Businesses that get the most out of their point of sale system (POS system) investments use their systems to improve the bottom line as well as manage transactions at the checkout. We shared a list of ways you can use your POS system to save your business money. But did you know you can also use your POS system to maximize revenues? In a time when many merchants are looking for ways to make a profit, a solution may already be sitting on a counter in your store or restaurant.
How POS Systems Build Revenues
In “The Personal MBA,” author Josh Kaufman explains there are basically four methods to increase revenue.
- Increasing the number of customers
- Increasing average transaction size
- Increasing the number of transactions per customer
- Raising prices
Here’s how your POS system can help you accomplish those objectives:
Increasing the number of customers
You can build traffic with sidewalk or window signs, but they may only reach a portion of your customers, and print or radio advertising is often not possible on a regular basis with a small business budget. Digital marketing via email, text, or social media can help you communicate with more of your customers and keep them informed of new items, promotions, and sales. You can manage your customer list from your POS system and automate sending messages to save time.
Increasing average transaction size
Some POS systems give you the option to have a second screen at the checkout that faces customers. You can use that screen for consistent upselling. Unlike a sales associate or a cashier who may get distracted or pressured by a long line and forget to make offers, your POS system always upsells. Study after study shows that relevant upselling offers on customer-facing screens work — increasing average ticket size by 20 percent or more.
Increasing the number of transactions per customer
Once you build your customer base, you want to increase revenue by having them make purchases more often. Loyalty rewards programs are a great incentive for return visits — and purchases. A loyalty program integrated with your POS system makes awarding and redeeming points easy. It also saves time when you reconcile transactions at the end of the day. A loyalty program that you manage through your POS system will also provide you with valuable data on your VIP customers, such as when they shop, the items they’re the most interested in, and rewards that they respond to. You can use that data to make smart decisions about promotions and sales to help increase traffic.
The last item on “The Personal MBA” list of ways to increase revenue is raising prices. It may seem like a risky thought — if you raise prices, you may turn customers away. Perhaps a better way to look at it is right pricing. Data from your POS system will show you how much revenue and profit you make from specific merchandise or menu items you sell. The data will also show you which items aren’t selling, which may need an adjustment in price, and which items are flying off the shelves, for which your customers may be willing to pay more.
Depending on the type of business you operate, your target audience, and your goals, you can use your POS system in other ways to collect the data insights you need or create shopping or dining experiences your customers will keep coming back for.
The PlazSales team is always happy to discuss how you can reach your goals. Contact us today!