POS software is indispensable for retail, e-commerce, and restaurants of today. For entrepreneurs and business owners, it is crucial that you have a firm grasp of the current key trends in POS software to help you leverage such insights in your purchase decision and, ultimately, to gain a competitive edge in your market. To help you avoid spending too much time on research, we’ve gathered 20 essential POS statistics and trends, supported by key industry data and POS charts, that will likely bring significant impact in the years to come.
Personalization is the way toward perfect customer experience. Key to success in today’s highly competitive market environment is the proper and timely use of technology for enhancing customer relationships and boosting the quality of customer experience, at the same time streamlining the daily activities of businesses. New research data indicates that good customer experience is achieved through personalization:
91% of consumers tend to shop with businesses who are aware, can recall, and give offers and suggestions relevant to them (Accenture)
83% are likely to share their information to allow a personalized experience (Accenture)
By 2020, 81% of businesses are predicted to employ a unified commerce approach (Boston Retail Partners)
A study of 46,000 customers found that only 7% shopped only online, 20% shopped only in-store, while the rest, or 73%, used multiple channels when they shop (Harvard Business Review)
One way to build a personalized shopping experience is by creating a seamless customer experience. Because people want a steady experience in every customer touchpoint of a business, one of the hottest marketing approach today is the offering of an omnichannel experience. Although marketing promotions and incentives are still valued by customers, today’s omnichannel shoppers give more importance to convenience, consistency, and value. A business must accompany each customer across all available channels as he or she journey toward making a purchase in order to gain a seamless and personalized shopping experience. Because the better a business knows a particular customer, the better it can personalize his or her shopping experience. The days of using a one-size-fits-all solution are over.
It’s time to face the truth: retail businesses must embrace a mobile-first POS strategy to give what customers want. Adapting a mobile-first POS approach brings in the money and, critically, cash is getting dethroned from its long-held rule as the preferred method of payment worldwide. The shopping landscape has gradually changed in recent years as shown by these latest POS payment figures:
8 of 10 customers worldwide use a tablet, smartphone, a computer or some form of digital technology within the store as they shop (Wirecard)
73 percent of consumers use less cash than in the past (Mastercard)
82% of consumers say they first refer to their mobile gadgets to know more about any purchase they’re about to make in a store (Wirecard)
46% of retailers today don’t use mobile POS (Boston Retail Partners)
23% of mobile POS users still can’t accept payment using the tool (Boston Retail Partners)
Consumer expectations and behavior have been greatly affected by the immensely-wired, technology-filled world of today. As technology continues to change retail as we know it, this digital thrust is also, in the process, removing two traditional pillars of retail—cash registers and cash itself. Business owners should also try to bring the checkout procedure closer to the consumers, like in the various customer touch-points within the store. You can read about our top 12 mobile POS systems here.
If you know your customer, success will come. As customers in the past are not the same as today, businesses must also make adjustments to provide them what they need. Consumer preferences had greatly evolved along with changes in technology and in the world as a whole. Traditional business strategies that were effective years ago are now becoming partially or totally irrelevant at present, as can be seen in the following study results:
In a recent POS/customer engagement survey, 62% of businesses said that their top customer engagement priority is customer identification (PCMS)
83% will make suggestive selling based on a three-year customer purchase history (PCMS)
In another survey of small businesses, 50 percent said the access to business reports as an important basis to sustain their use of their POS system (ShopKeep)
Regarding their technology plans for the next 12 month, around 75% are inclined to add to their budget on in-store mobile tools (ShopKeep)
Along with the efficient use of technology like POS, small business owners must have instant access to rich consumer data and robust analytics to help them carry out more intelligent, data-based business decisions on a timely manner. Businesses need to know who their individual customers are as this is the only way for them to provide a personalized shopping experience. The continuing advancement of POS technology ensures that more valuable data and analytics features will be provided to help businesses better serve their customers. If you’re running an online or physical store (or both), you can check out our list of top 15 POS tools for retailers.
After achieving minimal adoption during its early years, cloud POS systems have gained considerable penetration into the market, particularly in the American restaurant POS market share, surpassing the critical 20% level in all categories except for cafeterias (ReformingRetail)
By 2021, the same study predicts a 50% adoption rate in all restaurant categories (ReformingRetail)
The total purchases of POS systems for the past year indicate that over 60% of the new systems were cloud systems, which is the first time that legacy POS platforms were overtaken by cloud-based solutions (ReformingRetail)
Based on historical and current POS data, this trend is likely to continue. In fact, the overall global cloud POS market size is expected to almost triple, from US$1.34 billion in 2018 to US$3.73 billion by 2023 (Research and Markets)
The future will be dominated by cloud-based POS solutions, like the 12 popular POS systems we’ve reviewed in another post. The trend indicates a continuing shift from legacy (on-premise) POS systems to cloud-based POS solutions. Where before POS was expensive — legacy POS systems require considerable initial investments for both the hardware and software — the popularity of cloud-based POS solutions has leveled the playing field for small businesses and start-ups.
Artificial intelligence appears to have the biggest impact on POS. Since their deployment a few years ago, AI has since been gaining significant strides in machine learning that can do what normally need human intervention and intelligence like predictive text, sending emails, language translation, and speech recognition, all of which levels up the POS experience to unprecedented heights. Check out the following statistics that indicate the continuing rise of AI in POS systems:
Although still a relatively new addition to POS technology, AI-enabled services are predicted to grow further, with 15 percent of businesses already deploying AI in their POS systems (CMO)
31 percent of businesses are already planning to implement AI within a year (CMO)
Aside from completely transforming how making a purchase in physical stores is done, AI is also expected by 40 percent of today’s young consumers to further level up existing technologies, such as introducing a totally new shopping experience that removes checkout inconveniences (Wirecard)
POS systems are among the top users of AI, which now functions to remind businesses to fulfill an order or replenish stock, to notify businesses about evolving customer behavior and new product trends, give recommendations on which customers should be re-engaged or what promotions to carry-out, and to evaluate sales trends.
Point-of-Sale (POS) systems are evolving fast, offering businesses increased control of their operations, more flexibility to adapt to change, and effectively generate robust market insights. This is why more and more businesses are shifting from the old-school cash registers and traditional credit card readers to the high-tech on-premise, cloud or mobile POS systems. In fact, by 2022, the total market value of POS terminals is predicted to surpass $98 billion. Aside from offering a host of added functionalities that the traditional cash box doesn’t have, POS systems empower businesses to have full control of all their transactions, derive useful insights from the reports they generate and make more efficient, evidence-based business decisions all in a single, convenient location. (You can learn more about the benefits of POS systems here.) The following POS statistics should only cement your conviction to get this system or upgrade to a modern one if you haven’t yet.
To consistently offer seamless customer experience, one must build an intuitive business atmosphere and a smart POS solution is an important element of that environment. A POS tool, at the minimum, must be able to offer a readily accessible snapshot of your key business and customer information such as monthly sales and customer demographics, while at the same time provide smart market intelligence when you need to make crucial business decisions.
With the POS systems’ continuing advancements, you can look forward to seeing more exciting developments like greater integration of AI into POS and other business applications, for instance, in helping businesses streamline processes and better learn a consumer’s buying journey using rich data and digital customer touchpoints.
As POS systems continue to reach higher ground, become cheaper, smarter, and be more integrated into the very core of your business, remember these key POS facts and trends when the time comes for you to buy a new system or upgrade your existing one. Once you are ready to make a purchase, consider reading our guide on the 20 best POS systems for sales for 2019. It will help you fast track your research and identify the right set of features for your business.
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