If you&#;re thinking of replacing your retail management software, a quick search online will give you a lot of alternatives to choose from. However, even after you&#;ve sifted through all the marketing hype on vendor websites, you&#;re still unlikely to find all the answers you&#;re looking for. A software vendor listing from a reputable publication in your industry (e.g. RIS Software Leaderboard) is a good resource to further continue your search.
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Now, the question is, with such a multitude of offerings from each solution provider, how do you differentiate? If you can&#;t take the time to research each software in depth, how do you narrow down your list to the handful that are worth a closer look? This article will help you navigate the retail management software landscape, including finding out about:
&#; Insider questions for finding the right solution
&#; Considerations for finding the ideal technology partner
&#; Best practices for implementation, process and cost planning
Let&#;s dive into the deal-breakers for the initial phase of your evaluation process. It will help you eliminate the misfits and concentrate on the true contenders.
The Insider Questions Checklist
The following 11 insider questions cover three broad categories related to retail management software: functional, technological and budget. They&#;re sure to get you through your initial review stage.
Functional Considerations
1. What kinds of merchandise can the system handle?
Can the system handle the full variety of merchandise you sell? All retail systems are not made equal, and not every software can handle all kinds of merchandise with equal ease. Both a system too generic or too specific can cause problems in the long run. For example:
&#; Apparel, footwear and fashion accessories have styles, colors, sizes and dimensions. Your retail management software must be able to account for &#; and track &#; the full range of variations for each item.
&#; For items with a short life cycle, like fashion and entertainment products, new items may share key characteristics with prior ones, but are differentiated solely by SKU or item number.
&#; Furniture and home-décor merchandise can be made to order, so the system for this category must be able to manage various configurations of the same item.
&#; Jewelry have serial numbers that must be tracked through the entire supply chain, from source of supply through final sale.
The differences between item categories can present special challenges for merchandise planning, replenishment and allocation, inventory control, pricing and point of sale transactions. Your retail software should be tailor-made for your sector to avoid heavy customization. To save yourself time, ask each software vendor to cite examples of retailers who are successfully using their system to manage items in all the categories you carry.
2. What retail channels can the software manage?
Your retail management software must be equipped to handle all the channels you operate in. Does the software support brick-and-mortar retailing? e-commerce? Pop-ups? Store-in-store? Catalog? Franchising? How well does the software enable you to leverage new sales opportunities across all these channels?
3. What international capabilities does the product support?
This is especially relevant for retailers who operate globally, or those who expect to expand their operations. Can the system handle multiple currencies, languages, local regulations (e.g. VAT, fiscal printers, taxation, etc.)?
4. What are the supply-chain and inventory-management capabilities of the system?
Despite the targeted configurations and specifications, many retail software functions are commodities; they aren&#;t likely to vary much from one software to another. The biggest and most important differences are likely to be in the areas of inventory management and supply chain. This is where the benefits of your new system will become quickly apparent. Consider the following:
&#; Does the system have the replenishment and allocation capabilities you need?
&#; Does the vendor also provide applications for demand forecasting, merchandise, location and assortment planning? If so, how well are these functionalities integrated with each other and with the larger platform?
5. What evidence can the vendor provide that the software is user-friendly?
In your search for new software, you may have noticed that almost all vendors claim that their products are easy to use. The near-universality of such statements has rendered them virtually meaningless. To truly gauge the simplicity of the software, you&#;ll have to judge for yourself. At this early stage in your evaluation process, it&#;s helpful to ask how the software vendor demonstrates ease of use. Does the user interface seem intuitive? Can the vendor provide a quick video overview?
Technological Considerations
6. What are the software-deployment options?
Is the software installed and operated on your servers or in the cloud? Is it a hosted solution or is it a software-as-a-service (SaaS) application? The right fit depends on your company&#;s resources and needs, but understanding each model will help you choose the best option.
7. What&#;s the technology stack?
The &#;technology stack&#; is jargon for all the related technologies that enable a software application to run. These typically include elements such as middleware, programming languages, operating systems and database technologies. In the past, discussions about the technology stack were important because it dramatically affected the long-term cost of ownership of the software. Many technologies today are designed to operate cost-effectively with a broad range of complementary technologies, making the topic less relevant. Still, it may be worth finding out, especially if you have a big internal IT staff that&#;s committed to using &#; or avoiding &#; specific kinds of technology. But, if you plan to license software under a SaaS or hosted model, the vendor&#;s technology stack is not likely to make much difference to you.
8. How scalable is the software?
Scalability comprises two key aspects:
1. Technical scalability is a measure of the system&#;s ability to process the volume of items and transactions in your business.
2. Work-process scalability addresses the degree to which the system enables you to execute your work processes with a high degree of labor efficiency.
Technical scalability. Consider the number of SKUs you carry across all your locations, your transaction volumes and the number of employees who will be using the system. Then ask: How well can the retail system manage the number of SKU/locations across your supply chain? How well can it handle the number of transactions you process each day? What evidence can the software vendor provide to show that its customers are successfully processing volumes comparable to your current &#; and future &#; business needs?
Work-process scalability. You won&#;t be able to assess work-process scalability until later in your evaluation process. When you get to that point, you&#;ll want to see for yourself how much effort it takes to perform routine, everyday tasks. For example, what&#;s the process for entering a new purchase order, allocating and receiving merchandise?
9. How well is the software integrated, both internally and externally?
Internal integration. Retail management systems often contain modules or subsystems like price management, allocation, replenishment, merchandise planning, order management, and so on. It&#;s important for you to know how well the software is integrated across all the subsystems that comprise the larger application.
External integration. It&#;s also important for you to know how well the retail system integrates with any other software you may be running, such as applications for accounting, point of sale, loss prevention and e-commerce, among others. If you licensed any of these applications from a different provider, it&#;d be worth finding out about their integration methodologies (e.g. flat files, web services, database to database, etc.).
Budgetary Considerations
10. What&#;s the software-license fee and structure?
This early stage in the selection process isn&#;t the time to get very specific about license fees. But you&#;ll want to know the answers to a few general questions to gauge your cost projections:
&#; Does the vendor offer a conventional perpetual software license? Or do you buy a renewable term license, like a subscription?
&#; Is the license fee typically stated in five-digit numbers? Six? Seven? What portion of the license fee needs to be paid up front? If it&#;s a term license or a subscription, what is the typical duration?
11. What&#;s the estimated total cost of ownership over the expected life of the software?
Again, you&#;re only looking for general indications at this point. Consider not only license fees for the application software, but also the internal and external costs of buying and operating computer hardware, servers, operating systems and database licenses. Also consider the cost of systems and integration maintenance, training, implementation, support and upgrades for the expected life of the software.
After going through these 11 questions, you should have a good idea about the general requirements to look for as you search for new retail management software. The planning phase is vital and, done well, protects you from unnecessary risks and problems in the future. So well done! With this checklist you&#;re through phase one of your planning.
Have you ever left a store thinking, &#;Wow! The organization was flawless, the store was so inviting, and the customer service was exceptional!&#;
Wouldn&#;t you love to be the manager of a store that gets that raving praise? You can be! You can have an efficient and happy team, shelves stocked with products your customers love, and a store they want to return to again and again.
In this article, we&#;ll take you through the essential steps to successful retail store management. You'll learn how to recruit the right team, manage inventory effectively, prioritize customer service, and leverage data. We'll also talk about how technology, especially a point of sale (POS) system, can facilitate these steps and drive your success.
How To Manage a Retail Store
A retail store has many moving parts. From the front end to the back office, there&#;s a lot on your plate. Managers require strong leadership, communication, and strategic skills to adapt to constant change.
To manage a successful retail store, you need the ability to see the big picture and make strategic decisions. You need to understand your customers' shopping habits and preferences, your competitive landscape, and industry trends. With retail evolving at a rapid pace (hello, AI!), how can you keep up?
Then there are your day-to-day challenges. From hiring and training staff to managing inventory and providing excellent customer service, each day brings new tests.
However! Leveraging the right technology, like a POS system, can provide invaluable help. Running your store smoothly shouldn&#;t be a chore. With the right tools and insights, you can better serve customers, manage inventory easily, and run your store like a well-oiled machine.
Step #1: Recruit and Train Your Retail Team
Any successful retail store has a team that&#;s the heart and soul of its business. Surrounding yourself with the right people and investing in their growth is a significant part of managing your store.
Start by identifying the key roles needed to operate your store successfully. This will be different for each retail business &#; depending on size, business model, and product offerings. You need good people in each position, from common retail positions like cashiers and stockers to more specialist roles such as jewelers.
By good people, we mean those that align with your store&#;s culture and have a good mix of skills and personality for their position. Look for problem solvers and those with an affinity for stellar customer service.
Related: 8 Must-See Tips and Ideas for Retail Customer Service Training
Once you have your team, make sure to nurture morale, collaboration, and growth. A positive work environment is key to making employees feel valued and excited to serve. Hold regular team meetings to give and receive feedback and celebrate successes. Continued training is vital.
Pro tip: Your point of sale system serves as an invaluable asset for managing your staff.
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- Track employee performance and sales metrics.
- Identify high performers for promotions or candidates who may need additional training.
- Shift roles and permissions as you move employees into new positions.
- Build customized training right into your POS to onboard new hires.
Recruiting and developing a great team is easier with robust employee management features.
Step #2: Develop Effective Retail Inventory Management
Good or poor inventory management can make or break your store. Keeping your shelves stocked with the products customers want is essential.
Take the time to understand how inventory works for your store. Inventory turnover rates will fluctuate depending on seasonality, trends, and product lifecycles. Studying these nuances will help you make better decisions and implement strategies for monitoring inventory and reordering.
Conduct regular stock takes so you can audit shelf inventory versus inventory levels in your inventory management system. Are there discrepancies? Are you managing inventory efficiently? Also consider your receiving and restocking processes so new inventory hits the sales floor quickly.
Pro tip: Your POS system is your best friend for unlocking efficient inventory management. You can track inventory easily with real-time visibility into what&#;s selling and what isn&#;t, and what you have in stock on the sales floor and in your warehouse. Some POS systems automatically generate purchase orders when inventory hits a certain threshold, taking the guesswork out of managing inventory.
Step #3: Prioritize Excellent Customer Service
Providing exceptional customer service is what takes your store to the next level. It&#;s what brings shoppers back again and again.
Start with your overall in-store experience. Greet customers as they walk in and maintain neat, visually appealing displays that make finding their favorite products easy. Consider store layout, design, and lighting that aligns with your brand image.
Also consider the personal touch and relationship building. From making personalized recommendations to implementing a strong customer loyalty program, you can make regulars feel welcome and appreciated. Finally, handle returns with grace. Turn these tough interactions into opportunities to win back your customers. Whenever possible, give staff discretion to give refunds, discounts, or replacements.
Pro tip: Your POS system helps provide stellar customer service through features like loyalty programs, faster checkout, and data-driven marketing. You can reward regular customers with perks and speed up transactions to avoid long lines. Getting to know your customers is easier with a POS system that allows you to offer personalized recommendations and tailored promotions.
Step #4: Maximize Store Layout and Visual Merchandising
As alluded to above, first impressions are everything. Your store&#;s layout and visual merchandising set the tone for your customers&#; shopping experience. Is your floor plan logical? Does it flow, or are customers often bumping into each other?
Depending on your store, spend time thinking about the layout. For example, a grocery store might place high-demand items like milk and bread towards the back of the store to draw customers in. They might catch the attention of shoppers with endcaps featuring promotions, and place impulse purchase items near registers to boost add-on sales.
Visual merchandising is also important. Display popular items at eye level to draw attention and angle them facing outward for maximum visibility. Your window displays should be enticing and updated regularly, as they&#;re your best bet for enticing passersby into your store. Finally, use in-store signage to direct shoppers and make their experience more convenient.
Pro tip: Use your POS system to guide data-driven decisions about layouts and visual merchandising. For example, you can identify your top-selling products and use this to inform display placement and prominence. Conversely, you&#;ll know which categories are underperforming and can experiment with relocating those items.
Step #5: Implementing Effective Marketing and Promotional Strategies
Reaching your target customers has never been easier. You can explore various avenues for promoting your business online and offline, and use marketing strategies that resonate with your target audience.
Before you do, get clear on who your ideal customers are! Define their demographics, lifestyles, values, and shopping preferences, and craft messaging that speaks directly to them. Use social media and online marketing to reach your customers where they&#;re at. For example, you might use Instagram to highlight new products or host competitions.
In-store promotions and events can also be effective. You can time promotions around peak shopping periods like the back-to-school season or holidays, or plan fun events and product demonstrations that encourage shoppers to engage with your brand.
Pro tip: Your POS system enables data-driven marketing decisions, so you know exactly what resonates with customers.
- Find out which products sell best when promoted via social media or .
- Target your top-spending customer segments with VIP perks.
- Understand what your customers are looking for and continually refine your messaging.
Technology and analytics remove the guesswork from optimizing your marketing tactics.
Step #6: Evaluating and Adapting Your Retail Strategy
Not everything you try will work. And sometimes, a strategy will work and then stop working as the retail environment evolves. To stay successful, stay agile.
Conduct regular audits of your entire operation. Analyze sales data, inventory turns, merchandising effectiveness, staffing requirements, and customer satisfaction. Identify what&#;s working well and what needs improvement. When the data shows that there is room for improvement, experiment with new approaches.
Related: Your Point of Sale Data Is a Goldmine. Here's How to Make the Most of It
Outside of the day-to-day operations, keep a finger on the pulse of larger industry trends. Can you get ahead of competitors? Or surprise customers with new products? Expanding your offerings to reach customer demand and preferences keeps you ahead of the game.
Pro tip: Your POS system provides invaluable data for consistent performance reviews, so you can measure results and tweak operations.
Learn what your top-selling products are and those that underperform using
sales reports.
Gain insight into how well you manage your store with conversion rates, average transaction sizes, and new versus returning customers.
Understand top customers' engagement levels and shopping habits with customer loyalty program data.
With data at your fingertips, you can evaluate strengths, identify weaknesses, and continuously improve your retail strategy.
How To Manage a Retail Store: A Team Effort
What have we covered?
- Recruiting and managing an all-star team
- Dialing your inventory management
- Delivering stellar customer service
- Designing a welcoming and intuitive store layout
- Implementing promotions
- Continually evaluating performance
Mastering the steps above will take you a long way &#; but your team is your most valuable asset. Foster a positive work culture, train them well, and give them tools that empower them. As you&#;ve seen above, a POS system is the most important tool to successfully manage your store.
With inventory management, customer relationship management, reporting, and omnichannel capabilities, executing retail strategy is easier than ever. All the data you need to make informed decisions is right at your fingertips.
Are you ready to see how a POS system designed for retail stores can make your life easier? Schedule a demo today! Or grab a free copy of our best resource: The Buyers' Guide: Finding the Best Retail POS System.
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