7 Ways to Maximize the Value of Point of Sale Transactions
February 18, 2025 - 11 minutes readThe right technology can turn POS transactions into memorable experiences.
In settings ranging from grocery stores and restaurants to E-commerce web stores and kiosks, millions of point of sale (POS) transactions are completed each day. So many, in fact, that the range and scope of POS experiences often go unnoticed by customers, unless they become the source of delay or frustration. Retailers view POS from the opposite side of the lens as they analyze data and improve POS performance to expand the benefits of each transaction beyond their face value.
Countless opportunities to refine offerings, personalize service, and deliver the products and services customers are looking for are contained within each vital POS interface. Advanced technology and inventory management software have created a foundation for next-level POS, but each retailer must find the best way to unlock the benefits for their own business.
“It’s very expensive to bring a new customer into the store. So do whatever you can do for your existing customers.” – Myles Kesten
A brief history of point of sale (POS)
The evolution of point of sale technology over many centuries took us from simple cash to electronic payment methods, barcoding technology, and integrated sales databases by the year 2000. In the decades since, wireless communication, cloud-computing, and digital payment options have opened new POS possibilities that were previously unimaginable. Additional outcroppings of POS technology that are changing the equation include:
- Improved authentication methods such as password-free biometrics to safeguard privacy and security
- Incorporation of artificial intelligence (AI) to improve customer recognition and personalization
- Pioneering “transactionless” retail stores that use sensing technology to track item movement
- Omni-channel commerce that unifies the customer experience between platforms
Omni-channel commerce has reshaped POS expectations for both customers and retailers. Unlike multi-channel commerce, where customers are offered a combination of loosely connected online and in-person shopping channels, omni-channel commerce combines all the available options into one seamless POS experience.
7 keys to optimizing the value of POS transactions
The emphasis on sales is universal and understandable, but many E-commerce and in-person retailers are realizing that the way each transaction is completed is at least as important as the dollar amount, especially when it comes to generating repeat business, garnering positive reviews, and enhancing brand value. Making the most of these POS opportunities involves a prudent combination of data analysis and technology deployment.
1. Segmentation and personalization
The mainframe technology that first connected data from cash registers to unified databases 40 years ago foreshadowed a time when POS data would become an important input to customer relationship management (CRM) platforms that compile and analyze customer data to improve outcomes. Segmentation is one of the ways this treasure trove of data is used to create logical groupings for targeted advertising and tailored E-commerce landing pages. Personalization takes this concept to the next level by providing unique content, pricing, and services based on individual behavior.
2. Make POS an “experience”
When a customer has a memorable shopping experience (in a positive sense) this can spell the difference between a one-time purchase and a brand loyalist. Even superior quality and pricing do not create emotional connections that permanently alter perceptions. The point of sale presents a golden opportunity to surprise and delight customers while solidifying the relationship. For example, a major purchase accompanied by a smooth and secure credit card transaction, a congratulatory call from customer service, and a generous discount voucher for future purchases is much more likely to produce a memorable experience than a conventional sale.
“Pretend that every single person you meet has a sign around his or her neck that says, ‘Make me feel important.’ Not only will you succeed in sales, you will succeed in life.” – Mary Kay Ash
3. Analyze data for promotions and sales
Segmentation, personalization, and customer experience converge when POS data is leveraged to create effective promotions and sales. Aggregate sales information combined with real-time inventory management data make it easier to identify products that should be marked down to reduce the risk of overstock, or included in special promotions designed to increase foot traffic and brand awareness.
Over 70% of consumers are more likely to do business with a brand that offers promotions. Personalized Email communication, sneak peeks, and special events based on insightful POS information should be utilized strategically to maintain this sense of customer entitlement.
4. Track staff performance
One of the most significant advantages of modern POS technology is the ability to instantly link sales data to individual team members. This feature provides obvious benefits when calculating bonuses, commissions, and spiffs, but modern POS platforms also help to improve overall sales performance in many other ways. In brick-and-mortar retail settings, this includes analyzing patterns and weaknesses to see where additional training may be needed, or evaluating the upselling and cross-selling success of each associate as they use their product knowledge to expand their potential.
5. Prioritize mobility
Of all the changes and upgrades redefining modern POS, the addition of mobility may be the most significant. The untethering of POS from fixed locations has been a boon for street vendors, independent contractors, and others who benefit from taking electronic sales capabilities directly to customers. The total value of mobile POS transactions worldwide is growing at an annual rate of 16.7%, demonstrating the significance of this trend. Mobile inventory management and POS platforms also reduce hardware expenses, minimize downtime caused by system issues, and make it possible to respond to inquiries more quickly.
6. Provide a consistent user interface
With the emergence of omni-channel commerce raising customer expectations for a more repeatable sales experience, a POS interface that maintains the same look, feel, and responsiveness across platforms gains importance. POS software developers are utilizing screen real estate more effectively to ensure form factors such as desktops/laptops, tablets, and phone screens provide a consistent and familiar user interface across platforms to improve adoption rates.
7. Integrate backend services
The backend hidden behind the POS software allows accounting, inventory management, and order management software solutions to work together harmoniously across all sales channels. On the other hand, “hodge podge” integration solutions developed by many small businesses can introduce system errors, delays, and manual processes that can turn prospective customers away or prevent the business from scaling. The best software solutions integrate back office and front office business functions to allow all inventory, sales, pricing, and shipments to be managed from a single interface.
POS challenges and pitfalls
Optimizing the value of POS transactions also means avoiding the potential challenges and drawbacks. Each business has its own unique products and workflows, which makes choosing the appropriate POS software a critical business decision. A robust POS system will make day-to-day operations such as order fulfillment, sales tracking, and employee performance evaluation smoother while avoiding POS pitfalls, which include:
- Poor integration with inventory management software
- Limited (or no) reporting features to help you review POS data and analysis
- POS terminals or data transfer processes with security vulnerabilities
- A lack of available software training and support
The most expensive POS software on the market isn’t necessarily the best, since small retailers have POS requirements that are much different than large chains or franchises. Your POS interface is the face of your business, so your choice of a POS provider should reflect your commitment to a consistently positive customer experience.
Maximizing the value of POS: Final thoughts
The power of POS has expanded quickly, leaving many of us with little time to catch our breath and review the possibilities. As we enter a new era in retail dominated by E-commerce and omni-channel commerce options, turning every sales transaction into a memorable experience and bringing value directly to the customer’s doorstep have never been more important.
The Agiliron all-in-one POS platform allows you to manage all your customers, orders, and inventory from anywhere, while integrating seamlessly with popular tools like QuickBooks, Shopify, eBay, and Amazon. Our brand new POS interface provides consistency between devices, laptops, and tablets while remaining fully compatible with previous versions.
Point of sale transactions are where the rubber hits the road for multi-faceted and mobile-friendly businesses. POS is also a source of information and value that should never go untapped. Contact us today and let our solution experts explain how our POS and inventory management technology can streamline your operations and delight your customers.
