Nowadays, online shopping is extremely relevant. The retail industry is growing at a pace like never before, leading to higher demand for POS systems. Not only are they technologically evolving, but are powerful enough to shape the future of retail.
The global Point of Sale (POS) market size is projected to grow to USD 70.75 billion by 2029. It’s not at all surprising, considering that POS systems are far more beneficial for retailers than traditional ways of selling.
Wondering if it’s worth adopting a POS system for your business?
Look no further! In light of recent and continuous developments regarding POS systems, we’ve sorted out the most relevant POS trends to keep an eye on in 2023.
Let’s dive in!
Meaning and Relevance of POS Systems
A POS system acts as both hardware and software and allows you to make sales, and accept payments from customers. It’s a modern version of a cash register and enables you to check out a customer wherever you are. All you need is a POS app and a stable internet connection.
Digital POS systems are too advanced and are already becoming a must for every retail business. They’re your carry-on cash registers, helping you to track sales performance, manage the inventory, collect customer information, and better manage staff.
That said, it’s crucial for retailers to adopt effective business management tools to stay competitive, as noted by the CEO of Gatekeeper. While POS systems can streamline retail operations, contract management software can play an equally important role in helping retailers efficiently handle their agreements with suppliers and partners, ensuring seamless and error-free transactions.
7 POS Trends Shaping the Future of Retail
By following trends and keeping up to date, you have a higher chance of understanding how POS works. The faster you embrace these technological changes, the better the outcome for your retail business.
Listed below are some of the most popular POS trends in 2023 to keep an eye on and use to drive business growth.
Adoption of Cloud-based Software
Once you get in the digital game, there’s no going back. Adopting one technology immediately requires adopting another.
As a retailer, you’re dealing with a good amount of sales data and inventory, which need to be securely stored. Cloud-based POS solutions can automatically back up and sync this data in the cloud. What’s even better is that you can access this data wherever you are with a stable internet connection only.
Adopting cloud-based POS solutions is highly beneficial, especially for small businesses, as it’s a cost-saving method. Not only that, but it even makes POS software easier to update. That said, more than 60% of recent POS purchases are cloud platforms.
Simpler POS Hardware
POS hardware is among the top priorities for retailers. Imagine how much time can be saved if you replace your old high-maintenance system monitor and turn to an easily accessible and more flexible POS system. Often overlooked, a simple interface plays a huge role in your business growth.
Besides it being upgraded and simplified, the retailer POS hardware is awaiting other digital developments such as pickup lockers, Bluetooth, swipe transaction decline, electronic shelf labels, and increased self-checkouts.
Improved Use of POS Data Analytics
Customers play the most important part in your business’s success. Reaching out to your customers and targeting your audience can be demanding.
We know that the internet is flooded with data, so why not use this to our advantage?
By analyzing data, you get to know your customers better, so creating an enticing product won’t be a problem. With the right insight, you can make better data-driven decisions and significantly drive retail sales.
POS systems enable you this by tracking which products are most popular among consumers. Not only that, but POS data also provides insight into seasonal trends, so you can take even better advantage of data analytics.
Many businesses have a long history of analyzing customer data and can collectively agree it’s crucial when it comes to attracting the right target audience and driving retail sales.
We might have not even noticed how fast we got used to a transition period. We put cash aside and turned to cashless transactions overnight. This became even more normal after the global pandemic, as a way to maintain hygiene.
However, paying via mobile POS systems has even greater benefits. The click-and-pay option is available for everyone and is a faster and more convenient way of paying.
All of this has resulted in increased adoption of contactless payments among retailers and an even bigger demand for POS systems. What we’re dealing with here isn’t just a simple paying processor, but some mobile POS even offer inventory management, sales reports, as well as product catalogs.
Besides this, other alternative payment methods are being developed and adopted:
- BNPL. Services like Klarna and Clearpay allow customers to purchase products and services without committing to the full payment upfront.
- Gift cards. Becoming more relevant with each passing day, gift cards can now be used online as well.
- Cryptocurrency. Not that long ago, digital currencies became a new method of purchasing, and we’re already witnessing some websites and businesses paying their employees in crypto.
- Installment payments. Nowadays, POS can also be used with installment payment options.
Personalized Shopping Experiences
Attracting customers can be demanding, but retaining the already existing ones is even harder. That’s why brands should always take customers’ needs and wants into consideration. A customer that feels understood and valued is more likely to come back to your store.
A personalized shopping experience is enticing and can also help your retail business gain more customers and drive sales. Some famous brands like Wayfair, Amazon, and Sephora already offer personalized shopping experiences.
The POS industry is completely revolutionizing the way customers purchase products. You should know that customers expect their needs to be addressed and achieving this results in increased buyer satisfaction. What does this mean for you?
By increasing customer satisfaction, they’ll always come back to your store and might even bring you references. Not only that, but you can also charge higher prices for products and increase profit margins.
Customer Loyalty Programs
Offering your customers rewards for frequent purchases is a phenomenal strategy. It’s a great way for enticing and encouraging customers to repeatedly buy from your business. Around 88% of customers think that three or more purchases are enough to build brand loyalty.
Customer loyalty programs have proven to be worthy and are a known strategy among retailers. They’re especially ideal for businesses struggling with retaining existing customers.
With POS evolving it’s becoming much easier for retail businesses to offer customer loyalty programs. Many POS solutions have built-in loyalty programs, and there are also those that integrate with external loyalty apps.
All in all, loyalty programs can only positively impact your business – drive sales and increase brand awareness.
Integration of AI in POS Solutions
We live in a tech-driven world where AI affects almost every aspect of our life, so it was only a matter of time before it got integrated into POS solutions.
After everything we’ve witnessed, it’s safe to say that AI can master various types of skills.
Implementing AI in POS solutions can significantly enhance customer experience and allows retailers to improve the efficiency of their operations.
Moreover, the implementation of AI helps in payment processing and employee management. Not only that, but it impacts the way retail businesses handle payment transactions, because of its power to handle all types of transactions.
AI-based POS solutions have already been adopted by some, but there’s still a long way to go. However, the benefits are immense and a lot of retail businesses are already on the verge of implementing AI in POS.
The Ever-evolving Retail Industry
The retail industry has been seriously influenced, especially after the global pandemic. However, these changes are seemingly positive.
Thanks to point-of-sale systems retail businesses can use every little thing to their advantage, as well as improve customer experience and satisfaction. That said, they’re becoming the key to every retail business’s success.
All in all, POS is rapidly evolving and is slowly but surely shaping the future of retail. As a retailer, make sure you first understand these POS trends, and once you do start considering them as an option for your business.
The retail industry is going through significant development, so no one really knows what to expect. One thing is sure though – you and your business can benefit immensely from POS integration.
Makedonka Micajkova is a freelance content writer and translator, always bringing creativity and originality to the table. Being multilingual with professional proficiency in English, German and Spanish, it’s needless to say that languages are her biggest passion in life. She is also a skilled communicator, as a result of having three years of experience as a sales representative. You can find her on Linkedin.