POS Solutions, POS Retail, Ecommerce Merchandising
Article | June 7, 2024
Discover effective retail POS strategies to transform retail checkout into a smooth, customer-friendly process. Enhance shopping experiences with latest retail point of sale system features.
Contents
1. Seamless Checkout Experiences: The New Retail Standard
2. Comprehensive Strategies for Checkout Optimization
3. Latest Trends in POS Systems
3.1. Cloud-Based Deployment: A Growing Preference
3.2. Mobile POS systems
3.3. AI in POS systems
3.4. Robust Data Privacy
3.5. POS System Integration for Retailers
3.6. Advanced Analytics for Market Segmentation
4. POS System Features for Retail Success
5. The Road Ahead for Retail Checkout
1. Seamless Checkout Experiences: The New Retail Standard
In the fast-paced world of ecommerce, consumers are not just looking for the perfect products but also a seamless and hassle-free shopping experience. Retail POS strategies that address the checkout challenge head-on convert consumers’ buying intent into action. The rapid pace of digitalization, especially in the retail and restaurant sectors across North America, Europe, and the Middle East & Africa, has significantly fueled the adoption of POS software. POS systems assist restaurants in dynamic ways to increase their ROI and popularity. This transformation is aligned with the global move towards cashless transactions, propelling the demand for reliable and efficient POS systems. From the psychology of a shopper to the technical nuances of payment processing, every aspect needs to be covered to ensure that checkout experiences not only meet but exceed customer expectations.
Security and trust, the cornerstones of any successful e-commerce operation, are also scrutinized when making decisions related to effective retail POS strategies. That means taking a deep dive into the latest advancements in encryption, fraud detection, and secure payment gateways, ensuring that retail ecosystems are equipped to protect customers and businesses effectively.
With the rise of mobile commerce and the influence of social media marketing, shopping has become an activity that fits into the brief interludes of a consumer's day. In such moments, a complicated or unclear checkout process can deter potential sales, highlighting the importance of simplicity and efficiency at this final, critical stage of the shopping journey. Research indicates that a significant factor in shopping cart abandonment is the absence of preferred payment options, with many consumers also discouraged by the need to manually enter extensive payment details. This suggests a clear opportunity for retailers to capture lost revenue by simplifying the payment process and offering a wider array of payment options.
The concept of frictionless checkout gains prominence, particularly during the holiday season when time is of the essence for shoppers. Retailers can enhance the checkout experience by minimizing the need for consumers to enter new information or perform unnecessary actions. Implementing single-click purchasing and standardized wallet flows can significantly expedite the checkout process, reducing cart abandonment and fostering customer loyalty. In the digital realm, where personal and financial information is exchanged with ease, establishing robust security measures is imperative to protect transactions and build consumer trust.
2. Comprehensive Strategies for Checkout Optimization
Optimizing the checkout process is pivotal for retail success, especially during the bustling holiday season. A smooth, efficient checkout not only enhances customer satisfaction but also drives sales. The ultimate objective of strategies for enhanced retail transactions is increased sales and deeper market penetration.
Amasty.com highlighted how embracing a global strategy and facilitating easier transactions for customers worldwide can significantly broaden a company's market presence. Exemplifying, We Are Knitters, an e-commerce platform based in Spain known for its knitting kits and supplies, it explained how the platform successfully ventured into 15 new countries. This expansion was made possible through a strategic partnership with Stripe, integrated via Magento, which provided the flexibility in payment options essential for gaining the trust of a diverse new customer base across the US, France, and Germany. Moreover, Magento's integration with Stripe and seamless checkout experience ensured that We Are Knitters could reliably manage a surge in orders during April 2020, demonstrating the effectiveness of their global expansion strategy.
Here's a comprehensive look at strategies for checkout optimization, incorporating various industry terms and practices to achieve the benefits of advanced POS features for retail success:
Frictionless Transaction Process: Retailers should focus on minimizing the steps to complete a purchase, leveraging advanced POS software and digital transformation in retail to streamline operations. Regularly updating and maintaining POS systems would ensure optimal performance, security, and customer satisfaction.
Secure Data Retention: Implementing secure data retention practices is a pivotal step towards accelerating the checkout experience. By securely saving customer information upon their consent, an online platform can swiftly recall these details for future transactions. This method not only expedites the checkout process by eliminating redundant data entry but also significantly minimizes the chance of input errors.
Adopt Next-Gen POS System Features: Modern POS strategies include integrating next-gen POS system features that support various payment methods and enhance retail checkout strategies. Features like mobile payments, contactless transactions, and personalized shopping experiences cater to the modern consumer's expectations.
Focus on Strategic POS Implementation: Ensure that the system aligns with the retailer's overall sales and marketing strategies. This includes integrating inventory management to keep track of stock levels in real-time and using data analytics for personalized marketing efforts.
Optimize Retail Checkout: To optimize checkout in retail, it's essential to streamline the checkout flow, reduce wait times, and remove all unnecessary steps. Strategies for enhanced retail transactions include offering multiple payment options and simplifying the user interface.
Leverage Advanced Retail Tech: The future of retail checkout lies in the adoption of advanced technologies. This includes mobile POS systems that allow for payments anywhere in the store, self-checkout options for customers who prefer a DIY approach, and the integration of AI to predict and fulfill customer needs proactively.
Personalized Retail Experience: Personalization is key to optimizing the retail checkout experience. From greeting customers by name to offering expedited shipping options, small touches can significantly improve the retail checkout experience. By collecting and analyzing customer data, retailers can also offer personalized recommendations, promotions, and payment options. This not only enhances the customer's experience but also increases the likelihood of repeat business.
Incorporating these strategies into retail operations can significantly improve checkout process, leading to higher customer satisfaction and increased sales. By focusing on these areas, retailers can reduce cart abandonment rates and enhance their sales, ensuring a positive shopping experience that encourages customers to return.
3. Latest Trends in POS Systems
The surge in demand for bespoke POS software solutions across various industries is a pivotal growth driver of next-gen POS system features. These solutions facilitate enhanced operational efficiency, enabling businesses to concentrate on core activities with their technological advancements while leveraging advanced analytics and customer management tools.
The North American and EMEA POS software market, integral to the rapidly evolving retail and hospitality sectors, stands as a testament to the shift towards digital transactions. With a market size valued at $6,553.1 million in 2021, it is projected to experience robust growth, reaching $21,140.1 million by 2031, at a CAGR of 12.7%. This growth trajectory is underpinned by the burgeoning demand for sophisticated, user-centric POS solutions across diverse corporate sectors, aiming to streamline operations and enhance customer engagement.
Advancements in modern retail checkout are a testament to the continuous evolution of POS software. Let’s study the latest trends in retail point of sale technology and advancements in POS systems.
3.1. Cloud-Based Deployment: A Growing Preference
The shift towards cloud-based POS solutions is notable, providing businesses with the agility to manage operations remotely and scale as per evolving needs. This trend is particularly beneficial for SMEs seeking cost-effective, scalable solutions. Cloud deployment is emerging as the preferred choice for its remote accessibility and scalability. However, on-premises solutions remain relevant for businesses prioritizing data control and security within their IT infrastructure.
3.2. Mobile POS systems
Digital transformation in retail has led to the growing popularity of mobile POS solutions. This trend reflects a dynamic balance in the market, where the longstanding dominance of fixed POS systems, particularly in traditional retail and restaurant environments, is being complemented and, in some cases, challenged by the advantages offered by mobile alternatives.
With COVID-19, people have witnessed a surge in using contactless payment methods. This trend gave way to contactless payments using mobile phones and similar devices, which will likely transcend from a temporary to a new norm.
[Source: hostmerchantservices]
Android POS systems have been gaining traction as mobility is especially beneficial for businesses that operate outside traditional settings, such as outdoor markets, pop-up stores, and food trucks, as well as for those looking to enhance customer service by reducing wait times and streamlining payment processes right at the table or the point of decision.
3.3. AI in POS systems
The integration of AI into POS systems signifies a leap towards adapting swiftly to industry-specific needs. Coupled with machine learning, POS systems will offer personalized customer recommendations based on purchase history, making personalized shopping experiences the standard.
3.4. Robust Data Privacy
Robust data security festures in POS systems has emerged as a critical trend in safeguarding customer information and maintaining trust.
The retail giant fell victim to one of the largest and most publicized data breaches of all time in late 2013 after attackers infected its POS systems with the Trojan.POSRAM malware and stole PII and payment card information on as many as 70 million target customers. Target ended up settling a class action suit from the breach for $39 million and incurring another $19.9 million in associated legal costs.
[Source: digitalguardian]
With the rise of sophisticated cyber-attacks, implementing application whitelisting, and maintaining up-to-date software with regular vulnerability assessments cannot be overstated. These measures, along with network segmentation, two-factor authentication, and continuous monitoring for threats, will continue to hold importance in order to thwart POS security compromises and protecting sensitive payment information.
3.5. POS System Integration for Retailers
POS integrations offer retailers a unified, detailed overview of their operations, linking customer management, inventory tracking, employee scheduling, and financial flows transparently. These integrations enable tailored compensation for employees with varied responsibilities, adjusting wages according to the role and time worked, thus streamlining payroll processes. Time and attendance features automate tracking and compliance, reducing manual effort and ensuring accuracy. Commission calculations are simplified, directly integrating with payroll solutions for immediate compensation adjustments.
3.6. Advanced Analytics for Market Segmentation
To stay competitive, businesses are utilizing the advanced analytics capabilities of modern POS systems. These insights can drive strategic decisions, optimize operations, and enhance customer experiences. The retail sector, followed closely by hospitality, represents the largest market share, leveraging POS software for comprehensive management solutions, from inventory to customer loyalty programs. Insights are helpful for geo-based decisions also. North America, particularly the US, and Europe are the primary markets for POS software, driven by robust retail and hospitality sectors. The Middle East & Africa region, although at a nascent stage, shows promising growth potential, attributed to increasing digitalization and economic diversification efforts.
4. POS System Features for Retail Success
Selecting the right POS system is crucial for the success of any business. Focusing on the below-mentioned integrated features can enhance efficiency, customer satisfaction, and sales:
Sales Management: Automate the sales process with real-time reporting and inventory updates, facilitating quick, accurate transactions and seamless stock control.
Inventory Management: Implement advanced features for real-time stock level maintenance, accurate forecasting, and minimization of waste, ensuring product availability and optimizing storage costs.
Customer Relationship Management (CRM): Utilize tools for building strong customer relationships. Implement loyalty programs and integrate marketing efforts to boost retention and engage effectively with your audience.
Employee Management: Streamline staff scheduling, payroll, and performance tracking. Automated reporting aids in efficient workforce management, enhancing productivity and job satisfaction.
Analytics and Reporting: Gain invaluable insights with comprehensive analytics on sales trends, inventory management, and customer behavior, enabling data-driven decisions that drive growth.
Loyalty Programs and Offers: Encourage repeat business with loyalty programs that reward customer loyalty, thereby enhancing customer retention and increasing sales.
Marketing Integrations: Leverage software that integrates seamlessly with email marketing and social media platforms, simplifying your marketing efforts and amplifying customer engagement.
It is vital to note that the hardware components must not be ignored during a discussion on ideal POS system. The shift towards simpler, more intuitive POS hardware is significantly improving the retail experience by focusing on enhanced mobility and streamlined operational efficiency.
A thorough knowledge of key features and hardware not only streamlines business operations, but also provides a foundation for sustained growth and customer satisfaction.
5. The Road Ahead for Retail Checkout
The road ahead for retail checkout is marked by technological innovation, consumer-centric strategies, and a heightened focus on security. Retailers who adapt to these evolving trends, embracing the capabilities of advanced POS systems, will position themselves for success in the dynamic retail ecosystem. The future of retail checkout is not just about transactions; it’s about creating memorable shopping experiences that foster loyalty and drive growth. The future also lies in the continuous innovation of POS systems. As technology advances, so do the opportunities for retailers to create more engaging, efficient, and secure shopping experiences. Embracing these changes and adapting to the latest trends will be key for retailers aiming to stay competitive and meet the evolving expectations of their customers.
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POS Solutions, POS Retail, Ecommerce Merchandising
Article | June 10, 2024
Running a small business requires a tight eye on profits. More than likely, you will face scenarios in which you incur higher transaction fees you didn’t expect and could have avoided in the first place. Knowing how to navigate processing fees is a key part of your success. Whether you run a single location, a multi-location business, or even a mobile business, avoiding unnecessary fees should be part of the game plan.
Unfortunately, less-than-reputable POS providers are out there, and understanding fees associated with taking payment from customers isn’t easy, but knowing what to look for will help. In this article, we cover fees to keep an eye on and how to save more on your processing fees.
How To Avoid Paying Unnecessary Credit Card Processing Fees
Unfortunately, if you want to accept credit and debit cards as a form of payment in your business, you’re going to experience processing fees. The financial benefits outweigh the transaction costs, but you can still save some money on your POS system and credit card processing.
Negotiate Your Processing Fees
The reason it can be so hard to understand the actual cost of processing fees is that many merchant service providers bury fees in the fine print, and these fees can come back to haunt you. In general, the more upfront a company is about all its charges, the more trustworthy and reliable they are because they have nothing to hide, and typically those rates will be fair. But it also helps to keep an eye on certain aspects of a contract. You can then negotiate them or repackage services to boost your profits.
Transaction Fees: Choose The Right Plan
When setting up your contract, you are given the option of a range of credit card pricing plans. Here are three of the most common pricing models.
Interchange Plus Fee Pricing
This option offers different transaction rates for different card types, bank issuers, methods of transactions, and more. By understanding these fees when processing transactions, you can benefit financially by encouraging the usage of certain cards or procedures that are least costly.
Tiered Pricing
In this scenario, you are charged different rates for different tiers created by your provider. It’s important to evaluate this option carefully because most transactions can fall into a less favorable tier rate.
Flat-fee Structure Pricing
This fee allows for one charge for card-present (CP) transactions and another for card-not-present (CNP) transactions, regardless of card type. This predictable, one-rate pricing model is easy to follow, allowing you to encourage a lower cents-per-transaction option and formulate special pricing deals. However flat-rate can sometimes come out as more expensive than interchange-plus pricing.
How To Avoid Monthly PCI Compliance Charges
A semi-regular fee many merchants run into is not falling in line with PCI Compliant in how they handle payment information. Being PCI compliant means maintaining important standards for customer data protection, and it is taken seriously. Compliance is required for major credit cards such as Visa and Mastercard and is becoming more popular as businesses continue to shift to online sales.
Rule enforcement is most often the responsibility of payment processing companies. Your provider will charge you two fees: a PCI compliance fee – which is once a year – and a PCI non-compliance fee – which occurs every month you have not completed your yearly PCI Compliance audit. Providers are free to charge however much they like for each service, and it can range anywhere between $30-$99 a month. Monthly charges are done both directly or indirectly via higher monthly fees, processing rates, or both. In some cases, the charges begin months after originally signing up with the processors hoping you won’t keep a close eye on all your ongoing processing fees.
As a merchant service provider, we at BNG Point-Of-Sale have a long and reliable history in helping our customers practice PCI Compliance within their business and avoid non-compliance fees.
PCI Compliance is necessary and it does require some work by the processors, so the charges aren’t a hoax, but there are some ways to keep costs down:
You can take on the responsibility of PCI Compliance yourself and forgo the processor’s fee; however, you will be on your own if issues arise. In today’s world of increasing e-commerce, it’s not recommended.
You can prevent the risk of non-compliance fees by working with companies that handle compliance internally. If they (not you) are the source of customer purchasing data, they are automatically in charge of it. Square and PayPal are examples of companies that handle all PCI Compliance, and we often account for these services when onboarding our customers and annually remind them to follow PCI Compliance.
At first glance, it may appear you are not charged by these companies for compliance and non-compliance, but in reality, compliance is still built into the standard fee for service; you just won’t see it specified. Still, you won’t be responsible for non-compliance fees since they own the data and are fully responsible for it.
The amount of compliance required of your business depends on how you take in payment and store customer data. Since processors have numerous clients and prefer not to get specific about it, they may charge a basic fee to cover most issues. This means you could be overpaying, so it’s a good area to evaluate this price of the packaged service vs. when it is priced individually.
There may be companies that don’t charge for compliance, but they are rare and may be suspect. In most cases, any free compliance is covered with higher fees in other areas.
How To Avoid Chargeback Fees
Chargeback fees should be avoided since they are more expensive than traditional transaction fees – especially if you are categorized as a “high risk” client. The first step is to avoid chargebacks in the first place.
Chargebacks can be the result of sales errors by you and your team, a misunderstanding by the customer, or the result of identity theft. Here are some ways to combat each.
Reduce Transaction Errors
Know when to stop a transaction. If an error occurs, push the cancel/hold button inside the transaction. If you are unable to do this, the transaction has already been claimed by the processing company.
Accurately process credits as credits and sales as sales.
Receive an Authorization Approval Code (AAC) before running a transaction.
Before batching your credit card processing at the end of the day, review all charges to verify all charges are correct and not duplicated. Keeping this as an active daily routine can prevent costly mistakes.
Ensure shipped items arrive to the customer to avoid disputes. Select the “ship product to billing address” to alleviate data error.
Keep Records Of Voids
Provide records to your customer of any proof of voids and include companion documentation for any disputes showing details of each purchase.
Decrease Risk Of Theft
If your processor charges more for card-not-present transactions, which most do, it’s because the risk of theft is higher. By requiring a driver’s license and signature and doing manually keyed-in card payments in person rather than over the phone, you lower the risk and enjoy lower charges per transaction.
Try to avoid non-qualified processing (when a card isn’t present or keyed or is missing billing information.) This type of processing is considered a high-risk factor, and processors charge accordingly.
When Possible, Run Orders On Debit Cards
Debit cards are considered a lower risk than credit cards and, in turn, the transaction rates are quite a bit less. This has mostly to do with the fact the purchase is a direct bank-to-bank transaction, but other factors make a difference such as PIN verification and signature requirements, bringing these purchases into a lower risk category. And typically the rates hold. You will still experience rate differences among debit cards related to how the purchases are conducted and who the issuing bank is.
Special incentives such as loyalty programs for debit card users help to easily boost profits.
A Final Thought On Keeping Processing Fees Low
As you can see, several variables can affect your processing rates. From fines to the pricing model your merchant service provider recommends, there’s a lot to consider.
As tempting as it can be to just try and find the cheapest option, be careful going with the lowest bidder. Remember, all POS and payment processing providers have to make some money to cover the costs of support their merchants. If you choose a processor with incredibly low fees, you run the risk of getting what you pay for when it comes to supporting your business.
If you’re not sure if you’re overpaying on your processing fees and want a free analysis, let our team review your current monthly statements and we’ll let you know if you’re getting a good deal or not.
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POS Solutions, Ecommerce Merchandising
Article | June 7, 2024
In today’s changing landscape for third-party logistics warehouses, the ability to evolve is more important than ever. One of the best ways to meet this challenge is to shift from traditional B2B fulfillment to ecommerce workflows. With more than 2 billion digital buyers worldwide, and the total global retail ecommerce sales estimated to reach $4.13 trillion this year, warehouses looking to adapt will be able to continue to help their customers meet the growing demands of online buyers. In this webinar, you will learn the best practices used by 3PLs looking to make the move to ecommerce or how to enhance their ecommerce operations.
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POS Solutions
Article | March 24, 2022
Not all credit card processing companies are created equal. Direct Processing Network gives your business access to an innovative global gateway processing solution for virtually any kind of card not present business, such as hotels, hospitality, cruising companies, ecommerce travel websites, and tourism agencies.
What does this mean for your business? Our gateway processing solution will help you grow your geographic reach by allowing your business to cross borders with ease.
You may be wondering, what exactly is a payment gateway? Simply put, a payment gateway is an e-commerce application service provided by credit card processing companies that enables card not present businesses to accept payments online. We make it easy for your customers to pay for their excursions, make reservations, or place an order on your ecommerce site.
While most credit card processing companies only have the ability to provide gateway processing in the United States or Canada, Direct Processing Network’s global payment processing solution allows your business expand its global footprint by connecting with consumers worldwide. With the ability to accept 150+ currencies, and over 530 local and alternative payment methods, anyone anywhere could be a potential customer! You’ll be able to convert more sales by offering them the convenience of an easy and customized checkout experience in their local language, where they can pay in their local currency.
Accept credit and debit cards, mobile payments, eWallets, bank transfer, prepaid and cash vouchers. Our innovative payment platform supports global pay-ins and pay-outs in all major currencies, enabling you to split, transfer, hold, and settle funds according to your unique business model.
The best part is that you can manage all global payment options through one simple integration. Streamline payment reconciliation and deep-dive into analytics to obtain higher approvals and revenues. By uniting payment consulting and payment technology, we help you optimize operating costs, increase acceptance rates and extract more revenue out of each transaction.
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