right POS system for your business. Whether you’re a Retailer, Restauranteur or E-commerce business owner we’ve got a Point of Sale systems guide just for you: 🛒 How to choose a POS system for a retail store A singular, centralized POS system does not just facilitate easier administration, it also ensures you have real-time data across all your systems. On the ground, this can make a big difference. If you run a retail store, a live inventory update can help the personnel on the floor guide your customers make the right buying choices. Take another example. At any point of time during the day, if you want to check which employee made the most commissions, you have a quick mechanism to determine that as employee profiles, sales, and payments all act as one cohesive unit. POS systems integrated with your merchant services such as credit card processing eliminate the need for manual entry during checkout. This not only saves time but also reduces the probability of human errors. This approach to card processing also makes your end-of-day reconciliation much easier and accurate. POS ecommerce integration ensures that your customers don’t need to be redirected to an external landing page to provide their payment information. In addition, payment processor integration adds extra layers of security such as in-built Payment Card Industry Data Security Standard (PCI DSS) compliance and data encryption that minimizes the risk of online fraud. Look out for EMV compliant POS systems like Clover POS and Lightspeed POS system to protect your business against payment fraudsters and the chargebacks costs this can incur. Integrated credit and debit card processing ensures that you can process payments in real-time. There are no delays on account of manual entry and no delays in fund transfers to your account, especially when the volume of transactions is high. This allows you to take in more sales in a day. Also, integrating your POS with accounting software can give you access to valuable data and insights. With QuickBooks POS integration, for example, you get a comprehensive view of your sales and financial data so you can make better business decisions. McKinsey calls personalization the “hygiene factor” that “customers take for granted, but if a retailer gets it wrong, customers may depart for a competitor." An integrated POS system helps you hit that sweet spot when it comes to personalization and upselling/cross-selling similar or complementary products. Let’s say you run a restaurant or eatery. When your POS system is integrated with your CRM, you get access to information such as how often a customer visits your establishment, the time of day or month when they visit, and the items they usually order. You can then provide successful data-driven incentives such as special offers on their favorite items or exclusive discounts aligning with their regular visit frequencies. On occasions such as birthdays or anniversaries, you can reward them with extra store credit to redeem on their next visit. As these incentives are based on the unique understanding of the customer’s lifestyle, they come off as naturally helpful instead of a hard sell. Customers respond better to such offers and over time, you build relationships with your customers which in turn leads to more sales and ROI. Integrated POS systems help you keep track of your best-selling products and prevent your customers’ favorite items from going out of stock. They also offer valuable insights into their behavior and purchase patterns. Sharing this data with UX analysts, brand marketers, and pricing teams allows you to personalize offers. Such targeted marketing campaigns, recommendations, reminders, and rewards go a long way in encouraging your customers to make repeat purchases and building loyalty and retention. Case study: Square POS system Many integrated POS companies like Square POS have an in-built digital loyalty program so you don’t have to make the effort of creating one yourself. Square’s loyalty program is based on the customer’s phone number. The customer receives a text alert every time they spend with your business through Square POS, notifying them of their rewards. Meanwhile, business owners can store the details of this purchase, use them to create customer reports, and develop customized campaigns based on their spending. An iconic POS system, known for it's efficiency and minimal design. But how suitable is it for your business? This is a win-win situation for you and the customer: you invest in the right strategies and get long-term customers while the customers score the best deals. Now we’ve shone a light on all the benefits a fully integrated POS system can offer your business, you may be wondering just how suitable your current POS system is. After all, how long has it been since you last replaced your POS system? But before you rush out to choose a new POS system with integration, use this checklist: Once you have the answers to these questions, you can decide whether to continue with your existing system or move forward with a new one. The purpose of an integrated POS system is to ensure uninterrupted communication between your POS and other third-party platforms, used daily business. When done right, a full POS integration can help you improve operational efficiency and provide exceptional customer experiences that keep them coming back. It can also give you visibility into sales, marketing, and financial data all in one place that helps you with better decision-making. Follow the tips mentioned above to leverage your integrated POS and take your business to newer heights.What is an integrated POS system?
Why should you opt for an integrated POS system?
Integrated POS systems
Non-integrated POS systems
Payment processor speaks to POS
Payment processor does not speak to POS
POS automatically syncs payment amount to terminal thus reducing the scope of human error
Payment amount needs to be manually entered on the terminal thus increasing the chances of human error
Transactions are automatically marked as “paid”
Transactions must be manually marked as “paid”
Fewer steps in the checkout process
More steps in the checkout process
Logs customer information and other useful data for marketing/promotion
Only logs that a sale happened and a card was used to pay for it
Provides a better customer experience
Provides a less than optimal customer experience
Reduces the risk of fraud
May increase the risk of fraud as it takes time for all systems to 'speak' to each other and sync up data
Does not require extra spend on external card processing devices
Requires extra spend on external card processing devices
Saves time and improves efficiency through automation
Manual intervention takes more time and is less efficient
How does an integrated POS system help your business?
Easy POS integration ✔
Real-time POS data availability ✔
Improved POS efficiency ✔
Better POS payment security ✔
Improved cashflow and sale insights ✔
Easily personalize and upsell with an integrated POS ✔
Build customer loyalty with your integrated POS ✔
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source https://www.techradar.com/news/why-integrated-pos-systems-are-a-must-for-your-business/
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