Point of Sale (POS) Systems

A Point of Sale (POS) system is the hardware and software used to process sales transactions for customers, either in store or online. POS systems work by calculating how much a customer owes on their purchase and then provides payment options. Sales are tracked and customers receive proof of purchase. Essentially, a POS software is a digital cash register.

POS systems can be used by all types of online or brick and mortar merchants that need a seamless, cost-effective way to process sales transactions and accept customer payments. However, POS systems are very heavily relied upon in the retail and hospitality industries, to the point that there are POS systems customized to these types of businesses, available on the market.

Key Features of POS Systems

• Manage and record all sales: POS systems help companies streamline the process of tracking sales and improve sales history and financials by automatically recording each transaction.
• Track customer behavior and individual customers: POS systems provide tools to help organizations track key customer behaviors, details, and purchasing patterns. POS systems can be integrated with customer intelligence tools and/or Customer Data Platforms (CDPs) to analyze customer data, and shape future marketing efforts and loyalty programs.
• Help manage inventory: POS systems can be integrated with inventory management software to help businesses monitor inventory in real-time, set up low-stock alerts, and reorder products.
• Handle bookkeeping and accounting: Integrating POS software with accounting software to track sales, taxes, expenses, and profits help organizations streamline their accounting processes and reduce errors.
• Handle discounts and coupons: POS systems provide tools that allow businesses to easily and efficiently apply coupons, discounts, and promotions at checkout.  
• Handle reservations and bookings: POS systems may offer tools for booking appointments and making reservations, which help service industry companies manage occupancy, while also getting a bird's eye view of services and amenities that are popular (and vice versa).
• Integrate with online shopping websites and apps: POS systems can be integrated with e-commerce platforms to help organizations sync customer data and sales information for online and in-store sales.