2016-06-17 00:00:00MarketingEnglishhttps://quickbooks.intuit.com/in/resources/in_qrc/uploads/2017/05/Finance-Defining-Your-Point-of-Sale.pnghttps://quickbooks.intuit.com/in/resources/marketing/defining-your-point-of-sale/Defining Your Point of Sale

Defining Your Point of Sale

2 min read

A Point of Sale (POS) is the place where sales are made at a particular place. To determine a business on a macro level, a Point of Sale could be a market, shopping complex or a city. On a micro level, retailers consider a Point of Sale to be the place where a customer makes a transaction, as in the case of a checkout counter.

Point of Sale and Purchase Behavior

Marketers need to focus on the Point of Sale for products and services as consumers make purchasing decisions based on high-margin products or services at these locations. Small businesses have Point of Sales near store exits to increase their rate of impulse purchases. Different Point of Sale locations can help retailers market specific product categories at these places and influence consumers. Point of Sales could be both a physical and a digital space. This would mean that transactions would take place in a brick-and-mortar store, or virtually on the Internet by electronic retailers. There are several tools that retailers use to practice Point of Sale transactions, including cash registers, electronic card readers and barcode scanners. The most basic method involves manually calculating a purchase and issuing a receipt, while computers, mobile devices and terminals can act as virtual Point of Sales. With social media, Social Point of Sales allows sellers to have location based services. These will  reflect how people use Check-ins and coupons and discounts that lead to sale. Social media tools like Facebook Places and Foursquare allow virtual payments.

Why businesses use Point of Sale Systems?

Point of Sale software allows you to manage your business and conduct sales transactions.  This streamlines retail operations by automating the transaction process. It automatically enters and saves data about customers, sales, and inventory, and creates reports. Based on the software, retailers can track pricing accuracy, sales patterns, gross revenue and inventory changes. The integrated technology can be used to track data and spot discrepancies in pricing. You can use bar code scanners and mobile trackers to scan data and assist in tracking. Point of Sale systems that monitor inventory and buying trends can help retailers avoid customer service issues, such as marketing to consumer behavior, tailor purchasing and out-of-stock sales.

Digital Point of Sale

POS Systems do not simply rely on technology like barcode scanners and other mechanisms at check-out counters but helps to connect people, information, devices in a manner that will their customers and sell better. This helps retailers improve their sales in ways based on immediacy and experience. By experience, we recognize Digital POS elements under entertainment, education, aesthetic, and escapist. Entertainment factor refers to games and activities, educational factor to learning and knowledge , aesthetic factor refers to  stylish design of the POS signage, and escapist factor to how it grasps your attention and keeps you involved. By understanding your market and engaging with a firm knowledge of Point of Sale, small businesses will know where their products sell, the purchasing power, the likeliness of a sale and the amount which is sold. With a reputed POS system, you can add the required security needed for the transaction to be processed, increase the speed at which transactions are taking place and verify orders and track the delivery of those orders until the payment is complete. Understanding your POS will eventually help you target the right market, know where to your customers are most approachable and where they will buy your product.  

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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