Loyalty Blogs

What Makes POS Promotions a Boon for Retail Businesses?

  • Posted on February 26, 2024 by Robert
  • Reading time about 6 minutes
Retail Businesses

Talking about retail businesses, there has been a tremendous shift from traditional POS systems into new ones with personalized in-store promotional experiences aligned with the evolving demands of today’s customers. Research in 2020 found that 59% of retailers prefer POS systems with omnichannel capabilities and another 52% wish to upgrade their POS systems.

As we witness the need for better POS technology, businesses must plan to integrate omnichannel POS promotions and loyalty programs to elevate the customer experience. In this blog will learn about the significance of a POS loyalty program and the advantages it offers to retail businesses.

Challenges Faced While Using Monolithic POS Systems

A Point of Sale (POS) system can be defined as the technology that facilitates smooth transactions between customers and businesses. Though many consider POS systems mainly for payments, it is multifunctional and allows brands to not only process sales but also manage inventory, track customer preferences, run promotions, and even loyalty programs.

Today, the POS market is flooded with various solutions offering different features. Many brands often use traditional POS systems creating challenges in terms of buying, integrating, and maintaining POS systems, especially for big enterprises with extensive shop networks. Using inflexible POS systems makes it difficult for businesses to customise and integrate thereby creating challenges such as

– Customization Problem

– Scaling Issue

– Tech Constraints

– Limit Omnichannel Capability

– Vendor Lock-In

These challenges can be overcome by using a composable approach for POS promotions where brands can build their POS system by combining individual components like payment processing, inventory management, loyalty promotion engines, etc. This gives freedom to customise as per the specific needs making it easier for businesses to adapt to technology changes and evolving business needs. The benefits of using a composable POS are creative displays for rewards, dynamic POS promotions, omnichannel promotion customization, scalable POS discounts, real-time customer insights & more.

Promotion Types Supported by POS

Modern POS systems integrated with promotion engines enable retail businesses to unlock new opportunities for running various types of promotions and loyalty programs, collect customer data, and offer exceptional omnichannel shopping experiences.

Before you invest in a customer loyalty management system, here are some of the various types of promotions that are supported by POS-

– Omnichannel Loyalty Programs

The best thing about omnichannel loyalty programs is that they combine online & offline interactions to reward & boost customer loyalty. Integrating loyalty programs into in-store POS enables sales staff to engage with customers through personalized deals and recommendations, thereby enriching the omnichannel shopping experiences.

– POS Discounts & Coupons

Integrating the physical POS terminal with the promotion engine streamlines the redemption process by allowing salespeople to easily scan and enter coupon codes during in-store transactions.

As customers can directly claim the discount codes at the counter, it makes transactions quicker and allows customers to enjoy an interconnected shopping journey as they can receive and redeem coupons in-store and online.

– BOGO Promotions

Another great strategy to boost sales is BOGO promotions and when such promotions are coupled with a modular POS system, the administration becomes more streamlined.

The POS terminal will simplify the execution of BOGO deals in face-to-face transactions allowing salespersons to add complimentary items to the shopping cart along with real-time inventory updates.

– Time-Limited Discounts

When it comes to limited-period offers or flash sales, using a POS system helps in automatically applying time-limited discounts encouraging customers to make swift purchasing decisions.

This not only helps in increasing sales within the specified time but also adds an exciting element to the shopping experience as customers feel the urgency to seize the deal as early as possible.

– Tiered Pricing

Tiered pricing with a POS system enables businesses to set flexible prices as per the order quantities, which encourages customers to purchase more by offering higher discounts with the purchase of larger quantities.

Using a POS system helps to streamline the handling of tiered pricing structures, which ensures a fair approach providing benefits to both customers and businesses with faster transactions & precise discount allocations.

Advantages of Running POS Promotions & Loyalty Programs

Listed below are some of the main benefits of running Point of Sale (POS) promotions and loyalty programs for your business-

– Enhanced Customer Experience

Making use of promotion through the Point-of-Sale ensures a seamless customer journey across all touch points which helps in building higher customer loyalty. Customers appreciate the convenience and ease of receiving and redeeming discount codes across multiple channels.

– Data-Based Adaptability

The best thing about integrating customer data is that it helps businesses to get valuable customer insights enabling them to adapt and personalise the promotions based on the customer-specific preferences.

– Cross-Selling & Upselling

Another benefit of running a POS promotion and loyalty program is that it enables businesses to use omnichannel promotions. This allows them to provide tailor-made discounts and recommendations by analyzing customer history and preference, thereby unlocking new opportunities for cross-selling and upselling.

– Higher Sales Conversion

As there are effortless transitions between online and in-store purchases, or vice versa, businesses can achieve higher sales conversion rates as customers can easily move through the buying journey without any hassle.

– Flexibility

Point-of-sale promotions with an omnichannel approach offer enhanced flexibility to adapt evolving marketing strategies quickly as per the changing market trends, which helps in making businesses remain relevant and competitive.

Final Takeaways

In the end, we can say that integrating POS promotions into your loyalty program can be a game-changing opportunity for retailers who wish to prioritize top-tier omnichannel experiences. Making use of this promotion will not only ensure seamless customer journeys but also build customer loyalty in the long run.

If you are planning to implement POS promotion in your retail business you must ensure that you choose the right promotion and loyalty engine to make your program a success. Novus is a renowned retail loyalty solution provider that enables businesses to build dedicated loyalty solutions with POS promotions & achieve customer loyalty effortlessly. Book a demo to learn how Novus can add value to your retail business.

  • © 2024