5 POS Tech Examples That Are Driving Innovation

1. The Cloud

Cloud technology essentially removes the biggest barrier to entry in the POS game; high price. Traditional and legacy POS systems often require a heavy start-up investment when it comes to setup. What sort of investment are we talking about? Well, on-site servers, a team of maintenance staff, data security, installation costs and more. The Software as a Service (SaaS) business model has revolutionized how the best POS systems runs and how they benefit F&B businesses. Instead of a F&B business shouldering all the heavy setup costs, the POS company provides the software, features and data storage and security that would otherwise cost a heavy sum of money. Add to this, the ability for a business to have synchronization across all their store locations thanks to the cloud's off-site storage of data, and there's little wonder why so many companies are switching to cloud-based POS systems. 

Indeed, we can see that [1] "the global Cloud POS Marketwas valued at US$ 4.95 Bn in 2018 and is expected to grow at a CAGR of 21.6% during the forecast period 2019 - 2027, and reach US$ 27.82 Bn in 2027." This growth, as mentioned earlier, [2] "is majorly driven by increasing adoption of cloud technology across the industries and the increasing need for improved operations in business."

2. Payment Flexibility

Cash is quickly becoming obsolete as more convenient forms of payment technology is on the rise. According to a Mastercard survey, [2] 73 percent of respondents claimed to be using less cash today than they did 10 years ago. This is rather unsurprising given the explosion in the number of different payment types on offer these days. There are payment apps, credit cards, debit cards, mobile wallets and more. The best POS systems will offer up integrations for all these types of payments, especially if they are willing to localize with the most popular forms of payment in your market. 

This is especially prominent in markets where new technology is willingly adopted. According to a recent (2019) BBC report, [3]"In 2017, debit card use - driven by contactless payments - overtook the number of payments made in cash in the UK for the first time." However, perhaps more interestingly, the same report predicted that, [4]"the current rate of decline would mean cash use would end in 2026." Given this shift in payment technology, the flexibility of cloud-based POS systems to integrate with different types of payment providers is extremely important. 

3. In-built Analytics 

We live in a data-driven world, so it comes as little surprise that the best POS systems make data collection and access a top priority. These days, with cloud-based POS systems, accessing data from your entire business has never been easier. Be it sales figures, customer spending habits or even transaction volume. By taking advantage of these reports, a business can possess a competitive edge over the competition by predicting customer trends, fixing menus to remove low-selling items and by boosting customer engagement through membership plan analytics. Best of all, business analytics can span global businesses, meaning that a business owner can view relevant figures even for a global enterprise. 

4. BYOD 

Bring Your Own Device (BYOD) is one of the most necessary advancements in the modern POS. BYOD, essentially refers to the concept of a customer being able to use their own smart devices (smartphone, tablet etc) to interact with your business in meaningful ways. Rather than speak to a waiter or a member of staff, more and more customers prefer to make informed decisions by themselves, with the aid of a smart device. This is obvious when we take a look at the following statistic: [5] "Two-Thirds of Shoppers Check Phones In-Store for Product Information, Skipping Store Associates." 

The ways that a customer can interact with your business using BYOD is truly limitless. One of the newest and best ways a POS system can offer additional interactivity is through QR codes. By placing a simple QR code sticker on tables or in convenient locations, customers can scan these codes and gain access to any information you feel they should have. For example, they could be directed to your business' menu, to a website and even to promotional offers or social media pages. The possibilities are endless. 

5. Personalized Customer Engagement

If you're in possession of the best POS system for your business, then there's little doubt you've encountered the vast options for providing personalized customer engagement. One of the most important ways to ensure you create a personalized experience for your customers is through loyalty programs. There are many ways to implement a successful loyalty program and the best POS systems will grant you all these offerings, which may include things like membership cards, credits, points, tier systems and much more. In conjunction with the deep analytics your POS should be providing, you can discern trends and spending habits that customers have and tailor offerings and discounts to be relevant to them. Creating a loyalty program also furthers a customer's investment into your business through perceived value and the feeling of being important. We can see that even as far back as 2015, [6] "78.6 percent of consumers said they are only likely to engage with a brand using coupons or other offers if those promotions are directly tied to how they have interacted with the brand previously." With newer technology available these days, it should be far simpler to make your customers feel right at home in your business. 

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[1]https://www.marketwatch.com/press-release/cloud-pos-market-2019-global-industry-size-demand-growth-analysis-share-revenue-manufacturers-and-forecast-2027-2019-07-25

[2]https://newsroom.mastercard.com/press-releases/survey-examines-shift-towards-cashless-society-americans-use-less-cash-today-than-10-years-ago/

[3]https://www.bbc.com/news/business-47456698

[4]https://www.bbc.com/news/business-47456698

[5]https://www.emarketer.com/content/two-thirds-of-internet-users-check-phones-in-store-for-product-information-skipping-store-associates

[6]https://www.prnewswire.com/news-releases/consumers-to-brands-the-louder-you-scream-the-less-we-care-300102426.html