If you ask people which technology has impacted the retail industry more than any other in recent years, they would likely say it’s the internet. And those people would be wrong. Retail point of sale equipment has had a massive impact.
Yes, online shopping challenges retailers like they’ve rarely been challenged before. But the technology that is reshaping retail businesses of all types and proving to be the key to profitability is the transformation of the lowly cash register into a business-intelligence nerve center. The Balance Small Business points out that cash registers have evolved from “a safe place to store money” into sophisticated point-of-sale computers that make retail workers more productive, keep customers happy, maintain accurate records, and improve other business processes
Retail point-of-sale equipment is proving to be the primary method of improving the financial performance of stores, restaurants, and shops of all types and sizes. In addition, POS systems allow retailers to meet the growing demand among their customers for personalized service by making it easy for retailers to collect information about their clientele’s preferences.
Here’s a look at some of the many ways that POS systems help retailers boost their revenue.
Demand for Advanced POS Features Is Expected to Soar
The growing importance of POS systems to retailers is indicated by the tremendous growth in demand for POS equipment outfitted with the latest intelligent capabilities.
- A 2019 study conducted by Grand View Research found that worldwide sales of POS terminals will increase from $62.34 billion in 2018 to $108.46 billion by 2025, representing a compound annual growth rate of 7.8 percent.
- Finances Online reports that businesses’ top POS priority for 2019 was adding new POS features (53 percent), followed by payment security compliance (45 percent) and omnichannel integration (43 percent). Companies also planned POS system updates (40 percent), hardware upgrades (36 percent), and support for mobile POS (30 percent).
- Even more telling are the statistics indicating the growing importance to customers of a personalized shopping experience: A report from Accenture Interactive found that 91 percent of consumers are more likely to frequent retailers that recognize and remember them, and that offer relevant recommendations and special deals.
- Last but not least, retailers are slow to adopt the mobile payment systems that customers are increasingly demanding, according to figures compiled by Boston Research Partners and Statista: While 46 percent of retailers still don’t support mobile payments, the number of mobile payment users is projected to increase from 1.13 billion in 2019 to 1.66 billion by 2023. In addition, total transaction value of mobile payments is forecast to reach $2.14 trillion by 2023 from just over $1 trillion in 2020, a compound annual growth rate of 28.1 percent.
How to Capitalize on POS Systems’ Revenue-Boosting Potential
POS systems offer solutions to the most pressing problems retailers face. For example, by automatically tracking and calculating changes in product prices and inventory levels, POS systems allow customers to check out faster and more accurately, while simultaneously reducing the workload for retail employees. Having access to an accurate inventory count in real-time helps retailers prevent overstocking some items and running out of others.
Readwrite explains the importance of POS systems to a retailer’s marketing efforts. The information POS systems collect about customers makes it possible for retailers to craft marketing campaigns that are tailored to their best customers as well as to attracting new clientele. They also allow retailers to offer customers rewards through loyalty programs in a way that is simple and convenient for customers and retailers alike.
To realize the revenue-enhancing benefits of POS systems, retailers must keep the machines running. That’s why it’s imperative that retailers test the resilience of their POS systems so they can restore their functionality quickly following an outage. When retail point-of-sale equipment is able to return to service after a simple reboot, it ensures that retailers won’t lose sales or aggravate customers.
Two Key Features of Retail POS Systems: Accurate Records and Effective Promotions
Record keeping is a vital part of any business, although it is a chore few retailers look forward to. POS systems can transform record keeping from a time sink into a competitive advantage. For example, the ability to mark down prices automatically not only saves retailers time, but it also makes their sales accounting more accurate by displaying at a glance a store’s transaction logs by item, by category, or by day, week, or month.
The ability to tie those transaction records to promotions allows retailers to track the effectiveness of discounts and special offers in near real-time. Retailers can also adjust their promotions based on inventory levels, customer history, or even the time of day. An increasing number of POS systems support customization to give retailers the ability to make the devices more aesthetically pleasing to customers as well as to encourage upselling and other special offers tailored to the customer’s purchase history.
POS Systems Bring All Retail Processes into View
Retail managers have little spare time in their workdays. POS systems help streamline the many tasks involved in keeping a retail operation running smoothly by giving managers a big-picture status report. Investopedia describes the many useful capabilities of retail point-of-sale equipment for managers:
- Monitor the accuracy of prices
- Keep up-to-date inventory counts
- Track gross revenue
- Identify sales patterns
One innovation in POS systems is customer-facing screens, which are increasingly popular in restaurants. Diners use the devices to enter their orders at their table. Self-service POS systems are also used by hotels for placing room service orders and paying bills, as well as in other retail stores to complement their traditional checkout operations.
POS systems will continue to evolve to offer retailers more customization options that entice customers to make purchases based on their specific interests and preferences. Better aesthetics, added capacity, and greater mobility will be needed in retail POS systems to ensure customers have good feelings about a retailer’s brand.
Learn more about how the talech POS system helps retailers improve the experience for their customers and optimize the management of all their operations. We work with you to determine the best ways to meet the needs of your customers and employees so your business can thrive. We take the time to learn your business so we can balance your specific needs with your budget and comfort level in a custom POS system implementation. The result is a valued investment that will pay for itself in short order. Reach out to us today to sign up for a free demo and learn more about how talech can be your valued partner in the POS world.