ResourcesHow smart POS systems are changing the customer experience in retail
Jul. 07, 2024
Retail Management

How smart POS systems are changing the customer experience in retail

Share:

Subscribe to the newsletter

See how Priority works for you

Summarize with AI:

Smart POS: retail's customer experience revolution

People these days compare their online shopping experiences with their in-store experiences. As a result, every brand needs to ensure that customers check out smoothly and that their shopping experience is enjoyable and hassle-free.
It's clear that customers' in-store experience is crucial for every brand's success.

Traditional POS systems do not deliver the kind of experience that shoppers want today.
They make customers wait in the queue for long, do not accept all payment options, and lack personalized service. On the other hand, a smart POS helps retailers deliver a personalized shopping experience assisted by a mobile-first approach. This ensures an excellent in-store experience that helps brands remain competitive and relevant.

What is a smart POS system?

A smart POS system is a point-of-sale solution that combines hardware and cloud-based software to manage sales, inventory, and customer data in real time. It supports mobile payments, integrates with ERP or CRM platforms, and provides analytics to help retailers streamline operations and improve decision-making.

How does a smart POS system work?

A smart POS system uses all the modern technologies, such as cloud computing and mobile accessibility, supported by a centralized platform.
It also lends itself to third-party integrations, which allow businesses to add multiple functionalities necessary for their unique requirements.
It collects data in real time, and delivers relevant insights while shoppers are in the store.

This helps your staff to provide a personalized and context-oriented in-store experience that customers will enjoy.

Smart POS vs traditional POS

Feature

Traditional POS

Smart POS

Hardware

Fixed terminals that are bulky

Flexibility of hardware choices

Setup and maintenance

Complicated, and requires specialized support

Cloud-based setup, and automatic updates.

Redundancy

Usually does not support all network types, and requires electricity to remain connected. Backup devices may not be compatible.

Compatible with Wi-Fi and cellular networks. Battery-operated POS ensures connectivity during power outages. 

Cost

Upfront cost is frequently high, and ongoing expenses can discourage buyers. 

Affordable as a result of variable pricing models. 

Features

Basic payment processing and checkout.

Advanced payments and checkouts, CRM, inventory management, employee management, accounts, etc. 

Payment options

Limited. You may only accept cash and cards. 

Accept mobile payments, digital wallets, reward points, gift cards, etc. in addition to traditional payment methods. 

Customer experience

Slow and poorly personalized.

Quick, attentive, and personalized.

Scalability

Difficult to scale up.

Scalable and flexible.

Data & security

Basic security.

Advanced and real-time security measures. 

 

Schedule a no-obligation call with one of our experts to get expert advice on how Priority can help streamline your operations.

Integration with headless commerce

Integration with headless commerceheadless commerce facilitates a single source of truth supported by a centralized configuration. This not only results in simplified operations, but also helps provide a seamless customer experience across multiple touchpoints and channels. In addition, simple integrations with third party apps turbocharge the existing functionalities of your smart POS. Other benefits of headless commerce include easy extensibility and the ability to scale at will – a sure way to future-proof your business.

Integration with headless commerce allows your staff to deliver a highly personalized in-store shopping experience without affecting backend processes. If customers have special requests at the time of checkout, your staff can quickly honor them while updating only the most relevant information in the backend. This flexibility allows greater freedom for retail workers to focus on customers' in-store experience.

3 Ways smart POS enhances the customer journey

Faster checkouts with diverse payment options

Customers increasingly expect versatile payment options. From being able to use Apple Pay or Google Pay to redeeming loyalty points and shopping with their gift cards, customers can make use of diverse payment options.

A smart POS helps retailers to offer multiple payment options at the store, akin to how online touchpoints allow the same. This helps retailers to provide a seamless shopping experience in-store, which is the primary role of a POS.

As multiple payment options are enabled, it is easy for customers to request refunds, make returns, or claim errors in billing post-purchase. All this leads to a superior checkout experience and an enhanced customer journey.

Personalized service and targeted promotions

Customers, especially those who belong to younger demographics, enjoy highly personalized shopping experiences. From detecting accurate personas based on previous interactions to understanding customers at a deeper level, thanks to rich insights, a smart POS system helps your staff deliver a personalized shopping and checkout experience for customers when in store.

These insights also provide the opportunity to enroll customers into loyalty programs that resonate with their beliefs. Let's not forget that brands that align with customers' beliefs tend to do better in generating revenue.

Omnichannel fluidity

Omnichannel shopping is crucial for every business's retail success.
It allows customers to switch between platforms and continue their shopping journey from where they left off.
When it comes to in-store experiences, omnichannel shopping experience needs to go a step further.

This is where a smart POS plays a significant role.
It helps to create omnichannel fluidity, through which retailers can enable both omnichannel order collection and management.
This is enabled by a centralized platform that transmits data in real time so that backend processes are omnichannel.

Benefits of smart POS for retailers

Increased operational efficiency

A smart POS is a data powerhouse that effectively connects frontend and backend operations. As a result, it generates insights that allow retail staff to enhance their operations in real-time. From processing payments quickly to eliminating common issues such as understocking and overstocking, a smart POS helps business owners control all retail operations from a single interface.

Improved inventory management and availability

A smart POS not only processes different kinds of products but also helps staff manage inventory and check product availability in real-time. This allows them to process payments and deliver products later if there are availability issues. As a result, customers can easily find a product they want to purchase.

Data-driven decision making

Marketing in a rapidly evolving world is no easy task — it requires companies to be sensitive to customers' evolving needs and ensure that the buying experience is frictionless and enjoyable.

A smart POS helps retail staff and store managers make quick decisions about enhancing customers' shopping experience in real time. From suggesting complimentary items to providing accurate information regarding items in stock, a smart POS system helps your staff make data-driven decisions.

Enhanced employee productivity

Most smart POS systems also come equipped with basic employee management features, which allow store managers to track performance, appraise employees, and identify hurdles.

Smart POS tools also allow employees to clock in their time at the store and mark attendance as necessary. This helps your frontline workers focus on delivering a great customer experience instead of worrying about timesheets and attendance tools.

Improved in-store buying experience

At the heart of an innovative POS system's charm is its ability to enhance the in-store buying experience. Different POS interfaces exist, such as kiosks, tablets, mobile phones, and POS machines.

All these allow your staff to deliver a superior checkout experience to shoppers without making them wait in line or trying multiple payment methods before something works. This ease and comfort with which they shop ensures that they will remember the buying experience as something pleasant.

Features of smart POS

Core features:

  • Cloud-Based architecture: Allows you to access the POS system from anywhere. Automatic updates eliminate the need for bulky on-site servers and in-house IT professionals.
  • Intuitive interface:Reduces the need for extensive training and encourages employees to use the POS system proactively.Multiple Payment Options: Customers can pay using Google or Apple Pay, gift cards, and reward points, as well as credit and debit cards, cash, and online banking platforms.
  • Inventory management: Staff can easily manage inventory and eliminate issues related to overstocking and understocking. In addition, a smart POS allows for real-time updates to stock and order fulfillment status.
  • CRM: Access customers' previous interactions, purchase history, and demographic details. Use rich insights to provide personalized and data-backed customer service and promotions.
  • Mobile: A smart POS system supports connectivity redundancy and ensures frontline staff can access the POS system on phones and tablets, regardless of the type of connectivity available at any given time. This allows them to process payments and enhance customers' shopping experience seamlessly.

Advanced features:

  • Analytics and reporting: Access reports, forecasts, and insights related to customer behavior, purchase trends, and in-store shopping patterns. Use these insights to make data-driven decisions.
  • Loyalty programs: Implement personalized loyalty programs that ensure higher levels of customer satisfaction and improved sales-related metrics. Encourage brand loyalty and repeat purchases.
  • Omnichannel integration: Allow customers to pick up where they left off and enable a seamless shopping experience across multiple touchpoints. Ensure the synchronization of frontend and backend operations.
  • Employee management: Allow employees to record their attendance and log hours from the POS app. Access collaboration and team management features on the POS to enhance in-store operations.
  • Ecommerce integrations: A smart POS bridges the gap between in-store shopping and online retail. It helps integrate various e-commerce features within the POS, allowing customers to choose between Buy Online, Pickup In-Store (BOPIS), Buy Online, Return In-Store (BORIS), and other modes of purchase.
  • Mobile POS capability: Staff can easily process payments and complete sales on their mobile devices, regardless of where they are. This is suitable in large stores and also among frontline workers who make sales on the go.

What to consider when choosing a smart POS system

Business needs and size:

Choose a flexible, scalable, and agile system. It must accommodate both small and large staff numbers.

Features and functionality:

Consider all the unique features your business may require and adopt a system that meets all your requirements.

Budget and pricing:

There are both upfront costs and post-purchase expenses. Make sure that your chosen smart POS is within your budget considerations.

Ease of use and scalability:

Every tech solution needs to be easy to use and scalable. Choose a POS system that is simple and easy to use to complement existing workflows.

Security and reliability:

Customer data needs to be protected, and compliance reports need to be sent. Hence, choose a tool that emphasizes security and reliability.

Support:

After-sales support is crucial when choosing the right smart POS. While you're at it, choose a tool that also supports post-purchase training.

Related resources

Article

Cloud-based point of sale system explained

These days, more businesses are opting for cloud-based point-of-sale systems because they want to manage most or all of their operations online.

Article

What is an integrated pos and how does it work?

An integrated POS (point of sale) system is a hardware and software suite that unifies different retail functions, like CRM (customer relations management), inventory control, and sales and transaction processing, into a single tool.

Article

Guide to omnichannel inventory management

You may have already heard of omnichannel shopping, which enables customers to have a seamless shopping experience across devices and touchpoints regardless of their buying journey.

See how Priority works for you


Frequently Asked Questions

Smart POS Systems: Features & Capabilities

What is a smart POS system?

A smart POS system is a point-of-sale solution that combines hardware and cloud-based software to manage sales, inventory, and customer data in real time. It supports mobile payments, integrates with ERP or CRM platforms, and provides analytics to help retailers streamline operations and improve decision-making. Source

How does a smart POS system work?

A smart POS system uses cloud computing and mobile accessibility, supported by a centralized platform. It enables third-party integrations, collects data in real time, and delivers relevant insights while shoppers are in the store, helping staff provide personalized and context-oriented experiences. Source

What are the core features of a smart POS system?

Core features include cloud-based architecture, intuitive interface, multiple payment options (Google/Apple Pay, gift cards, reward points, credit/debit cards, cash, online banking), inventory management, CRM, and mobile accessibility for staff. Source

What advanced features does a smart POS system offer?

Advanced features include analytics and reporting, loyalty programs, omnichannel integration, employee management, ecommerce integrations (BOPIS, BORIS), and mobile POS capability for sales on the go. Source

How does smart POS improve the customer experience compared to traditional POS?

Smart POS systems offer quick, attentive, and personalized service, support diverse payment options, enable faster checkouts, and provide real-time insights for staff to deliver tailored experiences. Traditional POS systems are slower, less flexible, and lack personalization. Source

What payment options are supported by smart POS systems?

Smart POS systems support mobile payments, digital wallets, reward points, gift cards, credit/debit cards, cash, and online banking platforms, providing flexibility for customers. Source

How does smart POS enable omnichannel shopping experiences?

Smart POS systems create omnichannel fluidity by enabling order collection and management across platforms, synchronizing frontend and backend operations, and allowing customers to continue their shopping journey seamlessly. Source

How does smart POS improve inventory management?

Smart POS systems allow staff to manage inventory and check product availability in real time, process payments, and deliver products later if needed, reducing understocking and overstocking issues. Source

What role does analytics play in smart POS systems?

Analytics in smart POS systems provide reports, forecasts, and insights into customer behavior, purchase trends, and shopping patterns, enabling data-driven decisions for marketing and operations. Source

How does smart POS enhance employee productivity?

Smart POS systems include employee management features, allowing staff to clock in, track performance, and collaborate, freeing them to focus on customer experience rather than administrative tasks. Source

Smart POS Systems: Use Cases & Benefits

Who can benefit from using smart POS systems?

Retailers of all sizes, from small businesses to large chains, can benefit from smart POS systems. They are especially valuable for businesses seeking to improve customer experience, streamline operations, and enable omnichannel shopping. Source

How does smart POS support personalized service and promotions?

Smart POS systems use customer data and insights to deliver personalized shopping experiences, targeted promotions, and loyalty programs that resonate with individual preferences and behaviors. Source

What are the main benefits of smart POS for retailers?

Main benefits include increased operational efficiency, improved inventory management, data-driven decision making, enhanced employee productivity, and a superior in-store buying experience. Source

How does smart POS help with refunds and returns?

Smart POS systems enable multiple payment options and centralized data, making it easy for customers to request refunds, make returns, or claim billing errors post-purchase, leading to a better checkout experience. Source

How does integration with headless commerce benefit smart POS users?

Integration with headless commerce provides a single source of truth, centralized configuration, seamless customer experience across channels, easy extensibility, and scalability for future-proofing your business. Source

What should businesses consider when choosing a smart POS system?

Businesses should consider their needs and size, required features, budget and pricing, ease of use, scalability, security, reliability, and after-sales support when selecting a smart POS system. Source

How does smart POS support mobile and remote operations?

Smart POS systems support mobile devices, allowing staff to process payments and manage operations from anywhere, ensuring business continuity and flexibility. Source

What security measures are included in smart POS systems?

Smart POS systems include advanced, real-time security measures to protect customer data and ensure compliance with industry standards. Source

Priority Software: Product Information & Features

What products and solutions does Priority Software offer?

Priority Software offers cloud-based business management solutions including ERP systems, retail management, hospitality management, and school management platforms. ERP, Retail Management, Hospitality Management, School Management

What are the key features of Priority Software's ERP platform?

Key features include comprehensive ERP functionality, modular design, cloud-based scalability, no-code customizations, advanced analytics, automation, and industry-specific modules for retail, manufacturing, healthcare, and hospitality. Source

Does Priority Software support integrations with other platforms?

Yes, Priority Software offers over 150 plug & play connectors, unlimited API connectivity, embedded integrations, and supports ODBC, RESTful API, and SFTP for legacy migration. Source

Does Priority Software provide an open API?

Yes, Priority Software provides an Open API for seamless integration with third-party applications, enabling custom integrations tailored to business needs. Source

Where can I find technical documentation for Priority Software?

Technical documentation for Priority ERP is available on the Priority ERP documentation page, covering features, industries, and supported products.

What professional and implementation services does Priority Software offer?

Priority Software provides professional and implementation services to ensure smooth onboarding and optimal utilization of its solutions. Details are available on the Professional Services page.

Does Priority Software offer partnership opportunities?

Yes, Priority Software offers technology partnerships, AWS partnerships, and a dedicated marketplace for extended solutions. Learn more on the Partnership page.

What is the Priority Market?

Priority Market is a dedicated marketplace for extended solutions, integrations, and APIs, allowing customers to discover new capabilities and technology partners. Visit Priority Market

Priority Software: Use Cases, Pain Points & Customer Success

What problems does Priority Software solve for retailers?

Priority Software addresses lack of real-time insights, operational inefficiencies, inventory inaccuracies, disconnected customer experiences, and high IT costs by providing centralized management, automation, and real-time data. Source

How does Priority Software help with inventory management?

Priority optimizes inventory levels, improves forecasting and demand planning, and enhances supply chain efficiency, resulting in happier customers and increased revenue. Source

How does Priority Software address operational inefficiencies?

Priority Software automates workflows, provides AI recommendations, and centralizes views to improve operations across departments and locations, reducing manual errors and boosting efficiency. Source

What pain points do Priority Software's customers commonly express?

Customers report challenges such as disconnected systems, complex order fulfillment, inventory inaccuracies, ineffective marketing, high IT costs, and difficulty introducing new capabilities. Priority Software addresses these with centralized data, automation, and tailored solutions. Source

Who are some of Priority Software's notable customers?

Priority Software is trusted by companies such as Ace Hardware, ALDO, Adidas, Toyota, Flex, Dunlop, GSK, Teva, Outbrain, and Checkmarx. Customer List

Can you share specific case studies or success stories?

Yes, Priority Software has helped Solara Adjustable Patio Covers accelerate workflows, Nautilus Designs achieve 30% growth in order volume, and Cowtown Retail Chain gain complete process visibility. More case studies are available on the Case Studies page.

What feedback have customers given about Priority Software's ease of use?

Customers praise Priority Software for its intuitive interface and user-friendly design. Reviews highlight its efficiency, quick learning curve, and satisfaction with customer support. Priority ERP has a rating of approximately 4.1/5 on G2. Source

What is the target audience for Priority Software?

Priority Software serves retail business owners, operations and supply chain managers, sales and marketing managers, CFOs, IT managers, and companies in retail, manufacturing, healthcare, pharmaceuticals, and technology sectors. Source

Why should a customer choose Priority Software?

Priority Software stands out for its integration simplicity, single source of truth, cloud-based scalability, no-code customizations, advanced analytics, automation, industry-specific features, and recognition by Gartner and IDC. Source

How does Priority Software compare to competitors?

Priority Software offers a modular, all-in-one solution with no-code customizations, advanced analytics, automation, and industry-specific features, outperforming competitors that require complex integrations and lack tailored functionality. Source

Support, Implementation & Technical Requirements

What support options are available for Priority Software customers?

Priority Software provides global support, including onboarding, training, and ongoing assistance. Customers can access resources and contact support via the Support page.

How does Priority Software ensure security and compliance?

Priority Software includes advanced security measures and supports compliance with standards such as FDA, GDPR, SOX, ISO9000, ISO27001, and SOC 2 Type 2. Source

What technical requirements are needed to implement Priority Software?

Priority Software is cloud-based and requires internet connectivity. It supports mobile devices, tablets, and desktops, and offers integration options via API, ODBC, and SFTP. Source

How long does it take to implement Priority Software?

Implementation timeframes vary based on business size and complexity. Priority Software provides structured onboarding and professional services to ensure efficient deployment. Source

Where can I book a demo of Priority Software?

You can schedule a demo of Priority Software by visiting the Book a Demo page.