The point-of-sale (POS) system has always been one of the most essential technology solutions used by merchants of every shape and size. Most retailers have expanded the utility of these systems by integrating them with other fundamental business and customer service operations. Here’s what you need to know about POS systems and various trends using them that are revolutionizing the retail industry.
Why Retailers Need a Robust POS System
Whether you are a new or established retail business, you need more than just a cash register to accept payments and record sales at your location. For optimal store management and more efficient operations, you need a POS system for your retail store.
A POS system consists of two main components: POS software (the commerce platform) and POS hardware (the items used to ring up sales). Any business with a physical location, whether it be a coffee stand or a big box store, needs a robust POS system.
These systems have become the backbone of any successful retail operation. That’s because they do much more than simply “ring up” customers. A POS system can track what moves in and out of a store, control inventory, and even calculate hourly wages. In short, these systems provide retailers with valuable tools to stay in business and remain competitive.
10 Key POS System Trends Shaping the Retail Industry
Since most retailers have POS systems, it makes sense to continue expanding their functionality to improve operations and deliver a better customer experience. Here are ten interesting POS system trends that are revolutionizing the retail industry.
1. Self Check-Out
One common complaint among consumers about retail shopping is long queues for checkout. Many retailers have tried to address this by offering various solutions, self-checkout being the most common. Even though self-checkout systems are more impersonal, larger retailers like Walmart, Costco, and Wegmans are likely to continue the practice because it addresses labor shortages. Many retailers are implementing a hybrid system, giving customers a choice between self-checkout and traditional systems.
2. Cloud-Based POS
Having a POS system tied down by wires and connected to a local server can be severely limiting for retailers. It’s become increasingly common for retailers to choose cloud-based POS systems, which enable checkout from anywhere in the store and access to real-time sales data. Using mobile powered carts, retail associates can assist customers throughout the store with price checks and provide fast checkout services.
3. Predictive AI
As artificial intelligence (AI) starts to play a larger role in the retail industry, these solutions are being integrated with POS systems. One of the main features of POS systems is their ability to collect massive amounts of data, which is a driver of AI. AI-driven demand forecasting allows businesses to better manage market fluctuations and remain as competitive as possible during peak season.
4. Advanced POS Hardware
There have also been some significant developments in POS hardware, making it more user-friendly and consumer-focused. One example is a Kitchen Display System (KDS), which shows customers digital menus and self-service options. Another is handheld and other mobile POS solutions that allow sellers to process orders from anywhere, whether it be at a farmer’s market or in the middle of a store aisle.
5. Inventory Management
If your retail store doesn’t have the right products in stock, it won’t stay a seller of choice for very long. This all comes down to efficient inventory management, which is something that can now be seamlessly integrated with your POS system. By using a single system, you can get alerts when inventory is running low and even allow customers to look up in-store availability from home.
6. Eco-Friendly Options
Studies show that many consumers prefer to support brands that care about the environment. Fortunately, retailers can now leverage their POS systems to be more environmentally friendly. A few examples include POS systems made from recycled materials and offering customers digital-only receipts to reduce the use of paper.
7. More Payment Options
Consumers have more ways to invest, bank, and exchange their money than ever before. The shift toward more digital payments has accelerated in the past several years, with some stores even choosing to stop accepting cash completely. Now, advanced POS systems can integrate more payment options for consumers, so they can choose to pay using digital wallets or using contactless payments.
8. Omnichannel Support
Omnichannel purchasing experiences have become incredibly popular since the start of the pandemic when people had to avoid stores out of necessity. Now, consumers simply like having more options, and POS systems have adapted to merge mobile eCommerce, in-person, and social sales, enabling retailers to maximize their results.
9. Personalized Shopping Experience
One of the most exciting trends involving POS systems is the ability of retailers to use them for better customer engagement. Features like personalized product recommendations, customer loyalty programs, dynamic pricing, and gamification are allowing retailers to deliver a more engaging and rewarding customer experience.
10. Enhanced Security Features
Now that digital transactions have become the norm, it’s critical that retailers enhance the security features of their POS systems. The latest POS technology includes security features like tokenization and advanced encryption, which significantly reduces the risk of data breaches. These features can also help retailers stay compliant with various security and privacy regulations.
A retailer is only as good as its point-of-sale (POS) system, and as tech and customer needs evolve, so too will the POS. Mobile POS systems can help assist customers on the sales floor, check inventory on the spot, and complete sales without waiting in a queue. Combining your POS system with mobile powered carts can not only elevate the entire customer experience, but it can also make you more competitive and improve your business’s results.
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