Over the years, we've spoken with thousands of retailers considering new point of sale software solutions. Our BuyerView research analyzes our phone consultations and provides an overview of common pain points, as well as reasons why retailers were looking to purchase new systems.

1. Retail Software
BuyerView Report | 2013
Insight into today’s software buyer

2. Abstract
Over the years, we've spoken with thousands of retailers considering new point
of sale software solutions. This BuyerView research analyzes our phone
consultations and aims to answer 4 questions:
• Which sales tools are currently being used by retail software buyers?
• Who is looking to buy new retail software?
• What are the top reasons for purchasing new retail software?
• Are retailers looking to buy Cloud-based retail software?

3. Sales Tools Currently Being Used by POS Buyers
POS software
Manual methods
Cash register
Nothing
Accounting software
Other
Spreadsheets
0%
5%
10%
15% 20% 25% 30%
Percent of respondents
35%
40%
Over a third of buyers are already using POS software. Eighteen percent marked
“nothing” because they are opening a new store.

4. Top 5 POS Software Market Segments
Apparel
Consignment
Liquor
Jewelry
Restaurant
0%
2%
4%
6%
8%
10%
Percent of respondents
12%
14%
The top five segments represent two-fifths of our retail sample. Apparel & fashion is
the largest segment, representing 12% of all POS buying activity.

5. Reasons for Purchasing - High Level Overview
Improve accuracy/effectiveness
Need more/better features
Starting new business
Update/modernize
Other
Technical issues with current system
Consolidate systems/methods
Customer support issues
Deployment concerns
Cost of current POS
0
25
50 75 100 125 150 175 200
Number of mentions
The majority of buyers mentioned the need to improve accuracy, modernize their
systems or obtain specific POS features or functionality.

6. Reasons for Replacing Existing POS Software
Improve accuracy/efficiency
Need more/better features
Update/modernize
Technical issues
Other
Customer support issues
Consolidate systems
Cost
Deployment concerns
0
10
20
30
Number of Mentions
40
Although about a third of current POS users are seeking to improve accuracy/
efficiency, many other factors play into replacing an existing POS system.
50

7. Reasons for Replacing All Other Methods
Improve accuracy/efficiency
Need POS functionality
Other
Update/Modernize
0
20
40
60
80
100
Number of Mentions
120
140
For all other methods (spreadsheets, cash register, paper, etc.), improving accuracy
is the primary consideration for over three-quarters of buyers.

8. Applications Required by Software Buyers
Point of sale
Inventory management
Customer management
e-Commerce
Retail accounting
Warehouse management
Merchandise planning
0%
20%
40%
60%
80%
Percent of respondents
100%
Almost all respondents are seeking POS and inventory management capabilities,
with almost half seeking customer management, too.

9. Deployment Preferences
100%
80%
60%
40%
20%
0%
2010
2011
Not determined
2012
On-premise
2013
Cloud-based
Most industries have moved toward Cloud-based software, and although there are
few Cloud-based POS systems, we have seen a shift in buyer preferences.

10. Demographics: Buyer Size
3%
15%
6+ stores
2-5 stores
1 store
82%
More than four-fifths of buyers in our sample operated just one store, indicating we
are clearly serving the smaller end of the market.

11. Learn More About Retail Software
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12. @SoftwareAdvice
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/SoftwareAdvice
@SoftwareAdvice
Software Advice™ is a trusted resource for software buyers. The company's
website, www.softwareadvice.com, provides detailed reviews, comparisons and
research to help organizations choose the right software. Meanwhile, the company’s
team of software analysts provide free telephone consultations to help each
software buyer identify systems that best fit their needs. In the process, Software
Advice connects software buyers and sellers, generating high-quality opportunities
for software vendors.