In its earliest incarnation, a point-of-sale (POS) terminal was little more than a computerized substitute for the traditional cash register. It reduced human error by introducing barcode scanning and eliminating the need for product price tags.
Since then, POS technology has added abundant functions ranging from sales reporting and analytics to employee and inventory management. Add appropriate applications and a retail POS can administer customer profiles, tracks histories, manages formal loyalty programs and rewards customer consistency.
A recent survey from Boston Retail Partners (BRP), a technology consultancy, found that retailers want POS to improve the customer’s overall experience. A major focus is on customer identification and an improved shopping experience (70%), customer mobile experience alignment (57%) and giving sales associates mobile tools to better perform their jobs (46%). Other concerns include managing data in real time (33%) and the customer’s in-store experience (26%), which includes everything from digital signage to “smart” dressing rooms with an RFID reader that scans items taken into the dressing room and then provides customers with additional product information.
Perry Kramer, vice president and practice lead at BRP, believes customers now expect the benefits that a robust POS system provides, and as a result, even small, independent operators need the basic technology.
“Core features include in-stock inventory visibility, loyalty rewards redemption on the POS or the customer’s phone, product information and consumer reviews and automated reordering,” Kramer said. “Many of the newer POS systems designed for small retailers will facilitate the enhanced experience consumers expect. Smaller retailers must compete to remain relevant with the evolving expectations of shoppers from multiple demographics.”
Another survey, “Hospitality Technology’s POS Software Trends Report,” shows that of POS functions retailers plan to implement in 2017, compared to last year, three areas saw the largest increase from 2016: prepping for EMV (66% from 58%), adding mobile POS (52% from 46%) and e-commerce integration (33% from 22%).
POS ECONOMICS
POS systems are a big investment, starting at $1,500 and running to $20,000-plus.
“For large- and medium-size retailers, we do not see the price of POS software coming down in the near future,” said Kramer. “For small retailers, there are several new POS
vendors in the market who do have lower-cost solutions with expanding capabilities.”
Erick Pineda, a c-store owner in Clifton, N.J., and Oscar Dominguez, a two-store operator in the neighboring metropolitan city of Newark, relied on traditional cash registers until signing up with National Retail Solutions (NRS).
NRS provides independents with a complete POS system that lets them operate as a group, similar to a multi-unit chain. Retailers collect customer phone numbers, offer promotions from major brands and send shoppers mobile messages, including coffee club updates and promotion information.
Store owners never need to process coupons since everything is done online.
“Promotions help a lot,” said Dominguez. “People who might buy one item may take two or three. That means we’re moving items off the shelf.” <