With the proliferation of the point-of-sale (
POS) technology, BFSI companies have been adding different layers consistently. The
POS terminal has also strengthened the merchant’s business.
How does POS create opportunities for merchants?
POS is the point where retail transactions take place. It is a replacement for a cash register but is more functional. From payments to emailing the customers, from operations management to selling insurance covers, the POS world is burgeoning with opportunities and this means swelling possibilities to optimise the business and earn higher revenues.
Inventory Management
For small businesses where there are only a handful of employees, inventory can be controlled efficiently via POS machines. It can track the best-selling products or services based on the sales. All previous transactions can be looked up through POS and inventory can be tracked and products can be reordered in case of low stock. Before getting a POS system, ensure that it has a separate inventory management software or has the capability to integrate well with yours.
Almost all businesses have an online address apart from the brick and mortar store. POS can even help businesses integrate and streamline the sales from all locations.
Employee Management
Softwares in the POS hardware can even help merchants track the performance of the employees. Individual sales by employees, their checking in and out time, how far they are from their sales targets, a lot can be monitored. This will also help employees to improve their strategies and get to their targets faster.
Customer Relationship
Sending an SMS or an email thanking the customer soon after the purchase can also be set via POS. Customers’ style and previous purchases can be looked into and marketing and advertising can be customised to boost sales. Insights from the customer can help the merchant help them better.
Cloud for managing business data
Every businessman doesn’t ace data analytics and POS saves them from this necessary headache. Reports can be created relating to tax, best selling products and even inventory. Just knowing about your profits or total sales isn’t enough, pointing at what worked and what didn’t is beneficial for long-term success of the business. You need to know what has been lying on the shelves and what has been running out of stock. A cloud-based POS system helps in reaching these data points. Merchants can understand which days are the busiest and which employee is working exceptionally well and crossing targets. These reports won’t only help optimise the payroll but also make other staffing and operational decisions convenient.
Diversifying the revenue source
When a POS terminal is set up in a nearby kirana store or neighbourhood shops, anybody can come and withdraw or deposit cash. Instead of travelling to a distant ATM or a bank branch, one can head there. The merchant can advertise its own store and products on the POS system as well. This will attract eyes and also increase the chances of a sale happening. This is a way to double the revenue sources for small businesses.
Not just cash but even insurance can be sold via these terminals. The mobile POS and mobile payments solution provider, Mswipe offers insurance for two-wheelers. Even Spice Money delivers this product to its users. There’s also the provision of a micro-credit facility for merchants. Spice Money offers it with a ticket size of INR 30,000 to 40,000 via its own POS machines.
Merchants that employ the POS terminals don’t charge the consumer directly for using these services but do have the power to stretch up the prices of their products and services. So, it is a profitable way for businesses to upscale their operations and raise revenues.
Expanding payment options
Different customers prefer contrasting payment modes and not just one. With POS, credit cards, debit cards, mobile wallets, QR codes and even the UPI mode is accepted, thus allowing businesses to cater to all.
A POS system has been strengthening the merchants’ businesses and has a scope for a lot more. From restaurants to salons, the POS market is growing gradually in India. As per the RBI’s vision, the expectation of 5 million PoS terminals by the end of 2021 has already been fulfilled during FY20 with 5.1 million terminals.