Software Advice analyzed interactions with thousands of point-of-sale (POS) software buyers to uncover why businesses are buying POS software for the first time, why they're replacing existing POS solutions, and what they want in a new system.

1. Software Advice BuyerView:
Point-of-Sale Software Report
Insight into today’s software buyer

2. Abstract
Every year, Software Advice is contacted by thousands of organizations looking
for the right point-of-sale (POS) software—which gives us unparalleled insight
into the needs of today’s software buyers. We recently analyzed a random
selection of these interactions from 2013 to 2014 to uncover retailers’ most
common pain points and their reasons for purchasing new software.
• Most of our buyers (42 percent) wanted to replace their existing POS or other
retail software.
• Software replacement was most driven by buyers’ needs for more robust
functionality (37 percent).
• Inventory management was the most requested application (80 percent),
followed by reporting and analytics (60 percent).

3. Many Buyers Replacing Existing POS Software
POS software
Nothing
Manual methods
Cash register
Accounting software
Custom-built system
Non-retail software
0% 10% 20% 30% 40%
Percent of sample
Thirty-seven percent of buyers in our sample were currently using POS software
to manage data, while 22 percent relied on manual methods (e.g., spreadsheets).

4. Current POS Users Seek Advanced Functionality
More advanced functionality
Modernize
Current unreliable
Current not user-friendly
Improve integration
Current has poor support
Current too expensive
Business growth
Need e-commerce
Speed processes
0% 10% 20% 30% 40%
Percent of sample
Forty-two percent of buyers were replacing existing retail software; of those, 37
percent said a need for advanced functionality was their main reason for purchase.

5. Inventory, Reporting Most-Requested Applications
Inventory management
Reporting & analytics
CRM
Barcoding/scanning tools
Employee time-tracking
Accounting integration
E-commerce integration
Loyalty program
Order/purchasing management
Multiple payment types
0% 20% 40% 60% 80%
Percent of sample
Inventory management and reporting and analytics were the top-requested
applications—listed by 80 percent and 60 percent of buyers, respectively.

6. Preference for Web-based Software Declines Slightly
From 2010 to 2013, retailers’ preferences for Web-based products increased
rapidly—from 3 to 47 percent. This year, there was a decrease, to 33 percent.

7. Majority of Buyers Represent Single-Store Retailers
Our sample was largely comprised of retailers evaluating software for use in a
single-store retail operation (77 percent).

8. Most Buyers Purchasing Software for Specialty Shops
The majority represented specialty shops: apparel & fashion (20 percent); liquor
store (9 percent); sporting goods (5 percent); all other specialties (41 percent).

9. Learn More About Retail Software
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