The pandemic impacted consumer shopping habits and required retailers to adopt a digital-first approach to their business.
Point-of-sale (POS) software is an indispensable tool for retail businesses. However, even systems that collect payments, track inventory, and facilitate loyalty programs had to adapt to changing business environments.
The POS software market evolved as safety guidelines and social distancing became the norm. This allowed retailers to continue providing creative services for customers.
Point-of-sale software, or POS, is a valuable business tool that has replaced traditional cash registers with tech-driven solutions. These platforms offer business management features like click and collect shopping and loyalty programs. We will be looking at eight POS trends that impact small businesses.
Trends in POS Software will be Released in 2022
Gartner claims that modern POS solutions have been optimized for mobility and IoT (scan-and-go) apps ( full contents available to Gartner clients). We dive into 12 of the top tech trends in 2022 to learn more about tech’s current status and how it relates to business.
Online selling is Non-Negotiable, No Matter what Product you Sell
Online shopping is vital for both consumers and retailers. Online shopping is a major part of the lives of consumers today. Many retailers are responding to this need. Many retailers are changing business models in order to generate new revenue streams. Going online can help increase your chances of success. Online sales account for 51% of all retailers’ revenue.
Hybrid Clouds
Cloud computing is rapidly becoming the preferred method of deploying business software. Over the years, the benefits of running your tech stack in the cloud are well-documented. These include the lower cost of deployment, improved cybersecurity, and easier maintenance and support. However, some companies find that sticking with one type of cloud can have its disadvantages.
Businesses began to experiment with multiple cloud solutions in place of this. Hybrid-based solutions combine private cloud infrastructure from within the company with public clouds provided by third-party providers. This allows companies to better distribute workloads, keeping mission-critical data in the local cloud and offloading other operations to public clouds like AWS or Microsoft Azure.
Retailers can now take Control of the Labor Shortage with Automated Technology
One in three retailers is concerned about their ability to recruit and keep staff in 2022. 72% of retailers plan to use automation to reduce the amount of hands-on work required to combat the increasing complexity of the labor shortage.
Retailers believe that automated technology will improve efficiency in areas such as tracking orders, customer loyalty programs management, and communication with customers. To meet changing hiring needs, retailers should look into investing in automation software or upgrading their current software.
Seamless Omnichannel Experiences
Omnichannel is not a new trend. But POS software technology is enabling retailers to provide seamless customer experiences at every touchpoint.
Particularly, retailers can use different types of POS systems to help them build:
- There are many paths to purchase today. One example is that someone may first find out about your products via Instagram. Then they might browse your storefront and then make a purchase through your website. Even for brick-and-mortar businesses, the buying process is becoming more complex.
- Ecommerce is an extension of brick-and-mortar stores: eCommerce accounted for 14% of total omnichannel retail sales during peak holiday shopping week in the US, while online sales accounted for 63% of omnichannel growth.
- Click and Collect: Customers can shop online then come into the store to complete the transaction. They can also take advantage of BOPIS (buy online, pick up in-store) or curbside pickup. BOPIS is also in the ascend. It has grown from less than $23 billion in US sales to $58.52billion in 2020 to $58.52billion in 2018. BOPIS sales will likely increase to $74.24billion in 2022.
Additional Developments in AI
Each successive version of AI becomes smarter, more efficient, and more creative. Although we are far from real machine intelligence like that found in sci-fi movies, current AI challenges our perception of what a software program can do on its own. OpenAI’s GPT-3 deep-learning model, which generates text almost identical to human writing, is one of the most recent breakthroughs.
AI can be used to optimize internal and customer-facing business operations. There are many benefits, such as streamlined customer journeys and optimized employee management processes. Also, data synchronization across different applications can be automated. These options are often available as AI-as-a-service subscriptions.
Shop in-Store for Personalized Experiences
Epsilon’s survey found that 80% of consumers would prefer to shop from companies that offer a personal experience. 90% of respondents find the concept of personalization attractive when making buying decisions. Personalization is still a priority for 41% of retailers. These challenges are being addressed head-on by POS software industry trends. They make personalization more accessible and easier for small businesses.
It is crucial to have a POS software that offers personalized shopping experiences because:
- It’s what shoppers expect: Shoppers not only enjoy but have come to expect personalized experiences. They are aware of the technology and their data. These shoppers now demand that they receive this information-sharing.
- Customers are open to sharing data. To receive the personalized recommendations they desire, many customers will share their data in return for a variety of benefits. The survey found that 39% of respondents valued monetary compensation, while 20% would be willing to share their data in exchange for promotions and discounts based upon their interests. The perception of value for convenience (16%), speed (14%), better customer service (14%), new products (11%), and new services (11%) is slightly lower.
- Buyers will shop elsewhere. According to another survey, 79% of consumers consider personalized service to be an important factor when choosing where to shop.
- Your prices can be raised: Offering better experiences can allow you to charge higher prices which in turn increases your profit margins. In fact, 47% of consumers are willing to spend more for a better shopping experience.
POS software records valuable information about every transaction. This allows you to build customer profiles that will help you better understand your clients. Automated campaigns can be personalized through your POS software. This allows your associates access to customer profiles at checkout and on an mPOS.
5G Networks
Businesses will need to be aware of one of the most important tech trends: the adoption of 5G network standards. Already 5G networks have been built in China and South Korea. The rest of the world follows suit, with the exception of the US which places restrictions on companies like Huawei, one the most important 5G developers worldwide. 5G will work in conjunction with existing 3G, 4G networks to offer high-bandwidth internet.
Edge Computing and IoT are based on 5G networks. They allow IoT devices and other devices to share and process large amounts of data in real-time, decreasing reliance upon server farms.
What is a Retail Trends Analysis?
Trend analysis is a process that examines historical data over a range of time periods to determine patterns and track upward and downtrends. This is usually done with POS software reporting, and analytics gathered by a POS system. An analysis of data-driven trends allows retailers to identify opportunities and areas to pull back.
Author Bio:
Akshay Bhimani is a Software Analyst at Techimply, India. With experience in the technology-driven field, he has mastered his knowledge on How(s) and What(s) to be done for a business. Also, he’s keen to share his knowledge on a few technology-related topics such as cloud technologies, POS, CRM, ERP software, and data security with readers that can assist any kind of business.
