A Deep Dive into The POS Technology Trends of 2022 and The Future of Retail
The new year has arrived, and 2022 has more and more retailers asking themselves what kind of technology they should invest in. Our experts have reviewed industry trends and upcoming challenges and provided insight on how retailers can get ahead of competitors this year! Discover how to get a jumpstart on a successful new year with these seven technology trends in 2022 that are driving the future of retail.
1. Point of Sale Mobility for the Win
Point of sale (POS) mobility has been a hot trend for several years. The more accessible data is to sales associates on the sales floor, the greater the chances of success. Mobile POS makes it easier to assist customers as they shop, reduce bottlenecks at the checkout, and provide ease of use for staff performing inventory counts. In addition, many POS providers now offer a hybrid or fully operational cloud POS to take company operations mobile. With this newfound freedom, many retailers have seen growth in staff and customer satisfaction, greater productivity and efficiency, and an increase in revenues.
In addition, new technology has made it possible to take mobile POS solutions to the next level, using them beyond a store’s typical footprint. Businesses can now incorporate mobile delivery to grocery or pharmacy operations with Android mobile solutions. Businesses can effortlessly track orders once they are entered into the POS system and monitor them until they are delivered and payment is received. In addition, integrated mobile apps allow delivery drivers to quickly view orders, map their route and capture customer signatures.
2. Broader Payment Capabilities
In addition to cloud POS solutions offering mobility and alternative ways to check out, today’s POS technology must be able to accept a multitude of payment methods. The pandemic accelerated the adoption of more ways to pay, including mobile wallets and contactless payments. In addition, customers have come to expect fast and seamless payment at checkout. Therefore, it’s crucial to utilize a POS system with integrated payment solutions from the same company to reduce complications.
Your POS payment processing should accept the following payment types:
- eWIC and EBT
3. Inventory Optimization is Crucial
Managing inventory, monitoring customer buying trends, and utilizing data for accurate forecasting have become mission-critical for businesses. From supply chain disruptions to fast-paced changing customer demand, inventory has easily become the most complex part of retail businesses, and retailers need an advanced inventory solution integrated with their POS systems to keep up.
Inventory management has never been more critical; 2021 Black Friday data from Bluecore showed that 69% of consumers abandoned a brand completely due to out-of-stock products; this means not only do retailers risk losing a sale but also a loyal customer. Moreover, the volatile market has created new opportunities for retailers to profit from. Inventory turnover is high, and with better inventory management, retailers have a golden opportunity to sell more to their loyal customers and outshine their competitors and absorb their customer base as well.
4. Electronic Shelf Labels on the Rise
One trend expected to grow is the use of electronic shelf labels (ESL). These labels work with cloud-enabled POS systems to make price change and management easy, allowing retailers to change prices based on inventory and demand.
With today’s inventory struggles, pricing items properly has become a more challenging part of the retailer’s day-to-day activities. Inflation and demand fluctuate so often that retailers are constantly creating new shelf labels to maintain a competitive pricing strategy. ESLs offer a reprieve to retailers staying on top of pricing changes providing a simple and effective way to change pricing from their office, resulting in less printing, delivering savings, and reducing waste. In addition, ESLs create more opportunities for agile companies to win a competitive advantage.
5. Advanced Reporting and AI Become a Retail Staple
Another significant technology trend for 2022 is advanced reporting and artificial intelligence (AI) analytics. With POS data and AI, retailers can make better-informed decisions with historical and predictive analytics, paired with advanced modeling. AI Integration now provides retailers with better ways to collect data from customers, building better insights and helping retailers determine next moves when it comes to inventory management, pricing, customer trends, demand, and more.
Digitalization and reporting have become essential sources of competitive advantage. Retailers can now use their POS reporting integrations and machine learning to efficiently analyze large amounts of data directly from their cloud to get up-to-date models and reports. This year, companies that digitize their business will be more agile while competing to meet customer needs.
6. Integrated Customer Loyalty Is a Must Have
This year, customer loyalty will be even more fragile. Thanks to new trends that emerged during the pandemic, traditional customer management, and loyalty processes have been upended. Thankfully, retailers have new ways to improve customer experience with integrated customer loyalty programs. For example, data analytics paired with customer loyalty software allows retailers to generate promotions based on data already collected by the POS system.
Customer loyalty integrations may prove to be one of the most powerful tools on a POS for retailers this year. Keeping customers is cheaper than generating new ones. With customer fragility being higher than ever, now is the time to invest in customer marketing and loyalty campaigns.
Retailers should prioritize integrations that allow them to:
- Customize coupons based on items purchased
- Create personalized promotions based on demographics, trends, and more
- Add complimentary gifts with purchase
- Identify and recover customers that have stopped frequenting the establishment
- Create flexible promotions that boost transactions and keep customers coming back for more!
7. Continued Growth in Online Ordering and Storefront Pick up or Delivery
For store owners who were worried about their investments in online ordering and pickup and delivery, there is good news. Experts expect this trend to grow more popular in 2022. Even at times when pandemic case numbers dropped, consumers continue to use these convenient services.
Our experts expect grocery pickup options to expand with new models and operation processes built into employee job requirements. The growing popularity of pickup is prompting innovation from companies both big and small, so expect to find even small-town businesses utilizing this kind of technology. For larger companies, automated systems will handle more staging and transfer of completed online orders, and in some instances, be done remotely from the store.
Grocery and prescription delivery has become more affordable over the past few years, making it more accessible than ever via technology integrations, and innovations like autonomous vehicles that can expand these capabilities are being tested and rolled out in various markets.
The year 2022 promises more groundbreaking advances for retailers, with more opportunities to excel and improve their competitive advantages. Aligning with these technology trends can help retailers make it a successful year and position their businesses competitively for the long term.
If you’re ready for a cutting-edge POS system that will keep your business on-trend, contact Auto-Star today!