Common POSaaS Mistakes You Should Avoid


Value-Added Resellers (VARs) and other Point-of-Sale (POS) solution providers can grow their business by offering POS Software as a Service (POSaaS) solutions. Merchants respond positively to benefits. The cloud-based model offers lower upfront costs as well as improved data security compared to on-premises systems with back-office servers that can make data difficult to recover if a system goes down. Users can also generate reports and manage their business from anywhere with internet access. Plus, users get all of this and more for a monthly subscription, including software updates and maintenance.

The SaaS business model also saves merchants from getting locked in for the long haul with software that won’t meet their needs in a few years. POSaaS gives users the ability to upgrade, add features, and adapt to meet market changes and keep pace with changing customer preferences.

Unfortunately, VARs can make mistakes when delivering POSaaS and, as any VAR knows, business mistakes are costly. VARs must ensure that the POSaaS offering will benefit Their business. To make sure you keep your business on track, here are four things not TO DO.

Mistake 1: Not focusing sales and marketing on the right prospects

It’s okay – in fact, it’s advisable – to be picky about your customers. Your time and investment in sales and marketing is valuable, so don’t waste it wisely. Many businesses have POS systems in place and may not really want a change. Others may expect something outside of your area of ​​expertise.

POS solution providers focused on growing their business will benefit from assessing their customer base and understanding what their most profitable customers have in common. Using this information can improve marketing ROI and help you grow your business. Work with clients who are a perfect fit for your business.

Mistake 2: Not owning the entire account

There’s wisdom in VARs offering a complete IT package, including POSaaS, other software-as-a-service solutions like online ordering or loyalty program software, and managed IT services. If you don’t meet some aspect of your customer’s IT needs, it creates the possibility of a competitor stepping in the door.

On the other hand, when you consistently provide all the IT services your customers need to operate across all channels, you’ll build stronger relationships and they’ll turn to you, not a competitor, when they want additional products or services. Make sure your customers need an IT solution or service that you provide.

Mistake 3: Not considering all costs

It’s important to think through all the potential costs and benefits of the system you’re proposing, and then communicate them clearly to your client, so that unforeseen expenses don’t blind them. For example, most SaaS POS software requires fast and reliable internet speed to work well. As a provider, you must ensure that your customer has a service that will allow for optimal performance and make failover Internet services available if the primary Internet service fails.

Additionally, if you can bundle services that ensure optimal performance into the customer’s monthly cost, you can add value and help your customer avoid downtime, which can outweigh the additional costs.

Mistake 4: Take a technology-centric approach, not a customer-centric approach

Sure, technology features are important, but prioritizing the technology you offer over the customer you serve is a mistake. It is important to first understand the needs of a user and then adapt the POS software to them. Communication with your customer is essential. Ask lots of questions to get an idea of ​​what the trader is looking for, for example:

  • What do you like about your current POS system?
  • What is not meeting your needs?
  • What features do you want?
  • How many lanes will you need?
  • What are you expecting in terms of support?

Your partnerships with POS vendors are important to your business, but the reality is that one solution won’t fit all businesses. If it doesn’t suit the customer, it can lead to trying to fit a square peg into a round hole, and it can even cost you the customer. VARs must have the ability to customize or offer different solutions so that they can always meet their customers’ needs.

Move forward with confidence

Being aware of these potential pitfalls can help you avoid falling head over heels into them. With this knowledge, you can deliver the benefits of POSaaS to your customers while creating your own business advantages.


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