POS - What is it, its importance and how does it impact business?

POS, or point of sale, is a term normally used in the business world to refer to the physical or virtual location where the transaction between a seller and a customer takes place. Although often associated mainly with physical stores, the concept of POS extends to any point of interaction where products or services are sold, including online stores, kiosks, marketplaces, among others.

Importance of POS

POS plays a fundamental role in companies’ marketing and sales strategies. It is the crucial point where marketing efforts converge to drive sales. The customer experience at the POS can determine whether a sale is closed or not. Therefore, companies invest time and resources in optimizing the customer experience at the point of sale.

Elements of an effective POS

An effective POS incorporates a series of elements to attract customers. Some of the key elements include:

1. Layout and design:

The layout of the point of sale must be organized in a logical and attractive way, facilitating customer navigation and highlighting the featured products or services.

2. Signage and display:

Clear, effective signage can guide customers and highlight special offers, promotions or featured products.

3. Customer Service:

Service quality plays a crucial role in the customer experience at the POS. Well-trained employees can positively influence customers' purchasing decisions.

4. Technology:

Integrating technology at the POS, such as efficient payment systems, mobile devices for inventory consultation, and augmented reality experiences, can significantly improve the customer experience and optimize sales operations.

5. Special offers and promotions:

Offering special offers and exclusive promotions at the point of sale can encourage customers to make additional purchases or return to the store in the future.

Impact of POS on business

A well-designed and effective POS can have several positive impacts on your business, including:

1. Increased sales:

A POS that captivates and attracts customers can result in increased sales and the conversion of customers into buyers.

2. Customer loyalty:

A positive POS experience can lead to customer loyalty, encouraging customers to return for future purchases and recommend the brand to others.

3. Differentiation from the competition:

A unique, well-executed POS can help a company stand out from the competition and create a distinctive brand image in the minds of consumers.

4. Improved brand perception:

Having a well-maintained and professional POS can improve customers' perception of the brand, conveying an image of quality and reliability.

5. Operational efficiency:

In addition to impacting sales, an effective POS can also improve operational efficiency by reducing customer wait times, minimizing transaction errors and optimizing payment processes.

Types of POS

There are several types of POS, each with its own specific characteristics and strategies. Below are some of the main types of POS:

1. Traditional physical stores:

◦ These are the most common physical outlets where customers can visit in person to make purchases. They can range from large retail chains to small neighborhood stores.

2. Convenience Stores:

◦ This type of POS is designed to offer convenience to customers, often located in easily accessible locations, such as gas stations, train stations and airports. They generally offer a variety of basic and immediate need products.

3. Kiosks:

◦ Kiosks are compact and independent points of sale, generally located in high-traffic areas, such as shopping malls, metro stations or shopping centers. They can sell a variety of products, from food and drinks to electronics and accessories.

4. Pop-up stores:

◦ Pop-up stores are temporary and appear for a limited period of time, often to take advantage of seasonal events such as holiday parties or festivals. They provide an opportunity for brands to raise awareness and test new markets or products.

5. Online stores:

◦ Online POS are digital platforms where customers can make purchases online. This includes independent online stores, marketplaces and large retailers' e-commerce sites.

6. Direct Sales:

◦ This model involves selling products directly to consumers, often through independent sales representatives, demonstration events or even in-home sales.

7. Mobile POS:

◦ Mobile POS are points of sale that move to different locations as needed. This could include food trucks, traveling sales trailers, or even street vendors.

8. Virtual POS:

◦ Some POS exist only in the virtual world, such as online stores or mobile shopping apps. They offer convenience and accessibility to customers, allowing them to shop anytime and from anywhere.

How to sell more at POS

Selling more at the point of sale (POS) is the objective of any business, be it a traditional physical store, a kiosk, an online store or any other type of commercial establishment.

There are several strategies that can help boost POS sales. Here are some tips for selling more:

1. Know your customer:

Understanding the profile and needs of your customers is essential to offering products and services that meet their expectations. Conduct market research, collect customer feedback, and analyze sales data to identify patterns of purchasing behavior.

2. Offer excellent customer service:

Customer service is an important competitive differentiator. Train your team to be friendly, helpful and knowledgeable about the products. Always be available to answer questions, offer recommendations and resolve problems.

3. Feature products:

Position the most popular products or those with the highest profit margin in strategic locations at the POS, where they are easily visible and accessible to customers. Use displays, signage and appropriate lighting to highlight these items.

4. Create promotions and special offers:

Offer discounts, promotions and promotional packages to encourage customers to buy more. Create a sense of urgency with limited-time promotions.

5. Invest in visual presentation:

Keep the POS clean, organized and attractive. Use a tasteful visual presentation to highlight products and create a pleasant shopping experience for customers. Use well-designed windows and store layouts that encourage customer circulation.

6. Offer samples or demonstrations:

Allow customers to try products before purchasing by offering free samples or demonstrations. This can help increase customer confidence and encourage purchasing.

7. Make the payment process easier:

Simplify the payment process by offering different payment options, such as credit/debit cards, mobile payments, Pix and interest-free installments. Keep checkout lines short and train your staff to speed up the process.

8. Implement loyalty programs:

Create a loyalty program to reward repeat customers and encourage repeat purchases. Offer exclusive discounts, gifts or benefits for program members.

9. Empower your sales team:

Invest in training your sales team by providing regular training on products, sales techniques and customer service. A well-trained team can positively influence customers' purchasing decisions.

Igloo: Omnichannel POS System for Shopify

iGlu is an innovative and complete solution, fully mobile and Omnichannel, that revolutionizes the point of sale system. With integration of payments and automated issuance of invoices, it enables the new generation of physical stores, providing greater efficiency and practicality in their operations.

Top solutions

• Omnichannel

With Iglu, it is possible to remove the barriers between physical and online. In addition to purchasing the store's own stock, returning and exchanging it, your customer can buy on the website and pick it up in store, buy in store and receive it at home or buy on the website and receive it from one or more stores.

• Integrated payments

Your customer can make payment in several ways, including credit card, debit card, PIX, cash, Payment Link or Vale Troca, all in an integrated way.

• Mobile POS

iGlu is a mobile-first solution. Your point of sale platform operates in the palm of the seller's hand via cell phone or tablet. Payment collections are automated, transforming the seller into a traveling point of sale, which results in reduced queues and better use of space in the store.

• Tax orchestration

It automatically generates sales, return and transfer invoices, integrating tax issues with its ERP.

Discover how iGlu can boost your business and provide a complete sales experience! Visit the Iglu website to explore all its features and learn more about how it can transform your operation.

Conclusion

In short, the point of sale (POS) plays a crucial role in the success of any business, whether physical or virtual. It is the place where the final interactions between seller and customer occur, and where purchasing decisions are often made. POS optimization can lead to a significant increase in sales, customer loyalty and positive brand perception.

For those who want to deepen their knowledge of e-commerce and Shopify strategies, we invite you to visit our website and check out our specialized courses.

Don't miss the opportunity to boost the success of your online business. Play your journey!