Ecommerce and digital technology have radically transformed the way customers make purchases. Today, customers insist on speed, customization, simplicity, and consistency between sales channels. They expect stores to integrate digital tools for improved shopping.

In this article, we address point-of-sale (POS) digitization and provide suggestions for successful implementation.

Key takeaways

• POS digitization occurs when a business integrates digital tools into its physical locations.
  
• POS digitization benefits customers and businesses by improving speed, ease of use, connectivity, and operational efficiency.
  
• Digital tools used in-store include digital cash registers, self-order kiosks, electronic payment terminals (EPTs), retailer tablets, digital displays, and click-and-collect services.
  
• For successful POS digitization, it is important to research business requirements and customer habits, select the best-suited tools, and train staff.
  

What is POS digitization?

POS digitization means integrating digital tools into brick-and-mortar stores to modernize the customer experience and increase operational efficiency. This strategy combines the advantages of physical spaces—such as providing advice, a human touch, and product displays—with the strengths of digital environments—including automation, customization, and speed.

Integrating digital tools at the POS can improve the purchase process by making it more complete and linking it to the digital world. For example, with click and collect, customers can reserve products using their smartphones and then pick them up in-store. Using tablets, staff can easily verify product inventory while still engaging with customers.

Why digitize the POS?

Today, POS digitization is important to a business’s survival. In an increasingly connected world, many customers expect simple, quick, integrated, innovative, consistent, and multichannel shopping. They value personalized offers, independence, and automation. When in a store, many customers expect to interact with digital devices.

POS digitization also has advantages for businesses, including digital tools that can improve resource management, gather valuable data on customer habits, and generate more in-store traffic. Using digital tools in-store can be a winning strategy for all involved.

What digital tools are used in-store?

Digital cash registers, EPTs, retailer tablets, and interactive self-order kiosks are often the first tools adopted by a brand when digitizing their POS. Other solutions gaining in popularity include click and collect, smart labels, digital displays, and virtual reality tools:

• Digital cash registers
  Digital cash registers are replacing traditional registers with tactile and intuitive tablet interfaces. These cash registers can speed up collection and reimbursements, increase payment security, manage inventory, send electronic receipts, and integrate loyalty programs.
  
• EPTs
  Businesses can accept card payments on dedicated EPT devices. With Stripe Terminal, businesses can offer various payment methods, including installment payments and buy now, pay later (BNPL), while providing customers with multichannel purchasing options. In addition, Tap to Pay can transform iPhone or Android mobile devices into EPTs.
  
• Retailer tablets
  Retailer tablets improve in-store customer service. Teams can quickly access information that customers request—such as inventory or availability—and offer advice as needed.
  
• Self-order kiosks
  Customers can complete orders at interactive self-order kiosks without assistance from sales representatives. Kiosks can help reduce wait times, simplify purchases, increase sales, and make customers more self-sufficient.
  
• Click and collect
  Click and collect can generate in-store traffic. Customers reserve products online and pick them up at the store, which helps them avoid delivery fees. This approach unifies the purchase process and makes it possible to stay involved in the customer relationship.
  
• Smart labels
  Smart labels with quick-response (QR) codes provide additional information about products and reduce the amount of information displayed on physical labels. The customer can simply scan the QR code with a mobile device to access details about content, size, tips for use and care, and other supplemental information.
  
• Digital displays
  Digital displays capture customers’ attention at the POS. Businesses can highlight their products, special offers, testimonials, product demonstrations, and frequently asked questions.
  
• Virtual reality
  Virtual reality tools help customers visualize or test in-store products in an immersive environment. This can help increase trust and provide a path toward purchases.
  

What are the advantages of POS digitization?

POS digitization can lead to greater customer satisfaction, higher sales and revenue, significant time savings, and resource enhancements. It can be a growth driver for businesses in any industry. Integrating digital tools can allow businesses to do the following:

• Be responsive to customer expectations
  
• Simplify the sales process by reducing wait times and abandoned carts
  
• Improve the customer experience and customer retention
  
• Allow for increased self-sufficiency and personalization
  
• Improve employee productivity
  
• Generate more traffic and additional sales
  
• Modernize their image and brand
  
• Gather data on customer habits, which can help businesses create targeted marketing campaigns and suggest products and services that meet customer needs
  

Best practices for POS digitization

For successful POS digitization, businesses should consider the following steps:

• Audit their current processes
  
• Research customer habits to determine the best tools to use
  
• Select technology that can integrate into existing tools
  
• Create an implementation plan
  
• Deploy high-impact solutions
  
• Train staff
  
• Request feedback and adjust strategies accordingly