Delve into the essential features that define a modern POS system. You will learn what to look for when searching for a new POS and why.
This blog covers:
1. Why your POS should be flexible and modular
2. Why your POS should have unified commerce capabilities
3. Why your POS should empower your store associates
4. Why your POS should be reliable and secure
5. Why your POS should have a collaborative ecosystem
And, as a bonus, you’ll discover why the speed of implementation is a true game changer.
Setting the scene
Remember the days when a Point of Sale was simply a big, clunky cash register sat on a counter and was there purely to ring up sales?
Yeah, those days are gone and we’re here to tell you why - and what you should be looking for when evaluating a POS system.
Today, POS solutions are so much more than a transactional hub. A modern POS system is more than just a cash register; it is a critical component in the broader retail ecosystem, capable of driving business growth through enhanced customer experiences and streamlined retail operations.
These systems, once simply tools for processing sales, have turned into comprehensive solutions that anchor unified commerce platforms - integrating stores and online sales channels to deliver seamless customer experiences. And because the very best POS systems on the market are built with MACH architecture, they offer unparalleled scalability and flexibility, allowing you to meet current demands and adapt to future changes with ease.
Each aspect of leading POS systems - cloud-native capabilities, seamless integration possibilities, robust security measures, modular designs, and tools that level up your store associates - plays a crucial role in optimizing retail operations and enhancing customer satisfaction.
The right POS system can also provide invaluable insights into your operations, help you manage inventory more effectively, and ultimately, increase sales through better customer engagement.
Insights from Gartner
According to the 2024 Gartner Market Guide for Unified Commerce Platforms Anchored by POS for Tier 2 Retailers: "Retail CIOs should consider POS unified commerce platforms to enable retailers to provide uninterrupted experiences, allowing customers to browse, transact, acquire and consume anywhere and everywhere."
“As a result, the requirement for open architecture has rapidly emerged as a high priority for Tier 2 retailers planning new POS deployments, and has further accelerated over the past 12 months."
“Moreover, this approach addressed the primary need for agility required in response to the ongoing disruptions in the market and rapidly changing customer expectations, and retailers’ emerging strategies for modular and composable business applications.”
Based on the 2024 Gartner Market Guide for Unified Commerce Platforms Anchored by POS for Tier 2 Retailers, here’s what the best POS systems should be capable of.
1. Your POS should be flexible and modular
According to Gartner retailers should:
“Identify POS solutions that are modular and flexible and can deliver capabilities that can be implemented with agility for resilience in rapidly changing environments.”
You need a POS system that’s flexible and modular if you want to be in control of innovation and quickly align with new and emerging customer behavior and expectations.
The gold standard for flexible and composable retail architecture (advocated by the MACH Alliance and Gartner) is to choose a cloud-native POS solution built with the MACH principles: Microservices-based, API-first, Cloud-native SaaS, and Headless.
But it’s more than just a technical preference - it’s a strategic decision that significantly influences your ability to be in control, innovate, be flexible, and remain competitive in a fast-paced market.
Here are some of the benefits a modular POS gives you:
Enhanced integration capabilities with an API-first approach:
One of the standout features of cloud-native solutions is their ability to integrate seamlessly with other business applications and services in real-time. An API-first approach is essential for making this happen. This interoperability is crucial for creating a unified commerce experience, as it allows data to flow effortlessly between systems. You can, for example, integrate e-commerce platforms, customer relationship management (CRM) systems, and any order management system (OMS), to provide a consistent and comprehensive view of the business.
Efficient deployment with micro-services:
Systems that leverage micro-services for efficient deployment allow retailers to adapt quickly to changing market demands and customer preferences by enabling easy integration and updates of individual components without overhauling the entire system. It’s cost-effective, puts the retailer in control, and means things can move quickly.
The modularity ensures that different functionalities, such as inventory management, customer relationship management, and payment processing, can be independently scaled and customized to suit specific business needs. Micro-services architecture not only minimizes downtime but also supports seamless updates and maintenance. Additionally, the efficient deployment capabilities of micro-services reduce time-to-market for new features, providing a competitive edge. Retailers can therefore deliver a more responsive, reliable, and personalized shopping experience, fostering customer loyalty and driving sales growth.
Flexibility with headless architecture:
The flexibility of headless architecture empowers retailers to swiftly adapt and innovate their front-end experiences without disrupting the back-end systems. This means they can implement new customer-facing features, design changes, and user interfaces more efficiently, enhancing the overall customer experience. Furthermore, headless POS systems facilitate easier integration with various third-party services and tools, providing retailers with the agility to adopt new technologies and scale their operations as needed.
This architectural approach makes it easier for retailers to offer personalized and smooth shopping experiences to customers, no matter how they shop. With an independent front end, customers get a great experience without being limited by back-end systems. This is crucial for retailers as they aim to enhance features like boosting mobile engagement in stores and tracking and interacting with customers on social media.
Future-proof with included updates:
Choosing a cloud-native SaaS solution that receives regular updates is crucial for future-proofing your business. Regular updates ensure that your POS system stays current with the latest technological advancements, security patches, and industry trends. This continuous improvement means you are always equipped with the most efficient tools to manage your operations and serve your customers. Additionally, automatic updates. combined with MDM, eliminate the need for manual interventions, reduce downtime, and ensure your system is always performing at its best. By opting for a cloud-native POS with a single code base alongside continuous development and regular updates, you can be confident that your business is well-prepared to adapt to new challenges and opportunities, keeping you ahead of the competition and enhancing your ability to deliver exceptional customer experiences.
Platform agnostic:
Choosing a platform-agnostic POS system that works seamlessly on both iOS and Android devices offers significant advantages. First and foremost, it provides unparalleled flexibility and choice. A platform-agnostic POS system supports a smoother integration process and future-proofs your business against technological changes. By not being tied to a specific operating system, you can easily switch between devices or upgrade your hardware without worrying about compatibility issues. This is particularly beneficial in a rapidly evolving tech landscape where new devices and updates are constantly being introduced.
Hardware agnostic:
If you’re not stuck to a specific piece of hardware or a hardware provider, you can select the devices that best fit your operational needs and budget constraints without being locked into a single ecosystem. This flexibility extends to being able to mix and match devices, ensuring that the most suitable technology is employed in your store. This level of adaptability ensures that you can optimize your technology investments for various use cases, enhancing overall efficiency and cost-effectiveness.
By choosing a cloud-native POS system built with MACH principles, you equip yourself with a tool that not only meets today's operational demands but also sets the foundation for future growth and innovation. This technology alignment is critical for delivering seamless customer experiences and achieving operational excellence in an increasingly digital retail environment.
2. Your POS should have unified commerce capabilities
According to Gartner retailers should:
“Analyze their current POS functionality by comparing it with the need to deliver essential unified commerce capabilities for click-and-collect, store-fulfillment, and clienteling.”
In today’s retail environment, having a POS system with unified commerce capabilities is not just an advantage - it's a necessity. Unified commerce goes beyond simple multichannel strategies by integrating all your back-end systems and sales channels in real-time. This integration enables a seamless customer experience, whether they are shopping online from a mobile device, a laptop at home, or in a physical store.
Here's what you should consider to determine if a POS system is equipped to support unified commerce:
Unified sales channels:
A true unified commerce POS system eliminates silos between different sales channels. It ensures that whether a customer shops in-store or online the experience is consistent. Inventory, product information, customer data, and sales information are synchronized across all channels. This means that a customer can start a transaction on one platform and complete it on another without any friction or discrepancies, enhancing their shopping experience and operational efficiency.
Real-time data access:
The speed of data updates can greatly impact your ability to serve customers effectively. Your POS system should be able to operate in real-time, updating inventory levels, customer profiles, and other critical data points as transactions occur. This capability ensures that all touch-points are always up to date, which is crucial for maintaining accurate stock levels, fulfilling online orders from store inventory, and providing reliable product availability information to customers.
Store inventory management:
Modern POS systems provide real-time insights into stock levels across various locations, enabling store associates to access accurate information and respond promptly to customer inquiries. This not only elevates customer satisfaction but also prevents potential sales losses due to inaccurate stock data. Moreover, these systems facilitate efficient inventory tracking, allowing retailers to monitor stock movements, identify trends, and automate replenishment processes. By integrating with e-commerce platforms, a modern POS system ensures a unified commerce experience, where customers can seamlessly browse and purchase products regardless of whether they are shopping in-store or online. This real-time synchronization of inventory data is pivotal for preventing overselling and stockouts, optimizing stock levels, and ultimately driving sales and growth.
Flexible fulfilment:
Shoppers want convenience, they want choice, and they want great service. They want to shop on their terms, wherever and whenever they encounter your brand. In terms of fulfilment, to meet your customers’ needs in a cost-efficient way, you need a POS system that amplifies your store fulfilment possibilities with Click-and-Collect (BOPIS), Click-and-Reserve (ROBIS), Endless Aisle and buy, reserve and pickup in other stores. This also means you can turn your stores into local distribution hubs, meaning e-commerce orders can be shipped from your stores and that stores can ship orders placed in other stores. All your stores should be able to be used as fulfilment centers. Finally, the best POS systems on the market allow you to handle online returns in store, further enhancing your CX.
Consistent customer experience:
Your POS should provide a consistent interface and experience across all channels. This includes maintaining uniform pricing, promotions, loyalty programs, and customer service options. By doing so, it reinforces your brand’s reliability and quality of service, regardless of how or where your customer chooses to interact with you. Unified commerce capabilities also transform how you handle customer service. Your associates should have immediate access to customer information from across all channels to provide personalized service. This includes viewing previous purchases, loyalty status, and any current issues or returns being processed, enabling them to offer solutions that are informed and responsive.
Advanced analytics:
With all systems interacting in real-time, your POS can serve as a powerful analytical tool, helping you make business decisions based on real-time data and allowing you to set up customized dashboards for your store associates to boost teamwork and drive operational efficiency.
If your POS system incorporates these unified commerce capabilities, you are well-equipped to offer a seamless and integrated shopping experience that meets the expectations of today's consumers. This not only improves customer satisfaction but also positions your business as a forward-thinking, customer-centric retailer in a competitive market.
3. Your POS should empower your store associates
According to Gartner retailers should:
“Ensure that associates are able to access data, information and insights integrated from several applications, including from POS directly through an easily navigable front-end UI.”
There’s nothing worse than having your store associates attempt to learn and use complex systems that require a lot of training and are, more often than not, not fit for purpose.
Empowering your store associates with the right tools is essential for delivering exceptional customer service and driving sales. A modern POS system is more than just a cash register; it's a 'single pane of glass’ in your technology stack that can significantly enhance the capabilities of your team on the sales floor.
Here’s how a well-equipped POS system can transform the day-to-day operations of your store associates and create a better shopping experience for your customers.
A single pane of glass
A POS system that integrates seamlessly with other tools such as loyalty programs, recommendation engines and delivery solutions, empowers your associates to perform a variety of tasks from a single interface - also referred to as a single pane of glass.
This integration reduces the need to switch between different applications, saving time and reducing the likelihood of errors. It ensures that your associates have all the tools they need at their fingertips to enhance customer relationships and manage their tasks more effectively. This is one of the biggest reasons why US sports retailer, Rally House, doubled their customer capture at checkout as soon as they rolled out their new POS.
Mobility
A mobile-first POS system – built natively for both iOS and Android devices - allows your associates to carry out transactions anywhere in the store. This mobility is crucial for reducing wait times at checkout counters, helping manage high traffic during peak hours, and even facilitating sales on the shop floor where decisions are made. Mobile POS devices can also be used for line busting, where associates process transactions for customers in line before they reach the cash wrap, greatly enhancing customer satisfaction during busy periods.
Ease of use
The usability of your POS system directly affects how effectively your associates can perform their roles. POS systems that are intuitive and easy to navigate reduce training time and minimize errors, allowing your staff to focus more on customer engagement rather than wrestling with complicated software. An efficient POS system streamlines critical processes such as transaction handling, campaigns, returns, and exchanges, enabling your associates to handle these tasks swiftly and accurately.
Customization
A one-size-fits-all approach doesn’t work. Think of our phones, we all configure them differently so we can have the apps we used the closest to hand. Give your store associates a POS that they can configure in a way that works best for them, helping them be more productive and provide a better service.
Real-time information
Your associates should have real-time access to product information, inventory levels, and customer data. This capability allows them to answer customer queries accurately and efficiently, enhancing the customer's shopping experience. For instance, if a customer asks about a product that is not on the shelf, an associate can quickly check its availability across all store locations or even in a central warehouse, offering alternatives like ordering it for home delivery or reserving it for pickup at another location.
Clienteling tools
Advanced POS systems include clienteling applications that equip your associates with tools to provide personalized shopping experiences. This is typically a mixture of built-in features within the POS and the ability to seamlessly integrate with a best-of-breed CRM. By accessing a customer’s purchase history and preferences, associates can make tailored recommendations and notify customers about product releases and promotions that align with their interests. This level of personalized service not only improves customer satisfaction but also increases the likelihood of upsells and repeat visits.
Empowering your store associates with a capable POS system not only boosts their productivity but also enhances the overall shopping experience for your customers. By providing your team with the tools to access information quickly, handle transactions efficiently, and offer personalized customer service, you ensure that your store operates optimally and remains competitive in the retail landscape.
4. Your POS should be reliable and secure
According to Gartner retailers should:
“Establish the vendor’s capability to deliver cloud-native POS solutions that guarantee adequate resilience, data security and privacy through a thorough assessment of its disaster recovery features.
Reliability and security are foundational elements of a cloud-native POS system. As the central hub for your transactions, customer data, and often inventory management, your POS system needs to function flawlessly under various operational conditions, including offline scenarios. Ensuring that your POS system is both reliable and secure is essential for maintaining trust with your customers and safeguarding your business’s critical data.
System uptime and reliability:
Your POS system should be capable of running smoothly without frequent downtimes or errors, which can cause transaction delays, customer dissatisfaction, and potential sales losses. High reliability also means the system should be robust enough to handle high volumes of transactions during peak times, such as holidays or special sale events, without performance degradation.
Offline Mode capability:
One of the key features that enhance the reliability of a POS system is its ability to operate in offline mode. This feature ensures that your store can continue conducting business even when internet connectivity is lost. Transactions are processed and stored locally, then synced with the central system once connectivity is restored. This not only prevents sales loss but also assures customers that their shopping experience remains uninterrupted, reinforcing their confidence in your business’s operational competence.
Data security:
A secure POS system protects sensitive customer information and transaction data through end-to-end encryption and compliance with industry standards such as GDPR. Regular security updates and patches are vital to protect against emerging threats and vulnerabilities.
Compliance:
Choosing a POS system that is compliant in multiple markets is essential for fast-growing brands. As you expand into new regions, having a POS that meets diverse regulatory requirements ensures smooth and legal operations without the need for costly modifications or workarounds. This compliance covers everything from tax calculations to data protection standards, safeguarding your business from potential legal issues and fines. Moreover, a multi-market compliant POS system enables you to quickly and efficiently enter new markets, giving you a competitive edge and accelerating your growth. By selecting a POS that is ready for international expansion, you ensure that your brand can scale seamlessly and maintain consistent operational standards across all locations.
Technical support:
To maintain the reliability and security of your POS system, it’s important to have access to timely software updates and responsive technical support from your provider. This support should include proactive monitoring of system health, quick resolution of issues, and guidance on best practices for system maintenance and security.
Security:
With the increasing threats of data breaches and cyber-attacks, cloud-native POS systems offer robust security features that are continuously updated to defend against the latest threats. These systems adhere to stringent compliance standards required in the retail industry, protecting sensitive customer and business data and mitigating the risk of costly legal and reputational damage.
Resilience:
Cloud-native systems are inherently more resilient. They are designed to maximize uptime and minimize disruptions, which is achieved through distributed resources and redundant data storage solutions. Retailers benefit from continuous availability, which is crucial for maintaining sales and customer service levels, especially during peak shopping periods.
Having a POS system that remains operational in offline mode, safeguards data with robust security measures, and ensures continuous reliability significantly strengthens your retail operation. It minimizes potential disruptions and security risks, thereby providing a smooth and secure shopping experience that builds customer loyalty and trust.
5. Your POS provider should have a collaborative ecosystem
According to Gartner:
“Trust in the vendor extends beyond data security, solution support and professional services. Today, retailers need vendors that are collaborative and partner with the retailer to successfully drive unified commerce through POS.”
In the modern retail landscape, a POS system that operates within a collaborative ecosystem is indispensable for achieving true unified commerce. This collaboration extends beyond just integrating with your internal systems; it involves seamless interaction with a variety of vendors and external solutions to enhance overall operational efficiency and customer satisfaction.
Here’s why having a collaborative ecosystem is crucial for your POS system:
Vendor collaboration:
Your POS system should work in harmony with various vendors and solutions that are part of your unified commerce ecosystem. This means that your POS should easily integrate with different software and hardware providers, such as payment processors, inventory management systems, OMS, and CRM platforms. By doing so, it ensures that all aspects of your retail operations are interconnected and functioning cohesively. This level of collaboration is essential for creating a seamless shopping experience for your customers, regardless of the sales channel they choose to use.
Enhanced customer value:
A POS system from a vendor with an established and thriving partner network supports the delivery of significant customer value by ensuring that all backend processes are aligned and optimized. This includes real-time data sharing across systems, which allows for more accurate inventory management, personalized customer interactions, and efficient order fulfillment. For example, if your POS system can collaborate effectively with your inventory and logistics partners, it ensures that stock levels are accurately reflected across all channels, reducing the risk of overselling and improving customer satisfaction through reliable product availability.
Operational efficiency:
Collaboration within your POS ecosystem enhances operational efficiency by streamlining workflows and reducing redundancies. When your POS system can effortlessly communicate with other systems, it simplifies tasks such as updating product information, processing returns, and managing promotions. This not only saves time but also reduces the potential for errors, making your operations more agile and responsive to market changes.
A POS system with a robust collaborative ecosystem is not just a nice-to-have but a necessity for any retailer aiming to thrive in today's interconnected retail landscape. It ensures that all elements of your unified commerce strategy are working together seamlessly, enhancing customer value, operational efficiency, and overall business agility.
BONUS: Fast Implementation
Finally, look for a POS system that’s easy and fast to implement. Technology projects and implementations are notorious for taking more time than they should. But this is a process that shouldn’t give you headaches, far from it. It should be fast, simple, and effective.
Fast implementation is crucial because it minimizes disruption to your business operations and allows you to quickly leverage the benefits of the new technology. A swift rollout ensures that your staff can rapidly adapt to the new system, reducing downtime and maintaining consistent service levels for your customers. This speed is particularly important in the fast-paced retail environment where any delay can result in lost sales and decreased customer satisfaction. Additionally, a fast implementation allows you to respond more quickly to market changes and competitive pressures, keeping your business agile and ahead of the curve. By minimizing the transition period, you can start seeing the advantages of improved efficiency, better data insights, and enhanced customer experiences sooner, ultimately driving growth and profitability.
In Summary
Ultimately, you’re going to need a POS system that will future-proof your business. As retail continues to evolve - at pace - you have to evolve with it because if you stand still, you’ll fall behind.
The right POS system can significantly influence your ability to innovate and succeed in a competitive market.
Your POS system is the backbone of your retail operations. It should not only support current processes but also anticipate future needs and challenges. Choosing a POS system that ticks all these boxes is crucial for building a resilient and adaptable business capable of thriving in the dynamic world of retail. Don't settle for a system that meets the bare minimum. Invest in a solution that propels your business forward, enhances your customer relationships, and solidifies your market position.
Dive deeper into the capabilities and benefits of advanced POS systems by downloading the 2024 Gartner Market Guide for Unified Commerce Platforms Anchored by POS for Tier 2 Retailers. This guide provides invaluable insights and a comprehensive look at the solutions that can transform your retail operations. Equip your business with the knowledge to make an informed decision about the future of your POS system.
Continue reading: Get the full Gartner guide
Download the guide now and take the first step towards transforming your retail experience.
Last updated: November 20, 2024