Electronic Point of Sale Systems: A Buyer's Guide
Today’s competitive business environment demands not only top notch customer service but also strategic planning which requires the analysis of data in minute detail. Any company which relies on face-to-face transactions for all or part of its revenue must strive towards making those transactions as efficient as possible and collect as much information about them as possible in order to inform business decision making.
An electronic point of sale system not only makes the process of transacting business as convenient as possible for the server and the customer but has the added advantage of collecting and reporting detailed information on sales activity.
This Buyer’s Guide is an introduction to electronic point of sale systems – both hardware and software – and also contains advice on selecting an EPOS system supplier.
Electronic Point of Sale Systems: An Overview
An electronic point of sale system comprises hardware and software which perform the same basic functions as a cash register – summing the total bill, recording the transaction and storing the payment (or in the case of card transactions, the proof of payment). They also provide a host of extra features depending on the type of business and integrate with other pieces of hardware to improve the speed and efficiency of transaction processing.
Some features common to all EPOS systems include:
- Integration with chip and PIN terminals
- Integration with cash drawer and printer
- Recording transactions and providing reports
- Monitoring stock levels
- Automatic application of discounts (e.g. multi-buy, vouchers)
- Programmable functions/buttons for oft repeated actions (e.g. most popular items)
Electronic point of sale systems range in size and complexity from single electronic cash registers through to multi-site systems which share data with websites or other business software.
Electronic Cash Registers
Single outlet retailers who require only a single terminal will be comfortable with an electronic cash register. Incorporating all the features above they are simple to programme and operate. They can also be augmented with barcode scanners and scales. The higher end machines feature customer facing displays, can export sales data to a PC or handheld device via a cable and can handle several transactions at the same time to avoid queue build up.
New cash registers will often come with a manufacturers guarantee for the first year though additional product support is available.
Single Terminal EPOS Systems
The next step up form an electronic till, the single terminal electronic point of sale system is for larger single site retailers who require a little extra in the way of reporting and stock management. Reports can be scheduled to run at the end of every day/week and be sent directly to a back office PC or even via email. Touch screen operation makes use easier and can be tailored to suit the particular business. For example, the most popular selling items can be placed on the ‘home’ screen.
Retail EPOS Systems
Electronic point of sale systems for retailers with several terminals or even several sites allow for the integration of all sales activities for unified reporting and tracking. Terminals are joined by data cables which also transmit data in real time to a back office system from which reports can be accessed.
Additional features of retail EPOS systems include:
- Unique staff IDs allows for time and attendance tracking
- Customer facing displays let the customer know who’s serving them, how much they need to pay and can highlight special offers
- Automatic application of multi-buy offers, voucher discounts or loyalty card points
- Integration with a CRM system allows customer tracking across online and offline channels
- Stock levels can be monitored and out of stock items ordered automatically from warehouses or external suppliers
- Advanced, customised reporting to accounts systems
Comprehensive sales reporting not only allows you to calculate your revenue exactly but also lets you track the success of marketing campaigns, identify your best selling products and pick out your top salespeople. You can also track the effects of POS displays and in-store promotions.
Hospitality EPOS Systems
Hospitality businesses need to provide top notch customer service above all other things. Electronic point of sale systems provide the efficient and accountable communication required to ensure fast, high quality service round the clock.
Additional features of hospitality EPOS systems include:
- Manage unlimited table, tab and room bills concurrently
- Assign particular staff members to different tables/accounts
- Fast, effective order processing, updating and amending via networked terminals and printers
- Stock control informs all staff what is and isn’t on the menu
- Unique user IDs and keys/fobs/cards allow for staff tracking and speedy access to open bills
- Monitor of table service times
- On screen floor plans to assist accuracy with warning lights for long delays
- Traffic light systems for mains away/desserts away etc
- Integration with website or booking calendar allows for automatic updates to booking status
- Advanced and customised transaction and service reporting
No matter the size of your hospitality business or how many sites you operate, an electronic point of sale system allows you to combine data from all transactions to inform business decision making. Which products have brought in the most profit, which promotions have been most successful and which staff are your top performers can all be extracted from the data an EPOS system delivers. The added efficiency improves customer experience by allowing your staff to concentrate on the actual service rather than the administration of service.
Choosing an Electronic Point of Sale System
There are many EPOS system suppliers who can provide the hardware and software required to build your perfect point of sale system as well as the ongoing support and maintenance required for peace of mind. Choosing the right system from the right company is not just a cost consideration; you should also keep the following factors in mind:
- Features: Nobody knows your business better than you. Draw up a list of requirements from your EPOS system and decide which are absolutely essential and which are merely desirable. You can then compare the proposed systems with this list to determine their suitability.
- Hardware required: Will the EPOS system require an upgrade to your existing computer hardware? If so, how much will this cost?
- Installation: How much work does the installation of the EPOS system require? Will extra cable need to be laid etc? How much will the supplier charge for this and can they do it within the required timeframe?
- Compatibility: Will the EPOS system work with your current merchant terminal and accounting software?
- Support: What kind of product support do the suppliers offer? Do they provide telephone support out of office hours? Do they guarantee response times? What do they charge for support?
- Finance: Can you purchase your EPOS system via a lease agreement? What are the costs (work out the price over the full term of the agreement)?
We live in a highly competitive, fast moving time for business, where high quality, fast service is key to customer retention and where business decision making relies on examining the minutest detail. Modern electronic point of sale systems can help you solve two huge business problems in one move by massively improving the efficiency of your transactions while collecting copious sales data. Take the time to choose the right EPOS system for your business and you’ll soon see the benefit of increased footfall and more information for your decision making processes.
