Traditional vs Cloud-based Point-of-Sale solution
Technology has advanced in leaps and bounds and it has penetrated into all aspects of our lives. The retail industry is no exception - every retail organization requires a technological solution to manage various operations. Point-of-Sale is one of the most important aspects of the retail industry, and it becomes extremely critical to use the right kind of solution for managing and monitoring the POS.
Typically, there are two types of POS software solutions - traditional POS and cloud-based POS. A traditional or a legacy POS system operates locally within an internal network and stores data on a local server. This data can be accessed only from within the store. On the other hand, cloud-based POS stores data on a cloud platform and can be accessed globally.
The main challenge that retailers face is while choosing a suitable POS solution for their business. In modern times, it is advised that retail businesses implement cloud-based POS solutions in their stores. In this article, we would share a few drawbacks of a legacy POS solution and a few advantages of using a cloud-based POS software.
Drawbacks - Traditional POS software
1. No mobility
A traditional POS software operates on a set of specific hardware systems. Data can not be accessed elsewhere and users need to log into the systems at the terminal itself. This lack of mobility holds employees back from engaging with customers on the floor and adds on to the space occupied within the store.
2. High cost
Because of the hardware investment that retailers have to make, implementing a legacy POS solution is expensive. Additionally, due to the paradigm shift in the market, most POS solution vendors are moving over to developing and updating cloud-based solutions. So, maintaining these traditional systems becomes costlier and requires more effort and time.
Advantages - Cloud-based POS software
1. Easy accessibility
Since the data is stored on a cloud platform, users can access data from any system and do not have to be present at the POS terminal to monitor the same. This is the most suitable for organizations that have multiple stores - users can centrally manage POS data of different locations.
2. Higher Accuracy
Due to the real-time updating of POS data, retailers receive accurate data about inventory and sales at all times. This impacts the business positively - retailers get notified on low stock and are able to timely place purchase orders, users have complete information about stock availability and are consequently able to enhance the customer experience.
3. Better Customer Service
Enhancing customers' in-store experience has become inevitable for retailers all over the world. With a cloud-based POS solution, users are able to access customer data easily. Records of their purchase history, transactions, promotional rewards, and the like are available easily and accurately. This enables users to enhance the customer experience by personalizing their journey within the store, providing relevant offers, and much more.