15 Top POS System Features

15 of the most popular POS features

All POS systems have the same basic functionality. They allow you to check out customer purchases and process their payments. But the most popular POS features enable you to take your business to the next level, thanks to tools for mobile sales, employee engagement, customer management and more. 

Make sure your POS system contains the following tools and capabilities — and that you’re using them correctly so you reap the benefits.

1. Mobile apps

Most POS systems have both Apple and Android applications that allow you to use smartphones or tablets for mobile checkout. This means retail employees can ring up customers anywhere on the store floor, and waiters can take orders and payments at the table.

While most POS systems are dual-platform, some are exclusively for Apple or Android. If you have a strong preference for one platform over the other, take that into consideration when switching to a new system.

Most POS systems are designed for iPads, as they are more user-friendly and secure, though also more expensive, than Android tablets. However, a few systems are designed only for Android, touting the platform’s superior ability to customize features. [Read related article: How to Find the Best Mobile POS System]

2. Inventory management

Whether you’re in the food service industry and need a menu rundown on your system or you’re in retail and need to track product quantities, the type of inventory management your business needs will determine the type of POS system you should invest in.

Although most POS systems include inventory management features, some are more robust than others, and some are industry-specific. If your business needs an advanced inventory management system, see if your existing POS will integrate with inventory software or consider upgrading your POS system to one with better inventory tools.

3. Customer management

How much customer data do you collect for your marketing efforts? A POS system can gather email addresses, phone numbers and mailing addresses, and it can also track sales data like purchase histories and buying trends. This allows your business to create specific, targeted offers that incentivize your customers to keep shopping with you.

Advanced POS systems can use customer data to generate just-in-time marketing, personalized for the customer at the checkout counter. For instance, the system might generate instant coupons based on what the customer has just purchased.

4. Loyalty programs

Loyalty programs aren’t usually part of the core feature set of POS systems. However, several systems offer them as an add-on for an extra cost, and others integrate with third-party loyalty programs. Whether native to your POS platform or a third-party integration, you should use loyalty program features to attract and retain customers.

5. Gift cards

Many businesses add on gift card features to their POS system. The ability to offer and accept gift cards, both in person and online, can be a great way to boost sales and increase customer loyalty. 

6. User accounts and permissions

If your business employs multiple people, you can use your POS system to assign and limit responsibilities as necessary. As the system administrator, you should be able to manage employee access to different features of the POS system. For instance, you can grant permissions to select employees or positions to handle certain tasks, such as issuing refunds or voiding transactions.

7. Employee management

Most POS systems come with some form of employee management features, like tracking employee sales, activity and performance. This makes it easy to see which employees are your top earners, and which ones might require more training. You can use these tools to run sales competitions and reward your top performers. 

Some POS systems can track work hours with a built-in time clock and let you create employee schedules. If you’ve already found the best time and attendance system for your needs or use high-quality employee scheduling software, see if it integrates with your POS system to streamline timekeeping.

8. Appointment booking

Although it is not as common a feature, some POS systems have appointment-booking capabilities. These enable appointment booking through your online store or website. Then, you can manage appointments and sales within your POS platform. This is especially useful for those operating in professional service industries (e.g., nail salons, wellness spas, repairs and health).

9. Reporting

Every POS system generates reports, but since the depth of reporting varies, you’ll want to ensure your platform meets your current and future analytics needs. You should look at reports for sales per hour, inventory management and other metrics.

The best POS software boasts customizable reports that allow you to filter data by date range and other factors. You should also customize how the data is presented and schedule automatic reports to be emailed to you.

10. Integration

Your business is likely already using other types of business software, such as for accounting or CRM, but have you connected them to your POS platform? The ability to integrate those with your POS system allows you to work more efficiently, as the systems will automatically share data rather than require you to manually transfer it between systems. 

When switching or upgrading POS solutions, look for a POS system that can integrate with your existing software, as well as any you plan on using in the future. This will make it easier to manage your business as you grow.

11. Scalability 

Speaking of growing, it is important to use a POS system that can scale with your business as you expand. This might mean the ability to add on more registers or accessories, or even to open up a second or third location with one centralized POS platform. If your existing system can’t grow as your business does, you should seriously consider changing platforms to a solution that can meet your current and expected needs.

12. Payment processing 

You know POS systems have recurring costs, but you should regularly reevaluate them to ensure they still make sense for your budget. At some point, you might want to see if you can get more favorable payment processing rates and terms. Although most of the best credit card processing systems permit a variety of payment types (e.g., swipe, dip, tap), their rates vary, so keep that in mind as you reconsider your costs and weigh changing providers. Always calculate the cost of payment processing when determining the overall cost of your POS system.

13. Dashboards 

POS systems have easy-to-use dashboards that give you a quick summary of how your business is performing. You can often see things like sales, inventory and performance at a glance. Make sure everyone using your POS system understands how the dashboard works so you’re taking advantage of all the insights and tools available.

14. Hardware 

Hardware can be a major factor in POS systems. A basic POS setup typically includes hardware like a standard terminal, credit card reader, cash drawer and receipt printer. However, you may want to eventually implement advanced hardware options like a mobile POS, kiosk, customer display screen, kitchen display system or digital menu board, depending on your business type and needs.

15. Customer Support

POS systems have evolved over the years, and most of the top market options are easy to install and use. It is important to have an intuitive POS system that is easy for you and your employees to navigate, especially as your business grows. But, because hiccups are inevitable, just as important is the customer support your POS vendor provides. You should be able to contact the customer service team as issues arise, as well as access self-help resources.

Industry-specific POS features

Most POS systems are designed for a certain industry, so their features tend to fall into the following industry-specific packages. Depending on your sector, you should be using these unique tools and abilities.

Retail

The retail industry is one of the predominant users of POS terminals, which almost always integrate with inventory and accounting software. In addition to processing transactions, the POS system often supports customer loyalty cards, gift cards, gift registries and coupon redemptions. 

>> Learn More: 15 Essential POS System Features for Your Retail Business]

If you’re looking for the best retail POS system, check out our full review of Lightspeed. It offers robust e-commerce tools and can accommodate industries like apparel, electronics, health, home, decor, jewelry, sporting goods and liquor.

Hospitality/hotel

The hospitality and hotel industry needs to track guests as they interact with various services throughout their visit: the dining room, their guest rooms, golf or tennis lesson reservations, spa visits and so on. 

POS systems can also store guest preferences for amenities and housekeeping, allowing hospitality staff to anticipate guest needs rather than respond to requests — thereby raising service levels, customer satisfaction and loyalty. The POS software for these businesses usually integrates with property management software.

Restaurant

Some of the first touchscreen terminals were used in the restaurant industry, particularly at fast-food chains. Today, they are the standard means to input and track orders, process payments and generate customer receipts. 

A growing trend in quick-serve restaurants is the use of text alerts to notify customers when their orders are ready for pickup. Even in some fine-dining segments, waiters use mobile devices to send orders directly from the table to the kitchen. The same devices notify waiters when orders are ready for delivery to the table.

If you’re in search of the best POS system for your restaurant, check out our TouchBistro review. Toast is another great option — in our Toast review, you’ll learn why it’s ideal for restaurants with online ordering.

>> Learn More: Best Restaurant POS Systems

Grocery

In the grocery business, POS systems can be part of self-checkout lines and typically incorporate weight scales. Some systems also allow customers to use barcode scanners to record their selections as they place products into their carts, expediting the final checkout process.

If you’re looking for a grocery store POS system, consider Heartland POS. This comprehensive POS system is compatible with third-party hardware and payment processors. 

Salon

Professionals in the hair and beauty industry need to enter, modify and track client appointments and preferences in a POS system that can generate performance reports and loyalty profiles, as well as identify and correct workflow inefficiencies. The POS system also maintains an inventory of beauty products and compiles a database of customer emails to send appointment reminders, special offers and other notifications.

5 benefits of a POS system

A good POS system can not only help a business owner manage sales and inventory, it can also increase their business intelligence and marketing skills. Below are the five primary benefits of a POS system.

1. Increase profitability.

POS systems can increase your profitability by monitoring inventory and recording customers’ behavior. With this data set, you’ll be able to create more pointed and specific marketing campaigns and sell only the products that your customers buy. This encourages customers to return and helps you avoid holding on to a surplus of immovable products so your business is more profitable.

You can also use POS apps on your smartphone or tablet as instant access points, allowing you to sell and order from wherever you are, instead of being confined to a physical location.

2. Reduce administrative costs.

When a POS system is used to its full abilities, it will reduce the time you spend on administrative tasks, which can save you money. Your system should provide operating reports as well as buyer and inventory data, so you don’t have to collect that information yourself. Since POS systems can act as checkout stations, you also spend less time on cashier duties and more time focusing on the business itself.

3. Manage inventory.

If your POS system comes with inventory management features that allow you to see your stock in real time, you’ll always know what you have on hand and what your customers are buying. This lets you make informed decisions about future inventory purchases based on buying trends and customer demand.

4. Improve your business intelligence.

If your POS system has robust reporting features, you can run reports that clearly and accurately streamline your incoming data so it is easier for you to understand. Then you can make informed decisions about your business. You’ll be able to dig into your sales data to identify your business’s trends around inventory, customer behavior, high-volume shopping times and budget lines.

5. Boost your marketing and loyalty features.

One of the most useful features of a POS system is how specific it can be about your customers’ buying trends. It can show you what they buy, how frequently they shop at your establishment, and how much they spend.

When you understand who your customers are and how they shop, you can create specific marketing messages, loyalty programs and other incentives for them. This allows you to reward your best customers and enhance their experience, instead of losing money on general discounts.

The best POS systems

In addition to the POS systems highlighted above, here are some other excellent options to consider if you’re reevaluating your POS needs. 

• Shopify: Shopify is an all-in-one POS system that offers the hardware and software needed to accept payments, track inventory, and manage customer data. The company provides two different mobile apps — one for processing payments and one for managing your back office. Both apps are available for iOS and Android devices. Shopify does offer a free trial, but it only lasts for three days. Read our Shopify POS review. 
• Helcim: Helcim has an intuitive interface, easy-to-use tools and transparent pricing. You can use the POS system to accept credit card payments, manage your inventory and send invoices. However, Helcim doesn’t offer as many third-party integrations as some of its competitors. See our Helcim review.
• GoDaddy: GoDaddy makes it easy to accept payments in-person, online or through pay links. You can track your online and offline transactions through one secure dashboard, and the company offers competitive payment processing rates. Plus, GoDaddy’s marketing and customer loyalty tools will help you find and retain more customers. Look at our full GoDaddy review.
• CAKE: CAKE is one of the best POS systems for restaurants thanks to its durable hardware, menu management tools and advanced reporting features. Your employees can clock in and out using CAKE, and the software lets you evenly divide tips at the end of every shift. Read this CAKE review.
• Brilliant: The Brilliant POS system is one of the best options for managing employee schedules and tracking your inventory. You can use the software to modify employee schedules and manage payroll. And there’s no limit to the number of SKUs you can add, which makes managing your inventory a breeze. Learn more in our Brilliant POS review.
  

Jamie Johnson contributed to this article.