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Updated Sep 25, 2024

5 Ways CRM-Enabled POS Systems Can Help Your Business

An integrated point-of-sale and CRM system can streamline sales and marketing operations, saving your business time and money.

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Written By: David GargaroBusiness Ownership Insider and Senior Writer
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This guide was reviewed by a Business News Daily editor to ensure it provides comprehensive and accurate information to aid your buying decision.
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New small business owners should know that point-of-sale (POS) systems are changing. Bottom line: There’s no going back to traditional POS terminals. 

That’s good news if you’re just starting out, because technological advancements in these systems make running a business easier than ever. One of the most innovative POS advancements is integration with customer relationship management (CRM) tools, helping businesses track leads, record customer purchase habits, increase sales and save money.

We’ll explore the basics of POS and CRM systems and explain how CRM-enabled POS systems can help your business hit the ground running from day one.

What is a POS system?

Every business needs a way to accept payments. A POS system allows customers to pay for a company’s products or services. When customers make purchases using credit cards, debit cards or digital wallets, they use the POS system to complete transactions.

The POS system setup is a combination of hardware and software.

  • POS hardware: The hardware involves the physical components (e.g., credit card reader, monitor and barcode scanner) used to conduct the sales transactions and run the POS software.
  • POS software: The software can be based locally or in the cloud. It completes sales transactions.

As your business grows, a good POS system can adapt to your changing needs. While traditional POS systems complete orders and payments from a stand-alone terminal, today’s POS systems can perform advanced tasks, such as processing credit cards using mobile POS systems and transmitting sales data to the business’s other software tools. In addition, many POS systems now come with built-in CRM features.

Key TakeawayKey takeaway
A POS system includes the software and hardware necessary to conduct transactions. Read our reviews of the best POS systems for small businesses to see how top providers measure up.

What is a CRM system?

Obtaining and keeping customers is the first task for any new business or startup. A CRM system helps a company store and manage customer data. It enables customer service, sales, business development, marketing, recruitment and other departments to manage external interactions and customer relationships. 

A CRM system provides a central location for storing potential and current customers’ contact information. CRM analytics can help businesses make better decisions, identify sales opportunities, track customer interactions, manage marketing campaigns and record service issues.

With a CRM system, you won’t have to perform CRM tasks manually, including inputting customer information, creating sales reports and updating customer databases in the cloud. 

By integrating POS systems with popular CRM solutions — such as Salesforce, SugarCRM and Magento — new businesses can save time and money while using POS data to build solid relationships with customers and deliver the best customer experience possible. 

POS systems with CRM features

A POS system with CRM features serves as a hub for merging the company’s sales, inventory and customer management services. It automates the process of sharing information collected through POS systems, so its CRM capabilities can use the data collected. 

CRM-enabled POS systems have a wide range of capabilities, including the following:

  • Storing and managing customer information (e.g., contact details and conversations)
  • Tracking leads from initial contact to conversion
  • Tracking customer purchasing habits
  • Forecasting and reporting sales data and inventory via POS reports
  • Organizing and segmenting customers by groups and subgroups
  • Integrating text messaging, email and social media for communication with customers
  • Conducting real-time reports of inventory and sales data
  • Sharing files and content among employees
  • Recording and tracking customer feedback and complaints

How CRM-enabled POS systems can help a new business

By leveraging a CRM-enabled POS system, startups can build stronger relationships with customers, improve customer satisfaction and drive long-term business growth.

Here are five specific ways CRM-enabled POS systems can help your business grow robustly from opening day.

Capturing customer information quickly

Need to collect customer information? A POS system with built-in CRM functionality makes this task easier by automating information gathering to capture customer data quickly. 

Instead of inputting customer information into a CRM solution by hand, you can use a CRM-enabled POS system to collect the data from a transaction and then automatically export and save it. 

These POS systems can transmit all types of information your CRM solution requires, such as customer names, billing and shipping addresses, email addresses, and preferred nicknames. This automation can save you time and money by eliminating the labor required to input data manually.

Increasing sales by improving customer experience

One of the most effective ways to grow sales is paying attention to what customers want and need. With a CRM-friendly POS system, businesses can easily collect and keep track of customer preferences and buying histories and transmit that information to CRM systems in real time. 

This information helps businesses better target marketing campaigns, upsell at the point of sale, and cater offerings to individuals or groups of customers to improve the customer experience.

Finding your most loyal customers

Once you obtain a solid customer base, you want to keep them coming back. One of the primary benefits of CRM software is that it can identify your most loyal customers. 

Integrating that capability with advanced POS systems can help you discover your three primary customer groups: those who have the most significant impact at the point of sale, those who are likely to return, and those not worth the time and effort to pursue. 

TipTip
Combining POS-generated data with customer loyalty programs, rewards systems and gift card functionality is an excellent way to help ensure repeat customers.

Improving collaboration among departments

Sharing information among staff members can be difficult or confusing. A CRM-enabled POS system can improve workplace collaboration among departments, thus organizing and synchronizing transactions, customer details and other sales data in real time. 

This information is continually updated and available anytime to staff members, who log in to a single platform to access it. This functionality means no more wasted time sifting through inboxes, folders and random corners of your server and no more confusion over the most current version of a file or database.

Automating back-end processes

CRM-integrated POS systems don’t just automate tasks at the point of sale. They can also automate back-end tasks, such as reporting, exporting data, creating client records and even populating email marketing lists — all straight from the POS system.

Because of these capabilities, there’s no need to go into multiple programs to perform these functions manually. That takes monotonous CRM-related administrative tasks off your staff’s shoulders.

Did You Know?Did you know
Other ways CRM systems streamline email marketing include syncing lead and customer information with other systems, sending automated internal alerts and showing where a customer is in the sales funnel.

CRM systems with POS functionality 

Some POS systems have built-in CRM features, and some CRM software integrates easily with POS systems. 

POS systems with CRM features 

These are some excellent examples of POS systems with CRM features: 

  • Lightspeed is a cloud-based POS system with abundant customer purchase-tracking features. Lightspeed can run on the iPad and is geared toward small and midsize businesses (custom plans are available for larger companies). Use Lightspeed to view a customer’s purchase history, tag certain customers as VIPs, and distribute promotions and rewards more efficiently. Read our complete Lightspeed review for more information.
  • TouchBistro includes a built-in CRM platform, customer loyalty suite and reward options. TouchBistro also includes mobile CRM features that support tableside and self-serve ordering and payment processing. Read our in-depth TouchBistro review for more information.
  • Clover POS is a top choice for its versatility and wide-ranging hardware options, allowing businesses to customize the system to their needs. With Clover POS customer-tracking features, you can designate VIPs, give rewards and seek feedback. Read our full-scale Clover review for more information. 

CRM platforms with POS extensions

Dual CRM and POS is a two-way street, as some CRM platforms offer POS extensions. Here are two of our favorites:

  • Salesforce is our top CRM solution for growing businesses. It has an optional add-on application, SuitePOS, that assists with checkout and helps you connect with and sell to customers. Read our comprehensive Salesforce review to learn more.
  • Zoho CRM can be combined with Zoho Point of Sale, which provides functionality for invoicing, reporting and refunding. Read our Zoho CRM review to learn more. 

Other options 

Even if your CRM software doesn’t offer its own POS technology, it may integrate with whatever POS system best fits your business. 

For example, Freshworks and Zendesk both integrate with the POS system Vend. Read our review of Freshworks CRM and our Zendesk review for more information.

Whenever you’re considering new POS or CRM technology, it’s worthwhile to contact a sales rep and ask about integrations. You might find the solution you need.

Combining two powerful systems in CRM and POS

For many businesses, both POS systems and CRM systems are critically important for the sales and customer service functions. By combining them in one system, you reduce the learning curve for your staff by limiting the tools they need to become familiar with. You can also share data between the two systems instantly so that sales registered on your POS system are logged in your CRM system, for example. These time-saving measures can be invaluable as you grow your business, helping you get more done with fewer resources.

Max Freedman and Jacob Bierer-Nielsen contributed to this article.

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Written By: David GargaroBusiness Ownership Insider and Senior Writer
David Gargaro has spent more than 25 years immersed in the world of business. In 2018, he published the book How to Run Your Company… into the Ground based on his firsthand experience at a small business. In the guide, he advises on everything from strategic partnerships and product development to hiring and expansion — and all that's in between. At Business News Daily, Gargaro primarily covers two key business tools: CRM systems and GPS fleet management services. Gargaro's expertise, which also extends to sales, marketing and financial planning, has also been published in the business-focused Advisors Magazine, Moody's Analytics and VentureBeat. He has been hired to speak on topics like the customer experience and created an entrepreneurs' toolkit for startup founders.
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