If you’re an ambitious mid-sized retailer, you’re probably aware of retail management software, and understand that it can be a powerful tool to help you automate and streamline your operations. You know that it’s more than simply a point of sale, and that it offers a comprehensive platform for managing the entire retail operation. You may be exploring how you could use retail management software in your business, to help you to operate more efficiently, increase customer satisfaction, stay competitive, and improve profitability.

What to look for in Retail Management Software

1. Frictionless checkout – your customers come into your stores, they choose their goods and then…they have to wait in line to pay, or they can’t use the payment method they want. These ‘frictions’ are the biggest cause of customer dissatisfaction – which directly impacts sales. Half of all shoppers will not wait more than three minutes in a store, and time-poor shoppers will pretty soon switch to your competitors who don’t make them wait. Or maybe the store down the road makes it easier to redeem points, or make a contactless payment. So the very first thing to check out when you’re exploring the use of retail management software is how well it does the basics – enabling customers to pay for their goods.  Yes, of course retail software is about more than just POS, but POS is the very heart of a retail store’s operations, so it must be fast, reliable and rich in function.

2. Omnichannel Integration
Your customers no longer differentiate between shopping online and in-store – and often want to use a blend of channels within the one transaction – such as ordering online and collecting in the store (click and collect), buying online and returning in the store (BORIS) or ordering in-store for home delivery. They expect to be able to earn and redeem loyalty points in the same way regardless of how they shop and receive promotions that apply online and in the brick and mortar store.  This seamless integration of online and in-store shopping is known as ‘omnichannel’ and it’s a part of any strong retail management solution. Get it right, and you’re set to see revenues rise – omnichannel customers shop 1.7 times more than single channel shoppers, and they spend more.   Omnichannel retail management is what enables the online/offline transactions that customers demand, and ensures that they have a consistent experience regardless of where they are choosing to spend their money with you.

3. Cloud vs. On-Premise Deployment
A great deal of retail management software is provided via the cloud. This means that, rather than sitting on your servers in your offices, it runs on the provider’s infrastructure and is made available to you via a network. This approach has many advantages – you need less IT hardware and fewer specialist staff; the software provider manages capacity so that the system scales with you; and the provider takes care of maintenance and security – leaving you free to focus on retail operations. But, because of its dependence on a network, there is a potential point of failure which could, in a worst case scenario, render your store unable to operate. The alternative approach is ‘on-premise’ where software is installed on hardware within your organisation. This too has pros and cons. 

The best approach may well be a hybrid one, with cloud deployment for head office and back-office operations, and POS systems remaining on-premise for uninterrupted transactions.

4. Beyond POS: Enhancing Customer Experience and Efficiency
True retail management software extends beyond pure POS – it includes functionality that will help you to enhance customer experiences and operational efficiency. The three most important additional features to consider loyalty, promotions and inventory management. Loyalty programs drive up shopping frequency and average basket size by offering customers the chance to earn and redeem loyalty points, and provide useful insights about customer preferences and behaviours. This in turn allows you to develop exactly the right promotions to engage customers and further boost their spend. 

Good retail inventory management helps to manage your retail supply chain and reduce the risk (and cost) of over- or under-stocking.  The right software will provide a single view of inventory across the entire enterprise, along with automated inventory replenishment. This means you can fulfil customer orders from any location, getting goods to customers faster, you can reduce the risk of stockouts (and lost sales), and lower inventory management and holding costs.

5. ERP Integration for a Unified Business View
The best retail management software does not operate in isolation; it must integrate with your other systems, and in particular Enterprise Resource Planning (ERP).  Selecting a solution that seamlessly integrates with your ERP4 gives you a unified view of business operations, eliminates data duplication and integrity risks, and enables you to make informed decisions based on accurate, real-time data. But integration can be a time-consuming and difficult business, so look for retail management software that comes with ready-built adapters to integrate to your specific ERP platform.

6. Industry-Specific Features
Retail operations are by no means the same. Different types of retail businesses have their own unique customer and compliance requirements. You could try to adapt ‘one-size fits all’ retail management software to your requirement, but this is time-consuming and requires specialist skills. Instead, consider choosing software tailored to your retail specialty. Doing so can significantly improve the efficiency with which you operate your business, help to ensure you are compliant with industry standards and free you up to focus on great customer service.

7. Partner Network and Local Support
Finally, whatever retail management software you choose, you’ll need to implement it and fine-tune it to sing sweetly in your business environment. The chances are that your already busy teams may not have the bandwidth to manage such a project alone. This is where the value of selecting a software provider with a strong partner network really makes itself felt. A partner network provides local implementation experts to assist with software setup, customization, and ongoing support to ensure that you get the most out of your investment. Partners can also help with training your staff, troubleshooting issues, and integrating the software with existing systems.

Conclusion

For mid-size retailers exploring retail management software, understanding the key features and considerations is the first step in making an informed decision. From seamless POS experiences to omnichannel retail management capabilities, cloud deployment, and industry-specific functions, the right software can streamline operations and drive business success.  

Check out how iVend’s retail management software delivers all seven of these key considerations – call us to book your demonstration now.

FAQ’s

What about mobile POS?

Yes, taking your POS beyond the fixed lane is a really important consideration. Even if you don’t offer this now, you do not want to lock yourself out of doing so in the future. So think about retail management software with mobile POS functionality. Mobile POS can really elevate the customer experience, and drive revenue – customers can ask questions of store staff, place an order for items that are not on the shelf, and checkout and pay for their goods without standing in line. Mobile POS gives you a checkout that can operate anywhere in the store.

What are some examples of requirements which industry specific retail management software can handle?

• Pharmacies and optical retailers need to manage dispensing functionality alongside standard retail transactions.
• Thrift stores handle non-standard inventory and offer discounts based on weekly stock rotation.
• Apparel and fashion retailers manage size and color variations, as well as seasonal collections.
• Supermarkets require tools to track fresh and perishable produce.
• Hardware stores need to manage bulk sales and special-order items.
• Consumer electronics retailers want to upsell, with items such as home delivery and extended warranties, and the product landscape is constantly changing, creating challenges in retail inventory management.

Why is it important to integrate retail management software with your ERP?

An Enterprise Resource Planning (ERP) system is a software solution that integrates and manages core business processes within an organization. It acts as a central hub for data, allowing departments such as finance, inventory, human resources, and supply chain management to work from a single, unified system.

For retailers, ERP integration with retail management software ensures real-time visibility into inventory management, sales, and financial data, helping businesses make informed decisions. It eliminates data silos, improves accuracy, and enhances efficiency by automating key tasks like order processing, payroll, and reporting.

*References: Forbes, iVend, McKinsey, iVend