Back in the day, only big retail stores and mall chains used POS terminals. But as cashless transactions become more common, using POS terminals became a necessity for every retail business – big or small. But as payment technology continue to evolve, these terminals also become more sophisticated.
Apart from typical transactions, a POS terminal can have various features that are valuable for the merchant.
Why is it critical for a retail business to adopt POS tech trends?
The primary purpose of a POS terminal is to complete a sale. It stores transaction details and also serves as a stock and inventory tool. Advanced POS systems have additional capabilities, such as analytics and CRM integration. All these value-add features benefit the business in different ways. That’s why choosing the best POS system is critical because every retail business has unique needs. And, not all types of POS systems match these requirements.
Meanwhile, here’s our take on the latest technology trends that will shape the future of POS terminals.
Mobile payments and e-wallets are gaining popularity among consumers
Who doesn’t use a smartphone these days? Perhaps there’s only a small portion of the population that isn’t on the “smartphone bandwagon.” Therefore, it’s only practical to find ways in making the phone more useful in everyday transactions, such as making payments. Since you can use your phone to store credit card or debit card information, it’s a more convenient and secure option. What are some additional benefits to e-wallet payments?
- Consumers can enjoy lower transaction fees compared to credit cards. But, it still depends on the merchant.
- Digital wallets are secure because these have the highest level of encryption and password protection.
Digital wallets also have extra perks that consumers won’t get with an ordinary debit card or credit card payment. For consumers, one of the biggest reasons to use an e-wallet is the faster transaction time. Indeed, if there’s one trend that will shape retail businesses’ future, it’s the prevalence of mobile payments.
Cloud-based POS systems
Businesses are shifting to cloud-based systems and apps in most of their network-related processes. The advantage here is that storing data on the cloud makes it accessible anywhere and requires a minimal investment in infrastructure. For retailers, it’s more efficient when you can access transaction data and information anytime and using any device – and that’s where cloud-based POS software comes in. The cloud makes it easier for managers or team leaders to share data or collaborate with colleagues on important matters, even while on the go. And if you’re in the retail business, you’ll realize that accessibility goes a long way in the smooth handling of day to day operations.
Marketing becomes more personal and tailored to suit the target market
Consumers today are more aware of what goes on in the world of marketing. Unfortunately, getting bombarded with generic ads won’t lead to the desired effect of sales conversion. Today, what consumers want is relevant marketing content that’s tailored to their needs. According to a survey, 70% of consumers pay more attention when the product or advertisement is personalized. Some characteristics of good marketing content are:
- It should be relevant to what the consumer likes
- It should contain detailed product information
- The content tells a relatable story
- A bit of humor goes a long way
When consumers receive generic marketing content, they find it intrusive, hence the high possibility of dismissal. So, how does a POS terminal provide a solution to this need?
An innovative POS system collects consumer information and tracks their behavior through previous sales. The merchant can use this information to create targeted promotions or engage customers by offering them a loyalty program.
Big data also applies to small businesses
Big data used to be an intimidating concept for small businesses. But, as small and medium-sized retail companies begin to understand how it works, they are starting to use analytics more to improve their services. Data-driven decisions are better because of precision and relevance. For example, data accumulated using previous POS sales will help the business owner observe buying trends. What type of buyers is more likely to purchase a specific product? What time of the day does the store get the most sales? All these can help adjust store practices such as when to restock the shelves or put certain items on sale.
Last on our list of trends is e-commerce integration. What this means is that more retailers today are recognizing the importance of processing online orders. Fortunately, there are POS systems equipped to handle multi-channel transactions. As such, there’s no need for the retailer to invest in multiple systems. You can use one POS software for in-store and online purchases.
In conclusion, there’s more to look forward to when it comes to retail technology. POS terminals are only one aspect benefitting from innovation in retail. And being able to keep abreast of these changes will help retail businesses of all sizes generate more revenue regardless of the volatile economic condition.